GHS 100 Energy Conference June 24 - 25, 2014 Chicago, IL
W&T Offshore Overview (NYSE: WTI) Financial Summary Asset Summary Financial Overview Twelve M onths Ended Deepwater Gulf of Mexico 3/31/14 12/31/13 615,000 gross acres Revenue 979.4 984.1 39% of daily production Adjusted EBITDA…
2013 Provided Continued Growth in EBITDA, Reserves, and Production Production (MMboe) Adjusted EBITDA 19.0 ( in millions) 18.0 650.0 17.0 600.0 550.0 16.0 24% growth 33% growth 500.0 15.0 450.0 14.0 400.0 13.0 350.0 12.0…
Total Reserves Continue to Grow PDP reserves PV-10 increased to 1.9 billion during 2013 Proved, Probable and Possible reserves total 221.9 MMBoe and do not fully account for recent deepwater success and multiple target benches on our…
Probable Reserves: Incremental to Proved Probables Reserves: Upside to Proved Reserves Percentage by Offshore Field No incremental capital cost 27.4 MMboe Unrisked 837 Million in PV-10 Unrisked Spread over 29 offshore fields…
W&Ts Acquisition History (as a public company) Kerr-McGee Total Yellow Rose Newfield Woodside 1.1 billion 115 million 205 million 51 million 397 million 242 lease blocks Matterhorn 78 lease blocks Neptune 21,900 net acres 100…
2014 Capital Expenditures Budget of 450 million Focused upon quality, high impact projects Deepwater GOM development activity at Big Bend and likely Dantzler New exploration activity in the deepwater GOM Mahogany exploration and…
Focusing on a Long-Term Outlook Deepwater activity will provide a significant impact in 2015 and beyond as projects come online Successful Deepwater exploration projects (Big Bend,Troubadour and Dantzler) Acquisition of Medusa…
Well Positioned in the Deepwater GOM VK 822/823 Virgo VK 783/784 Cum Prod: 21.3 MMBoe Tahoe Cum Prod: 95 MMBoe MC 538/582 Medusa MC 243 Cum Prod: 62.4 MMBoe Matterhorn Cum Prod: 24.4 MMBoe MC 800 Gladden Cum Prod: 4.1…
The Benefit of Diverse Capital Allocation - 2014 Blend of projects from all three of our primary basins support a sustainable long-term organic growth strategy All major projects are focused on oil production and multi-year reserve…
Significant Growth in the Deepwater GOM Between 2009 and 2013, deepwater production has grown nearly 800% and proved reserves(1) are up 320% MBoe Deepwater Net Production MMBoe Deepwater Net Reserves 8,000 30 7,000 25 6,000 20…
Wide Azimuth Data Better Imaging for New Opportunities Salt bodies Available WAZ data Undeveloped Leases Developed Producing Leases 11
Deepwater Success MC 698 Big Bend MC 698 Big Bend (working interest 20%) Gross resource estimate of 30 to 65 MMBoe (P75 P25)(1) Targeting first production in late MC 698 Big Bend 2015 (est. peak rate of 22,000 Boepd) (1) Sub-sea…
Deepwater Success MC 782 Dantzler MC 782 Dantzler (working interest 20%) Gross resource estimate of 55 to 95 MMBoe (P75 P25 case)(1) Over 85% oil MC 699 Troubadour Peak rate est. 36 MBoepd(1) Dantzler 2013 discovery Planned…
Development Deepwater GOM Third party tie-back contributes 500K per MC 243 Matterhorn month in processing fees (WI: 100%, NRI: 100%*) A-5 Well: The well logged 220 of measured pay (one of the thickest A sand intervals in the…
Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired in 2013 (WI: 15%; NRI: 15%*) Current daily production of roughly 900 Boepd net to W&T (85% oil) Medusa spar is the host facility for the W&T owned Gladden…
Woodside Acquisition Through a subsidiary, acquired Woodside Energy (USA) Inc.s interests in the one producing deepwater field (Neptune) on Atwater Valley 574, 575 and 618 and 24 additional deepwater blocks for a purchase price of 51…
Neptune Field Drilling & Upside Neptune SB03 - Atwater Block 574 (WI: 20.0%, NRI: 17.5%) Summary Targeting two main field pays with a rig to mobilize and spud this July (WD 6,266) Target well depth - 18,200 TVD Estimated total…
