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JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc.

W&T Offshore Inc. · Oct 1, 2014 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 1
    Johnson Rice 2014 Energy Conference October 1, 2014 New Orleans, LA 0
  2. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 2
    W&T Offshore Overview (NYSE: WTI) Financial Summary Track Record of Growth Financial Overview Twelve Months Ended 6/30/14 12/31/13 Revenue 1,007.0 984.1 Adjusted EBITA (1) 637.0 606.7 Dividend Yield 4.9% 4.9% 1) See the slide titled…
  3. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 3
    Premium Assets in Three Prolific Basins Deepwater Gulf of Mexico 575,000 gross acres (287,000 net acres) 38% of daily production 1P reserves of 25.2 MMBoe + 1.9 MMBoe of 1P reserves for Neptune (from Woodside) 2P reserves of 41.5…
  4. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 4
    High Impact Projects Drive Long-Term Growth Deepwater success will add significant value over next several years Recent large discoveries yield multi-year reserve additions Provides increased visibility of future growth Planned…
  5. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 5
    2014 Capital Expenditures Budget Increased to 635 million Revised Capital Budget Allocation Increased Budget For Quality, High Impact Projects Deepwater GOM development at Big Bend Acquisitions: 9% and Dantzler. Revised budget…
  6. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 6
    Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside (1) Figures reflect year-end 2013 SEC price case. (2) Probable and possible reserves with no…
  7. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 7
    Proved Reserve Bookings Example 7
  8. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 8
    3P Reserves of 222 MMBoe Provides Long Term Value 63% liquids 62% liquids 68% liquids 88% liquids 61% liquids 55% liquids Substantial probable and possible reserves provide Yet to be included in this analysis are all of the…
  9. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 9
    Net Asset Value Estimate Current stock price is 13.34 (as of 9/16/14 close) Our estimate of Net Asset Value per share (1) is substantially greater than the current stock price More upside in full probable and possible value and all…
  10. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 10
    DEEPWATER Gulf of Mexico 10
  11. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 11
    Deepwater Acquisitions Drive Growth Through acquisitions and lease sales, W&T now holds interests in 575,000 gross / 287,000 net acres in the deepwater of the Gulf of Mexico - 40% of total net offshore acres Total Newfield Woodside…
  12. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 12
    Significant Growth in the Deepwater GOM Between 2009 and 2013, average deepwater production has grown nearly 700% and proved reserves(1) are up 320%. Gross Acres have increased 378% from 2009 to now. Deepwater Net Daily Deepwater Net…
  13. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 13
    Well Positioned in the Deepwater GOM MC 538/582 Medusa VK 822/823 Virgo VK 783/784 Tahoe Cum Gross Prod: 63.0 MMBoe Cum Gross Prod: 21.5 MMBoe Cum Gross Prod: 95.5 Aver Gross Prod: 6.3 MBoepd Aver Gross Prod: 2.5 MBoepd MMBoe Aver…
  14. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 14
    Deepwater Success MC 698 Big Bend MC 698 Big Bend (working interest 20%) Located about 165 miles SSE of New Orleans, LA Gross resource estimate of 30 to 65 MMBoe with potential additional 30 50 MMBoe (P75 P25)(1) MC 698 Big…
  15. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 15
    Deepwater Success MC 782 Dantzler MC 782 Dantzler (working interest 20%) Located about 160 miles SSE of New Orleans, LA Two oil discovery wells o The Dantzler 2 appraisal well MC 699 encountered 122 net feet of crude oil…
  16. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 16
    Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired in 2013 (WI: 15%; NRI: 15%*) Current daily production of roughly 1,100 Boepd net to W&T (85% oil) Medusa spar is also the host facility for the W&T owned…
  17. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 17
    Neptune Field Neptune Field (WI: 20.0%, NRI: 17.5%) Atwater Valley 574, 575 and 618 Current estimated daily production rate of 1,700 Boe, net to W&Ts interest Water depth of 6,200; TLP is situated on Block 574 where the water…
  18. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 18
    Neptune Field and Other Woodside Acquisition Upside Neptune Upside Drilling Northern half of field has never been tested due to salt overhang. Significant upside exists to potentially double the size of the field. Gas-lift…
  19. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 19
    Multi Well Potential at Ewing Bank 910 EW 910 Field Current Drilling Plans Water depth of 560 feet Initial two well drilling program in a 50% / 50% JV, Cumulative field production of 15 with potential for third well thereafter, in…
  20. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 20
    Deepwater GOM Production Growth Outlook Deepwater production, predominantly oil, is expected to grow over 50% to a rate of 23,500 Boe per day in January 2016(2) Mboe per day Repeatable deepwater growth We anticipate 1 - 2…
  21. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 21
    SHELF Gulf of Mexico 21
  22. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 22
    Well Positioned on Shelf Fairway Field & SS 208 Yellowhammer Plant Cum Gross Prod: 453.3 MMBoe Recent acquisition of remaining Aver Gross Prod: 6.7 MBoepd 35.7% WI for 18.2MM HI 111 Company Operated Cum Gross Prod: 80.0 MMBoe Aver…
