IPAA Oil and Gas Symposia April 7th, 2014 New York, NY
W&T Offshore Overview (NYSE: WTI) Financial Summary Asset Summary Year End 2013 Revenue 984.1 Deepwater Gulf of Mexico Adjusted EBITDA 598.1 490,000 gross acres Stock Price 17.75 38% of daily production (as of April 3, 2014) 1P…
2013 Provided Continued Growth in EBITDA, Reserves, and Production Production (MMboe) Adjusted EBITDA 19.0 ( in millions) 18.0 650.0 17.0 600.0 550.0 16.0 24% growth 33% growth 500.0 15.0 450.0 14.0 400.0 13.0 350.0 12.0…
Total Reserves Continue to Grow PDP reserves PV-10 increased to 1.9 billion during 2013 Proved, Probable and Possible reserves total 221.9 MMBoe and do not fully account for recent deepwater success and multiple target benches on our…
Probable Reserves: Incremental to Proved Probables Reserves: Upside to Proved Reserves Percentage by Offshore Field No incremental capital cost 27.4 MMboe Unrisked 837 Million in PV-10 Unrisked Spread over 29 offshore fields…
W&Ts Acquisition History (as a public company) Kerr-McGee Total Yellow Rose Newfield Acquisition Acquisition Acquisition Acquisition 1.1 billion 115 million 394.4 million 205 million 242 lease blocks MC 243 Matterhorn 21,900 net…
2013 Focused on a Long-Term Outlook Deepwater activity during 2013 provided significant impact in 2015 and beyond as projects come online Two successful Deepwater exploration projects (Troubadour and Dantzler) Acquisition of Medusa…
2014 Capital Expenditures Budget of 450 million Focused upon quality, high impact projects Deepwater GOM development activity at Big Bend and likely Dantzler New exploration activity in the deepwater GOM Mahogany exploration and…
The Benefit of Balanced Capital Allocation - 2014 Balanced blend of projects from all three of our primary basins support a sustainable long-term organic growth strategy All major projects are focused on oil production and multi-year…
Well Positioned in the Deepwater GOM VK 822/823 Virgo VK 783/784 Cum Prod: 21 MMBoe Tahoe Cum Prod: 94 MMBoe MC 243 MC 538/582 Matterhorn Cum Prod: 23.5 MMBoe Medusa Cum Prod: 38 MMBoe MC 698 Big Bend GB 258/302 MC 800…
Significant Growth in the Deepwater GOM Between 2009 and 2013, deepwater production has grown nearly 800% and proved reserves(1) are up 320% MBoe Deepwater Net Production MMBoe Deepwater Net Reserves 8,000 30 7,000 25 6,000 20…
Wide Azimuth Data Better Imaging for New Opportunities Salt bodies Available WAZ data 11
Deepwater Success MC 698 Big Bend MC 698 Big Bend (working interest 20%) Gross resource estimate of 30 to 65 MMBoe (P75 P25)(1) Targeting first production in late MC 698 Big Bend 2015 (est. peak rate of 22,000 Boepd) (1) Sub-sea…
Deepwater Success MC 782 Dantzler MC 782 Dantzler (working interest 20%) Gross resource estimate of 55 to 95 MMBoe (P75 P25 case)(1) MC 699 Over 85% oil Troubadour Dantzler 2013 discovery Peak rate est. 36 MBoepd(1) oil…
Development Deepwater GOM Third party tie-back contributes 500K per MC 243 Matterhorn month in processing fees (WI: 100%, NRI: 100%*) A-5 Well: The well logged 220 of measured pay (one of the thickest A sand intervals in the…
Exploration Opportunities at MC 538 Medusa Medusa (MC 538/582) acquired in 2013 Current daily production of roughly 900 Boepd net to W&T (90% oil) Medusa spar is the host facility for the W&T owned Gladden production at MC 800…
2014 Gulf of Mexico Shelf Activity East Cameron 321 A1 ST Ship Shoal 349 Mahogany 3 wells A15, A16, A17 Shelf drilling projects (4) est. total cost 80 million Planned recompletes (20) est. total cost 35 million 16
W&T High Bidder on Five New Leases W&T High Bid Leases: SS 174 SS 350 MO 874 EW 952 EW 953 Current W&T leasehold High Bid Leases for W&T Energy VI 17
GOM Shelf Exploration at Ship Shoal 349 SS 349 Mahogany 2014 Activity at SS 349 Continued Sub-Salt Exploration & Development Success SS 349 A-17 SS 349 A-6 (WI: 100%, NRI: 83.3%) Exploration well Recomplete targeting new Mahogany…
