38+ Years of Industry Leadership in the Gulf of Mexico Barclays CEO Energy Power Conference September 8 September 10, 2021
Corporate Summary & Update 3
Proven and Consistent Strategy Focus on Free Cash Flow Generation Prioritize Environmental, Social and Governance Matters Maintain High Quality Conventional Asset Base with Low Decline Reduce Costs to Improve Margins and…
Management Ownership1 Among the Highest of Public E&P Companies2 40% 35% Managements Interest is Highly Aligned with W&Ts Shareholders and is Incentivized to Maximize Value and Mitigate Risk 30% 25% 20% 15%…
Company Snapshot 2Q21 Average Production: 40.9 MBoe/d (45% liquids) Producing Fields 41 2 Fairway & Mobile Bay Adjusted EBITDA 1H21 107.3MM Main Pass 108 Viosca Knoll 783 (Tahoe/SE Tahoe) Free Cash Flow 1H21 58.7MM Mississippi…
Recent Highlights Reduced total long-term debt by 130 million from Jan 20 to Mar 21 Q221 Production Resulting in annual interest expense savings of 8.5 million 40,888 Boe/d, or 3.7 million Boe Enhanced capital structure in May21 with…
Hurricane Ida Impact W&T continues to evaluate the impact of Category 4 Hurricane Ida on its personnel and production operations All W&T employees and contractors are safe following the storm W&T did not sustain any significant…
Debt Securitization Transaction Overview Partnered with Munich Re, a reputable AA-rated counter-party, to fund future Corporate Structure growth needs Potential to scale over time to finance additional acquisitions A Prior to…
Capital Structure as of June 30, 2021 Proven track record of generating free cash flow and prudently managing the balance sheet through multiple price environments As of 6/30/21 Despite a difficult 2020 with COVID-19, negative oil…
Mobile Bay Case Study Mobile Bay Fields Base LOE / Monthly Avg WI: 25% - 100%, 10 - 50 water depth 8.0 Purchased in 2019 7.0 168MM acquisition cost Valuation 6.0 1 Total Net Cash Flow 84MM 5.0 Mid-year 2P PV10 net of ARO 440MM…
Environmental, Social and Governance Committed to protecting and preserving the environment Robust program of policies and continuous training Focused on best practices and strategies to reduce emissions In 2021 consolidated 2 Mobile…
Mid-Year 2021 SEC Reserves Summary1 Proved Reserves 200 180 +15 -7 All-in Reserve Replacement 160 +6 Cost 3-year average of 140 4.62 per Boe 120 MMBoe 100 Reserve life index2 10.9 years 80 159 144 at SEC pricing and…
Mid-Year 2021 Reserve Report at SEC Pricing1 2P Reserves 1 2 Oil NGL Gas Total Pre-Tax 32% Reserve Category (MMBoe) (MMBoe) (Bcf) (MMBoe) % Liquids PV-10 (MM) 235 MMBoe 53% Proved Developed Producing (PDP) 23.0 17.2 505.3 124.4…
Strategic Capital Allocation Plan Organic Projects Asset Acquisitions Debt Pay Down Focus on high rate of return projects and Pursue compelling producing Use free cash flow to reduce fields with multiple drilling opportunities…
Operational Overview 17
Why We Have Liked the Gulf of Mexico for the Last 40 Years GOM Provides Better Porosity and GOM Historical Oil US Oil Production by Key Region1 1 Permeability than the Unconventionals Production 2500 Multiple stacked pay…
Incremental Reserves May Be Produced at No Cost Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 19 NYSE: WTI
Realizing Incremental Reserve Upside1 Focused on Realizing the Reserves Upside and Adding Economic Value Across 3 Categories: Prob + Poss Unrelated to 1P 1 Prob + Poss Related to PDP 2 Prob + Poss Related to PDNP + PUD 3 Reserves No…
Significant W&T Reserve Appreciation From Initial Bookings1,2 Current 1P Initial 1P booking Current 1P Initial 3P booking Current 1P Initial 1P booking 200 + 38 180 186 174 160 168 156 140 145 GROSS EUR (MMBoe) 120 118 +…
Leveraging 38+ Years of GOM Acquisition Expertise ACQUISITION OPPORTUNITIES ACQUISITION CRITERIA Generating GOM Exits Cash Flow Companies exiting the GOM provide a large Strong current production rates with the inventory of…
History of Creating Long-Term Value from GOM Acquisitions1 55MM 115MM 206MM Investments Post Acquisition 17MM 18MM Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Paid out in Aug. 2018 Paid out in Apr. 2021 Net…
