Barclays CEO Energy-Power Conference September 4, 2018 Creating Value in the Gulf of Mexico
Premium Assets in the Gulf of Mexico Premium GOM company with 35+ Years of Operating History Mid-Year 2018 Current (1) Reserve Report Reserve Report (2) Reserves PV-10% Reserves PV-10% NYSE: WTI Proved reserves: 1P: 78.0 MMBOE 1.3…
W&T Offshore: A Seasoned Gulf of Mexico Operator Industry leading safety and environment record with no fatalities Operating safely and Consistently outperform peer group on BSEE benchmark tracking index effectively in the Gulf of…
W&Ts Value Creation Through the Recent Cycle Managed through the downturn with minimal capital spending Sustained production Focused on lower risk/higher return projects including step-out exploration / while living within development,…
W&T Restructured During Downturn and Emerged Stronger Retired 409 Million Principal Balance Debt for New Equity 3/12/2018 WTI Announces Drilling JV 9/8/2016 2/16/2018 WTI Completes Debt Fieldwood Declares Bankruptcy Exchange…
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 70…
Significant Full Cycle Cash Flow Generation from GOM Operations Improving Operating Costs and Efficient Management of Production Decline Has Enabled WTI to Realize Positive Cash Flows in a Lower Commodity Price Environment Average WTI…
Proactive Management of Asset Retirement Obligations 250.0 Undiscounted P&A Schedule(1) ( in millions) Accelerating P&A To Capture Resulting in Low ARO Low Costs Burden Over Next 5 Years WTI took advantage of low service cost and…
GOM Drilling Joint Venture (Monza) 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 secured 361.4…
Monza Drilling JV - Strategic and Financial Benefits(1)(2) The following analysis assumes that a historical W&T well is retroactively placed into the drilling JV program assuming current strip prices The adjusted pre-JV cash flows are…
Gulf of Mexico Investment Thesis 2nd Highest Producing Basin in U.S. Provides Unique Advantages Through Low Declining Production and Incremental Reserve Bookings Gulf of Mexico Historical Production 1Q18 US Oil Production by Key Region…
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 16
Proven History of Realizing Probable and Possible Upside (contd)(1) WTI is focused on realizing the reserves upside and adding economic value across three categories: 1 2 3 Prob + Poss Unrelated to 1P Prob + Poss Related to PDP Prob…
W&T Reserves Outperform Forecast Actual Results (1) (2) (3) Significant Reserve Growth from Initial NSAI Bookings 100 90 94.2 Current 1P Initial 1P booking 80 Current 1P Initial 3P booking 70 GROSS EUR (MMBoe) 60 59.0…
Proven History of Finding and Exceeding Pre-Drill Estimated Reserves For 21 wells drilled from 2013 to 2017 (1), Post-Drill 1P EUR was 114% higher than Pre-Drill P90/1P EUR estimates and Post-Drill 2P EUR was in line with Pre-Drill…
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…
Positioned to Leverage GOM Acquisition Expertise & Relationships Gained Over 35 Years Since Incorporation Gulf of Mexico operators continue to divest attractive assets GOM Exits Bankruptcies Companies exiting the Distressed…
History of Creating Long-Term Value from GOM Acquisitions(1) 115 million 206 million 55 million Paid out in Aug. 2011 Paid out in Nov. 2014 Investments Post Acquisition Current net production of 1,000 Boe/d from Neptune and 24…
SS 349 Field (Mahogany) Case Study SS 349 Field (Mahogany) Mahogany Gross Production 100,000 WI: 100.0%, 360 WD Ship Shoal 349 and 359 leases 1st commercially successful subsalt development in the Gulf of Mexico (initial production…
Total E&P Deepwater Acquisition Case Study Matterhorn Mahogany A-2 Well Production Gross (Gross) Matterhorn & Virgo Fields 1,400 BOPD WI: 64% - 100%, 1,130 - 2,400WD Well GOR Purchased from Total E&P, USA in 2010 1,200 response…
