W&T Offshore, Inc. 2009 RBC Capital Markets Global Energy & Power Conference New York, New York June 2, 2009
Company Highlights Reserve Data 2007 2008 Proved Reserves (Bcfe) 639 491 Proved Developed Reserves (Bcfe) 395 334 Proved Developed % 62% 68% Oil and Liquids % 52% 54% Highlights Field Statistics (as of 12/31/08) Ticker WTI…
W&Ts Business Strategy Current economic environment creates opportunities Acquisitions Drilling Maintain liquidity Cash flow generation remains high priority Strong cash position and established line of credit Continued focus on…
25 Years of Operating Successfully in the Gulf of Mexico
Why We Focus on the GOM GOM basin has substantial known reserves 9 year exploration drilling success rate of 78% History of replacing production Maintained steady reserve life Established infrastructure on shelf History of…
Proved Reserve Geographic Diversification Proved Reserves by Area Our geographic diversity provides additional protection during a hurricane 57% Western Central Eastern 16% 27% Mobile Viosca Knoll Main W. Main Pass Western…
Proved Reserves by Year 800.0 Oil & NGLs (Bcfe) 0-2008 G R 2 00 11 % C A 735.2 Natural Gas (Bcf) 638.8 600.0 334.0 Bcfe 491.5 491.1 467.5 306.0 444.7 400.0 357.5 263.3 213.6 240.0 275.6 138.6 245.7 207.4 200.0 91.2…
3P Reserves 2008 3P reserves increased 14% over 2007 2007 2008 Proved Proved 37% 54% Possible 30% Possible Probable Probable 37% 26% 16% Oil & NGLs Gas Total Oil & NGLs Gas Total Mbo MMcf MMcfe Mbo MMcf MMcfe Proved…
3P Reserves from 2008 Discoveries W&T grew 3P reserves 14% from 19 explorations wells in 2008 128.2 Bcfe Cumulative 3P adds from exploration program W&T drills wells at optimal recovery points, that may not add the most proven…
Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 10 10
Constant Reserve Life Profile W&T has had an average R/P ratio of 6.3 over the last 9 years History shows that W&T has been able to replace reserves in various environments High 3P reserves helps support steady long-term R/P ratio…
Production Profile 8 140.0 Oil & NGLs (Bcfe) C AG R 2000-200 Natural Gas (Bcf) 19% 126.5 120.0 99.2 49.8 97.9 100.0 Full-Year Guidance 82.4 106.4 82.4 Bcfe 79.0 80.0 71.1 38.8 41.9 26.2 29.1 60.0 54.2 24.5 42.3 14.8…
Development and Exploration Success In 2008, W&T continued its strong performance with total average success rate of 77% Development Drilling Exploration Drilling 9 100% 100% 100% 100% 100% 35 100% 100% 86% 8 30 86% 86% 86%…
Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited assets Key Acquisition Factors Example 1. Cash Flow Strong current production rates, including several behind pipe,…
Disciplined Acquisition Strategy Creates Value W&T has a very active A&D team that evaluates transaction beyond the GOM In 2008, W&T visited or evaluated over 2 billion of acquisition opportunities in data rooms or private…
Major Projects
Green Canyon 646 Daniel Boone 1st Quarter 2009 Update Flowline and umbilical Right of Ways approved by MMS Flowline weld and umbilical complete Offshore installation bids awarded Technips Deep Blue scheduled to mobilize in mid to…
SS349 Mahogany- Update & Deep Prospect Field ranks 1 in PV-10% at 20% Field ranks 1 in net MBoe at 27% of total Proved SALT A-11 deepest well in Field 18,380 TVD Average gross rate since A-11 P Sand recompletion: 1,525 Bopd and…
Profitability Initiative Goal: Develop and implement strategies to significantly improve cash flow and profitability from W&T operated properties in 2009 Reviewing active and inactive wellbores for upside Revenue enhancement -…
Financials
Drill Within Cash Flow W&T has a long history of funding capital expenditures through internally generated cash flow Capital Expenditures ( in millions) 900 884 820 800 Adj. EBITDA CapEx 700 642 658 589 600 500 472 396…
W&T Liquidity - Opportunities Cash balance at April 30, 2009 227 million New Borrowing Base = 405.5 million Credit Facility maturity is 2012 Revolver availability at 5/5/09 = 200 million Paid 205 million Term Loan B with draw on…
2009 Guidance and Capital Budget Estimated Production Full-Year 2009 Crude oil (MMBbls) 6.5 8.4 Natural gas (Bcf) 43.6 56.1 Total (Bcfe) 82.8 106.4 Operating Expenses ( in millions) Full-Year 2009 Lease operating expenses 205 245*…
Key Drivers Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects Flexibility Sufficient Liquidity 27 27
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Year Ended December 31, 1Q 2000 2001 2002 2003 2004 2005 2006 2007 2008…
W&T Offshore, Inc. (NYSE: WTI) Nine Greenway Plaza Suite 300 Houston, TX 77046 Main line - 713-626-8525 Fax - 713-626-8527 Investor Relations - 713-297-8024 www.wtoffshore.com www.investorrelationswtoffshore.com
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