2014 Gulf of Mexico Shelf Activity East Cameron 321 A1 ST Ship Shoal 349 Mahogany 3 wells A15, A16, A17 Current Shelf drilling projects (4) estimated total cost 80 million Planned recompletes (19) estimated total cost 29…
GOM Shelf Exploration at Ship Shoal 349 SS 349 Mahogany 2014 Activity at SS 349 Continued Sub-Salt Exploration & Development Success SS 349 A-17 SS 349 A-6 (WI: 100%, NRI: 83.3%) Exploration well targeting new P-sand Recomplete…
Development GOM Shelf SS 359 A14 Log SS 349 Mahogany A-16 Well SS 349 A Platform A Bring forward production from M sand zones identified above the T-sand in the A-14 well (WI: 100%, NRI: 83.3%) N sand A4 ST Summary Targets the M, N,…
Exploration GOM Shelf EC 321 A & B platforms EC 321 A-2 ST (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lentic 1 sand by drilling a side- track from the existing A-2 well bore EC 321 salt A-2ST Target well depth…
Yellow Rose: Overview of Asset and Activity Yellow Rose (WI: 100%, NRI: 78%) Summary: 26,000 highly contiguous net acres in the heart of the North Midland Basin 2014 Capital Budget allocation of 130 million Current drilling program…
The Growing Importance of Yellow Rose Quick History for Yellow Rose MBoe Yellow Rose Net Sales Initially purchased in 2011, took over vertical 1400 development program from previous operator 1200 2012 Activity 1000 W&T drilled…
Permian Basin Potential Horizontal Wells Current industry target benches Multiple Horizontal Opportunities = Huge Upside Growth We recently completed the first Wolfcamp B well 3+ target zones Upper Spraberry on our acreage (currently…
Significant Activity Near W&T Acreage WELLS DRILLED AND TESTED A SM Energy Tatonka 1H 549 Boepd (5,560 lateral) B FANG Kent County School 17-1H 541 Boepd (8,543 lateral) C FANG Mabee Breedlove 22-1H 24 hr IP: 1,029 / 30 day…
Untapped Reserve Growth Potential (as of year end 2013) Booked Proved Unbooked Unbooked Net Targets / Bench Locations (PUDs) Locations Potential, MMBOE 80 acre vertical 110 66 5.6 40 acre vertical 52 246 20.9 20 acre vertical 0 673…
W&T EHS Performance Upper Tier Performance 2013 Environmental Metric 2013 Safety Performance W&T in Upper Tier Environmental Performance W&T in Upper Tier Safety Performance for GOM for GOM GOM E&P Industry: 1.70 2012 GOM E&P…
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…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adjusted EBITDA CAPEX, Excl. Acquisitions 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2013 29
Returning Cash to Investors W&T has paid two Dividends and Yield normal quarterly 1.20 1.11 8.0% dividends of 0.10 per 4 year average yield is 5.0% 7.0% share in 2014 1.00 6.0% (Paid in March and June 2014) 0.80 0.79 0.78 0.80…
W&T Operations Summary Continued Drilling and Development at SS359 Field Drilling throughout 2014 . And continued oil production growth in 2014 and 2015 Drilling EC321 Nearing TD; multiple pay zones logged; Oil production growth add…
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 Development…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Twelve Months Ended March 31, Three Months Ended March 31, Year Ended…
2014 Guidance ( in millions) Second Quarter Full Year Estim ated Production 2014 2014 Oil and NGLs (MMBbls) 2.2 - 2.4 8.7 - 8.9 Natural Gas (Bcf) 11.4 - 12.6 47.0 - 48.4 Total (Bcfe) 24.3 - 26.9 99.0 - 102.0 Total (MMBbls) 4.1 - 4.5…
2013 Year End Proved Reserves Classification of Proved Oil Natural Gas Reserves NGLs Natural Gas Equivalent Equivalent % of Proved PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe) Reserves (Millions) Proved developed producing…
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 July 1,800 97.38 3,000 97.00 9,000 97.69 August 1,800…
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