Significant Declines in All-In Reserve Replacement Cost1 (RRC) 50.00 175 Since 2014, 3-year RRC Decreased 87% While Reserve Life 2 Increased 86% from 5.1 to 9.4 Years 45.00 150 35.40 40.00 32.27 35.00 125 3-Year RRC…
Attractive Drilling Inventory1 Selected Growth Opportunities Inventory Highlights 79% Average Working Interest 1 Exploration 89% Operated 57% Held by Production 9 Development 4 Exploration 2 Development 5 Development 7…
Current Near-Term Prospects Under Evaluation South Timbalier Area Water depths 450 feet East Cameron 349 Cota Exploration potential Water depths 300 feet Reached TD in 2Q20, commercial success with 100 of net oil pay, Monza JV…
Financial Overview 27
Financial Strategy Pay Fund Accretive Down Debt Deals Low Risk, Focus on Free Creative Cash Flow Focus on Free Structures Cash Flow Pay Fund Monza Munich Re Down Accretive Drilling JV SPV Debt Deals 361 MM 215 MM Monza…
Generating Significant Free Cash Flow1 Average WTI Price (/bbl)2 43.82 50.98 64.87 57.09 39.75 63.67 Strong production base 400 and cost optimization delivers steady 344 Adjusted EBITDA1 300 283 Adjusted EBITDA1 268 materially…
2021 Capital Expenditure Budget 2021 CAPEX1 guidance: CAPEX Allocation1,2 Production vs Capex 30 - 60MM 50.0 160 1H21 actuals - 5.9 million 10% 45.0 140 2021 spending weighted to 2H21 10% 40.0 120 35.0 100 30.0 2021 P&A…
Well-Positioned for Success Over 38 Years of Safe Operations in the Gulf of Mexico Rigorous Technical Evaluation Resulting in High Drilling Success Proven History of Realizing Probable and Possible Upside Low Organic F&D…
Appendix 32
Rigorous Technical Evaluation Results in Drilling Success 1 2 3 4 5 Process Technical Leads Screening AFE Review Execute Evaluation 1 Leads high graded for review; once approved, project team assigned and deadlines set 2 Cursory…
GOM Drilling Joint Venture Secured 361.4MM commitment for the development of 14 pre-identified drill wells in the GOM with potential to upsize program over time with additional wells Covers the total estimated cost of the 14 wells of…
Mobile Bay Acquisition Key Highlights Acquired ExxonMobils interests and operatorship in the eastern region of the Gulf of Mexico, Mobile Bay Discovered in 1979 offshore Alabama that are adjacent to existing properties owned and…
Mobile Bay Area Asset Map Will be an SPV 100% owned by W&T and provide collateral for non-recourse term loan 36 NYSE: WTI
SS 349 Field (Mahogany) Case Study SS 349 Field (Mahogany) Mahogany Gross Production BOEPD WI: 100.0%, 360 Water Depth 100,000 1st commercially successful subsalt development in the Gulf of Mexico (initial production in 1997)…
Total E&P Deepwater Acquisition Case Study Matterhorn & Virgo Fields Matterhorn and Virgo Gross Production WI: 64% - 100%, 1,130 - 2,400 water depth BOEPD 10,000 Purchased from Total E&P, USA in 2010 Cumulative purchase price of…
Significant Infrastructure Advantage W&T Owns Infrastructure with an Estimated Replacement Value 1.0B Platform Rig on infield production facility (EW Subsea tieback to existing infrastructure (MC 910 Area) 800 Gladden) 146…
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,…
Hedge Summary W&T Excluding Aquasition, LLC Financial Commodity Derivative Positions As of September 9, 2021 Weighted Avg. Weighted Avg. Weighted Avg. Avg. Daily Weighted Avg. Weighted Avg. Weighted Avg. Production Period…
Hedge Summary - continued Aquasition, LLC Financial Commodity Derivative Positions As of September 9, 2021 Weighted Avg. Weighted Avg. Weighted Avg. Production Period Instrument Avg. Daily Volumes Swap Price Put Price Call Price…
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…
Non-GAAP Reconciliations Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2021 2021 2020 2021 2020 (In thousands) (Unaudited) Net (loss) income (51,672) (746) (5,904) (52,418) 60,076 Interest expense, net…
Non-GAAP Reconciliations Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2021 2021 2020 2021 2020 (In thousands) (Unaudited) Net cash provided by operating activities 1,230 44,964 9,154 46,194…
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…
Loading...
