31st Annual ROTH Conference March 18 - 19, 2019 Janet Yang EVP and Chief Financial Officer William Williford EVP and General Manager Gulf of Mexico Creating Value in the Gulf of Mexico
W&T Offshore, Inc. (NYSE:WTI) Net Reserves Reserves(1) PV-10(2) (MMBoe) Billions 1P 84.0 1.4 2P 151.8 2.5 3P 252.2 4.1 Liquids % of 1P Reserves 58% 2018 Average Production 36.5 MBoe/d 2018 Adjusted EBITDA(3) 344 MM Market…
2018 Key Highlights Continued strong operational success with six wells completed and brought online Produced 36.5 MBoe per day in 2018 of which 60% was liquids More than doubled full year 2018 cash flow from operations activities…
Reserves Summary: Year-End 2018 Reserve Report (1) 84.0 MMBOE NET PROVED RESERVES FOR YEAR-END 2018 Replaced 174% of 2018 Production 100 13.3 23.2 Net Proved Reserves, MMBOE 80 84.0 74.2 60 40 20 0 Year-End…
Gulf of Mexico A Prolific & Unique Basin Multiple stacked pay development opportunities Stacked reservoirs offer attractive primary production and recompletion opportunities Advanced seismic and geoscience greatly improve ability to…
Gulf of Mexico 2nd Largest U.S. Producing Basin Gulf of Mexico Historical Oil Production(1) Aug. 18 US Oil Production by Key Region (MMBod)(1) Federal Offshore--Gulf of Mexico Production of Crude Oil 1.3 2250 GOM production 3.4…
Rigorous Technical Evaluation Resulting in High Drilling Success 1 2 3 4 5 Process Technical AFE Leads Screening Execute Evaluation Review 1 Leads high graded for review, once approved, project team assigned and deadlines set…
Probable and Possible Reserves May Be Produced at No Cost Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 11
Significant W&T Reserve Growth From Initial Bookings Actual Results (1,2,3) Current 1P Initial 3P booking Current 1P Initial 3P booking Current 1P Initial 1P booking 100 93.7 80 + 16.9 GROSS EUR (MMBoe) 60 59.0 + 8.9…
Successful Diversification in Valuable Deepwater Projects WTIs Deepwater portfolio is expanding and diversifying with the Heidelberg Asset (2018) as its latest addition WTI operates and participates in various Deepwater Production…
Attractive Near Term Inventory Selected Growth Prospects 2 Development Prospects 3 Development and 4 Exploration Prospects 13 Development and 3 Exploration Prospects 4 Development and 5 Exploration Prospects 5…
Significant Infrastructure Advantage Platform Rig on infield production Subsea tieback to existing facility (EW 910 Area) infrastructure (MC 800 Gladden) Existing structures provide a key advantage when evaluating/developing…
GOM Drilling Joint Venture Secured 361.4 MM commitment for the development of 14 pre-identified projects in the GOM with potential to upsize program over time with additional projects Covers the total estimated cost of the 14 wells of…
Key Recent Field Activities All assets aside from Mahogany are LEGEND part of Monza JV or are eligible to be Main Pass Area Developed Leases included in Monza JV Multiple recompletion opportunities executed Undeveloped Exploration…
Continued Sub-Salt Exploration and Development Success SS 349 Mahogany (WI: 100%, NRI 83.3%)(1) Mahogany Platform Substantially expanded the size and depth of the field since 2011 by drilling/sidetracking 13 new producing locations…
Leveraging 35 Years of GOM Acquisition Expertise ACQUISITION OPPORTUNITIES ACQUISITION CRITERIA GOM Exits Generating Cash Flow Companies exiting the GOM Strong current production provide a large inventory of rates with the…
Financial Overview 20
W&Ts Strategic Capital Allocation Plan Maintain a prudent balance sheet and use free cash flow to grow opportunistically Inventory Organic Projects Asset Acquisitions Expansion Focus on high rate of Pursue compelling Utilize…
Generating Steady and Significant Free Cash Flow 400 Strong production 350 344 base and cost optimization delivers 300 268 steady Adjusted 250 EBITDA 202 MM 200 179 72 Adjusted EBITDA 150 121 135 materially…
Proactive Management of Asset Retirement Obligations Undiscounted P&A Schedule(1)(2) (MM) Accelerating P&A To Capture Resulting in Low ARO Low Costs Burden Over Next 5 Years WTI took advantage of low service cost Average annual ARO…
Improving Cash Margins From Operational Cost Cutting Despite falling commodity prices in 2015 and 2016 putting pressure on realized price, WTI was able to take advantage of a favorable services environment to renegotiate long-term…
Significantly Improved Capital Structure Liquidity as of 12/31/18 On October 18, 2018 closed a 9.75% 2nd Lien Notes due 2023 625 MM major debt refinancing RBL Borrowings(1) 21 MM Simplified capital structure Total Debt 646 MM Reduced…
W&Ts Investment Highlights Capital allocation to high return quick payback projects allowed W&T to Generating Significant generate 322 MM of operating cash flow in 2018 Free Cash Flow and 2018 Adjusted EBITDA(1) of 344.2 MM and margin…
Appendix 27
2019 Guidance (As of February 28, 2019) Full Year 1st Quarter Production 12.9 14.3 MMBOE Production 2.9 3.2 MMBOE Lease Operating ExpensesProduction153 Expense - 169 MM 39 - 43 MM Gathering &25 G & T and Production Taxes…
Hedging Strategy Protects Cash Flow Without Limiting Upside(1) Crude Oil Natural Gas Quarter Instrument Volume Average Quarter Instrument Volume Average Bbl/d Floor Ceiling Mcf/d Floor Ceiling 1Q19 WTI Swaps 10,000 60.92 60.92…
Non-GAAP Reconciliations We define EBITDA as net income plus income tax expense (benefit), net interest expense, and depreciation, depletion, amortization and accretion. Adjusted EBITDA excludes the unrealized commodity derivative…
Non-GAAP Reconciliations We refer to PV-10 as the present value of estimated future net revenues of proved reserves as calculated by our independent petroleum consultant using a discount rate of 10%. This amount includes projected…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 Al Petrie IR Coordinator 713-297-8024 www.wtoffshore.com apetriewtoffshore.com 32
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