GHS 100 Energy Conference June 24 - 25, 2014 Chicago, IL
W&T Offshore Overview (NYSE: WTI) Financial Summary Asset Summary Financial Overview Twelve M onths Ended Deepwater Gulf of Mexico 3/31/14 12/31/13 615,000 gross acres Revenue 979.4 984.1 39% of daily production Adjusted EBITDA…
2013 Provided Continued Growth in EBITDA, Reserves, and Production Production (MMboe) Adjusted EBITDA 19.0 ( in millions) 18.0 650.0 17.0 600.0 550.0 16.0 24% growth 33% growth 500.0 15.0 450.0 14.0 400.0 13.0 350.0 12.0…
Total Reserves Continue to Grow PDP reserves PV-10 increased to 1.9 billion during 2013 Proved, Probable and Possible reserves total 221.9 MMBoe and do not fully account for recent deepwater success and multiple target benches on our…
Probable Reserves: Incremental to Proved Probables Reserves: Upside to Proved Reserves Percentage by Offshore Field No incremental capital cost 27.4 MMboe Unrisked 837 Million in PV-10 Unrisked Spread over 29 offshore fields…
W&Ts Acquisition History (as a public company) Kerr-McGee Total Yellow Rose Newfield Woodside 1.1 billion 115 million 205 million 51 million 397 million 242 lease blocks Matterhorn 78 lease blocks Neptune 21,900 net acres 100…
2014 Capital Expenditures Budget of 450 million Focused upon quality, high impact projects Deepwater GOM development activity at Big Bend and likely Dantzler New exploration activity in the deepwater GOM Mahogany exploration and…
Focusing on a Long-Term Outlook Deepwater activity will provide a significant impact in 2015 and beyond as projects come online Successful Deepwater exploration projects (Big Bend,Troubadour and Dantzler) Acquisition of Medusa…
Well Positioned in the Deepwater GOM VK 822/823 Virgo VK 783/784 Cum Prod: 21.3 MMBoe Tahoe Cum Prod: 95 MMBoe MC 538/582 Medusa MC 243 Cum Prod: 62.4 MMBoe Matterhorn Cum Prod: 24.4 MMBoe MC 800 Gladden Cum Prod: 4.1…
The Benefit of Diverse Capital Allocation - 2014 Blend of projects from all three of our primary basins support a sustainable long-term organic growth strategy All major projects are focused on oil production and multi-year reserve…
Significant Growth in the Deepwater GOM Between 2009 and 2013, deepwater production has grown nearly 800% and proved reserves(1) are up 320% MBoe Deepwater Net Production MMBoe Deepwater Net Reserves 8,000 30 7,000 25 6,000 20…
Wide Azimuth Data Better Imaging for New Opportunities Salt bodies Available WAZ data Undeveloped Leases Developed Producing Leases 11
Deepwater Success MC 698 Big Bend MC 698 Big Bend (working interest 20%) Gross resource estimate of 30 to 65 MMBoe (P75 P25)(1) Targeting first production in late MC 698 Big Bend 2015 (est. peak rate of 22,000 Boepd) (1) Sub-sea…
Deepwater Success MC 782 Dantzler MC 782 Dantzler (working interest 20%) Gross resource estimate of 55 to 95 MMBoe (P75 P25 case)(1) Over 85% oil MC 699 Troubadour Peak rate est. 36 MBoepd(1) Dantzler 2013 discovery Planned…
Development Deepwater GOM Third party tie-back contributes 500K per MC 243 Matterhorn month in processing fees (WI: 100%, NRI: 100%*) A-5 Well: The well logged 220 of measured pay (one of the thickest A sand intervals in the…
Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired in 2013 (WI: 15%; NRI: 15%*) Current daily production of roughly 900 Boepd net to W&T (85% oil) Medusa spar is the host facility for the W&T owned Gladden…
Woodside Acquisition Through a subsidiary, acquired Woodside Energy (USA) Inc.s interests in the one producing deepwater field (Neptune) on Atwater Valley 574, 575 and 618 and 24 additional deepwater blocks for a purchase price of 51…
Neptune Field Drilling & Upside Neptune SB03 - Atwater Block 574 (WI: 20.0%, NRI: 17.5%) Summary Targeting two main field pays with a rig to mobilize and spud this July (WD 6,266) Target well depth - 18,200 TVD Estimated total…
