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March 2017 29th Annual ROTH Conference – W&T Offshore Inc.

W&T Offshore Inc. · Mar 14, 2017 · 34 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. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 1
    29th Annual ROTH Conference March 14, 2017 Creating Value in the Gulf of Mexico
  2. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 2
    Premium Assets in the Gulf of Mexico SEC Case NYMEX Case Proved reserves (at 12/31/16): 1P 74.0 MMBoe 77.6 MMBoe NYSE: WTI 2P 113.0 MMBoe 117.3 MMBoe Oil & liquids % of proved reserves 55% 56% PV-10 (NYMEX only) 1.2 Billion…
  3. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 3
    Key Operating Characteristics of W&T Operating safely and Operate 70% of our production effectively in the Gulf of Over 70% of our acreage is held by production Mexico for over 30 years 100% drilling success over last 3 years Track…
  4. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 4
    Strategy For Value Creation in a Lower Oil Price Environment Production is expected to increase in 2017 with 125 million capital program Sustaining production while living within cash flow Focusing on inventory of lower risk/higher…
  5. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 5
    Steady Production on Lower Capital Expenditures Includes production associated with a 2017 capital budget of 125 million Combined with new projects, existing wells with incremental 2P and 3P reserves (that require no additional capex)…
  6. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 6
    Cost Reduction Efforts Continue Spending Reduction Program /Boe 25.00 19.61 19.94 20.00 15.60 15.00 13.81 10.00 5.00 - 2013 2014 2015 2016 General & Administrative Base Operating Expense Insurance Premiums…
  7. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 7
    Extensive Organic Growth Opportunity Set Adding Value From Opportunities at Producing Fields Deep Inventory of organic growth opportunities 36 projects make up nearly 1 billion in drilling/CAPEX inventory 90-165 MMBoe net unrisked…
  8. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 8
    Gulf of Mexico A Prolific & Unique Basin The Permian Basin on Steroids, with Better Porosity and Permeability Highly prolific basin with multiple stacked pay Zone 1 Many of our fields have stacked pay Zone 2 Stacked reservoirs offer…
  9. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 9
    Quality When it Matters The GOM has Superior Rocks Better Porosity and Permeability Allow for Better Flow and Production Rates GOM perms 1 darcy. Permian perms in nano-darcies Generates higher cash flow velocity and delivers fast…
  10. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 10
    Probable and Possible Reserves May Be Produced at No Cost Strong drive mechanisms allow production of reserves with fewer drilled wellbores 11
  11. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 11
    Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside Probable & Possible Reserves Add Value Economically 1.5 Billion PV-10 Total Possibles…
  12. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 12
    W&T Reserves Appreciation Actual Results SIGNIFICANT RESERVE GROWTH FROM INITIAL BOOKINGS 59.0 Current 1P Initial 1P booking 54.2 GROSS EUR RESERVES (MMBoe) Current 1P Initial 2P booking 34.5 33.2 31.8 Current 1P Initial…
  13. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 13
    Acquisition Criteria A Proven Approach The Gulf of Mexico Offers a Large Opportunity Set Properties generating cash flow Strong current production rates Opportunity to reduce operating expenses Financeable Large portion of…
  14. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 14
    History of Creating Long-Term Value from GOM Acquisitions Woodside Total USA Newfield 55 million 115 million 206 million Current net production of 1,500 Boe/d from Neptune & 24 Paid out in Aug. 2011 Paid out in Nov. 2014 additional…
  15. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 15
    Operations and Opportunities
  16. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 16
    Key Near-Term Drilling Opportunities Low Risk / High Margin LEGEND Developed Leases Undeveloped Exploration Leases MP 243 Matterhorn Execute de-risked western waterflood Extension field drilling SS 349/359 Mahogany…
  17. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 17
    2017 Capital Plan 2017 Budget: 125 million Estimated to increase production 4% over 2016 volumes absent any acquisitions Projected six to eight wells to be drilled Balanced program of exploration and development Budget includes…