Ship Shoal 349 Mahogany Keeps Growing Mahogany Net Sales Volumes Key Developments at SS 349 MBoe Mahogany 3000 2500 Net sales are up 470% since 2011 2000 Obtaining new wide azimuth 1500 seismic over the field 1000 Successful…
Development GOM Shelf SS 359 A14 Log SS 349 Mahogany A-16 Well SS 349 A Platform A Bring forward production from M sand zones identified above the T-sand in the A-14 well N sand (WI: 100%, NRI: 83.3%) A4 ST Summary Targets the M,…
Exploration GOM Shelf EC 321 A & B platforms EC 321 A-2 ST (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lentic 1 sand by drilling a side- track from the existing A-2 well bore salt EC 321 A-2ST Initial Est. Cost -…
Yellow Rose: Overview of Asset and Activity Yellow Rose (WI: 100%, NRI: 78%) Summary: 26,000 highly contiguous net acres in the heart of the North Midland Basin 2014 Capital Budget allocation of 130 million Drilling program reflects…
The Growing Importance of Yellow Rose Quick History for Yellow Rose MBoe Yellow Rose Net Sales Initially purchased in 2011, took over vertical 1400 development program from previous operator 1200 2012 Activity 1000 Very limited…
Permian Basin Potential Horizontal Wells Current industry target benches Horizontal Growth Opportunities: We recently completed the first Wolfcamp B well on our acreage (currently on flowback) and are 3+ target zones Upper Spraberry…
Significant Activity Near W&T Acreage SM Energy Tatonka 1H A 549 Boepd (6,400 lateral) Wolfcamp B FANG Kent County School 1701H B 8,500 lateral Wolfcamp B FANG Mabee Breedlove 2201H C 9,000 lateral Wolfcamp B W&T Chablis…
Exploration - Onshore East Texas Exploration STAR Prospect (WI: 97.6%) Low entry cost, pure exploration play Currently 147,900 net acres in six East Texas counties (St. Augustine, Shelby, Sabine, Nacogdoches, Angelina, and Jasper)…
Liquidity Available for Further Growth Revolving bank credit facility of 1.2 billion with an 800 million borrowing base Borrowing base at 800 million with facility maturity of Nov. 2018 Improved terms on the credit facility…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adjusted EBITDA CAPEX, Excl. Acquisitions 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2013 28
Returning Cash to Investors W&T recently paid a Dividends and Yield normal cash dividend 1.20 1.11 8.0% of 0.10 per share. 4 year average The dividend was paid on March 31, yield is 5.0% 7.0% 1.00 2014 to shareholders of record on…
How We Provide Value to Our Investors Continued focus on organic growth activity Proved reserve additions of 20.2 MMBoe from extensions and discoveries in 2013 (114% of production) Disciplined approach: drill within cash flow…
APPENDIX
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Year Ended December 31, ( in thousands) 2013 2012 2011 Net income (loss)…
2014 Guidance ( in millions) First Quarter Full Year Estimated Production 2014 2014 Oil and NGLs (MMBbls) 2.2 - 2.5 9.0 - 9.9 Natural Gas (Bcf) 12.3 - 13.6 48.7 - 53.8 Total (Bcfe) 25.7 - 28.4 102.6 - 113.4 Total (MMBbls) 4.3 -…
2013 Year End Reserves As of December 31, 2013 Total Equivalent Reserves Classification of Proved Oil Natural Gas Reserves NGLs Natural Gas Equivalent Equivalent % of total PV-10 (1) Oil (MMBbls) (MMBbls) (Bcf) (MMBoe) (Bcfe)…
Financial Commodity Derivatives (1) 2014 Swaps Brent Swaps WTI Swaps LLS Swaps Barrels Avg Swap Barrels Avg Swap Barrels Avg Swap Month Per Day Price Per Day Price Per Day Price January 2,000 97.38 9,000 97.44 2,000 98.20 February 2,000…
Nine Greenway Plaza, Suite 300 Houston, TX 77046 Main line: 713-626-8525 Fax: 713-626-8527 Investor Relations: 713-297-8024 www.wtoffshore.com www.investorrelationswtoffshore.com
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