Four Decades ENERCOM DENVER of Industry Leadership THE ENERGY INVESTMENT CONFERENCE in the Gulf of Mexico August 8, 2022 www.wtoffshore.com NYSE: WTI
W&T SEASONED GULF OF MEXICO (GOM) PLAYER FY 2021 2Q22 Avg. Total FY 2021 2Q22 Avg. FY 2021 2Q22 Avg. Production Fields Adjusted EBITDA1 Free Cash Flow1 38.1 MBoe/d (46% liquids) 220.3 MM 90.9 MM 47 Fairway & Mobile Bay 42.4 MBoe/d…
2Q22 HIGHLIGHTS PRODUCTION Increased average daily production by 12% to 42.4 MBoe/d (48% liquids) in 2Q22 2021 Production compared to 1Q22 and above the high end of guidance 38.1 MBoe/d Monetized a portion of the Companys existing…
INSIDE OWNERSHIP1 AMONG THE HIGHEST OF PUBLIC E&P COMPANIES2 40% 35% 34% 30% W&T Managements Interest is Highly Aligned with W&Ts Shareholders and is Incentivized to Maximize Value and Mitigate Risk 25% 20% 15% 10% 8% 8% 5%…
PROVEN AND CONSISTENT STRATEGY Focus on Free Reduce Costs to Cash Flow Generation Improve Margins and Increase ROCE Prioritize Environmental, Preserve Ample Social & Governance Liquidity and Matters Financial Flexibility…
WHY WE HAVE LIKED THE GULF OF MEXICO FOR 40 YEARS GOM Provides Better Porosity and GOM Historical US Oil Production Permeability than the Unconventionals Oil Production1 by Key Region1 MBbl/d Multiple stacked pay 2,500 opportunities…
INCREMENTAL RESERVES MAY BE PRODUCED WITH NO INCREMENTAL CAPEX Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 8 W&T OFFSHORE NY SE:WTI ENERCOM DENVER AUGUST 8, 2022
REALIZING INCREMENTAL RESERVE UPSIDE1 TOTAL Possible PV-10 Prob + Poss Related Prob + Poss Unrelated 2 to PDNP + PUD 3 to 1P Reserves High Upside Potential Probable PV-10 Compared to Capital Contingent on execution of Additional…
SIGNIFICANT RESERVE APPRECIATION FROM INITIAL BOOKINGS1,2 Current 1P Initial 2P booking Current 1P Initial 3P booking Current 1P Initial 2P booking 220 1P Reserves 200 + 16 200 2P Reserves 180 180 3P Reserves 160 168 161 140…
LEVERAGING FOUR DECADES OF GOM ACQUISITION EXPERTISE ACQUISITION OPPORTUNITIES ACQUISITION CRITERIA GOM Exits Generating Free 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 55 MM1 17 MM1 115 MM1 206 MM1 Investments Post Acquisition Paid out in Aug. 2018 18 MM1 Paid out in Aug. 2011 Paid out in Nov. 2014 Paid out in Sep. 2019 Net average…
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 Mahogany Gross Production SS 349 Field (Mahogany) 100,000 WI: 100.0%, 360 Water Depth 1st commercially successful subsalt development in the Gulf of Mexico (initial production in 1997) Purchased…
TOTAL E&P DEEPWATER ACQUISITION CASE STUDY 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 Cumulative purchase price of 115 MM…
EXXON/CHEVRON MOBILE BAY CASE STUDY Base LOE/Monthly Average XOM/CVX Mobile Bay Fields 8.0 Previous WI: 25% - 100%, 10 - 50 water depth Operator 7.0 Purchased in 2019 171 MM acquisition cost 6.0 Valuation Total Net Cash Flow1…
SIGNIFICANT INCREASE IN MID-YEAR RESERVES AND PV-10 2P SEC 33% Oil NGL Gas Total % Pre-Tax Reserves1 Reserve Category (MMBbl) (MMBbl) (Bcf) (MMBoe) Liquids PV-10 (MM) 250.1 Proved Developed Producing (PDP) 25.9 16.3 520.3 128.9 32.7%…
MAJOR DECLINE IN ALL-IN RESERVE REPLACEMENT COST1 (RRC) Since 2014, 3-year RRC Decreased 89% While Reserve Life 2 Increased 124% from 5.1 to 11.3 Years 40.00 3 Year RRC Reserve life 12.0 35.00 35.40 10.0 30.00 32.27 8.0 3-Year…
SIGNIFICANT FREE CASH FLOW GENERATION Average WTI Price (/bbl)2 43.34 50.81 64.95 57.0 39.24 68.09 87.81 600 Strong production base and cost optimization delivers 496 steady Adjusted EBITDA1 500 Adjusted EBITDA1 has materially…
W&T HAS GROWN ITS CASH FLOW YEAR-OVER-YEAR AND REDUCED LEVERAGE Adjusted EBITDA and Net Leverage1 Free Cash Flow 2 (MM) (X) (MM) 350.0 800.0 0.0x +287% 0.5x 700.0 0.7x 300.0 311.4 1.0x 600.0 250.0 1.5x Net Leverage (Inverted)…
AND HAS STARTED STRONG IN 1H22 Adjusted EBITDA Free Cash Flow 1 (MM) (MM) 350.0 250.0 +1,117% 300.0 +485% 233.5 294.0 200.0 250.0 200.0 150.0 150.0 100.0 100.0 89.7 50.0 50.0 46.9 50.3 [VALUE] - - 2Q21 1Q22 2Q22 2Q21…
