EnerComs The Oil and Gas Conference 2019 Tracy W. Krohn, Chairman and Chief Executive Officer August 12, 2019 Creating Value in the Gulf of Mexico
W&T Offshore, Inc. (NYSE:WTI) Mid-Year 2019 Net Reserves Reserves1 PV-102 (Excludes Mobile Bay Acq) (MMBoe) Billions 1P 84 1.4 2P 149 2.4 3P 259 4.1 Liquids % of 1P Reserves: 58% 2Q 2019 Average Production: 35.0 MBoe/d (61%…
Mobile Bay Acquisition Excellent Bolt-on Opportunity ACQUISITION CRITERIA Q119 net production of 19,800 BOEPD Total operating cash flow for 2018 was 70 Generating million Cash Flow Eight of nine fields operated by ExxonMobil Strong…
Mobile Bay Acquisition Key Transaction Highlights Acquiring ExxonMobils interests and operatorship in the eastern region of the Gulf of Mexico, offshore Alabama as well as related onshore processing facilities that are adjacent to…
Mobile Bay Acquisition XOM Producing Fields Acquiring nine producing fields 108,000 gross acres ExxonMobil Mobile Bay Onshore Gas Plant Initial production in 1998 Water depths of 10 - 50 ft W&Ts Yellowhammer Onshore Gas Plant 6
Mobile Bay Acquisition Onshore Gas Treating Facilities W&T - Yellowhammer Plant ExxonMobil - Onshore Treating Facility 100% W&T ownership Established 1991 200 MMcfd capacity 100% XOM ownership 50 MMcfd gross current…
Operational Overview 8
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 13
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 100 101.4 80 + 16.8 GROSS EUR (MMBoe) 60 59.0 +…
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…
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 Three Rigs Running as of July 31, 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 CAPEX Allocation1 2019 CAPEX guidance: 125 - 155 MM 9% 1H 2019 total capital expenditures 14% of 63 MM plus 10 MM deposit for GOM Mobile Bay acquisition 11% 59% Approximately six exploration & six…
Mid-Year 2019 Reserves Summary1 100 95 90 6 85 84 84 (6) 80 75 70 65 60 2 Year-End 2018 Additions & Revisions 1H'19 Production Mid-Year 2019 Excludes reserves related to GOM Mobile Bay pending acquisition 3…
Significantly Improved Capital Structure Liquidity as of 06/30/19 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…
Generating Steady and Significant Free Cash Flow 400 Strong production 350 344 base and cost optimization delivers 300 steady Adjusted 268 EBITDA1 250 202 MM 200 179 72 Adjusted EBITDA 152 150 121 29 132 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 Schedule1,2 (Excludes GOM Mobile Bay Acq) (MM) Accelerating P&A To Capture Resulting in Low ARO Low Costs Burden Over Next 5 Years WTI took advantage…
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 1H 2019 Adjusted EBITDA1 of 132 MM High Profit…
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Appendix 31
2019 Guidance (As of July 31, 2019) Full Year 3rd Quarter Production1 38,900 42,200 Boe/d 38,600 42,500 Boe/d Lease Operating Expenses 192 - 204 MM 56 - 62 MM G & T and Production Taxes 32 - 35 MM 9 - 10 MM G&A 59 - 62 MM 16…
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…
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 2,055 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) 15,550…
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 40
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