May 2019 Company Update Creating Value in the Gulf of Mexico
W&T Offshore, Inc. (NYSE:WTI) Net Reserves Reserves1 PV-102 (MMBoe) Billions 1P 84.0 1.4 2P 151.8 2.5 3P 252.2 4.1 Liquids % of 1P Reserves: 58% 1Q 2019 Average Production: 33.4 MBoe/d (60% liquids) Increased Production: 37.0…
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 YE 2018 US Oil Production by Key Region Gulf of Mexico Historical Oil Production1 1 (MMBod) GOM production (MBOPD) at all-time high 2000 0.4 0.4 0.5 1750 3.3 1500 1.3 Total: 1250…
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…
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 8
Significant W&T Reserve Appreciation 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 +…
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…
Key Recent Field Activities 4 Rigs Running as of May 25, 2019 All assets aside from Mahogany are Developed Leases part of Monza JV or are eligible to be Main Pass Area Undeveloped Exploration Leases included in Monza JV Multiple…
Attractive Current Inventory 1 Selected Growth Prospects 13 Development 3 Exploration 3 Development 4 Exploration 4 Development 5 Exploration 5 Exploration 6 Exploration 50 Near Term Prospects with 39 Platform…
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…
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 GOM…
2019 Estimated Capital 120 MM CAPEX Allocation 2019 CAPEX forecast 120 MM 14% 1Q 2019 total capital expenditures of 32 MM 39% 14% Approximately four exploration & four development wells planned 9% 20% of 2019 capital devoted…
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…
Generating Steady and Significant Free Cash Flow 400 Strong production 350 344 base and cost optimization delivers 300 268 steady Adjusted 1 250 EBITDA 202 MM 200 179 152 Adjusted EBITDA 72 150 121 29 materially…
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…
Proactive Management of Asset Retirement Obligations 2 5 0 .0 Undiscounted P&A Schedule1 (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…
Significantly Improved Capital Structure Liquidity as of 03/31/19 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 2 Reduced…
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 1 1Q 2019 Adjusted EBITDA of 56.9 MM High Profit…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 22
Appendix 23
2019 Guidance (As of May 2, 2019) Full Year 2nd Quarter Production 35,400 39,100 Boe/d 34,600 38,200 Boe/d Lease Operating Expenses 153 - 169 MM 42 - 46 MM G & T and Production Taxes 25 - 28 MM 6 - 7 MM G&A 55 - 61 MM 14 - 16…
Hedging Strategy Protects Cash Flow Without Limiting Upside1 Crude Oil Natural Gas Quarter Instrument Volume Average Quarter Instrument Volume Average Bbl/d Floor Ceiling Mcf/d Floor Ceiling 2Q19 WTI Swaps 10,000 60.92 60.92 2Q19…
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…
Reserves Summary: Year-End 2018 Reserve Report 1 84.0 MMBOE NET PROVED RESERVES FOR YEAR-END 2018 100 13.3 Net Proved Reserves, MMBOE 23.2 80 84.0 74.2 60 40 20 0 Year-End 2017 Additions and Revisions 2018…
Realizing Incremental Probable and Possible Reserve Upside1 WTI focused on realizing the reserves upside and adding economic value across three categories: Prob + Poss Unrelated to 1P 1 Prob + Poss Related to PDP 2 Prob + Poss Related…
History of Creating Long-Term Value From GOM Acquisitions TOTAL NEWFIELD WOODSIDE 115 MM 206 MM 55 MM Paid out in Aug. 2011 Paid out in Nov. 2014 Investments Post Acquisition Current net average production1 of 1,100 Current net…
SS 349 Field (Mahogany) Case Study Mahogany Gross Production SS 349 Field (Mahogany) BOEPD 100,000 WI: 100.0%, 360 Water Depth 1st commercially successful subsalt development in the Gulf of Mexico (initial production in 1997) 12,200…
Total E&P Deepwater Acquisition Case Study MC243 & VK823 Combined 100,000 Mahogany Gross Production Matterhorn & Virgo Fields WI: 64% - 100%, 1,130 - 2,400 water depth Purchased from Total E&P, USA in 2010 10,000 115MM acquisition…
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 (gain)…
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 35
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