Skip to main content Calyon Securities Energy Conference – W&T Offshore Inc. Investor Presentation | Shale Experts
Loading...
Pm

Calyon Securities Energy Conference – W&T Offshore Inc.

W&T Offshore Inc. · May 16, 2007 · 41 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 1
    Confidential W&T Offshore, Inc. Calyon Securities Energy Conference May 16, 2007
  2. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 2
    Company Highlights Reserve Data (as of 12/31/06) Proved Reserves (Bcfe) 735 Proved Developed Reserves (Bcfe) 479 Proved Developed % 65% Natural Gas % 55% Highlights Field Statistics (as of 12/31/06) Ticker WTI (NYSE) of Producing…
  3. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 3
    W&Ts Business Strategy Strong emphasis on cash flow returns and generation Increase reserves and revenue through the drill bit and by acquisition Continued focus on offshore Gulf of Mexico Conventional shelf primary focus Deep…
  4. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 4
    Operated Rig Analysis Our proposed 2007 drilling plan includes approximately 18 wells Rig types by level of complexity Types of rigs necessary for proposed 2007 drilling program. 44
  5. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 5
    Seismic Coverage Goal is to obtain a continuous 3-D database covering all W&T properties New seismic is already showing results with respect to KMG properties 4,400 4,400 blocks blocks of of 3-D 3-D coverage coverage Over…
  6. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 6
    Confidential Acquisition Overview
  7. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 7
    Integration of KMG Operations Integration of KMG is our Number 1 priority for 2007 Assumed operations on October 1, 2006 36 of 37 KMG operators accepted positions with W&T Purchasing new seismic Transition P&A and compressor…
  8. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 8
    Kerr-McGee Progress 247 Bcfe Proved Reserves 4 exploration prospects identified in 2007 budget 3 of 4 were generated in-house 2 of 3 of our 2007 development projects from KMG package Drill ready projects identified in dataroom…
  9. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 9
    Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited assets Key Acquisition Factors Kerr-McGee Example 1. Cash Flow KMG has strong production rates, including several behind…
  10. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 10
    Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Annual Reserves 2003 YE 2004 YE 2005 YE 2006 YE Acquisition (date) Compound Acq'd Reserves Reserves Reserves Reserves Change (1)…
  11. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 11
    Volumes - Report Card Double initial reserve bookings 686 Bcfe 700 600 Initial 351 Bcfe of Booked 351 Bcfe Production from Reserves Transactions 500 (Aggregate 686 Bcfe Total Net at Estimated Transaction) 400 Recovery…
  12. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 12
    Dollars - Report Card Value1,750 created from Major Transactions since 1999 ( in millions) 1,500 Probable and Possible: 1,386 Probable: 102 Bcfe 423 MM PV-10 1,250 Possible: 126 Bcfe 424 MM PV-10 1,000 PV-10 Value 907 at…
  13. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 13
    GOM and Gulf Coast Opportunities This only includes publicly announced transaction, and does not include private or unlisted transactions. Est. Proved Reserves Seller(s) Region Mmcfe SandRidgeEnergy, Inc. GOM Shelf 53,400 Santos GOM,…
  14. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 14
    Confidential Reserves Overview
  15. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 15
    Net Proved Reserves December 31, 2006 PDP 31% PDNP PUD 34% 35% Oil Gas Total PV-10 (3) (MMBbls) (Bcf) (Bcfe) (In millions) Net Proved Reserves:(1) Proved Developed Producing (PDP) 11.5 156.4 225.3 741.3 (2) Proved…
  16. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 16
    Reserves and Production by Product Net Proved Reserves by Product - December 31, 2006 Production for 2006 by Product Oil Oil 45% 39% Gas Gas 55% 61% Bcfe % Bcfe % Gas 401.2 55% Gas 60.4 61% Oil 334.0 45% Oil 38.8 39% Total…
  17. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 17
    History of reserve growth 735.2 600.0 Oil (Bcfe) 6 Natural Gas (Bcf) 2 00 0-200 334.0 C A GR 23% 491.5 467.5 444.7 400.0 357.5 275.6 Bcfe 213.6 240.0 138.6 245.7 207.4 200.0 91.2 401.2 103.8 219.0 231.1 227.6…
  18. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 18
    ... and production growth 33% production 160.0 growth at low-end Oil & NGLs of range for 2007 High 140 140.0 Gas Low 132 120.0 6 2 000-200 99.2 100.0 GR 2007 Guidance CA Bcfe 27% 79.0 82.4 80.0 71.1 38.8 26.2…
  19. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 19
    Constant Reserve Life Profile Trend of Reserve Life 10.0 8.7 8.0 7.4 6.9 6.3 6.6 Wtd Average 5.6 5.7 5.8 Proved Reserve / 6.0 Production - 6.7 4.8 4.5 4.1 4.2 Wtd Average 4.0 3.7 3.5 Proved Developed Reserve / Production…
  20. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 20
    Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 20 20
  21. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 21