Shell E&P Deepwater Acquisition Case Study VK 783 Field (Tahoe/SE Tahoe) Tahoe/SE Tahoe Gross Production 100,000 WI: 70% - 100%, 1,050 WD U U Purchased Tahoe and SE Tahoe Fields along with an ORRI in Droshky Field U Included…
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…
W&T Deepwater Assets EW910 Virgo 557 1,130 Tahoe 1,001 Medusa Matterhorn Neptune Heidelberg 2,223 2,850 4,216 5,310 P. Play 1,847 1,000 Gladden 2,785 2,000 3,000 4,000 W&Ts Deepwater portfolio is expanding and 5,000…
Operations and Opportunities
Exploiting Extensive Organic Growth Opportunity Set Adding Value from Opportunities at Producing Fields 50 projects with 82-170 MMBoe net unrisked exploration resource Deep Inventory of potential of select near-term inventory that are…
Select Near Term Inventory 50 Identified Prospects with an Est. P10/3P Resource Potential of 170 MMBoe Nearby existing production and available infrastructure W&T Selected Growth Prospects 2 Development Prospects 3 Development…
Key Near Term/Recent Opportunities Low Risk / High Margin All assets aside from Mahogany part LEGEND of Monza JV or eligible to be Main Pass Area Developed Leases included in Monza JV Multiple recompletion opportunities executed…
Project Timeline: Key Capital Projects 2017 2018 2019 SS 349 Field (Mahogany) A-5 A-17 Com W Com A-19 Com A-20 Com A-17 on line. A-5 ST on line S/T VIRGO A-10ST A-12 A-13 MOB Com Com Com TBD Com TBD Com (PUD) (North) (Bobcat…
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 well. Risked by prolific offset Field Extension into undrilled fault block Prolific offset fault block (large with low risk) production and seismic High…
VK823 VIRGO: 2018 Drilling Program VIRGO Program Multiple well drilling program off Virgo deepwater platform Additional 5-8 locations Prospects & Mobilized Rig late 17 Locations Low risk: well control, 3D and amplitudes Program…
VIRGO VK822: A-10 ST Well (Well 1 in 2018 drilling program) J/L Sand Reservoir 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…
VIRGO VK779: A-12 (Well 2 in 2018 drilling program) ROB E-5 RESERVOIR VIRGO A-12 A-12 ROB E-5: 112.5 Pay MD (330 MD column) A-3 CUM: 28 BCF ROB E-5 and 499 MBO A-12 WELL Drilled August 11, 2018. 112 MD pay in ROB E-5…
Ewing Bank 910 - Phase II Drilling Program initiated in early 2018 EW 910 Expansion(1)(2) PHASE II ST320 A-2 & Deepwater platform A-3 wells Characterization: Low F&D costs; 100% rate of Producing field A2 A3 return; low risk…
Partial List of Potential Additional Drilling Opportunities W&T was awarded 9 leases (34,578 net acres) and high bidder on an additional 8 leases (38,028 net acres) in Gulf of Mexico Lease Sales in 2018 LEGEND FAIRWAY Plant life…
Financial Overview
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 224 1.5 Lien Notes due 2019 75 2nd Lien Notes due…
EBITDA(1) Comparison ( in thousands) 6 Months Ended, Year Ended December 31, 6/30/2018 2017 2016 2015 2014 2013 2012 Net Income (loss) 63,723 79,682 (249,020) (1,044,718) (11,661) 51,322 71,984 Income tax expense (benefit) 221…
2018 Guidance ( in millions) Estimated 2018 Capital Expenditures 95 Million Third Quarter Full Year Production 2018 2018 Oil and NGL's (MMBbls) 1.9 - 2.1 7.8 - 8.6 Natural Gas (Bcf) 7.2 - 8.0 32.2 - 35.6 Total (Bcfe) 18.5 - 20.4…
Reserves Summary Current Reserve Report (1) Current Reserve Report (SEC Pricing) Overview (2) Reserve Category Total (Mm boe) % Liquids Pre-Tax PV-10% Proved Developed Producing (PDP) 49.3 55.3% 836.1 Proved Developed Non-Producing…
Mid-Year 2018(1) vs. Year-End 2017 Reserves SEC Pricing MY 2018 - SEC Pricing (1) YE 2017 - SEC Pricing Delta MY 2018 - YE 2017 Equiv. Equiv. PV-10 (2) Equiv. Equiv. PV-10(2) Equiv. Equiv. PV-10(2) MMcfe Mboe M MMcfe Mboe M MMcfe…
Current Reserve Report(1) vs. Year-End 2017 Reserves SEC Pricing Current Reserve Report - SEC Pricing (1) YE 2017 - SEC Pricing Delta MY 2018 - YE 2017 Equiv. Equiv. PV-10(2) Equiv. Equiv. PV-10(2) Equiv. Equiv. PV-10 (2) MMcfe…
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