Four Decades of Industry Leadership in the Gulf of Mexico Stifel 2022 Cross Sector Insight Conference June 7, 2022
W&T Seasoned Gulf of Mexico (GOM) Player FY 2021 1Q 2022A Avg. Production: 38,118 Boe/d (46% liquids) 37,756 Boe/d (49% liquids) Total Fields: 47 1 Fairway & Mobile Bay FY 2021 1Q 2022A Adj. EBITDA : 220.3 MM 89.7 MM Main Pass 108…
1Q 2022A Highlights Increased average daily production by 2% to 37,756 Boe/d (49% liquids) in 1Q 2022A compared to 2021A Production 38,118 Boe/d 4Q 2021 and at the high end of guidance (46% liquids) 1Q 2022A Production 37,756 Boe/d…
Inside Ownership1 Among the Highest of Public E&P Companies2 40% 35% Managements Interest is Highly Aligned with W&Ts Shareholders 30% and is Incentivized to Maximize Value and Mitigate Risk 25% 20% W&T 15%…
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 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 2,500 5%…
Incremental Reserves May Be Produced with No Incremental Capex Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 8 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…
Significant Reserve Appreciation From Initial Bookings1,2 Current 1P Initial 1P booking Current 1P Initial 3P booking Current 1P Initial 1P booking 220 200 + 40 192 180 175 160 168 158 GROSS EUR (MMBoe) 140 145 + 25…
Leveraging Four Decades of GOM Acquisition Expertise ACQUISITION OPPORTUNITIES ACQUISITION CRITERIA Generating Free 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 Acquisitions 55MM1 17MM1 115MM1 206MM1 Investments Post Acquisition Paid out in Aug. 2018 18MM1 Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Paid out in Apr. 2021…
Recent Producing Asset Acquisitions ANKOR Closed on February 1, 2022, and 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 South…
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…
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 7.0 171 MM acquisition cost 6.0 Valuation 1 Total Net Cash Flow 136 MM 5.0…
Major Decline in All-In Reserve Replacement Cost1 (RRC) Since 2014, 3-year RRC Decreased 89% While Reserve Life2 Increased 124% from 5.1 to 11.3 Years 40.00 12.0 35.00 10.0 30.00 8.0 3-Year RRC (/Boe) Reserve Life (R/P)…
Pro Forma YE 2021 Reserves: 4/18/22 NYMEX Strip Pricing1 2 Pre-Tax 2P Strip Prices Reserves 1 Oil NGL Gas Total PV-10 Reserve Category (MMBoe) (MMBoe) (Bcf) (MMBoe) % Liquids (MM) Proved Developed Producing (PDP) 26.4 17.0 527.4…
Significant Free Cash Flow Generation Average WTI Price (/bbl)2 500 43.82 50.98 64.77 57.05 39.75 67.98 76.81 Strong production base and cost optimization delivers steady Adjusted EBITDA 1 400 Adjusted EBITDA1 has materially 344…
W&T Has Grown Its Cash Flow Year-Over-Year And Reduced Leverage Adjusted EBITDA and Net Leverage1 (MM) (x) 700 4.0x 3.6x 560 3.2x Adjusted EBITDA (MM) 420 2.4x 2.2x 2.0x Net Leverage (x) 280 1.6x Adjusted EBITDA Grow th (%)…
And Has Started Strong in 1Q 2022 Adjusted EBITDA and Net Leverage1 (MM) (x) 100 4.0x 90 80 3.2x 58 Adjusted EBITDA (MM) 60 2.4x 2.3x Net Leverage (x) 40 1.6x 1.4x Adjusted EBITDA Grow th (%) 20 0.8x 0 0.0x 1Q 2021A 1Q…
Capital Structure as of March 31, 2022 Net Debt1 as of 3/31/22 (MM) Proven track record of generating free cash flow and prudently managing the balance sheet through multiple price environments Total Cash & Equivalents 215.5 Despite…
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 CAPEX Allocation1,2 Production vs Capex 2022 CAPEX1 guidance: 160.0 45.0 70 - 90 MM 140.0 11% Plans for 1 deepwater well and 3 shelf 120.0 40.0 Production (MBoe/d) wells, as wells as…
Select Opportunities and Potential Spud Dates Mobile Bay Morgan Potential Spud Date: 4Q 2025E ST 320 SS 1 Potential Spud Date: 4Q 2023E ST 316 A-7 Caiman Potential Spud Date: 1Q 2024E Inventory Highlights SS 332 Prickly Pear…
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 28
40 Years of Safe Operations in the Gulf of Mexico HSE&R performance is a key pillar for WTI Operations HSE&R Philosophy Specific HSE&R department reports directly to the COO Instituted corporate wide S.E.M.S. program in 2011…
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…
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 Participation 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,…
Multiple Takeaway Options Help Mitigate Hurricane Risk Prudent hurricane risk management through diverse production base, takeaway optionality, and adequate insurance coverage W&T Crude Takeaway Lines W&T Natural Gas Takeaway…
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…
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…
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 38 NYSE: WTI
Hedge Program 1Q 2022 Natural Gas Hedges 40,000 Swaps Collars Aquasition Swaps Natural Gas 35,000 30,000 Mobile Bay transaction required gas 25,000 hedges at the SPV level to cover a majority of debt service BBtu 20,000…
Hedge Summary W&T (excluding Aquasition, LLC) Crude Oil - WTI NYMEX PERIOD SWAPS COLLARS Weighted Avg price Weighted Avg Floor Weighted Avg Total Volume (Bbl) Avg daily volume (Bbl/d) per Bbl Total Volume (Bbl) Avg daily volume…
Hedge Summary Aquasition, LLC Natural Gas - Henry Hub NYMEX PERIOD SWAPS PURCHASED PUTS Total Volume Avg daily volume Weighted Avg price Total Volume Avg daily volume Weighted Avg price (MMBTU) (MMBTU/d) per MMBTU (MMBTU) (MMBTU/d)…
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 43 NYSE: WTI
Non-GAAP Reconciliations 44 NYSE: WTI
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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