    Proved Reserve Bookings - Pluto MC 718 A A Lowest Known Gas Amplitude Limit & Amplitude Limit & Estimated Estimated Gas/Water Contact Gas/Water Contact 3-D Seismic Courtesy of WesternGeco 21 21
  22. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 22
    Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 Current Rate 17.3 MMcfe/d Gross (7.4 MMcfe/d net) 5.3 Bcfe Net of positive revisions at year end…
  23. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 23
    Confidential Drilling Overview
  24. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 24
    Development Drilling 2000 2006 Overall Drilling success: 38 of 42, 90% success rate 9 100% 100% 100% 100% 8 86% 86% 86% 7 67% 1 1 1 6 Gross Wells 5 4 3 1 2 1 2 6 3 6 7 6 8 2 0 2000 2001 2002 2003 2004 2005 2006 2007…
  25. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 25
    Exploration Drilling 2000 2006 Overall Drilling success: 96 of 123, 78% success rate 35 100% 100% 2006 Kerr-McGee Transaction 30 11 83% 75% 2008 75% 77% 25 66% 1999 EEX, Vastar, Amoco 7 Transactions 20 2002 5 Burlington…
  26. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 26
    Projects for 2007 WEST CAMERON 181 KMG Drilling completed 1Q 2007 SOUTH TIMBALIER 41 6 - KMG HIGH ISLAND 22 - KMG Drilling completed 1Q 2007 SHIP SHOAL 217 - KMG Mobile Viosca Knoll Main W. Main Pass Cameron Pass S. and E.…
  27. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 27
    Green Canyon 82 - Healey Seismic Courtesy of PGS 2 W&T operated wells drilled to date Healey 1 (2006) Healey 3 (2006/2007) 5 Primary Reservoirs 9,450 Oil 10,900 Gas 11,200 Gas 11,300 Oil 12,250 Oil For primary reservoirs only…
  28. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 28
    Ewing Bank 989 (Cypress) A A 100% W&T working interest A DTR 30 Kerr McGee 2005 exploration discovery 550 2/2st water depth W&T OCS-G 26229 1st2 Cris S 4 oil reservoirs Pliocene age DTR-30 O W&T OCS-G 26229 1st/st2 Cris…
  29. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 29
    West Cameron 181 C-2 ST3 100% W&T working interest Former Kerr-McGee Property Proven undeveloped location in MN-1and MN-3 5 BCFE booked Actual results of well may double initial anticipated proved reserves Well currently…
  30. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 30
    Production Visibility Only includes recent exploration and development projects. Does not include any projected drilling programs Project Name Category WI Q2 2007 Q3 2007 Ewing Bank 989 Cypress Deepwater 100% 9.8 MMcfe/day Galveston…
  31. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 31
    Production Deferrals Original Start-up date New Start-up date First Quarter Second Quarter Third Quarter Jan Feb Mar Apr May Jun Jul Aug Sept Reason for Delay HIPS Sales Pipeline Damage Venice BLD 2 Processor Repairs Main Pass 108 7…
  32. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 32
    Capital Expenditures (s in millions) 2006 2006 Program Program by by Category Category 2007E 2007E Program Program by by Category Category Exploration Exploration 46% 37% Seismic 8% Development 54% Development…
  33. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 33
    W&T versus Peers
  34. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 34
    Reserve Growth Leads to Higher Production 2002-2006 CAGR: Reserve Growth 2002-2006 CAGR: Production Growth 40% 37% 20% 19% 18% 16% 29% 30% 15% 11% 11% 20% 10% 20% 10% 10% 8% 5% 5% 0% 0% -10% -6% -5% -11% -7% -20%…
  35. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 35
    Lower Costs equals Higher Netback 2002-2006 Average Expenses per Mcfe 2006 Netback (/Mcfe) (2) 3.00 2.91 /Mcfe 2.78 8.00 7.38 2.50 2.38 6.95 6.85 7.00 6.79 6.66 6.62 6.39 2.00 1.87 6.00 1.82 1.73 5.00 1.50 1.39 4.00 1.00…
  36. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 36
    Higher Long-Term Margins 2002-2006 EBITDA-EBIT Margins Weighted Average High EBITDA Margins 79% 8.23 100% 80% 8.07 8.00 73% 72% 69% 80% 81% 80% 79% 78% 79% 77% 80% 61% 6.16 60% 54% 6.00 5.33 Adj. EBITDA Margin % 48%…
  37. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 37
    ROACE vs. Peers 2002-2006 ROACE Weighted Average (1) 38% 35% 30% 24% 23% 21% 15% 13% 12% 10% 8% 3% 0% WTI BDE ME EPL SGY CPE ATPG 1. Calculation: Total EBIT/Weighted Average Book Capitalization for the five year period.…
  38. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 38
    ROACE vs. Everyone Else 2002-2006 ROACE Weighted Average (1) 80% 71% 70% 60% 50% 40% 37% 35% 31% 30% 29% 30% 20% 14% 10% 7% 3% 0% GOOG XOM WTI SBUX AMZN MRK YHOO TWX F 1. Calculation: Total EBIT/Weighted Average Book…
  39. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 39
    Conclusions High cash-on-cash return Superior Metrics vs. Peers Premium valuation justified Proven Track-Record of Acquiring and Exploiting Opportunity and size of Future Transactions Large inventory of prospects Favorable…
  40. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 40
    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, 2000 2001 2002 2003 2004 2005 2006 ( in thousands)…
  41. Calyon Securities Energy Conference – W&T Offshore Inc. – slide 41
    Confidential W&T Offshore, Inc. Calyon Securities Energy Conference May 16, 2007

From the store

Browse maps, data & reports in the Shale Experts store