Morgan Stanley Leveraged Finance Conference June 4, 2015, New Orleans, LA
W&T Offshore Overview (NYSE: WTI) Financial Overview Reserves Mix Year Ended ( in millions) December 31, 2014 13% 35% Oil Revenue 948.7 Adjusted EBITDA (1) 569.2 Nat. Gas 51% 1) See the slide titled Reconciliation of Net Income…
Premium Assets in Three Prolific Basins Deepwater Gulf of Mexico 533,000 gross acres (287,000 net acres) 38% of daily production 1P reserves of 28.9 MMBoe 2P reserves of 50.9 MMBoe Substantial upside from numerous projects (Big…
High Impact Projects Drive Long-Term Value Deepwater success drives long-term value Recent large discoveries yield multi-year reserve additions Provides increased visibility of future growth Current deepwater projects provide for…
Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside 3.0 Billion 1.2 Billion Total PV-10 Created with Primarily PNP / Incremental Value…
Probable and Possible Reserves Fuel Growth to Proved Reserves and Future Value 5
3P Reserves of 247 MMBoe Provides Long Term Value 65% liquids 68% liquids 68% liquids 89% liquids 79% liquids 68% liquids Substantial probable and possible reserves provide Our reserves as of year end 2014 do not include that…
2015 Spending Reduction Program ( in millions) Reduction Program The Company expects significant reductions in 2015 spending. Currently we see: Capital Expenditures down by 69% Lease Operating Expenses down by 15% General &…
2015 Capital Budget Focused on GOM Deepwater 2015 Budget of 200 Million Onshore: 7.5% Budget is designed for flexibility to respond 14.9 million Seismic, Leasehold & to market conditions and fund key projects Other: 0.3% .6…
DEEPWATER Gulf of Mexico
Deepwater Acquisitions Drive Growth Through acquisitions and lease sales, W&T now holds interests in 533,000 gross / 287,000 net acres in the deepwater of the Gulf of Mexico, approximately 41% of total net offshore acres Total…
Significant Growth in the Deepwater GOM Between 2009 and 2014, average deepwater production has grown nearly 700% and proved reserves(1) are up 800%. Gross Acres have increased 348% from 2009 to now. Deepwater Net Daily Deepwater…
Deepwater GOM Overview MC 538/582 Medusa VK 822/823 Virgo Cum Gross Prod: 22.0 MMBoe VK 783/784 Tahoe Cum Gross Prod: 64.7 MMBoe Cum Gross Prod: 97.4 MMBoe Avg. Gross Prod: 4.4 MBoepd Avg. Gross Prod: 1.7 MBoepd Avg. Gross Prod:…
Deepwater Success MC 698 Big Bend MC 698 Big Bend (WI: 20%; NRI: 16.70%) 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) Targeting…
Deepwater Success MC 782 Dantzler MC 782 Dantzler (WI: 20%; NRI: 16.25%) Located about 160 miles SSE of New Orleans, LA Two oil discovery wells o The Dantzler 2 appraisal well encountered 122 net feet of crude oil pay in two…
Rio Grande Loop System Enhances Return on Investment Big Bend Thunder Hawk Platform Dantzler 1 & 2 Rio Grande Loop System Subsea development tie-back from Big Bend and Dantzler fields Three vessels are currently in…
Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired via the Callon Transaction in 2013 (WI: 15%; NRI: 15%*) April 2015 average daily production of roughly 653 Boepd net to W&T (88% oil) Medusa spar is also the…
Growth at Neptune Field Neptune Field (WI: 20.0%, NRI: 17.5%) Atwater Valley 574, 575 and 618 April 2015 estimated gross average daily production rate of 10,319 Boe (1,806 Boe net to W&Ts interest) (88% oil) Water depth of 6,200;…
Neptune Field and Other Woodside Acquisition Upside Neptune Upside Drilling Northern half of field has never been tested due to the difficulty of seismic imaging under the salt overhang. Significant upside exists to potentially…
Multi Well Potential at Ewing Bank 910 Current Status EW 910 Field Initial two well drilling program in a 50% / 50% joint venture, Water depth of 560 feet with potential for third well thereafter, in 2015 Cumulative field production…