  23. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 23
    GOM Shelf Exploration at Ship Shoal 349 SS 349 Mahogany Continued Sub-Salt Exploration & 2014 Activity at SS 349 Development Success (WI: 100%, NRI: 83.3%) SS 349 A-17 SS 349 A-6 Mahogany production 76% oil Exploration well…
  24. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 24
    Development GOM Shelf SS 349 Mahogany A-16 Well Bring SS 359 A14 Log forward production from zones SS 349 identified above the T-sand in the A- A Platform A 14 well M sand (WI: 100%, NRI: 83.3%) Targets the M, N, O, and P sand…
  25. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 25
    Mahoganys prolific P & T Sand Mahogany's primary field pay P Sand has cumulatively produced 22.5 MMBO since 1997 from multiple wells T Sand is 3,000 feet deeper and better quality than P Sand Upside potential up-dip from incremental…
  26. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 26
    Mahogany A-14 T-Sand Strong Production Current Rate is 2,825 Boe net (3,391 gross) Production is 76% crude oil Cumulative production 1,175,000 Boe net Steady production indicates strong water drive and/or large reservoir Bottom hole…
  27. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 27
    Exploration GOM Shelf EC 321 A-2 ST (WI: 100%, NRI: 83.3%) EC 321 A & B platforms Summary Targeting new reserves in the Lentic 1 sand by drilling a side-track from the existing A-2 well bore EC 321 A-2 ST Target well depth 8,500…
  28. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 28
    PERMIAN BASIN 28
  29. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 29
    Permian Basin: Overview of Asset and Activity Permian Basin (WI: 100%, NRI: 78%) 32,000 net acres with 26,000 highly contiguous net acres in the heart of the Northern Midland Basin portion of the Permian Basin 2014 Capital Budget…
  30. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 30
    Permian Basin Northern Midland Basin Portion Potential Horizontal Targets W&Ts approximately 28,000 gross acre leasehold in the Yellow Rose Field is located in the Northern Midland Basin, slightly east of the basin axis. Deep…
  31. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 31
    Stacked Lateral Drilling W&T is moving towards multi-well pad drilling with stacked laterals to efficiently unlock the value of the stacked pay resource potential. 31
  32. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 32
    Significant Activity Near W&T Acreage 32
  33. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 33
    Permian Basin Horizontal Well Fracture Stimulation Currently evaluating both hybrid and slickwater fracture stimulation treatments to stimulate our horizontal wells On the last five horizontal wells we have performed two slickwater…
  34. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 34
    Untapped Reserve and Inventory Growth Potential 34
  35. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 35
    Liquidity Available for Further Growth Revolving bank credit facility of 1.2 billion with an 750 million borrowing base Borrowing base(1) at 750 million with facility maturity of Nov. 2018 Improved terms on the credit facility…
  36. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 36
    Drilling Within Cash Flow Historically, we have not borrowed money for drilling ( in millions) 36
  37. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 37
    Returning Cash to Investors W&T has paid three normal quarterly dividends of Dividends and Yield 0.10 per share in 2014 (Paid in March, June 2014 and 8.0% September 2014) 4 year average yield is 5% 7.0% 6.0% Four year average…
  38. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 38
    How We Provide Value to Our Investors Continued focus on organic growth activity Active exploration program providing significant potential for reserve additions Disciplined approach: drill within cash flow Balanced Asset…
  39. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 39
    Net Asset Value Estimate Current stock price is 13.34 (as of 9/16/14 close) Our estimate of Net Asset Value per share (1) is substantially greater than the current stock price More upside in full probable and possible value and all…
  40. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 40
    APPENDIX 40
  41. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 41
    Reconciliation of Net Income to Adjusted EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Twelve Months Ended Six Months Ended June 30, Year Ended…
  42. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 42
    2014 Guidance ( in millions) Third Quarter Full Year Estim ated Production 2014 2014 Oil and NGLs (MMBbls) 1.9 - 2.1 8.7 - 8.9 Natural Gas (Bcf) 9.4 - 10.4 47.0 - 48.4 Total (Bcfe) 21.1 - 23.3 99.0 - 102.0 Total (MMBoe) 3.5 - 3.9…
  43. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 43
    2013 Year End Proved Reserves Classification of Proved Reserves Oil Natural Gas NGLs Natural Gas Equivalent Equivalent % of total PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe) reserves (Millions) Proved developed producing…
  44. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 44
    Financial Commodity Derivatives (1) 2014 Swaps Brent Swaps WTI Swaps LLS Swaps Barrels Per Avg Swap Barrels Per Avg Swap Barrels Per Avg Swap Month Day Price Day Price Day Price September 1,800 97.38 - - 9,000 97.69 October…
  45. JOHNSON RICE 2014 ENERGY CONFERENCE – W&T Offshore Inc. – slide 45
    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 46

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