Capital One Southcoast Energy Conference New Orleans December 11th, 2013
Overview - W&T OFFSHORE (NYSE: WTI) Nine Months Ended ( in millions) September 30, 2013 Operating Locations Revenues 739.2 Adjusted EBITDA 458.4 Capital Spending 423.1 (not including acquisitions) Permian Basin East Texas R/P 6.8…
Multiple Avenues to Achieve Organic Growth ONSHORE TEXAS GOM DEEPWATER GULF OF MEXICO SHELF Permian & East Texas Deepwater (water depth 500)(3) GOM Shelf (water…
Focused on Oil Production Growth Oil Production Oil Production MBoe (Third quarter 2012 versus 2013) MBoe (Nine months of 2012 versus 2013) 1800 5500 1700 1600 5000 1500 4500 1400 1300 4000 1200 1100 3500 1000 900 3000 Third Quarter…
2014 Capital Budget Outlook Capital activity in 2014 will likely be weighted towards exploration and development activity with the majority occurring offshore Onshore projects should include continued vertical development and…
Current Activity for W&T Offshore Discovery at MC 782 Dantzler deepwater exploration prospect Resuming drilling operations on the Mahogany A-15 sub- salt, deep shelf exploratory well Drilling operations at our EC 321 A-2 exploration…
Balance The Offshore Component W&T has 1.2 million gross acres under lease in the GOM W&T has continued to grow its footprint in the Gulf of Mexico through acquisitions and leases sales 65 lease blocks acquired from Newfield (59…
Exploration and Development - GOM MP 108 WC 73 2 Exploration Development B-1 ST: Producing Awaiting final hook-up Q4 2013 1st production MC 243 Matterhorn Development & Reservoir Support HI 21 A-2 ST: On production…
Growing Presence in the Deepwater GOM Deepwater production has more than doubled and proved reserves have increased 1,000% in 3 years. MBoe Deepwater Net Production MMBoe Deepwater Net Reserves 7,000 35 6,000 30 5,000 25 4,000 20…
Deepwater Exploration MC 782 Dantzler MC 782 1 Dantzler Sub-salt deepwater oil discovery (WI: 20%, NRI: 16.25%) Summary Deepwater sub-salt Dantzler Dantzler oil discovery discovery in two Lower Miocene prospect reservoirs. Over…
Deepwater Discoveries Rio Grande Complex MC 698 Big Bend and MC 699 Troubadour (WI: 20%, NRI: 16.7%) Summary Deepwater exploration wells in adjacent lease blocks. Big Bend was a 2012 oil discovery and Troubadour is a MC 699 2013…
Exploration GOM Shelf SS 349 Mahogany 2013 Activity at SS 349 Continued Sub-Salt Exploration & Development Success SS 349 A-9ST SS 349 A-4 (WI: 100%, NRI: 83.3%) Recomplete Development Mahogany production 75% oil Producing Producing…
Ship Shoal 349 Mahogany Keeps Growing Production at SS 349 Mahogany grew from 1,000 Boepd net to 8,600 Boepd net in just two years Net Oil per day Net Boepd 10,000 A-14 T-sand 9,000 A-9 ST 8,000 A-2 RC 7,000 6,000 A-5 ST1…
Mahogany A-14 T-Sand Strong Production Mahoganys A-14 T-Sand SS 349 A-14 T Sand Log Approximately 108 feet of net pay September Exit Rate 3,310 Boe net (4,000 gross) Production is 75% crude oil 90 Day cumulative production 275,000…
Exploration GOM Shelf SS 349 Mahogany A-15 Well SS 349 Mahogany Deep Shelf, Sub-Salt Exploration (WI: 100%, NRI: 83.3%) Summary Single well bore targeting five separate sands (N,O,P,Q,Q5) A-15 Project NPV: Initial Est. Cost - 34.5…
Exploration GOM Shelf EC 321 A & B platforms EC 321 A-2 ST (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lentic 1 sand by salt EC 321 A-2ST drilling a side-track from the existing A-2 well bore Initial Est. Cost -…
Development Deepwater GOM Third party tie-back contributes 8,800 Bopd MC 243 Matterhorn and 1 MM per month in processing fees (WI: 100%, NRI: 100%*) A-5 Well: The well logged 220 of measured pay (one of the thickest A sand…
Balance The Onshore Component Predictable onshore reserve growth over time Multiple upside opportunities through down-spacing and horizontal benches (significant potential) Continuous growth of long-life steady oil production…
Exploration and Development - Onshore Yellow Rose September production mix Yellow Rose (WI: 100%, NRI: 78%) 77% crude oil, 14% NGLs, 9% gas Summary: Permian basin exploration and development project with long-life reserves Added…
Exploration and Development - Onshore Developments at Yellow Rose Engaged nearby parties to begin sharing data on recent horizontal wells First data swap completed Discussing potential joint venture operations to maximize useful…
Permian Basin Potential Horizontal Wells Current industry target benches Horizontal Growth Opportunities: We recently completed the first Wolfcamp B well on our acreage (currently on flowback) 3+ target zones Upper Spraberry Nearby…
