Barclays CEO Energy-Power Conference September 5-7, 2017 Creating Value in the Gulf of Mexico
Premium Assets in the Gulf of Mexico Premium GOM company with 30+ Years of Operating History SEC Case as of: June 30, 2017 December 31, 2016 Proved reserves: 1P 74.4 MMBoe 74.0 MMBoe NYSE: WTI 2P 113.6 MMBoe 113.0 MMBoe 3P 247.1…
Key Operating Characteristics of W&T Operate 70% of our production Operating safely and 80% of our acreage is held by production effectively in the Gulf of 100% drilling success over last 4 years (14 exploration, 4 Mexico for over…
Strategy For Value Creation in a Lower Oil Price Environment Production is expected to be flat in 2017 with 125 million capital program Sustaining production while living within cash flow Focusing on inventory of lower risk/higher…
Steady Production on Lower Capital Expenditures Includes production associated with a 2017 capital budget of 125 million Existing wells, along with new projects, are expected to keep 2017 production flat over 2016 Cap Ex Production…
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…
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…
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…
Probable and Possible Reserves May Be Produced at No Cost Strong drive mechanisms allow production of reserves with fewer drilled wellbores 11
Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probable and Possible Reserves Add Economic Value Probables and Possibles provide hidden value and significant upside 2.2 Billion PV-10 2,400 Possibles…
W&T Reserves Appreciation Actual Results (1) (2) Significant Reserve Growth from Initial NSAI Bookings 120 119.8 Current 1P Initial 1P booking 100 Current 1P Initial 2P booking GROSS EUR (MMBoe) 80 60 59.0 Current…
Acquisition Criteria A Proven Approach The Gulf of Mexico provides a large acquisition opportunity set Properties generating cash flow Strong current production rates Opportunity to reduce operating expenses Financeable Large…
History of Creating Long-Term Value from GOM Acquisitions Woodside Total USA Newfield 55 million 115 million 206 million Investments post acquisition Current net production of 1,350 Paid out in Aug. 2011 Paid out in Nov. 2014 Boe/d…
Operations and Opportunities
Key Near-Term Drilling Opportunities Low Risk / High Margin LEGEND Developed Leases MP 286 High impact oil prospect Undeveloped Exploration Leases MC 243 Amplitude supported Matterhorn Extensional to nearby ST 224 Execute de-risked…
2017 Capital Plan 2017 Budget: 125 million Estimated to keep production flat with 2016 volumes absent any acquisitions Projected six to eight wells to be drilled Balanced program of exploration and development Budget includes…
2017 TIMELINE: Key Capital Projects 2017 2018 SS 349 Area (Mahogany) A-18 A-16 A-8 S/T A-17 A-5 S/T TBD SS 300 MOB B5ST WELL 2 Rig mobilization began in July (Cont.) ST224 EP approved; APD filed Well 1 Rig working for…
Successful Drilling Program at Ship Shoal 349 (Mahogany) Mahogany Field Map and Drilling History SS SS349 349Mahogany MahoganyContinued Sub-Salt Continued Sub-Salt Exploration Exploration& Development & DevelopmentSuccess Success…
Mahoganys Prolific P & T Sands Mahogany's primary field pay P Sand has cumulatively produced 33 MMBoe T Sand is 3,000 feet deeper and better quality than P Sand The A-18 success in 2016 coupled with the performance and pressure history…
SS 349 Mahogany 2017 Activities All productive sands are not shown Salt A-5ST P Attic Well Very low risk as the P/Q were A-16 penetrated by the A-18 drill; Flowing 1,275 Boepd low cost sidetrack well; payout = 1 year P Sand…
Ewing Bank 910 - Successful Phase I Program with Phase II to Commence Soon PHASE II EW 910 Expansion ST320 A-2 & A-3 wells Deepwater platform Low F&D costs; Characterization: 100% rate of return; low risk Producing field…
Mississippi Canyon 243 Matterhorn A-2 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…
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,…
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…
MP 286 Exploratory Well(1) W&T WI 100%/NRI 81.25% Open water location in 300 WD W&T Operated 350 Acres untested Robust AVO in a MP283 Platform Host proven trend. Combination stratigraphic- structural trap Quality Field analogs…
ST 224 Low Risk Amplitude in Proven Amplitude Trend(1) W&T WI 39.0%/NRI 31.0175% Multiple Production Host Options Open water location in 160 WD Proven producing amplitude trend with many working analogs (low risk) Stratigraphic…
Potential Additional Drilling Opportunities LEGEND FAIRWAY Developed Leases Plant life extension 2 identified exploratory targets Undeveloped Exploration Leases SS 350/360 100% working interest Cost and operational synergies /…
Financial Overview
P&A Performance W&T Deepwater Well P&As Overall program cost 35.2MM vs BOEM estimate of 101.1MM Gross Exp. Our costs were 65% below the BOEM estimated liability ( million) 30 BOEM Liability W&T AFE estimate 25 Actual Cost Helix…
Long-Term Debt ( in thousands) Exchange transaction resulted in debt reduction of over 400 million Annual cash interest expense has been decreased by approximately 50 - 60 million June 30, 2017 Principal Only Revolving Bank Credit…
2017 Guidance ( in millions) Third Quarter Full Year Production 2017 2017 Oil and NGL's (MMBbls) 1.9 - 2.2 8.4 - 9.3 Natural Gas (Bcf) 8.2 - 9.0 36.1 - 40.0 Total (Bcf) 19.8 - 21.9 86.9 - 96.0 Total (MMBoe) 3.3 - 3.7 14.5 -…
EBITDA Comparison ( in thousands) Year Ended December 31, 2Q17 1Q17 2016 2015 2014 2013 2012 Net Income (loss) 33,315 24,299 (249,020) (1,044,718) (11,661) 51,322 71,984 Income tax expense (benefit) (8,975) (7,588) (43,376)…
Appendix
Mid-Year 2017 vs. Year-End 2016 Reserves SEC Pricing MY 2017 - SEC Pricing YE 2016 - SEC Pricing Delta MY 2017 - YE 2016 Equiv. Equiv. PV-10 Equiv. Equiv. PV-10 Equiv. Equiv. PV-10 MMcfe Mboe M MMcfe Mboe M MMcfe Mboe M PDP…
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