IPAA Oil and Gas Investment Symposia San Francisco - September 30th, 2013
Overview - W&T OFFSHORE (NYSE: WTI) Six Months Ended ( in millions) June 30, 2013 Operating Locations Revenues 494.6 Adjusted EBITDA 311.1 Proved Reserves (PV-10) 2,820.0 Permian Basin (As of December 31, 2012) East Texas Dividend…
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…
Current Activity for W&T Offshore Currently participating in the drilling of the Dantzler deepwater prospect at MC 738/782 operated by Noble Energy Spud the Ship Shoal 349 Mahogany A-15 deep shelf, sub-salt exploratory well Brought…
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 4
Continued Oil and Total Production Growth MBoe 18 16 14 12 10 8 6 4 2 0 2010 2011 2012 2013E* Total Production Oil Production * 2013 figures represent the mid-point of full year guidance 5
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…
Balance The Offshore Component W&T has continued to grow its footprint W&T has 1.2 million gross in the Gulf of Mexico acres under lease in the GOM 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 flow line hook-up Q4 2013 1st production MC 243 Matterhorn Development & Reservoir Support HI 21 A-2 ST: On production…
Deepwater Exploration MC 738/782, Dantzler MC 738/782 Dantzler (WI: 20%, NRI: 16.25%) Summary Deepwater prospect with reservoir in Lower Miocene against salt. Nearby offset well has oil shows MC 698 & MC 699 and 1,200 of…
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-4 (WI: 100%, NRI: 83.3%) Recomplete Mahogany production 75% oil Producing Multi-horizon production Primary…
Exploration GOM Shelf SS 349 Mahogany A-14 Well Deep Shelf, Sub-Salt Discovery SS 349 A-14 results: Logged 370 of total pay (WI: 100%, NRI: 83.3%) Encountered 5 pay sands Summary Exploratory well which Reserve additions & discovered…
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) Initial Est. Cost - 34.5 million A-15 Project…
Exploration GOM Shelf EC 321 A & B EC 321 A-2 ST production platforms (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lentic 1 sand by drilling a side-track from the existing A-2 well bore Initial Est. Cost - 13.6…
Development Deepwater GOM MC 243 A-2 well MC 243 Matterhorn Matterhorn TLP Producing (WI: 100%, NRI: 100%*) A-5 Well: The well logged 220 of measured pay (one of the thickest A sand intervals in the field). The A-5 will now be…
Exploration GOM Shelf MP 108 B-1 (WI: 100%, NRI 82%) Summary Exploration well recently completed. The well E Platform D Platform A Platform discovered reserves in both the Tex W-6 (73 measured depth pay) and B Tex W-3 (30 measured…
Development GOM Shelf High Island 21 (WI: 100%, NRI: 81%) Summary Gas and liquids development targeting the LH 20 sands Result The well logged pay in targeted LH- 20 sand plus additional upside pay in LH-16 exceeding original…
Offshore Projects Solid Results, More to Come Year to Date Results: Current and Upcoming Projects: Drilled five successful wells to date, Drilling the Dantzler deepwater prospect including a significant discovery at our New…
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 avg. July 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 2013…
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…
Continued Improvement in Vertical Wells Yellow Rose 30 Day Average IP rate (Boepd gross) Boepd 120 100 80 60 40 20 0 Q2 2012 Q3 2012 Q2 2013 Q3 2013 30 Day Average IP rate (Boepd gross) Boepd rates above reflect…
Permian Basin Potential Horizontal Wells Current industry target benches Horizontal Growth Opportunities: Thus far, W&T has only tested the Wolfcamp A, with a total of six horizontal wells 3+ target zones Upper Spraberry The next…
Untapped Reserve Growth Potential (as of year end 2012) Focusing only on vertical downspacing to 20 acres and three horizontal benches, there are potentially 220 MMBoe of unbooked reserves at Yellow Rose Potential Reserve Growth at…
Midland Basin Activity Continues to Move North Early efforts were focused on the southern portion of the Midland Basin. WTI Yellow Rose Prominent players are now pushing the northern boundaries of the play. Many of the new…
Latest Horizontal Results Near W&T Acreage FANG UL III 4-1H Wolfcamp B IP rate: 613 Boepd Lateral: 4,051 27
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)…
Balance The Acquisition Component 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 Over 30 years of proven experience for…
Liquidity Available for Further Growth Revolving bank credit facility with 800 million borrowing base Amount available under credit facility(1) 635 million Cash balance(1) 47.7 million 20 banks in our current credit facility with…
Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adj. EBITDA CAPEX, Excl. Acquisitions Acquisition CAPEX 700 600 500 ( in millions) 400 300 200 100 0 2010 2011 2012 2012 was…
Returning Cash to Investors 1.20 Dividends per share W&T currently pays a 1.11 quarterly dividend of 1.00 0.09 per share 0.80 0.79 0.80 0.60 0.51 0.40 0.36 In 2012, we had a dividend yield* of 6.9%, which compares to a peer…
Aligned Interests: Shareholder View Insider Ownership 60 53.8% *Average inside ownership 50 among peers is 2.9% vs. W&T at 53.8% 40 30 20 10 0 WTI 2 3 4 5 6 7 8 9 10 11 12 13 *Peers include: Apache, Bill Barrett, Cabot…
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
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, ( in thousands) 2010…
2013 Guidance Third Quarter Full Year(1) Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.0 - 2.3 9.0 - 9.5 Natural Gas (Bcf) 10.1 - 11.5 47.4 - 49.5 Total (Bcfe) 22.2 - 25.2 101.3 - 106.5 Total (MMBbls) 3.7 - 4.2 16.9 -…
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 July 5,400 104.99 2,000 97.00 August 4,400 103.85 3,000 97.27 September 3,400 101.98 1,000 97.00…
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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