Bank of America Merrill Lynch 2019 Global Energy Conference Miami, FL November 13th -14th, 2019 Creating Value in the Gulf of Mexico
Company Snapshot (Includes Mobile Bay Acquisition) Mid-Year 2019 Pro Forma Net Reserves Reserves1 (MMBoe) 1P 158 Main Pass 108 Fairway & Mobile Bay 2P 223 Viosca Knoll 783 (Tahoe/SE Tahoe) 3P 333 Mississippi Canyon 243…
Mobile Bay Acquisition Excellent Bolt-on Opportunity ACQUISITION CRITERIA Total operating cash flow for 2018 was 70 Generating million Cash Flow Eight of nine fields operated by ExxonMobil along with the onshore treatment facility…
Mobile Bay Acquisition Key Transaction Highlights Acquired 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 Acquired nine working interest fields 108,000 gross acres (95,600 net acres) Initial production in 1988 Water depths of 10 - 50 ft 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 1 YE 2018 US Oil Production by Key Region Gulf of Mexico Historical Oil Production 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 120 100 101 + 17 80 GROSS EUR (MMBoe) 60 59…
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 COBALT 115 MM 206 MM 55 MM 31 MM Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Paid out in Aug. 2018 Current net average…
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 Developed Leases All assets aside from Mahogany are part of Monza JV or are eligible to be Undeveloped Exploration Leases included in Monza JV Bay Marchand Field MC 800 Gladden Deep Completed drilling…
Attractive Current Inventory 1 Selected Growth Prospects 13 Development 3 Exploration 3 Development 4 Exploration 4 Development 5 Exploration 5 Exploration 6 Exploration Significant Inventory of Drilling…
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 2019 CAPEX guidance: CAPEX Allocation1 130 - 150 MM September YTD 2019 total capital 9% expenditures of 94MM plus 168 14% MM for GOM Mobile Bay acquisition Approximately three exploration & four 11% 59%…
Mid-Year 2019 Reserves Summary1 200 180 158 74 160 140 MMBoe 120 100 6 84 84 80 (6) 60 40 20 0 Year-End 2018 Additions & 1H'19 Production Mid-Year 2019 MB Acquisition Pro Forma 2 Revisions 222.8 MMBoe Net Proved…
Financial Overview 24
Significantly Improved Capital Structure Liquidity as of 09/30/19 9.75% 2nd Lien Notes due 2023 625 MM On October 18, 2018 closed a major 1 debt refinancing RBL Borrowings 105 MM Simplified capital structure 2 Total Debt 731 MM…
Generating Steady and Significant Unlevered Free Cash Flow 400 Strong production 344 base and cost 350 optimization delivers 300 steady Adjusted 268 EBITDA1 250 202 204 MM 200 179 Adjusted EBITDA 72 135 150 materially…
Strong Cash Margins From Operational Excellence 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 service…
Proactive Management of Asset Retirement Obligations 1,2 Undiscounted P&A Schedule (Includes GOM Mobile Bay Acq) (MM) Accelerating P&A To Capture Resulting in Low ARO Low Costs Burden Over Next 5 Years WTI took advantage of low…
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 September YTD 2019 Adjusted EBITDA1 of 204 MM High…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 30
Appendix 31
2019 Guidance (As of October 30, 2019) Full Year 4th Quarter Production1 39,800 41,100 Boe/d 49,300 54,500 Boe/d Lease Operating Expenses 187 - 193 MM 57 - 62 MM G & T and Production Taxes 30 - 1 MM 9 - 10 MM G&A 52 - 54 MM…
Hedging Strategy Protects Cash Flow Without Limiting Upside1 W&T OFFSHORE, INC. AND SUBSIDIARIES Financial Commodity Derivative As of November 8, 2019 Crude Oil Natural Gas Time Period Instrument Volume Average Time Period…
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…
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)…
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)…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 Al Petrie IR Coordinator 713-297-8024 www.wtoffshore.com apetriewtoffshore.com 38
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