  18. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 18
    Exploration Success at Ship Shoal 349 (Mahogany) Since 2011 Mahogany Wells Drilled Before and After Mid-2011 SS SS349 Mahogany 349 MahoganyContinued Sub-Salt Continued Sub-Salt Exploration Exploration& Development &…
  19. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 19
    Mahoganys Prolific P & T Sands Mahogany's primary field pay P Sand has cumulatively produced 31 MMBoe since 1997 from multiple wells T Sand is 3,000 feet deeper and better quality than P Sand The A-18 success in 2016 solidifies the…
  20. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 20
    SS 349 MAHOGANY Drilling Inventory Salt A-16 ST All productive sands are not shown Multi-target well: P, O, etc. P Attic Well Very low risk as the P/Q were penetrated by the A-18 drill; A-14 low cost as its a ST drill;…
  21. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 21
    EW910: Successful Phase I Campaign Building Inventory ST320 A2 & EW 910 Expansion A3 wells Low F&D costs; Deepwater platform 100% rate of return; low risk Characterization: exploration; Producing field stacked targets Important…
  22. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 22
    MC 243 Matterhorn Generating Value through Technology MATTERHORN WATERFLOOD MC243 A-2 Recent success implementing Eastern Area A sand waterflood Increased reserves through 10,000 Incremental reserves enhanced technology and…
  23. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 23
    Matterhorn Generating Shareholder Value through Advanced Technology and Optimization of Assets Eastern Waterflood Successful implementation of Enhanced Recovery Project Project: Waterflood high quality reservoir to improve sweep,…
  24. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 24
    VK823 VIRGO: Building the Inventory of Opportunities Benefits at Virgo De-risked drilling with 3D seismic, amplitudes and strong analog offsets Identified PUD drilling locations VIRGO Central Low risk extension (exploration) PROVED…
  25. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 25
    Potential Additional Drilling Opportunities LEGEND FAIRWAY Developed Leases Plant life extension 2 identified exploratory targets Undeveloped Exploration Leases SS 350/360 MP 286 100% working interest Impact oil drill target…
  26. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 26
    Financial Overview
  27. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 27
    Recent Events Enhance Liquidity EW 910 A-5 EW 910 A-8 first production first Reinitiated Sale of production drilling at Term loan Yellow Rose Mahogany (376 MM) Mahogany financing A-18 (300 MM) completed 2Q 2015 3Q 2015 4Q…
  28. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 28
    Exchange Transaction Significantly Delevers Balance Sheet Exchange transaction resulted in debt reduction of over 400 million Annual cash interest expense has been decreased by approximately 50 - 60 million December 31, 2016 June 30,…
  29. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 29
    2017 Guidance ( In millions) First Quarter Full Year Production 2017 2017 Oil and NGL's (MMBbls) 2.0 - 2.3 8.3 - 9.2 Natural Gas (Bcf) 10.2 - 11.3 41.4 - 45.7 Total (Bcf) 22.5 - 24.9 91.1 - 100.6 Total (MMBoe) 3.7 - 4.1 15.2…
  30. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 30
    EBITDA Comparison EBITDA Margins Historically Around 60% ( in thousands) Year Ended December 31, 4Q16 2016 2015 2014 2013 2012 Net Income (loss) 16,483 (249,020) (1,044,718) (11,661) 51,322 71,984 Income tax expense (benefit) 1,017…
  31. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 31
    Appendix
  32. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 32
    YE 2016 Reserves NYMEX vs. SEC Pricing YE 2016 - SEC Pricing YE 2016 - NYMEX Strip Pricing Delta Strip Pricing - SEC Pricing Equiv Equiv PV-10 Equiv Equiv PV-10 Equiv Equiv PV-10 MMcfe MBoe M MMcfe MBoe M MMcfe MBoe M PDP 283,881…
  33. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 33
    2017 Financial Commodity Derivatives Crude Oil Volume Average Quarter Instrument (Bbl/d) Floor Ceiling Feb-Mar '17 WTI Collars 2,576 50.00 60.12 WTI Swaps 1,000 55.25 55.25 2Q17 WTI Collars 4,000 50.00 60.15 WTI Swaps 1,000 55.25…
  34. March 2017 29th Annual ROTH Conference – W&T Offshore Inc. – slide 34
    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 investorrelationswtoffshore.com

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