Corporate Presentation March 2020 36+ Years of Industry Leadership in the Gulf of Mexico
Company Snapshot Year-end 2019 Net Reserves1 (MMBoe) 1P 157 Main Pass 108 Fairway & Mobile Bay 2P 235 Viosca Knoll 783 (Tahoe/SE Tahoe) 3P 365 Mississippi Canyon 243 (Matterhorn) Brazos A133 Viosca Knoll 823 (Virgo) Liquids %…
2019 and Early 2020 Highlights Increased year-end 2019 proved reserves by 87% to 157.4 MMBoe, from 84.0 MMBoe at year-end 2018, representing a reserve replacement ratio of nearly 600% of 2019 production Closed two significant…
Magnolia Deepwater Acquisition Key Highlights 75% working interest in and operatorship of the Magnolia Field in the central GOM, offshore Louisiana, in Garden Banks blocks 783 and 784 Purchase price of 20.0 million(1) as of the…
Mobile Bay Acquisition Key Highlights Acquired ExxonMobils interests and operatorship in the eastern region of the Gulf of Mexico, offshore Alabama as well as related onshore processing Mobile Bay facilities that are adjacent to…
Year-End 2019 Reserves Summary1 200 180 +81 -15 157 160 140 MMBoe 120 +7 +1 100 84 80 -2 60 40 20 0 3 4 Year-End 2018 Revisions of Revisions Due Extensions, Purchases of Production Year-End 2019 Previous to SEC Base…
Reserves Summary: Year-End 2019 Reserve Report1 Current Reserve Report Overview 2 Reserve Category Total (MMBoe) % Liquids Pre-Tax PV-10% Proved Developed Producing (PDP) 122.3 36.1% 992.0 Proved Developed Non-Producing (PDNP) 11.5…
Corporate Responsibility At W&T, we fully acknowledge our responsibility to our employees and contractors and the communities where we operate, and the importance of the ongoing protection of the environment. Tracy Krohn, Chairman…
Operational Overview 10
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 2019 US Oil Production by Key Region Gulf of Mexico Historical Oil Production 1 (MMBod) 2500 GOM production 1.9 at all-time high 2000 4.3 1.4 Total: 1500 12.2 MMBod…
Successful Diversification in Valuable Deepwater Projects WTIs Deepwater portfolio is expanding and diversifying with Magnolia (2019) as its latest addition WTI operates and participates in various deepwater production facilities,…
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 15
Significant W&T Reserve Appreciation From Initial Bookings Actual Results 1,2 Current 1P Initial 3P booking Current 1P Initial 3P booking Current 1P Initial 1P booking 120 100 104 + 18 80 GROSS EUR (MMBoe) 60 59 +10…
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 CONOCOPHILLIPS4 115 MM 206 MM 55 MM 31 MM 20 MM Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Paid out in Aug. 2018 Closed…
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 Field Activities as of March 20201 MC 800 Gladden Deep MC 582 (R/C) Water depth 3,000 feet MC 582 A-6, Online Reached TD in 2Q19, commercial success with December 2019; 201 of net oil pay currently producing Completed and…
Attractive Current Inventory 1 Selected Growth Prospects 1 Exploration 10 Development 5 Exploration 1 Exploration 1 Development 4 Exploration 5 Exploration 1 Development 3 Exploration 5 Exploration Significant…
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 and Reduce Debt Organic Projects Debt Pay Down Asset Acquisitions Focus on high rate of return Use free cash…
Leveraging 36+ 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 25
Management Ownership1 Among the Highest of Public E&P Companies2 40% 35% W&T Management Team has highest stock ownership 30% 25% 20% 15% 10% 5% 0% WTI 1) Ownership percentage of Named Executive Officers…
Significantly Improved Capital Structure Liquidity as of 02/29/20 On October 18, 2018 closed a major debt refinancing 9.75% 2nd Lien Notes due 2023 625 MM 1 Simplified capital structure RBL Borrowings 80MM Reduced debt principal…
Generating Steady and Significant Unlevered Free Cash Flow 400 Strong production base 344 350 and cost optimization delivers steady Adjusted 300 283 268 EBITDA1 250 Adjusted EBITDA MM 200 179 178 materially outpacing…
2020 Updated Capital Expenditure Budget Updated 2020 CAPEX guidance: CAPEX Allocation1 15 - 25 MM 2020 updated CAPEX mid-point is 85% less than the 126 MM spent in 2019 25% 28% Reduction of CAPEX guidance has not changed the…
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 (MM) Accelerating P&A To Capture Resulting in Low ARO Low Costs Burden Over Next 3 Years WTI took advantage of low service cost Average annual ARO…
Investment Highlights Capital allocation to high return, quick payback projects allowed W&T to generate 232 MM of operating cash flow in 2019 Solid Margins and 2019 Adjusted EBITDA1 of 282.9 MM Capital Discipline Lead Reduced 2020…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 33
Appendix 34
2020 Guidance (As of March 17, 2020) 1st Quarter Full Year Oil (MMBbls) 1.7 - 1.9 6.5 - 7.1 NGL's (MMBbls) 0.50 - 0.56 2.05 - 2.27 Natural Gas (BCF) 13.8 - 15.3 52.4 - 57.9 Total (MMBoe) 4.5 - 5.0 17.3 - 19.2 Total (Boed/d)…
Hedging Strategy Protects Cash Flow Without Limiting Upside W&T OFFSHORE, INC. AND SUBSIDIARIES Financial Commodity Derivative Positions As of March 17, 2020 Weighted Avg Weighted Avg Weighted Avg Production Period Instrument Avg.…
Significant Infrastructure Advantage Platform Rig on infield production Subsea tieback to existing facility (EW 910 Area) infrastructure (MC 800 Gladden) 147 existing structures provide a key advantage when evaluating/developing…
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 38
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…
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 BOEPD Matterhorn and Virgo Mahogany GrossGross Production Production Matterhorn & Virgo Fields 10,000 WI: 64% - 100%, 1,130 - 2,400 water depth Purchased from Total E&P, USA in 2010 115MM…
Non-GAAP Reconciliations Certain financial information included in W&Ts financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP…
Non-GAAP Reconciliations Reconciliation of Net Income to Adjusted Net Income Adjusted Net Income does not include the unrealized commodity derivative loss (gain), amortization of derivative premium, bad debt reserve, deferred tax…
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 45
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