Virtual 33rd Annual ROTH Conference March 15th 17th, 2021 37+ Years of Industry Leadership in the Gulf of Mexico
Company Snapshot Year-end 2020 4Q20 Average Production: 38.3 MBoe/d (47% liquids) Producing Fields 43 Main Pass 108 Fairway & Mobile Bay 2020 Adjusted EBITDA2 159.0 MM Viosca Knoll 783 (Tahoe/SE Tahoe) 2020 Free Cash Flow 76.0…
Q4 2020 and Recent Highlights Produced 38,261 Boe/d, or 3.5 million Boe (47% liquids), in 4Q20, an 11% increase from 3Q20. as production was brought back online from hurricane and other downtime Reported a 4Q20 net loss of 8.9…
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 and…
SEC Year-End 2020 Reserves1 200 +26 -28 180 +4 +0 -15 160 MMBoe 140 120 100 80 157 144 60 40 20 0 Year-End 2019 Revisions of Revisions Due Extensions, Purchases of Production Year-End 2020 Previous to SEC Base…
Reserves: SEC1 vs. NYMEX Strip Pricing2 NYMEX Year-end 2020 Strip Pricing Reserves Oil NGL Gas Total Pre-Tax 3 Reserve Category (MMBoe) (MMBoe) Bcf (MMBoe) % Liquids PV-10 Proved Developed Producing (PDP) 20.0 17.2 561.9 130.8…
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…
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 Gulf of Mexico Historical Oil Production US Oil Production by Key Region (MMBO/d)1 2500 2.0 2000 4.5 1.2 Total: 1500 11.8MMBO/d 1.8 1000 0.5 0.7 1.2 500 TX & NM…
Successful Diversification in Valuable Deepwater Projects W&Ts deepwater portfolio was expanded and diversified with Magnolia (2019) as its latest addition W&T 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…
Incremental 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 1P booking Current 1P Initial 3P booking Current 1P Initial 1P booking 200 + 27 180 173 160 168 160 140 145 145 + 21 GROSS EUR…
Realizing Incremental Probable and Possible Reserve Upside1 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 to…
History of Creating Long-Term Value From GOM Acquisitions TOTAL NEWFIELD WOODSIDE COBALT CONOCOPHILLIPS/ 115 MM 206 MM 55 MM 17 MM MARUBENI4 Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Paid out in Aug. 18 MM…
Significant Declines in Reserve Replacement Cost 60.00 Since 2014, 3-year RR Decreased 87% While 175 Reserve Life2 Increased 86% from 5.1 to 9.4 Years 150 50.00 125 35.40 3-Year RR Costs (/Boe) 40.00 Avg. Day Rate…
Attractive Current Inventory (as of 11/20) Selected Growth Opportunities 1 Exploration 9 Development 4 Exploration 2 Development 5 Development 6 Exploration 1 Development 3 Exploration 4 Development 8 Exploration 1…
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…
Leveraging 37+ 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 23
Management Ownership1 Among the Highest of Public E&P Companies2 40% 35% Managements interest highly aligned with those of shareholders. 30% Management is incentivized to maximize value and mitigate risk. 25% 20% 15%…
Significantly Improved Capital Structure Liquidity as of 12/31/20 Long-term debt reduced 98 million to 632 million from 730 million at December 31, 9.75% 2nd Lien Notes due 2023 552 MM 2019, resulting in 8 million annualized 1…
Generating Steady and Significant Unlevered Free Cash Flow1 400 Strong production base and cost optimization 350 344 delivers steady Adjusted 1 EBITDA 300 283 268 Adjusted EBITDA1 250 materially outpaced 202 CAPEX and ARO…
2021 Capital Expenditure Budget CAPEX Allocation1,2 2021 CAPEX1 guidance: 10% 30 - 60 MM 10% 2020 actuals 18 million 2019 actuals 138 million Mid Point 11% 45 million 59% 2021 P&A guidance: 9% 17 - 21 MM 2020 actuals 3…
Proactive Management of Asset Retirement Obligations 1 Undiscounted P&A Schedule (MM) Accelerating P&A To Capture Low Costs Resulting in Lower WTI took advantage of low service cost environments in 2016 and 2017 by bringing…
2021 and Beyond Focused on Free Cash Flow Generation Prioritize ESG matters High Quality Conventional Asset Base with Low Decline Reducing Costs to Improve Margins and Increase ROCE Maintaining Good Liquidity and Financial…
5718 Westheimer, Suite 700 Houston, TX 77057 30
Appendix 31
W&Ts Response to COVID19 At our corporate offices, we instituted 100% remote work on March 23, 2020, and are currently operating at 50% occupancy in the office, with staff working 1 week at home, 1 week in office to protect our…
Impact from 2020 Hurricanes The southern region of the U.S. experienced the most active storm season since 2005 Experienced multiple production shut-ins from June through early November due to the series of storms Six out 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…
Magnolia Deepwater Acquisition Key Highlights Acquired 100% working interest in and operatorship of the Magnolia Field in the central GOM, offshore Louisiana, in Garden Banks blocks 783 and 784 through two transactions Combined…
Hedging Strategy Protects Cash Flow Without Limiting Upside Crude Oil Hedges as of March 3, 2021 Weighted Avg Weighted Avg Weighted Avg Production Period Instrument Avg. Daily Volumes Swap Price Put Price Call Price Crude Oil - WTI…
Hedging Strategy Protects Cash Flow Without Limiting Upside Natural Gas Hedges as of March 3, 2021 Weighted Avg Weighted Avg Weighted Avg Production Period Instrument Avg. Daily Volumes Swap Price Put Price Call Price Natural Gas -…
2021 Guidance (As of March 3, 2021) Full Year 1st Quarter Oil (MMBbls) 4.97 5.57 1.22 1.35 NGL's (MMBbls) 1.47 1.63 0.36 0.40 Natural Gas (BCF) 44.4 49.0 10.7 11.8 Total (MMBoe) 13.8 15.4 3.4 -3.7 Total (Boed/d) 38,000…
Significant Infrastructure Advantage W&T Owns Substantial Infrastructure in the Gulf of Mexico Platform Rig on infield production Subsea tieback to existing facility (EW 910 Area) infrastructure (MC 800 Gladden) 147 existing…
Mobile Bay Area Producing Fields Acquired ten working interest fields 109,184 gross acres (107,686 net acres) Initial production in 1988 Water depths of 10 - 50 ft 40
Mobile Bay Area Onshore Gas Treating Facilities Yellowhammer Plant Onshore Treating Facility 100% W&T ownership Established 1991 200 MMcfd capacity 100% W&T ownership Currently idled Established 1993 420 MMcfd capacity 175…
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 Gross Production Matterhorn & Virgo Fields 10,000 WI: 64% - 100%, 1,130 - 2,400 water depth Purchased from Total E&P, USA in 2010 115MM acquisition cost Total…
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…
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 Adjusted EBITDA/ Free Cash Flow Reconciliations The Company also presents the non-GAAP financial measures Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net (loss) income plus income…
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019 (In thousands) (In thousands) Net cash (used in) provided by operating activities (6,229)…
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…
5718 Westheimer, Suite 700 Houston, TX 77057 Al Petrie IR Coordinator 713-297-8024 www.wtoffshore.com apetriewtoffshore.com 49
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