Company Highlights Highlights Reserve Data 2009 2008 Ticker WTI (NYSE) Proved Reserves (Bcfe) 371 491 Initial Public Offering January 2005 Proved Developed Reserves (Bcfe) 284 334 Employees 286 Proved Developed % 76 % 68 % Market…
Proved Reserve Geographic Diversification Our geographic diversity provides additional protection during a hurricane 2
What is great about the Gulf of Mexico Great history of production and reserves Reserves at deeper but virtually untapped zones, significant upside potential (i.e. Davy Jones, Jack, etc.) Highly prolific with multiple pay zones…
Our Historical Gulf of Mexico Focus Operating successfully in the Gulf of Mexico for 26 years 10 year exploration drilling success rate of 78% 10 year development drilling success rate of 90% Established infrastructure allows for…
Accomplishments in 2009 77% success in 2009 exploration and development drilling program, including successfully drilling eight of ten exploration wells and two of three development wells Asset retirement obligations decreased 199.1…
2010 Goals & Objectives: Focusing on Growth and Profitability Grow reserves Current drilling program of 10 wells 192 Bcfe net unrisked most likely reserves Pursue acquisitions with proved reserves and exploitation opportunities…
2010 Goals & Objectives: Focusing on Growth and Profitability Contd Cost management LOE controls Possible divestiture on non-core properties Committed to competitive F&D metrics Improve EBITDA margins closer to historic levels…
2010 Capital Expenditures Budget 450 million budget is 63% higher than in 2009 In April 2010, we announced our intention to acquire deepwater assets from Total E&P U.S.A. for 150 million (effective January 1, 2010) 150- 160 million…
Prudent Investment Strategy Proven, experienced and expanding A&D team Adding staff to focus on deepwater and long life reserves Improved transaction market (1) Domestic E&P transactions of 10.0 billion in 2009 compared to 26.6…
Strategic Acquisition Criteria Opportunistic Approach Properties generating cash flow Strong current production rates Financeable Large portion of reserve base is proved developed and can be financed Identified upside Properties…
Pending Deepwater Acquisition Two operated and producing fields to be acquired from Total E&P U.S.A. MC 243 Matterhorn (100% working interest) VK 822 and 823 Virgo (64% working interest) Purchase price of 150 million, effective…
Matterhorn - Regional Location Map Matterhorn Field is located in a prolific area of Mississippi Canyon, on trend with many other discoveries and producing fields. Regional Fields and Recovery Map . 12
Matterhorn - MC 243 Platform Matterhorn Mississippi Canyon 243 2800 WD . Installed: 2003 Date of First Production: 11/2003 Tension Leg Platform 4 Decks 9 Slots 7 Dry Trees 5 Active Wells 2 Inactive Wells 2 Open Slots…
Virgo - Regional Location Map Virgo Field is located in the prolific Viosca Knoll area of the central Gulf of Mexico with adjacent fields in similar depositional environments. Regional Fields and Reserves Map 14
Virgo - Viosca Knoll 823 Platform Virgo Viosca Knoll 823 1130 WD Installed: 1999 Date of First Production: 11/1999 12 Skirt Pile Structure 6 Leg Deck 3 Decks 14 Slots 5 Active Wells 5 Inactive Wells 2 Open Slots 15
Proposed 2010 Drilling Program South Louisiana Development WI: 50% MP 108 E-3 Onshore WI: 67% Exploration Shelf MP 98 1 Non-commercial WI: 100% Shelf Rig on location Viosca Knoll Main W. Pass Cameron Main S. and E. Pass West…
Strategic Budgeting with a Long-Term Focus Capital Expenditures ( in millions) We drill within cash flow and cash on hand 1,800 1,600 Focus on maintaining liquidity 1,400 1,200 Reduce capital budget when 1,062 service costs…
Proved Reserves by Year Oil & NGLs (Bcfe) Natural Gas (Bcf) 800.0 Total CapEx 2,000 735.2 Reserves & production 1,800 growth typically track capital 1,650.8 638.8 1,600 spending levels 600.0 1,400 Negative pricing & adverse…
Proved & 3P Reserves Mix 2009 Proved Reserves 2009 - 3P Reserves Proved PDP 40% 43% PUD Possible Probable 24% 44% PDNP 16% 33% Oil Gas Total Oil Gas Total Mbo MMcf MMcfe Mbo MMcf MMcfe PDP 12,667 86,561 162,564 43%…
Production Profile Oil & NGLs (Bcfe) Natural Gas (Bcf) 2010 production guidance of 126.5 60 to 80 BCFE is based on the initial 7 well budget and 99.2 97.9 150 million cap-ex program 94.8 not full 450 million budget Bcfe 71.1…
Adjusted EBITDA Margins Improving Cost of goods & services have historically tracked with commodity prices in the GOM From 2000 thru 2007, Adj. EBITDA margins averaged 79% despite variable commodity prices In 2009, margins were…
W&T Liquidity - Opportunities Reduced debt by 200 million and ARO by 200 million during 2009 Cash balance at April 8, 2010 220 million Revolver availability at April 8, 2010 = 262 million with 405 million borrowing base We redrew…
Key Investment Considerations Large acreage position in the Gulf of Mexico Operating in the Gulf of Mexico for 26 years Experienced staff Strong cash flow & good liquidity Balanced oil and gas reserve mix Focused on growth…
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 2007 2008 2009…
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
Appendix
2010 Guidance and Capital Budget Estimated Production (1) Full-Year 2010 Crude oil (MMBbls) 4.6 6.2 Natural gas (Bcf) 32.4 42.8 Total (Bcfe) 60.0 80.0 Operating Expenses ( in millions) Full-Year 2010 Lease operating expenses (2)…
Hedging Strategy & Schedule The Company has hedged 12.1 Bcf of its 2010 natural gas production, 1.94 MMBbls of its 2010 oil production and 1.21 MMBbls of its 2011 oil production with costless collars and a swap on natural gas 1Q…
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