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JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc.

W&T Offshore Inc. · Oct 4, 2012 · 33 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. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 1
    JOHNSON RICE ENERGY CONFERENCE New Orleans October 4th, 2012
  2. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 2
    W&T Offshore, Inc. (NYSE: WTI) Revenues for 2011/1st half 2012 971 MM / 451 MM Adj EBITDA for 2011/1st half 2012 646 MM / 281 MM Proved Reserves (1) 701.1 Bcfe / 116.9 MMboe Reserves - Oil & Liquids (1) 59% PV-10 of Proved…
  3. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 3
    Company Operations: Scope And Geographic Coverage Permian Basin Proved Reserves: 28 MMBoe East Texas Acreage: 34,000 Net Acreage: 143,700 Net 4% of Production GOM Deepwater Proved Reserves: 25 MMBoe Acreage: 82,200 Net 26% of…
  4. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 4
    Why Invest in W&T Company remains focused on growth at a reasonable price History of acquiring assets at an attractive valuation History of taking advantage of previously neglected properties and successfully exploiting acquired…
  5. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 5
    W&T Acquiring Newfield GOM Assets Acquiring 100% of Newfields remaining Gulf of Mexico assets 78 federal offshore lease blocks, approximately 432,700 gross acres, comprised of 65 deepwater blocks (6 producing), 10 shelf blocks (4…
  6. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 6
    W&T Offshore Lease Blocks including Newfield Acreage 5
  7. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 7
    Liquids Rich Reserves Provide Value 2011 Proved Reserves by Category Proved Reserves by Product W&Ts proved liquid reserves 65% of proved reserves are producing are Crude Oil Rich as opposed or ready to produce with minimal cost…
  8. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 8
    Pricing Premiums Drive Higher Returns Crude Oil Prices W&T vs. NYMEX vs. Brent Natural Gas Pricing W&T vs. Henry Hub NYMEX-CUSHING BRENT W&T realized NYMEX Henry Hub W&T realized 125.00 5.00 120.00 4.50 115.00 110.00 4.00 105.00…
  9. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 9
    Drilling Within Cash Flow Historically, we have not borrowed money for drilling ( in millions) *2012 figure represents capital budget of 425 million, excluding acquisitions and annualized mid-year 2012 Adjusted EBITDA of 281.4…
  10. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 10
    Growing Through Multiple Avenues Focusing on all three aspects of our business development Exploration: Seeking organic growth through exploration activity Offshore exploration, including deepwater projects Targets offshore via lease…
  11. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 11
    Remaining CAPEX Focused on Exploration ( in millions) 2012 CAPEX budget of 425 million, before considering acquisitions More exploration focus in the second half of 2012 Exploration CAPEX more than triples in 2H 2012 10
  12. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 12
    Offshore Exploration Activity in 2012 MP 163 1 (WI: 40%) Est. Drill Costs (net) : 3.1 MM Target IP: 480 Boepd Est. 1st production: Q2 2013 MP 108 B-1 ST02 (WI: 100%) Est. D&C Costs : 27 MM Target IP: 1,200 Boepd WC 73 2 (WI:…
  13. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 13
    Gulf of Mexico Activity 2012 Gulf of Mexico remains a focus for us Majority source of our cash flow High rate of return projects with rapid payback We are positioned well in the Gulf of Mexico Fourth largest producer on the Gulf…
  14. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 14
    Offshore Development Drilling in 2012 SS 349 A-5 ST WI: 100% Status: Producing MC 243 A-4 ST D&C : 12.3 MM WI: 100% IP Rate: 960 Boepd D&C : 28.3 MM SS 349 A-13 IP Rate: 3,187 Boepd WI: 100% Status: Producing SS 349 A-9 ST D&C…
  15. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 15
    Ship Shoal 349 - Mahogany Field (WI:100%) Ship Shoal 349 production has grown 300% over the last nine months A-13 A-1 ST4 Upcoming Activity at Mahogany A-11 A-9 ST, drilling, target IP: 1,980 BOEPD A-2 ST (work over), Q4…
  16. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 16
    Mississippi Canyon 243 - Matterhorn (WI: 100%) Matterhorn production has nearly doubled over the past 12 months A-4 ST A-7 A-7 recomplete Online July 2011 IP rate 1,210 Boepd A-4 ST Online July 2012 IP rate 3,100 Boepd…
