Four Decades of Industry Leadership in the Gulf of Mexico 34th Annual Roth Conference March 14, 2022
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…
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 Region2 1 Permeability than the Unconventionals Production Multiple stacked pay opportunities…
Incremental Reserves May Be Produced at No Cost Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 5 NYSE: WTI
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 + 38 189 180 173 160 168 156 140 145 GROSS EUR (MMBoe) 120 118 +…
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…
Leveraging Four Decades 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…
Company Snapshot 4Q21 Average Production: 37.2 MBoe/d (45% liquids) Total Fields 47 1 Fairway & Mobile Bay 2021 Adjusted EBITDA 220.3 MM Main Pass 108 Viosca Knoll 783 (Tahoe/SE Tahoe) 2021 Free Cash Flow1 90.9 MM Mississippi…
Recent Highlights 4Q21 Production Completed opportunistic ANKOR acquisition in February of 2022, adding low-risk cash- flowing assets with identified upside potential without significant capital expenditures Produced 37.2 MBoe/d, or…
Generating Significant Free Cash Flow1 Average WTI Price (/bbl)2 400 43.82 50.98 64.87 57.09 39.75 68.09 Strong production base and cost optimization delivers steady 344 Adjusted EBITDA1 300 283 Adjusted EBITDA1 has 268…
ANKOR Acquisition Closed on ANKOR acquisition on February 1, 2022, which added over 50 gross producing wells (avg. WI of 80%) W&T acquired operated, shallow water assets at: Ship Shoal 230 South Marsh Island 27/Vermilion 191…
Capital Structure as of December 31, 2021 Net Debt1 as of 12/31/21 ( in millions) Proven track record of generating free cash flow and prudently managing the balance sheet through multiple price Total Cash & Equivalents 245.8…
Munich Re Transaction Overview Corporate Structure Partnered with Munich Re, a reputable AA-rated counter-party, to fund future growth needs A Prior to Transaction Increased cash on hand with non-recourse financing Leverage-neutral…
Exxon/Chevron Mobile Bay Case Study XOM/CVX Mobile Bay Fields Base LOE/Monthly Average 8.0 WI: 25% - 100%, 10 - 50 water depth Purchased in 2019/2020 7.0 171 MM acquisition cost 6.0 Valuation 1 Total Net Cash Flow 136 MM 5.0…
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…
2022 Capital Expenditure and P&A Budget 2022 CAPEX1 guidance: CAPEX Allocation1,2 Production vs Capex 70 - 90 MM 160.0 45.0 140.0 Plans for 1 deepwater well and 3 shelf 11% 40.0 wells, as wells as facilities, seismic, and…
Select Opportunities and Potential Spud Dates Mobile Bay Morgan Potential Spud Date: 4Q25 ST 320 SS 1 Potential Spud Date: 4Q23 ST 316 A-7 Caiman Potential Spud Date: 1Q24 Inventory Highlights SS 332 Prickly Pear 38 E&P…
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 WTI 30% 25% 20%…
Well-Positioned for Success Nearly Four Decades 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…
Appendix 25
Mobile Bay Acquisition Key Highlights Acquired ExxonMobils interests and operatorship in the eastern region of the Gulf of Mobile Bay Discovered in 1979 Mexico, 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 27 NYSE: WTI
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…
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 BOEPD Matterhorn and Virgo Gross Production WI: 64% - 100%, 1,130 - 2,400 water depth 10,000 Purchased from Total E&P, USA in 2010 Cumulative purchase price of 115…
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,…
GOM Drilling Joint Venture Secured 361.4 million 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…
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…
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…
Hedge Program (March 8, 2022) Natural Gas Hedges 60,000 Swaps Collars Aquasition Swaps Purchased Aquasition Puts Purchased Calls Natural Gas 50,000 Mobile Bay transaction required gas 40,000 hedges at the SPV level to cover a…
Hedge Summary (as of March 8, 2022) W&T (excluding Aquasition, LLC) Crude Oil - WTI NYMEX PERIOD SWAPS COLLARS Weighted Avg Weighted Avg Avg daily volume Weighted Avg Avg daily volume Floor Price per Ceiling Price per Total Volume…
Hedge Summary (as of March 8, 2022) Aquasition, LLC Natural Gas - Henry Hub NYMEX PERIOD SWAPS PURCHASED PUTS Total Volume Avg daily volume Weighted Avg Total Volume Avg daily volume Weighted Avg (MMBTU) (MMBTU/d) price per MMBTU…
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 Twelve Months Ended December 31, September 30, December 31, December 31, 2021 2021 2020 2021 2020 (In thousands) (Unaudited) Net income (loss) 48,904 (37,964) (8,947) (41,478) 37,790…
Non-GAAP Reconciliations Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2021 2021 2020 2021 2020 (In thousands) (Unaudited) Net cash provided by operating activities 22,376…
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…
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