W&T Offshore, Inc. IPAA Oil & Gas Investment Symposium San Francisco, CA October 7, 2008
Company Highlights Reserve Data (as of 12/31/07) Proved Reserves (Bcfe) 639 Proved Developed Reserves (Bcfe) 395 Proved Developed % 62% Oil and Liquids % 48% Highlights Field Statistics (as of 12/31/07) Ticker WTI (NYSE) of…
W&Ts Business Strategy Cash flow returns and generation is our top priority Increase reserves and revenue through the drill bit and by acquisition Continued focus on offshore Gulf of Mexico Conventional shelf primary focus Deep…
Hurricane Update
Gulf of Mexico Hurricane Gustav/Ike Summary Offshore Platforms Toppled Operated: EI 397A, EI 371B Non-operated: VR 386B, VR 284 A&B, EI 349A, EI 175E, EI 292B, ST 148B Non-operated processing facilities: EW 947A, ST 196A Gas…
Impact on Reserves / Production Reserves At this time, no significant revisions identified in proved reserve category Toppled Platforms Approximately 3% of Companys proved reserves affected Assessing whether reserves will be…
Reserves and Production Overview
Proved Reserves December 31, 2007 By Geographic Region PDP 31% Western PDNP 51% PUD 17% 34% Central 35% 32% Eastern Oil & NGLs Gas Total PV-10 (2) By Category (MMbbls) (Bcf) (Bcfe) (In millions) Net Proved Reserves: (1)…
Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited assets Key Acquisition Factors Example 1. Cash Flow Strong current production rates, including several behind pipe,…
Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Cumulative production through 2007 was 473 Bcfe Producing Reserves Transaction Acq. Multiple 2007 Transaction Fields Acq'd Acq'd…
Acquisitions Prior to KMG Value created from 5 Major Transactions from 1999-2003 ( in millions) Probable and Possible: Probable: 78.8 Bcfe 470 MM PV-10 93 Exploration and Development Wells Drilled Possible: 85.5 Bcfe 518 MM PV-10…
Kerr-McGee Report Card We believe the integration of KMG into Kerr-McGee from close to 6/30/08 ( in millions) W&T is on schedule and we are continuing to find more opportunities 1,250 1,034 1,000 Assumed operations on October 1,…
Transaction Report Card Value created from 7 Major Transactions from 1999-2008 ( in millions) 3,072(1) 3,000 2,500 2,000 Cumulative Revenue PV-10 Value 1,500 less at 12/31/07 (2) Expenditures 1,000 and Transaction 500…
Drilling Overview
Development and Exploration Success Thus far in 2008, W&T has continued its strong performance with total average success rate of 75% Development Drilling Exploration Drilling 2006 Kerr-McGee 9 100% 100% 100% 100% 100% 35 100%…
Seismic Coverage Goal is to obtain a continuous 3-D database covering all W&T properties Recent new 3-D seismic acquisition as indicated in the green shaded areas 660 blocks of SEI 3-D across offshore Texas 68 blocks of…
Recent Asset Acquisition SS349 Mahogany First commercial field in the subsalt play in the GOM 1st quarter 2008 P-sand 5 productive horizons below salt at recomplete depths as deep as 17,000 feet Miocene section is undrilled Became…
SS349 Mahogany- Deep Prospect A-11 deepest well in Field 18,380 TVD SALT Deepest pay zone X-Sand 17,150 TVD P Sand A-11 TD in lower most Pliocene, essentially all of Miocene & deeper section not penetrated A-11 Well P-Sand…
Green Canyon 646 Daniel Boone W&T working interest 60% and is the operator Front Runner Reserves (Bcfe) Proved 24 Probable 10 Possible 19 3P Total 53 Total measured depth 12,365 feet 119 miles off coast of Louisiana 4,230 feet…
Green Canyon 82 - Healey 100% W&T Working Interest EW 784 Tarantula Lease purchased in 2004 EW 828 Development options under Lobster review EPS Black Widow Subsea tieback Lobster platform Morpeth Morpeth TLP Prince…
2008 Drilling Scorecard Drilled and Online (Net Initial Rate in MMcfe/d) MP Area Program Currently drilling or Near-Term drilling EI 175 I-2ST WI: 25% WI: 50 - 75% EI 261 A-5ST WI: 33% Drilled and being Completed Initial Rate: 2.2…
Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 25 25
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 26 26
Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 Proved reserves at booking was 2.9 Bcfe gross Cumulative production is 10.5 Bcfe gross 27 27
HI111 A-11 Most Likely Example Cumulative production from offset wells is greater than 66 Bcfe SEISMIC Ultimate recovery a function of: Drive mechanism Areal drainage MAP Homogeneity of reservoir Abandonment PLACEHOLDER…
Remaining 2008 Drilling Program Updated: 10/01/08 10-15 Gross wells 8-13 Exploration wells 2 Development wells Mobile Net Unrisked Reserve Potential: 180 Bcfe Metairie Viosca Knoll Deep Shelf Net Unrisked Reserve Potential: 115…
Financials
2008 Capital Expenditures Program 2H 2008 1H 2008 (1) ( in millions) Budget Actual 2007A 2006A Exploration 123 127 171 47% 252 43% Development 191 134 129 36% 302 51% Seismic & other 14 22 61 17% 35 6% Total Capital Budget 328 283…
Drill from Cash Flow W&T has funded capital expenditures largely through internally generated cash flow Capital Expenditures ( in millions) 820 800 Adj. EBITDA CapEx 700 642 653(2) 589 611 (3) 600 500 472 396 400 361 324 323…
W&T Liquidity - Opportunities ( in millions) 2008 Projected Cash on hand 6/30/2008 424 Less: Remaining 2008 Budget - Development (191) Less: Remaining 2008 Budget - Exploration and Seismic (137) Cash less Capital 96 2H2008E Plus:…
Free Cash Flow Generation Over the last 5 years, W&T has generated 21% Free Cash Flow Yield Year Ended December 31, 1H 2003 2004 2005 2006 2007 2008 TOTAL ( in thousands) Revenues 422,587 508,715 585,136 800,466 1,113,749 817,510…
Lender Group On July 30th, W&T extended the maturity of its 500 million revolving credit facility to July 23, 2012 W&T has 500 million available at 7/30/08 No significant exposure to recent credit market turmoil Lender % share Lender %…
Key Drivers High cash-on-cash returns repeatable over many years Great Liquidity Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects 38 38
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, 1H 2000 2001 2002 2003 2004 2005 2006 2007 2008 (…
Appendix
Mix of Production/Reserves % Oil / Liquids Production through 6/30/08 and Reserves at 12/31/07 70% 62% 60% 56% 50% 50% 48% 46% 47% 47% 46% 48% 44% 41% 40% 37% 33% 30% 26% 20% 10% 0% WTI BDE EPL ME SGY ATPG CPE %…
Balance of Acreage acquired and MMS Lease Sales W&T has accumulated 1 million net acres of which 73% is Held By Production Since 2002, W&T has been awarded 49 leases in the GOM Lease Sales Since 2002, W&T has acquired 101 undeveloped…
Drill wells by Acquisition 105 wells drilled on 190 fields acquired is just over 1/2 a well per field to date Year Fields Development Exploration Well in 2008 Transaction Acq'd Acq'd Wells Drilled Wells Drilled Program* Vastar 1999…
Operated Rig Analysis Listed below are the type of rigs necessary to complete our 2008 drilling program Rig types by level of complexity Barge Platform Specialty Jack-Ups Specialty J/U Semi-Submersible…
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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