GOM Deepwater MC 243 Matterhorn Mississippi Canyon 243 WI: 100% Cumulative Production (through April 2015): 26.0 Million Boe Acquired in 2010 Active optimization and enhancement since acquisition April 2015 average rate: 4,300…
MC 243 Matterhorn Injection 2014 Injection Response MATTERHORN PHASE I WATERFLOOD OIL RATE (Bopd) Low Risk Exploitation Optimization and Investment; successful water flood has set path for reserves expansion, value creation and…
Deepwater GOM Production Growth Outlook 30 Deepwater production, predominantly 25 oil, is expected to grow over 50% to a rate of 27,800 Boe per day in December 2015(2). This is up from our 20 previous estimate of 23,500 Boe per…
SHELF Gulf of Mexico
Well Positioned on the Shelf Fairway Field & SS 208 Yellowhammer Plant Cum Gross Prod: 454.6 MMBoe Cum Gross Prod: 126.2 MBoe Avg. Gross Prod: 1.1 MBoepd Avg. Gross Prod: 6.6 MBoepd HI 111 Company Operated Company Operated Cum Gross…
2015 Seismic Data Reviews Driving Long Term GOM Shelf Offshore Program Review of advanced seismic data plus recent drilling success on GOM Shelf, especially at our Mahogany Field, are creating further opportunities Eight wells have…
Exploration Success at Ship Shoal 349 (Mahogany) Since 2011 Mahogany Wells Drilled Before SS 349 Mahogany and After Mid-2011 Continued Sub-Salt Exploration & Development Success (WI: 100%, NRI: 83.3%) Have substantially expanded…
Mahoganys Prolific P & T Sand Mahogany's primary field pay P Sand has cumulatively produced approximately 30 million Boe since 1997 from multiple wells T Sand is 3,000 feet deeper and better quality than P Sand Upside potential for…
Mahogany A-14 T-Sand Strong Production Current Rate is 2,384 Boe net (2,861 gross) Production is 73% crude oil Cumulative production as of 4/30/15 1,691,000 Boe net (2,029,000 Boe gross) Steady production indicates strong water drive…
Mahogany A-16 Strong Production from P-Sand Initial Production on 10/28/15 Current Rate is 2,040 Boe net (2,448 gross) Production is 79% crude oil Cumulative production 373,000 Boe net (448,000 Boe gross) as of 4/30/15 Cum Net…
PERMIAN BASIN Onshore
Quality Acreage in the Permian Basin 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 Current drilling program is…
Multiple Target Formations Create Additional Value in the Permian Basin 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…
Stacked Lateral Drilling Offers Efficiency and Cost Reduction W&T expects to pursue multi-well pad drilling with stacked laterals once its Yellow Rose drilling program resumes. Multi-well pad drilling will efficiently unlock…
Significant Activity Near W&T Acreage SM Energy Tatonka 1H WTI Beaujolais A Unit 1302H 1 18 18 24hr: 549 Boepd (90% oil) Waiting on Results FANG KCSL 1701H FANG Brown-Martin 2101H 2 1 19 24hr: 541 Boepd (92% oil) 24hr: 136 Boepd…
Untapped Reserve and Inventory Growth Potential Preliminary Unbooked Net Net Drilled Net Booked Unbooked Potential Target / Bench Locations Locations Locations (Net) (MMBOE) 80 Acre Verticals 168 59 - - 40 Acre Verticals 68 101 - -…
Liquidity Status Revolving bank credit facility of 1.2 billion with an 500 million borrowing base Borrowing base (1) (2) at 500 million with facility maturity of November 2018 Revised terms (1) to credit facility agreement As of May…
Appendix
2015 Guidance ( in millions) Second Quarter Full Year Estimated Production 2015 2015 Oil and NGLs (MMBbls) 2.1 - 2.3 9.3 - 10.3 Natural Gas (Bcf) 10.5 - 11.7 44.0 - 48.6 Total (Bcfe) 23.1 - 25.5 100.0 - 110.2 Total (MMBoe) 3.9 -…
Reconciliation of Net Income to Adjusted EBITDA ( in thousands) The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Three Months Ended Twelve Months March 31,…
2014 Year End Proved Reserves Natural Gas Clas s ific ation of Pr ov ed Res er v es NGLs Natural Gas Oil Equivalent Equivalent % of total PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe) reserves (Millions) Proved developed…
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