CAPITAL STRUCTURE AS OF JUNE 30, 2022 Net Debt1 as of 6/30/22 (MM) Proven track record of generating free cash flow and prudently managing the balance sheet through Total Cash & Equivalents 377.7 multiple price environments 9.75% 2nd…
STRATEGIC CAPITAL ALLOCATION PLAN Organic Projects Asset Debt Pay Down Focus on high rate of return projects and Acquisitions Use free cash flow to fields with multiple drilling opportunities Pursue compelling producing assets…
2022 CAPITAL EXPENDITURE AND P&A BUDGET 2022 CAPEX1 guidance: CAPEX Allocation1,2 Production vs Capex 70 - 90 MM Production (MBoe/d) CAPEX (MM) Plans for 1 deepwater well and 200.0 45.0 3 shelf wells, as wells as 17% 42.0…
SELECT OPPORTUNITIES AND POTENTIAL SPUD DATES Mobile Bay Morgan Potential Spud Date: 4Q25E Inventory Highlights ST 316 A-7 Caiman 38 E&P Opportunities Potential Spud Date: 1Q24E SS 332 Prickly Pear Potential Spud Date: 2Q24E 79%…
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 27 W&T OFFSHORE NY SE:WTI ENERCOM DENVER AUGUST 8, 2022
40 YEARS OF SAFE OPERATIONS IN THE GULF OF MEXICO Robust and Developed Safety HSE&R and Environmental Management HSE&R Philosophy System (S.E.M.S.) Performance HSE&R performance Instituted corporate wide No employee fatalities…
RIGOROUS TECHNICAL EVALUATION RESULTS IN DRILLING SUCCESS PROCESS 1 2 3 4 5 TECHNICAL LEADS SCREENING EVALUATION AFE REVIEW EXECUTE Leads high graded Cursory technical evaluation Full technical evaluation Presentation to Project…
SIGNIFICANT INFRASTRUCTURE Economic Advantage ADVANTAGE Reduces capital expenditures Platform Rig on infield Subsea tieback to existing production facility (EW 910 Area) infrastructure (MC 800 Gladden) Increases returns by generating…
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 Lines…
P&A CAPITAL EXPENDITURES1 (MM) 120 112.8 100 80 81.5 74.3 72.3 72.4 60 60.0 40 32.6 20 28.6 27.3 11.4 3.3 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1) Net of amounts held in escrow (total of 16.0 MM) 33…
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 Partnered with Munich Re, a reputable AA-rated counter-party, CORPORATE STRUCTURE RBL to fund future growth needs W&T (PubCo) 2L Notes Increased cash on hand with non-recourse financing Prior to 1…
MOBILE BAY ACQUISITION KEY HIGHLIGHTS Acquired ExxonMobils interests and operatorship in the eastern region of the Gulf of Mexico, offshore Alabama that are adjacent to existing properties owned Mobile Bay and operated by W&T as well…
MOBILE BAY AREA ASSET MAP Will be an SPV 100% owned by W&T and provide collateral for non-recourse term loan 37 W&T OFFSHORE NY SE:WTI ENERCOM DENVER AUGUST 8, 2022
HEDGE PROGRAM 2Q 2022 Natural Gas Hedges Natural Gas 35,000 Swaps Collars Aquasition Swaps Purchased Aquasition Puts Purchased Calls Mobile Bay transaction required gas hedges at the SPV level 30,000 to cover a majority of debt…
HEDGE As of August 8, 2022 SUMMARY Note: Periods are presented by quarter unless every quarter in a given year has the same average daily volume at the same price W&T (excluding Aquasition, LLC) Crude Oil - W TI NYM EX PERIOD SWAPS…
HEDGE SUMMARY As of August 8, 2022 Note: Periods are presented by quarter unless every quarter in a given year has the same average daily volume at the same price Aquasition, LLC Natural Gas - Henry Hub NYM EX PERIOD SWAPS PURCHASED PUTS…
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 Six Months Ended June 30, March 31, June 30, June 30, 2022 2022 2021 2022 2021 (In thousands) (Unaudited) Net incom e (loss) 123,436 (2,457) (51,672) 120,979 (52,418) Interest expense,…
NON-GAAP RECONCILIATIONS Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2022 2022 2021 2022 2021 (In thousands) (Unaudited) Net cash prov ided by operating activ ities 210,222 27,537 1,230 237,759…
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…
THANK YOU CONTACT US 5718 Westheimer Suite 700 Houston, TX 77057 www.wtoffshore.com NYSE: WTI
Loading...