Strong Results Continue Near W&T Acreage Multiple recent successful tests by operators in both the Wolfcamp B and D zones have supported FANG - UL III 4-1H the higher valuations Wolfcamp B 24 hour peak IP: 613 Boepd attributed…
Continued Improvement in Vertical Wells Average 30 Day Peak IP Rate Boepd 120 97 100 89 80 59 60 49 40 20 0 Q2 2012 Q3 2012 Q2 2013 Q3 2013 Boepd rates above reflect gross production in barrels of oil and…
Permian Basin Upside Potential Vertical Wells Vertical Growth Opportunities: Vertical wells are being Majority of reserves booked at 2012 YE were completed in 10 to 12 on 80 acre spacing (267 locations) different zones Some 80 acre…
Untapped Reserve Growth Potential (as of year end 2012) Focusing only on vertical downspacing to 20 acres and four horizontal benches, there are potentially 265 MMBoe of unbooked reserves at Yellow Rose Potential Reserve Growth at…
Exploration - Onshore East Texas Exploration STAR Prospect (WI: 97.6%) Low entry cost, pure exploration play Currently 147,900 net acres in six East Texas counties (St. Augustine, Shelby, Sabine, Nacogdoches, Angelina, and Jasper)…
Acquisition of Callon GOM Properties Closed on Callon Petroleum package Acquired multiple shelf fields and three deepwater fields including MC 538/582 Medusa Total consideration of 81 million for assets acquired (adjusted closing…
W&Ts Acquisition History (as a public company) Nearly 2.2 billion in acquisitions since 2006 2,500 2,171 2,000 Dollars in millions 1,500 1,000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 Acquisition amount per…
Liquidity Available for Further Growth Revolving bank credit facility of 1.2 billion with an 800 million borrowing base Reaffirmed borrowing base at 800 million while extending facility to Nov. 2018 Improved terms on the credit…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling ( in millions) *2013 reflects CAPEX budget of 550 million versus 9 months of adjusted EBITDA annualized to a 12 month figure. 29
Returning Cash to Investors W&T has declared a 1.20 Dividends per share 1.11 special dividend of 0.42 per share. 1.00 The special dividend is payable on 0.80 0.79 December 27, 2013 to shareholders of 0.80 record on December 23,…
How We Provide Value to Our Investors Focused on organic growth through the drill bit 2013 Revised CAPEX Budget focused 60% on exploration Disciplined approach: drill within cash flow Exploration and Development both Onshore and…
APPENDIX
W&T Offshore Realized Oil Prices U.S. oil prices continue to show significant volatility. W&T realized prices through 11 months reflect a high of over 110 per barrel (March 2013) to as low as 90 per barrel (November 2013). W&T…
Revised 2013 Capital Expenditures Budget Budget changes still align with the 2013 focus of organic growth Additional drilling activity in the deepwater with a second exploration well Completion costs from our earlier successful…
Growth Opportunities in 3P Reserves Significant growth potential from our 3P reserves Gross resource potential extends well beyond our 3P reserves Total Company Resources (in MMBoe) Possible 82.4 PDP 62.6 Proved PDNP 117.5…
Reserves Growth with a Focus on Oil Proved Reserves (MMBoe) 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2009 2010 2011 2012 Crude Oil Proved Developed Total Proved Reserves 37
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, Nine Months Ended June 30, ( in thousands) 2010…
2013 Guidance Fourth Quarter Full Year Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.2 - 2.5 9.0 - 9.3 Natural Gas (Bcf) 12.7 - 14.4 49.2 - 50.9 Total (Bcfe) 26.2 - 29.5 103.2 - 106.5 Total (MMBbls) 4.4 - 4.9 17.2 -…
2012 Year End Reserves As of December 31, 2012 Total Equivalent Reserves (1) Classification of Proved Reserves Oil NGLs Natural Oil Natural Gas PV-10 (MMBbls) (MMBbls) Gas (Bcf) Equivalent Equivalent (Millions) (MMBoe) (Bcfe) Proved…
Financial Commodity Derivatives 2013 Swaps Brent Swaps WTI Swaps Barrels Avg Swap Barrels Avg Swap Month Per Day Price Per Day Price October 3,200 101.98 3,000 97.37 November 3,200 101.98 7,000 97.39 December 3,200 101.98 7,000…
Financial Commodity Derivatives 2014 Swaps Brent Swaps WTI Swaps Barrels Avg Swap Barrels Avg Swap Month Per Day Price Per Day Price January 2,000 97.38 9,000 97.44 February 2,000 97.38 9,500 97.31 March 2,000 97.38 7,000 97.43…
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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