  17. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 17
    New Leases Equal New Opportunities W&Ts combined total for the 11 High Bid blocks equals 2.46 million W&T was high bidder* on 11 of 13 blocks in the recent GOM lease sale: SS 360 SS 368 MP 89 MP 93 MP 106 MP 127 MP 285 MP 286 CH…
  18. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 18
    Onshore Activity in 2012 Terry County (Exploration & Delineation) Star Project (Exploration & Delineation) Yellow Rose (Exploration & Development) 17
  19. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 19
    Permian Basin Geology Multiple operators are targeting these zones with horizontal activity Our focus in the West Texas Permian Basin is the Wolfberry Vertical wells in the Permian can produce from over 4,000 of net pay…
  20. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 20
    Yellow Rose (WI: 100%) Permian Basin Development Project with long life reserves and exploration upside 2012 Activity Update Recent lease position has grown to 23,200 net acres in Dawson, Martin, Andrews, Gaines counties in Texas.…
  21. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 21
    Terry County (WI: 35.6 90%) Exploratory Opportunity 100 Miles North of W&T Proved Reserves at Yellow Rose Background 10,800 net acres Geologically similar to Yellow Rose In the exploration and delineation phase 14 vertical…
  22. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 22
    STAR Prospect (WI: 97.6%) Low entry cost, pure exploration play Background Currently 143,700 net acres in six East Texas counties and still growing Results of the four Targeting oil in the James Lime formation wells will be…
  23. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 23
    W&Ts Acquisition Advantage 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 28+ years of proven experience for safe…
  24. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 24
    Liquidity for Further Growth Revolving bank credit facility with 650 million borrowing base We have 120 million currently drawn on the revolver Current cash balance 46 million Adjusted EBITDA for 2011 - 646 million Adjusted…
  25. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 25
    Cash Generation Remains Key 2013 Estimates of Free Cash Flow at 90 Oil and 3.50 Natural Gas in millions In a group of 19 companies, W&T Offshore was the projected leader in 2013 free cash flow using 90 oil and 3.50 gas. Estimates…
  26. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 26
    Aligned Interests: Shareholder View 53.2% * Ownership percentages portrayed were obtained from the ThomsonOne website in December 2011. Parties included: Apache, Bill Barrett, Cabot Oil & Gas, Comstock Resources, Energy XXI, Forest…
  27. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 27
    Returning Cash to Investors In 2011, we paid the most dividends and had the highest dividend yield* (3.7%) among our peers**, whose average yield was close to 0%. Quarterly dividend has been increased three times since going public…
  28. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 28
    Why Invest in W&T Company remains focused on growth at a reasonable price History of acquiring assets at an attractive valuation History of taking advantage of previously neglected properties and successfully exploiting acquired…
  29. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 29
  30. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 30
    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, 2009 2010 2011 2011…
  31. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 31
    2011 Year End Proved Reserves As of December 31, 2011 Total Equivalent Reserves Barrel Natural Gas % of Classification of Oil NGLs Natural Gas Equivalent Equivalent Total Proved Reserves (MMBbls) (MMGals) (Bcf) (MMBoe) (Bcfe)…
  32. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 32
    Financial Commodity Derivatives Oil Collars Weighted Average Contract Price Barrels Nymex Pricing ( per barrel) 2012 per Day Floor Ceiling Third Quarter 1,348 75.00 97.88 Fourth Quarter 2,728 75.00 98.99 Oil Swaps Barrels…
  33. JOHNSON RICE ENERGY CONFERENCE – W&T Offshore Inc. – slide 33
    W&T Offshore, Inc. (NYSE: WTI) 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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