Four Decades of Industry Leadership BANK OF AMERICA ENERGY in the Gulf of Mexico CREDIT CONFERENCE June 7, 2023 www.wtoffshore.com NYSE: WTI
DISCLAIMER The information contained in this presentation has been provided by W&T Offshore, Inc. (W&T, the Cautionary Note Regarding Hydrocarbon Quantities Company, we, our or us) and has not been verified independently. Unless otherwise…
DISCLAIMER (CONTD) Non-GAAP Measures This presentation includes certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). These measures include (i) Net Debt, (ii) Adjusted…
CORPORATE OVERVIEW W&T SEASONED GULF OF MEXICO (GOM) PLAYER FY 2022 1Q23 Avg.1 Total FY 2022 1Q23 FY 2022 1Q23 Production Fields Adjusted EBITDA2 Free Cash Flow2 40.1 Mboe/d (49% liquids) 563.7 MM 376.4 MM 47 Fairway & Mobile Bay…
1Q 2023 HIGHLIGHTS PRODUCTION Full Year 2022 Production Produced 32.5 MBoe/d (56% liquids) 40.1 MBoe/d Production temporarily impacted by planned maintenance at Mobile Bay and unplanned (49% liquids) downtime at non-operated fields…
ATTRACTIVE INVESTMENT OPPORTUNITY1 Despite strong Enterprise Value/YE 2022 1P PV-10 YE 2022 1P PV-10/Share Enterprise Value/2023E Prod. (/Boepd) performance and an improved financial position, W&T trades at a discounted valuation…
INSIDE OWNERSHIP1 AMONG THE HIGHEST OF PUBLIC E&P COMPANIES2 Managements Interest is Highly Aligned with W&Ts Shareholders and is Incentivized to Maximize Value and Mitigate Risk Public E&P Companies 1) Ownership percentage…
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 MBbls/d Multiple stacked pay opportunities Offer…
INCREMENTAL RESERVES MAY BE PRODUCED WITH MARGINAL INCREMENTAL CAPEX Strong Drive Mechanisms Allow Reserve Production From Fewer Wellbores 10 W&T OFFSHORE NYSE:WTI
INCREMENTAL RESERVE UPSIDE POTENTIAL1 Prob + Poss Related Prob + Poss Unrelated TOTAL 2 to PDNP + PUD 3 to 1P Reserves Possible PV-10 Contingent on execution of Additional capex required High Upside Potential Compared to Capital…
SIGNIFICANT RESERVE APPRECIATION FROM INITIAL BOOKINGS1 Current 1P Initial 2P booking Current 1P Initial 3P booking Current 1P Initial 2P booking + 18 +6 +8 W&T Mobile Bay Complex MAHOGANY T SAND2 MC 698 - Big Bend (DW…
LEVERAGING FOUR DECADES OF GOM ACQUISITION EXPERTISE ACQUISITION OPPORTUNITIES ACQUISITION CRITERIA GOM Exits Generating Free Cash Flow Companies exiting the GOM provide a Strong current production rates with the large inventory of…
HISTORY OF CREATING LONG-TERM VALUE FROM GOM ACQUISITIONS 115 MM1 206 MM1 55 MM1 17 MM1 18 MM1 Paid out in Aug. 2011 Paid out in Nov. 2014 Investments Post Acquisition Paid out in Aug. 2018 Paid out in Apr. 2021 Net average…
SS 349 FIELD (MAHOGANY) CASE STUDY Mahogany Gross Production SS 349 Field (Mahogany) WI: 100%, 360 Water Depth 1st commercially successful subsalt development in the Gulf of Mexico (initial production in 1997) Purchased interest in…
TOTAL E&P DEEPWATER ACQUISITION CASE STUDY Matterhorn and Virgo Gross Production Matterhorn & Virgo Fields WI: 64% 100%, 1,130 2,400 water depth Purchased from Total E&P, USA in 2010 Cumulative purchase price of 115 MM Valuation…
EXXON/CHEVRON MOBILE BAY CASE STUDY Base LOE/Monthly Average XOM/CVX Mobile Bay Fields WI: 25% 100%, 10 50 water depth Purchased in 2019 171 MM acquisition cost Valuation Total Net Cash Flow1 312 MM YE 2022 2P PV102 including ARO…
SIGNIFICANT INCREASE IN YEAR-END RESERVES AND PV-10 2P SEC Oil NGL Gas Total % Pre-Tax Reserves1 Reserve Category (MMBbl) (MMBbl) (Bcf) (MMBoe) Liquids PV10 (MM) Proved Developed Producing (PDP) 23.7 16.1 499.2 123.0 32.3% 2,280.8 PDP…
MAJOR DECLINE IN ALL-IN RESERVE REPLACEMENT COST1 (RRC) Since 2014, 3-year RRC Decreased 91% While Reserve Life2 Increased 123% from 5.1 to 11.3 Years 1) Calculated as total capex divided by total reserve additions. Includes capital…
SIGNIFICANT FREE CASH FLOW GENERATION Strong production base and cost optimization delivers steady Adjusted EBITDA1 Adjusted EBITDA1 has materially outpaced capex and ARO spending (before acquisitions) since 2016 Over the…
W&T HAS GROWN ITS CASH FLOW YEAR-OVER-YEAR AND REDUCED LEVERAGE 1) Net Leverage defined as Net Debt / Adjusted EBITDA, Net Debt defined as current and long-term debt, net of unamortized debt discounts, less cash and cash equivalents;…
