GHS 100 Energy Conference San Francisco June 26th, 2012
W&T OFFSHORE, Inc. (NYSE: WTI) Revenues for 2011 971 MM Adjusted EBITDA for 2011 646 MM Proved Reserves (1) 701.1 Bcfe / 116.9 MMboe Reserves - Oil & Liquids (1) 59% Acreage Offshore 792,519 gross / 513,281 net Acreage…
Company Operations: Scope And Geographic Coverage Permian Basin Proved Reserves: 28 MMBoe Acreage: 34,100 Net East Texas Acreage: 143,000 Net 4% of Production GOM Deepwater Proved Reserves: 25 MMBoe Acreage: 82,200 Net 26%…
Why Invest in W&T Company is focused on growth at a reasonable price 2011 reserve replacement cost, excluding ARO, of 13.59/Boe 2011 reserve growth of 44% PV10 increased 63% to 3.1 billion from 2010 Strong liquidity provides…
Strong Reserve Growth in 2011 Proved reserves increased 44% in 2011 over 2010 Overall reserve replacement ratio of 312% W&T Total reserves: Proved 117 MMBoe; Probables 63 MMBoe; Possibles 95 MMBoe 2011 Proved Reserves by Category…
Reserve Growth Year After Year Oil and NGL's Natural Gas Growth Goal* 140 117 120 100 81 (MMBoe) 80 62 60 40 20 - 2009 2010 2011 2012E * Growth Goal: 18% or greater over 2011 proved reserves. 5
Rising Production Growth Oil and NGL's Natural Gas 20 *16.9 to 18.8 16.9 18 14.5 16 14 12 (MMBoe) 10 8 6 4 2 0 2010 2011 2012E * 2012E volumes represent guidance range. Estimated production for 2012 does not…
Liquids Component Expanding Oil and natural gas liquids continue to make up a greater portion of the reserves and production mix W&T Offshore receives Gulf Coast premium prices for 87% of its oil production OIL & NGLs PRODUCTION…
Consistently High Oil & NGLs Oil and liquids are consistently high as a percentage of proved reserves Currently the highest in 5 years Liquids Natural Gas 100% 90% 80% 70% 60% 50% 54% 55% 59% 40% 48% 47% 30% 20%…
Widened Areas of Expertise Movement onshore provided diversity Extended the average reserve life Extensive drilling during 2011 provided insight into cost saving opportunities, future well placement, and best practices to employ…
W&T Strategy for Growth and Earnings Continue to focus on making acquisitions at a reasonable price both onshore and offshore Continue to develop and enhance value of existing assets Pursue exploration opportunities Manage costs…
2012 Capital Budget of 425 Million Budget focused on oil and liquids with a balance of both onshore and offshore as well as exploratory and development projects. The budget does not include acquisitions. Offshore Facilities,…
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…
2012 Offshore Activity MP 163 1 MP 108 B-1 ST 40% WI 100% WI SS 349 A-13 100% WI SS 349 A-5 ST HI 110 A-10, 100% WI 63% WI MC 243 A-4 ST 100% WI WC 73 2 30% WI SS 349 A-9 ST 100% WI SS 349 A-14 Deepwater 100% WI…
SS 349/359 Mahogany Field (WI:100%) The A-13 well, the third well of a planned six well drilling program, was brought online June 8th and is currently producing. Cost incurred through May 31st to drill and complete the A-13 was 27.3…
MC 243 Matterhorn (WORKING INTEREST: 100%) The A-4 ST is being completed and first production is expected June 14. This is a development well targeting the A-sand. The estimated cost to drill and complete the well is 32 million…
W&Ts Move Into the Permian Basin Known source of oil and gas deposits, long-lived reserves, and limited risk Lower cost to drill and operate provides diversity to our portfolio Technological advances make the Permian basin an…
WEST TEXAS WOLFBERRY Primary focus in the West Texas Permian Basin is the Wolfberry Spraberry- Dean primarily terrigenous clastic-dominated system deposited by saline density currents, turbidity currents and suspension settling…
Onshore Permian Basin Yellow Rose Yellow Rose Project (WI: 100%) 23,406 net acres in Dawson, Martin, Andrews, Gaines counties in Texas. In 2012, we have drilled 26 and completed 22 wells. Current production rate: 3,204 Boepd…
Onshore Permian Basin Terry County Terry County Prospects (WI: 35.6 90%) 10,703 net acres Currently in our exploration and delineation phase Drilled 14 vertical exploration wells, which are currently in various stages of completion…
Onshore Activity East Texas Star Project (WI: 97.6%): Located on 143,000 net acres in six East Texas counties. In 2011, drilled and completed a horizontal exploration well to test and target the James Lime formation at…
Growth Through Strategic Acquisitions Proven Acquisition Guidelines Properties generating cash flow Strong current production rates Financeable Large portion of reserve base is proved developed and can be financed Identified…
W&Ts Acquisition Advantage W&T is a preferred buyer in the Gulf of Mexico 28+ years of proven experience for safe operations Known by industry to pursue acquisitions as part of the overall growth plan since inception Strong…
Creating Value on Existing Assets Main Pass 252 Increased reserves by 4.5 MMBoe Raised production by 10 MMcfe/d (net to W&T) NGL processing arrangements provided significantly higher recoveries Renegotiated PHA has increased…
Liquidity for Further Growth Revolving bank credit facility with 650 million borrowing base We have 53 million currently drawn on the revolver Current cash balance 24.3 million Adjusted EBITDA for 2011 - 646 million Current…
Cash Generation Remains Key 2013 Estimates of Free Cash Flow Generation 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 W&T (500) (400) (300) (200) (100) 0 100 In a group of 19 companies, W&T Offshore was the…
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%. Recently doubled our quarterly dividend to 0.08/share, and looking to…
Key Investment Considerations Company is focused on growth at a reasonable price 2011 reserve replacement cost, excluding ARO, of 13.59/Boe 2011 reserve growth of 44% PV10 increased 63% to 3.1 billion from 2010 Strong liquidity…
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, Three Months Ended March 31, 2008 2009 2010 2011…
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)…
Financial Commodity Derivatives Oil Collars Weighted Average Contract Price Barrels Nym ex Pricing ( per barrel) 2012 per Day Floor Ceiling Second Quarter 4,000 75.00 97.88 Third Quarter 1,348 75.00 97.88 Fourth Quarter 2,728 75.00…
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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