2013 Barclays CEO Energy/Power Conference September 11th, 2013
Overview - W&T OFFSHORE (NYSE: WTI) Six Months Ended ( in millions) June 30, 2013 Operating Locations Revenues 494.6 Adjusted EBITDA 322.9 Proved Reserves (PV-10) 2,820.0 Permian Basin (As of December 31, 2012) East Texas Dividend…
Why Invest in W&T Offshore Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Exploration and Development both Onshore and Offshore Offshore activity…
Current Activity for W&T Offshore Operations have commenced at our Ship Shoal 349 Mahogany A-15 deep shelf, sub-salt exploratory well Recent Ship Shoal 349 A-4 recompletion is on production Mobilizing rig to our EC 321 field to drill…
Organic Growth with a Focus on Oil Proved Reserves (MMBoe) 120.0 Significant growth potential 100.0 from our 3P reserves 80.0 Gross resource potential extends well beyond our 3P reserves 60.0 40.0 3P Reserves (in MMBoe) 20.0…
Multiple Avenues to Achieve Organic Growth ONSHORE TEXAS GOM DEEPWATER GULF OF MEXICO SHELF Yellow Rose field 481,200 gross acres 710,760 gross acres 25,730 net acres to develop Sanction of MC 698 Big Bend SS 349 Mahogany A-14…
Balance The Offshore Component W&T has continued to W&T has 1.2 million gross acres grow its footprint in under lease in the GOM the Gulf of Mexico through acquisitions and leases sales 65 lease blocks acquired from Newfield (59…
Exploration and Development - GOM MP 108 WC 73 2 Exploration Development B-1 ST: Producing Awaiting flow line hook-up Q4 2013 1st production MC 243 Matterhorn Development & Reservoir Support HI 21 A-2 ST: On production…
Exploration Deepwater GOM MC 698 Big Bend and MC 699 Troubadour (WI: 20%, NRI: 16.7%) Summary Deepwater exploration wells in adjacent lease blocks. Big Bend was a 2012 oil discovery and Troubadour is a 2013 gas MC 699 discovery…
Exploration GOM Shelf 2013 Activity at SS 349 SS 349 Mahogany Continued Sub-Salt Exploration & Development Success SS 349 A-4 (WI: 100%, NRI: 83.3%) Recomplete Producing Mahogany production 75% oil Multi-horizon production Primary…
Exploration GOM Shelf SS 349 Mahogany A-14 Well Deep Shelf, Sub-Salt Discovery SS 349 A-14 results: Logged 370 of total pay (WI: 100%, NRI: 83.3%) Encountered 5 pay sands Summary Exploratory well which Reserve additions & discovered…
Exploration GOM Shelf SS 349 Mahogany A-15 Well SS 349 Mahogany Deep Shelf, Sub-Salt Exploration (WI: 100%, NRI: 83.3%) Summary Single well bore targeting five separate sands (N,O,P,Q,Q5) Initial Est. Cost - 34.5 million A-15 Project…
Exploration GOM Shelf EC 321 A & B EC 321 A-2 ST production platforms (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 Initial Est. Cost - 13.6…
Development Deepwater GOM MC 243 A-2 well MC 243 Matterhorn Matterhorn TLP Producing (WI: 100%, NRI: 100%*) A-5 Well: Designed for field pressure maintenance. The well logged 220 of measured pay (one of the thickest A sand…
Exploration GOM Shelf MP 108 B-1 (WI: 100%, NRI 82%) Summary Exploration well recently completed. The well E Platform D Platform A Platform discovered reserves in both the Tex W-6 (73 measured depth pay) B and Tex W-3 (30…
Development GOM Shelf High Island 21 (WI: 100%, NRI: 81%) Summary Gas and liquids development targeting the LH 20 sands Result The well logged pay in targeted LH-20 sand plus additional upside pay in LH-16 exceeding original…
Offshore Projects Solid Results, More to Come Year to Date Results: Current and Upcoming Projects: Drilled five successful wells to date, New exploratory wells, SS 349 A-15 including a significant discovery at and EC 321 A-2 ST, both…
Balance The Onshore Component Predictable onshore reserve growth over time Multiple upside opportunities through down-spacing and horizontal benches (significant potential) Continuous growth of long-life steady oil production…