W&T HAS MATERIALLY TRANSFORMED SINCE 2017 Production and WTI Price Net Debt and Net Leverage2 (Mboe/d) (MM) 1 Net Debt/Daily Production Liquidity3 (000s/Boe/d) (MM) 1) Production temporarily impacted by planned maintenance at…
CAPITAL STRUCTURE AS OF MARCH 31, 2023 Net Debt1 as of 03/31/23 (MM) Proven track record of generating free cash flow and Total Cash & Equivalents (excluding 4.4MM restricted cash) 177.4 prudently managing the balance sheet through…
STRATEGIC CAPITAL ALLOCATION PLAN Organic Projects Asset Acquisitions Debt Pay Down Focus on high rate of return projects Pursue compelling producing Use free cash flow to and fields with multiple drilling assets generating cash…
2023 CAPITAL EXPENDITURE AND P&A BUDGET 2023 Capex1 guidance: 90 - 110 MM Included in this range are planned expenditures related to one deepwater well and three shelf wells, as wells as facilities, seismic, and recompletions…
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 2022 consolidated two…
TBU WHY INVEST IN W&T OFFSHORE 1 Four Decades of Safe Operations in the Gulf of Mexico Proven Track Record of Delivering Positive Cash Flows with 21 2 Consecutive Quarters of Positive Free Cash Flow Experienced Management Team With…
APPENDIX 28 W&T OFFSHORE NYSE:WTI
40 YEARS OF SAFE OPERATIONS IN THE GULF OF MEXICO Robust and Developed Safety HSE&R and Environmental HSE&R Philosophy Management 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…
SELECT OPPORTUNITIES Mobile Bay Morgan Inventory Highlights 38 E&P Opportunities ST 316 A-7 Caiman SS 332 Prickly Pear 79% Avg Working Interest ST 320 SS 1 87% Operated Mahogany QV Attic GB 783 A-4 Holy Grail 74% HBP…
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 EXPENDITURES1 (MM) 2 1) Net of amounts held in escrow (total of 21.6 MM) 2) Midpoint of 2023 plugging and abandonment expenditures guidance of 25-35 million 35 W&T OFFSHORE NYSE:WTI
GOM DRILLING JOINT VENTURE Secured 361.4 MM 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…
MUNICH RE TRANSACTION OVERVIEW Partnered with Munich Re, a reputable AA-rated counter-party, CORPORATE STRUCTURE RBL to fund future growth needs W&T Increased cash on hand with non-recourse financing (PubCo) 2L Notes Prior to…
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 and operated by W&T as well as related…
MOBILE BAY AREA ASSET MAP SPV 100% owned by W&T SPV 100% owned by W&T and provides collateral for non- recourse term loan 39 W&T OFFSHORE NYSE:WTI
HEDGE PROGRAM Natural Gas Hedges Mobile Bay transaction required gas hedges at the SPV level to cover a majority of debt service W&T has 60% of 2023 estimated natural gas production hedged by swaps1 W&T structured synthetic long…
HEDGE SUMMARY W&T (excluding Aquasition, LLC) Natural Gas - Henry Hub NYMEX PURCHASED CALLS Weighted Avg Total Volume Avg daily volume strike price per (MMBTU) (MMBTU/d) MMBTU 2Q23 6,370,000 70,000 7.50 3Q23 6,440,000 70,000…
NON-GAAP RECONCILIATIONS Adjusted EBITDA/ Free Cash Flow Reconciliations The Company defines Adjusted EBITDA as net (loss) income plus income tax (benefit) expense, net interest expense, and depreciation, depletion, amortization and…
NON-GAAP RECONCILIATIONS March 31, 2023 December 31, 2022 (000s) (Unaudited) Term loan Principal 138,348 147,899 Unamortized debt issuance costs (4,145) (4,592) Total term loan 134,203 143,307 Credit agreement borrowings 11.75%…
NON-GAAP RECONCILIATIONS Three Months Ended Year Ended March 31, December 31, December 31, December 31, 2023 2022 2022 2021 (000s) (Unaudited) (Unaudited) Net Income (loss) 26,005 43,449 231,149 (41,478) Interest expense, net 14,713…
NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2022 2021 2020 2019 2018 2017 2016 (000s) (Unaudited) Net Income (loss) 231,149 (41,478) 37,790…
NON-GAAP RECONCILIATIONS Three Months Ended Year Ended March 31, 2023 December 31, 2023 December 31, 2022 December 31, 2021 (000s) (Unaudited) (Unaudited) Net cash provided by operating activities 23,435 12,679 339,530 133,668…
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