INVESTOR PRESENTATION July 2018 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: NYMEX Case as of: December 31, 2017 December 31, 2017(2) Proved reserves: 1P 74.2 MMBoe 77.8 MMBoe 2P 124.9 MMBoe 125.7…
Key Operating Characteristics of W&T Operating safely and Operate 74% of our production effectively in the Gulf of 80% of our acreage is held by production Mexico for over 30 years 94% drilling success over last 4 years and 91%…
W&Ts Value Creation in a Lower Oil Price Environment Minor decreases in production over last few years despite a Sustained production substantially reduced capital program while living within cash Focused on inventory of lower…
GOM Drilling Joint Venture with Private Investors Accelerates Pace to Develop W&Ts High Return Inventory, Leverages Capital Dollars and Maintains Flexibility to Pay Down Debt and Make Acquisitions The Company raised 361.4 million of…
Production vs. Capital Expenditures Despite substantial decreases in capital expenditures in the past 3-4 years and an asset divestiture in 2015, production has decreased only moderately. Cap Ex Production ( MM) (MBoe/d) 700 60…
Exploiting 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…
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 12
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 2,500 2.3 Billion PV-10 Incremental Value…
W&T Reserves Appreciation Actual Results (1) (2) Significant Reserve Growth from Initial NSAI Bookings 109.4 100 Current 1P Initial 1P booking 80 Current 1P Initial 2P booking GROSS EUR (MMBoe) 60 59.0 52.3 Current…
Key Near Term/Recent Opportunities Low Risk / High Margin LEGEND MP 286 Exploration Amplitude supported Developed Leases Extensional to nearby Main Pass Area production MP 283 Undeveloped Exploration Leases Multiple recompletion…
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(1) Woodside Total USA Newfield 55 million 115 million 206 million Investments post acquisition Current net production of 1,100 Paid out in Aug. 2011 Paid out in Nov. 2014…
Recent Acquisition Activity Recent Accretive Acquisition of Cobalts Heidelberg Asset On March 12, 2018, we announced the successful acquisition of Cobalts 9.375% working interest in the Heidelberg field for 31.1 million(1) in cash…
Capitalization The Company has a track record of managing liquidity and leverage through the downcycle Current Capital Structure(1) (US in millions) Cash and Cash Equivalents 131 1.5 Lien Notes due 2019 75 2nd Lien Notes due…
Project Timeline: Key Capital Projects 2017 2018 2019 SS 349 Field (Mahogany) A-5 A-17 on line. A-5 ST A-17 Com W Com A-19 Com A-20 Com S/T Drilled and Completed. A-10 on production; Currently Drilling A-12 VIRGO (pay in upper…
Successful Drilling Program at Ship Shoal 349 (Mahogany) SS 349Mahogany SS 349 Mahogany Continued Continued Sub-Salt Sub-Salt Mahogany Field Map and Drilling History Exploration &&Development Exploration Development Success Success…
Mahoganys Prolific P & T Sands Mahogany Field has achieved cumulative production of 46.6 Million Boe T Sand is 3,000 feet deeper and better quality than P Sand with cumulative production of 5.9 Million Boe The A-18 success in 2016…
SS 349 Mahogany A-17 Western Field Extension Well All productive sands are not shown Salt A-17 Well A-17 WELL Western Field Extension Success Exploration/Extension well to Western Reservoir test and extend field limits…
SS 300 B-5 ST Successful Field Extension Well New fault block field extension Field Extension into undrilled fault block well. Risked by prolific offset Prolific offset fault block (large with low risk) production and seismic High…
Main Pass 286 Successful Exploration Well W&T WI: 20%(1) New Field Discovery NRI: 24.375%(1) Nearby W&T controlled infrastructure High liquids content Status: TD December, 2017 Progressing towards 2018 Development Decision…
VK823 VIRGO: Executing on our Inventory of Opportunities Benefits at Virgo De-risked drilling with 3D seismic, amplitudes and strong analog offsets VIRGO Central PROVED VIRGO NORTH Identified PUD drilling locations Updip of logged pay…
VIRGO VK822: A-10 ST Well: First of multi-well package J/L Sand Map VIRGO A-10 ST JL Upper: 113 Pay MD (76 Pay TVD) A-10ST 300 Gross Hydrocarbon Interval MD JL Stray JL Upper Downdip well control WI: W&T Operator…
Ewing Bank 910 - Successful Phase I Program with Phase II initiated in early 2018 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…
Potential Additional Drilling Opportunities LEGEND FAIRWAY Developed Leases Plant life extension 2 identified exploratory targets Undeveloped Exploration Leases SS 350 100% working interest GC 19 Cost and operational Platform…
Financial Overview
EBITDA Comparison ( in thousands) TTM Year Ended December 31, 1Q 2018 2017 2016 2015 2014 2013 2012 Net Income (loss) 83,023 79,682 (249,020) (1,044,718) (11,661) 51,322 71,984 Income tax expense (benefit) (4,872) (12,569) (43,376)…
2018 Guidance ( in millions) Second Quarter Full Year Production 2018 2018 Oil and NGL's (MMBbls) 2.0 - 2.2 7.8 - 8.6 Natural Gas (Bcf) 8.1 - 9.0 32.2 - 35.6 Total (Bcfe) 19.8 - 21.9 79.0 - 87.4 Total (MMBoe) 3.3 - 3.6 13.2 -…
Year-End 2017 vs. Year-End 2016 Reserves SEC Pricing YE 2017 - SEC Pricing YE 2016 - SEC Pricing Delta YE 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…
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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