Exploration and Development - Onshore Yellow Rose avg. July production mix Yellow Rose (WI: 100%, NRI: 78%) 77% crude oil, 14% NGLs, 9% gas Summary: Permian basin exploration and development project with long-life reserves 2013…
Permian Basin Upside Potential Vertical Wells Vertical Growth Opportunities: Vertical wells are being Majority of reserves booked at 2012 YE were completed in 10 to 12 on 80 acre spacing (267 locations) different zones Some 80 acre…
Continued Improvement in Vertical Wells Yellow Rose 30 Day Average IP rate (Boepd gross) Boepd 120 100 80 60 40 20 0 Q2 2012 Q3 2012 Q2 2013 Q3 2013 30 Day Average IP rate (Boepd gross) Boepd rates above reflect…
Permian Basin Potential Horizontal Wells Current industry target benches Horizontal Growth Opportunities: Thus far, W&T has only tested the Wolfcamp A, with a total of six horizontal wells The next horizontal well targets the…
Untapped Reserve Growth Potential (as of year end 2012) Focusing only on vertical downspacing to 20 acres and three horizontal benches, there are potentially 220 MMBoe of unbooked reserves at Yellow Rose Potential Reserve Growth at…
Midland Basin Activity Continues to Move North Early efforts were focused on the southern portion of the Midland Basin. WTI Prominent players are now Yellow Rose pushing the northern boundaries of the play. Many of the new data…
Latest Horizontal Results Near W&T Acreage FANG UL III 4-1H Wolfcamp B IP rate: 613 Boepd Lateral: 4,051 24
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)…
Balance The Acquisition Component W&T has proven acquisition criteria Properties generate cash flow, are financeable, and have identified upside We are a preferred buyer in the Gulf of Mexico Over 30 years of proven experience for…
Liquidity Available for Further Growth Revolving bank credit facility with 800 million borrowing base Amount available under credit facility(1) 635 million Cash balance(1) 21.4 million 20 banks in our current credit facility with…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adj. EBITDA CAPEX, Excl. Acquisitions Acquisition CAPEX 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2012 was…
Returning Cash to Investors W&T currently pays a Dividends per share 1.20 1.11 quarterly dividend of 0.09 per share 1.00 The next dividend will be payable on 0.80 0.79 0.80 September 12, 2013 to shareholders of record on August…
Aligned Interests: Shareholder View Insider Ownership 60 53.8% *Average inside ownership among 50 peers is 2.9% vs. W&T at 53.8% 40 30 20 10 0 WTI 2 3 4 5 6 7 8 9 10 11 12 13 *Peers include: Apache, Bill Barrett, Cabot…
How We Provide Value to Our Investors Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Exploration and Development both Onshore and Offshore…
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, Six Months Ended June 30, ( in thousands) 2010…
2013 Guidance Third Quarter Full Year(1) Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.0 - 2.3 9.0 - 9.5 Natural Gas (Bcf) 10.1 - 11.5 47.4 - 49.5 Total (Bcfe) 22.2 - 25.2 101.3 - 106.5 Total (MMBbls) 3.7 - 4.2 16.9 -…
2012 Year End Reserves As of December 31, 2012 Total Equivalent Reserves (1) Classification of Proved Reserves Oil NGLs Natural Oil Natural Gas PV-10 (MMBbls) (MMBbls) Gas (Bcf) Equivalent Equivalent (Millions) (MMBoe) (Bcfe) Proved…
Financial Commodity Derivatives 2013 Swaps Brent Swaps WTI Swaps Barrels Avg Swap Barrels Avg Swap Month Per Day Price Per Day Price July 5,400 104.99 2,000 97.00 August 4,400 103.85 3,000 97.27 September 3,400 101.98 1,000 97.00…
Financial Commodity Derivatives 2014 Swaps Brent Swaps WTI Swaps Barrels Avg Swap Barrels Avg Swap Month Per Day Price Per Day Price January 2,000 97.38 9,000 97.44 February 2,000 97.38 9,500 97.31 March 2,000 97.38 7,000 97.43…
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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