Capital One Energy Conference December 6, 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: NYSE: WTI 1P 2P 74.4 MMBoe 113.6 MMBoe 74.0 MMBoe 113.0 MMBoe 3P…
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 Minor decrease in overall production in 2017 with 125 million capital program Sustaining production while living within cash flow Focusing on inventory of lower risk/higher…
Production vs. Capital Expenditures Includes production associated with a 2017 capital budget of 125 million Existing wells, along with new projects, will result in only a minor reduction in production. Cap Ex Production ( MM)…
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 MP 286 Exploration High impact oil prospect Developed Leases ST 224 Amplitude supported Exploration well Main Pass Area Extensional to nearby Undeveloped Exploration…
Project TIMELINE: Key Capital Projects 2017 2018 Field First ST 315 work Project Completed and online Sept. 2017; Incremental Rate: 700+ Boe/d Prod. MP 69 E-1 well R/C Project Completed and online SS 349 Field (Mahogany) A-18…
Successful Drilling Program at Ship Shoal 349 (Mahogany) Mahogany Field Map and Drilling History SS SS349 Mahogany 349 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…
SS 349 Mahogany A-17 Western Field Extension Well All productive sands are not shown Salt A-17 WELL (Tight Hole Status) A-17 Well Western Field Extension Exploration/Extension well to Targeting western field reserves extension…
SS 300 B-5 ST Field Extension Well New Fault Block Field Extension well. Risked by Field Extension into undrilled Fault Block Prolific offset fault Block (low risk) prolific offset production and Amplitude expression (low risk)…
South Timbalier 224 Exploration Well Low risk amplitude exploration 3D Seismic Amplitude supported play Amplitude play/trend with working analogs well in amplitude trend with Success case drives expansion with additional wells…
Main Pass 286 - Exploration Well Low risk amplitude driven 3D Seismic Amplitude supported play exploration well in working Amplitude play/trend with working/producing analogs production trend W&T controlled infrastructure High…
VK823 VIRGO: Inventory of Opportunities Benefits at Virgo De-risked drilling with 3D seismic, amplitudes and strong analog offsets VIRGO Central PROVED VIRGO NORTH Updip of logged pay Stacked targets Identified PUD drilling…
Ewing Bank 910 - Successful Phase I Program with Phase II to Commence Soon PHASE II EW 910 Expansion(1)(2) ST320 A-2 & Deepwater platform A-3 wells Low F&D costs; Characterization: 100% rate of A3 Producing field A2 return; low…
Potential Additional Drilling Opportunities LEGEND FAIRWAY Developed Leases Plant life extension 2 identified exploratory targets Undeveloped Exploration Leases SS 350/360 100% working interest GC 19 Cost and operational…
Financial Overview
EBITDA Comparison ( in thousands) Year to Date Year Ended December 31, 3Q 2017 2016 2015 2014 2013 2012 Net Income (loss) 56,317 (249,020) (1,044,718) (11,661) 51,322 71,984 Income tax expense (benefit) (11,079) (43,376) (202,984)…
Long-Term Debt Principal Only ( in thousands) Exchange transaction resulted in debt reduction of over 400 million Annual cash interest expense has been decreased by approximately 50 - 60 million September 30, 2017 Revolving Bank…
2017 Guidance ( in millions) Fourth Quarter Full Year Production 2017 2017 Oil and NGL's (MMBbls) 2.0 - 2.2 8.3 - 8.8 Natural Gas (Bcf) 8.8 - 9.7 36.1 - 38.3 Total (Bcf) 20.7 - 22.8 85.8 - 91.1 Total (MMBoe) 3.4 - 3.8 14.3 -…
Mid-Year 2017 vs. Year-End 2016 Reserves SEC Pricing MY 2017 - SEC Pricing YE 2016 - SEC Pricing Equiv. Equiv. PV-10 Equiv. Equiv. PV-10 MMcfe Mboe M MMcfe Mboe M PDP 319,769 53,295 690,625 283,881 47,313 449,407 PNP 85,526…
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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