2014 Gulf of Mexico Shelf Activity East Cameron 321 A1 ST Ship Shoal 349 Mahogany 3 wells A15, A16, A17 Current Shelf drilling projects (4) estimated total cost 80 million Planned recompletes (19) estimated total cost 29…
GOM Shelf Exploration at Ship Shoal 349 SS 349 Mahogany 2014 Activity at SS 349 Continued Sub-Salt Exploration & Development Success SS 349 A-17 SS 349 A-6 (WI: 100%, NRI: 83.3%) Exploration well targeting new P-sand Recomplete…
Development GOM Shelf SS 359 A14 Log SS 349 Mahogany A-16 Well SS 349 A Platform A Bring forward production from M sand zones identified above the T-sand in the A-14 well (WI: 100%, NRI: 83.3%) N sand A4 ST Summary Targets the M, N,…
Exploration GOM Shelf EC 321 A & B platforms EC 321 A-2 ST (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lentic 1 sand by drilling a side- track from the existing A-2 well bore EC 321 salt A-2ST Target well depth…
Yellow Rose: Overview of Asset and Activity Yellow Rose (WI: 100%, NRI: 78%) Summary: 26,000 highly contiguous net acres in the heart of the North Midland Basin 2014 Capital Budget allocation of 130 million Current drilling program…
The Growing Importance of Yellow Rose Quick History for Yellow Rose MBoe Yellow Rose Net Sales Initially purchased in 2011, took over vertical 1400 development program from previous operator 1200 2012 Activity 1000 W&T drilled…
Permian Basin Potential Horizontal Wells Current industry target benches Multiple Horizontal Opportunities = Huge Upside Growth We recently completed the first Wolfcamp B well 3+ target zones Upper Spraberry on our acreage (currently…
Significant Activity Near W&T Acreage WELLS DRILLED AND TESTED A SM Energy Tatonka 1H 549 Boepd (5,560 lateral) B FANG Kent County School 17-1H 541 Boepd (8,543 lateral) C FANG Mabee Breedlove 22-1H 24 hr IP: 1,029 / 30 day…
Untapped Reserve Growth Potential (as of year end 2013) Booked Proved Unbooked Unbooked Net Targets / Bench Locations (PUDs) Locations Potential, MMBOE 80 acre vertical 110 66 5.6 40 acre vertical 52 246 20.9 20 acre vertical 0 673…
W&T EHS Performance Upper Tier Performance 2013 Environmental Metric 2013 Safety Performance W&T in Upper Tier Environmental Performance W&T in Upper Tier Safety Performance for GOM for GOM GOM E&P Industry: 1.70 2012 GOM E&P…
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…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adjusted EBITDA CAPEX, Excl. Acquisitions 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2013 29
Returning Cash to Investors W&T has paid two Dividends and Yield normal quarterly 1.20 1.11 8.0% dividends of 0.10 per 4 year average yield is 5.0% 7.0% share in 2014 1.00 6.0% (Paid in March and June 2014) 0.80 0.79 0.78 0.80…
W&T Operations Summary Continued Drilling and Development at SS359 Field Drilling throughout 2014 . And continued oil production growth in 2014 and 2015 Drilling EC321 Nearing TD; multiple pay zones logged; Oil production growth add…
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 Development…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Twelve Months Ended March 31, Three Months Ended March 31, Year Ended…
2014 Guidance ( in millions) Second Quarter Full Year Estim ated Production 2014 2014 Oil and NGLs (MMBbls) 2.2 - 2.4 8.7 - 8.9 Natural Gas (Bcf) 11.4 - 12.6 47.0 - 48.4 Total (Bcfe) 24.3 - 26.9 99.0 - 102.0 Total (MMBbls) 4.1 - 4.5…
2013 Year End Proved Reserves Classification of Proved Oil Natural Gas Reserves NGLs Natural Gas Equivalent Equivalent % of Proved PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe) Reserves (Millions) Proved developed producing…
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 July 1,800 97.38 3,000 97.00 9,000 97.69 August 1,800…
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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