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IPAA OGIS New York – W&T Offshore Inc.

W&T Offshore Inc. · Apr 23, 2007 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS New York – W&T Offshore Inc. – slide 1
    Confidential W&T Offshore, Inc. IPAA OGIS New York April 23, 2007
  2. IPAA OGIS New York – W&T Offshore Inc. – slide 2
    W&Ts Business Strategy 1. Generate high returns focusing on Gulf of Mexico properties 2. Enhance returns and growth rate through the drill bit Large prospect inventory generated from high held-by-production position 3. Strong emphasis…
  3. IPAA OGIS New York – W&T Offshore Inc. – slide 3
    W&Ts Business Strategy, Part II Deeper and Deeper and Deeper in Deeper Continued long-term success for W&T will depend on our success in finding oil and gas reserves as we move further away from the shoreline or drill deeper under the…
  4. IPAA OGIS New York – W&T Offshore Inc. – slide 4
    W&T versus Peers
  5. IPAA OGIS New York – W&T Offshore Inc. – slide 5
    Reserve Growth Leads to Higher Production 2002-2006 CAGR: Reserve Growth 2002-2006 CAGR: Production Growth 40% 37% 20% 19% 18% 16% 29% 30% 15% 11% 11% 20% 10% 20% 10% 10% 8% 5% 5% 0% 0% -10% -6% -5% -11% -7% -20%…
  6. IPAA OGIS New York – W&T Offshore Inc. – slide 6
    Lower Costs equals Higher Netback 2002-2006 Average Expenses per Mcfe 2006 Netback (/Mcfe) (2) 3.00 2.91 /Mcfe 2.78 8.00 7.38 2.50 2.38 6.95 6.85 7.00 6.79 6.66 6.62 6.39 2.00 1.87 6.00 1.82 1.73 5.00 1.50 1.39 4.00 1.00…
  7. IPAA OGIS New York – W&T Offshore Inc. – slide 7
    Higher Long-Term Margins 2002-2006 EBITDA-EBIT Margins Weighted Average High EBITDA Margins 79% 8.23 100% 80% 8.07 8.00 73% 72% 69% 80% 81% 80% 79% 78% 79% 77% 80% 61% 6.16 60% 54% 6.00 5.33 Adj. EBITDA Margin % 48%…
  8. IPAA OGIS New York – W&T Offshore Inc. – slide 8
    ROACE vs. Peers 2002-2006 ROACE Weighted Average (1) 38% 35% 30% 24% 23% 21% 15% 13% 12% 10% 8% 3% 0% WTI BDE ME EPL SGY CPE ATPG 1. Calculation: Total EBIT/Weighted Average Book Capitalization for the five year period.…
  9. IPAA OGIS New York – W&T Offshore Inc. – slide 9
    ROACE vs. Everyone Else 2002-2006 ROACE Weighted Average (1) 80% 71% 70% 60% 50% 40% 37% 35% 31% 30% 29% 30% 20% 14% 10% 7% 3% 0% GOOG XOM WTI SBUX AMZN MRK YHOO TWX F 1. Calculation: Total EBIT/Weighted Average Book…
  10. IPAA OGIS New York – W&T Offshore Inc. – slide 10
    Operations Overview
  11. IPAA OGIS New York – W&T Offshore Inc. – slide 11
    Integration of KMG Operations Integration of KMG is our Number 1 priority for 2007 Assumed operations on October 1, 2006 36 of 37 KMG operators accepted positions with W&T Purchasing new seismic Transition P&A and compressor…
  12. IPAA OGIS New York – W&T Offshore Inc. – slide 12
    Kerr-McGee Progress 247 Bcfe Proved Reserves 4 exploration prospects identified in 2007 budget 3 of 4 were generated in-house 2 of 3 of our 2007 development projects from KMG package Drill ready projects identified in dataroom…
  13. IPAA OGIS New York – W&T Offshore Inc. – slide 13
    Operated Rig Analysis Our proposed 2007 drilling plan includes approximately 18 wells Rig types by level of complexity Types of rigs necessary for proposed 2007 drilling program. 13 13
  14. IPAA OGIS New York – W&T Offshore Inc. – slide 14
    Seismic Coverage Goal is to obtain a continuous 3-D database covering all W&T properties New seismic is already showing results with respect to KMG properties 4,400 4,400 blocks blocks of of 3-D 3-D coverage coverage…
  15. IPAA OGIS New York – W&T Offshore Inc. – slide 15
    Confidential Acquisition Overview
  16. IPAA OGIS New York – W&T Offshore Inc. – slide 16
    Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited assets Key Acquisition Factors Kerr-McGee Example 1. Cash Flow KMG has strong production rates, including several behind…
  17. IPAA OGIS New York – W&T Offshore Inc. – slide 17
    Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Annual Reserves 2003 YE 2004 YE 2005 YE 2006 YE Acquisition (date) Compound Acq'd Reserves Reserves Reserves Reserves Change (1)…
  18. IPAA OGIS New York – W&T Offshore Inc. – slide 18
    Volumes - Report Card Double initial reserve bookings 686 Bcfe 700 600 Initial 351 Bcfe of Booked 351 Bcfe Production from Reserves Transactions 500 (Aggregate 686 Bcfe Total Net at Estimated Transaction) 400 Recovery…
  19. IPAA OGIS New York – W&T Offshore Inc. – slide 19
    Dollars - Report Card Value1,750 created from Major Transactions since 1999 ( in millions) 1,500 Probable and Possible: 1,386 Probable: 102 Bcfe 423 MM PV-10 1,250 Possible: 126 Bcfe 424 MM PV-10 1,000 PV-10 Value 907 at…
  20. IPAA OGIS New York – W&T Offshore Inc. – slide 20
    Confidential Reserves Overview
  21. IPAA OGIS New York – W&T Offshore Inc. – slide 21
    Net Proved Reserves December 31, 2006 PDP 31% PDNP PUD 34% 35% Oil Gas Total PV-10 (3) (MMBbls) (Bcf) (Bcfe) (In millions) Net Proved Reserves:(1) Proved Developed Producing (PDP) 11.5 156.4 225.3 741.3 (2) Proved…
  22. IPAA OGIS New York – W&T Offshore Inc. – slide 22
    Reserves and Production by Product Net Proved Reserves by Product - December 31, 2006 Production for 2006 by Product Oil Oil 45% 39% Gas Gas 55% 61% Bcfe % Bcfe % Gas 401.2 55% Gas 60.4 61% Oil 334.0 45% Oil 38.8 39% Total…
  23. IPAA OGIS New York – W&T Offshore Inc. – slide 23
    History of reserve growth 735.2 600.0 Oil (Bcfe) 6 Natural Gas (Bcf) 2 00 0-200 334.0 C A GR 23% 491.5 467.5 444.7 400.0 357.5 Bcfe 240.0 275.6 213.6 138.6 245.7 207.4 200.0 91.2 401.2 103.8 219.0 231.1 227.6…
  24. IPAA OGIS New York – W&T Offshore Inc. – slide 24
    ... and production growth 50% production 180.0 growth at low-end Oil & NGLs of range for 2007 High 165 160.0 Gas Low 149 140.0 6 120.0 2 000-200 GR 2007 Guidance C A Bcfe 27% 99.2 100.0 79.0 82.4 80.0 71.1 38.8…
  25. IPAA OGIS New York – W&T Offshore Inc. – slide 25
    Constant Reserve Life Profile Trend of Reserve Life 10.0 8.7 8.0 7.4 6.9 6.3 6.6 Wtd Average 5.6 5.7 5.8 Proved Reserve / 6.0 Production - 6.7 4.8 4.5 4.1 4.2 Wtd Average 4.0 3.7 3.5 Proved Developed Reserve / Production…
  26. IPAA OGIS New York – W&T Offshore Inc. – slide 26
    Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 26 26
  27. IPAA OGIS New York – W&T Offshore Inc. – slide 27
    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 27 27
  28. IPAA OGIS New York – W&T Offshore Inc. – slide 28
    Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 Current Rate 28.0 MMcfe/d Gross (11.0 MMcfe/d net) 5.3 Bcfe Net of positive revisions at year end…
  29. IPAA OGIS New York – W&T Offshore Inc. – slide 29
    Confidential Drilling Overview
  30. IPAA OGIS New York – W&T Offshore Inc. – slide 30
    Development Drilling 2000 2006 Overall Drilling success: 38 of 42, 90% success rate 9 100% 100% 100% 8 86% 86% 86% 7 67% 1 1 1 6 Gross Wells 5 4 3 1 2 1 2 6 3 6 7 6 8 0 2000 2001 2002 2003 2004 2005 2006 Successful…
  31. IPAA OGIS New York – W&T Offshore Inc. – slide 31
    Exploration Drilling 2000 2006 Overall Drilling success: 96 of 123, 78% success rate 35 100% 100% 2006 Kerr-McGee Transaction 30 11 83% 75% 2008 75% 77% 25 66% 1999 EEX, Vastar, Amoco 7 Transactions 20 2002 5 Burlington…
  32. IPAA OGIS New York – W&T Offshore Inc. – slide 32
    Projects for 2007 WEST CAMERON 180 - KMG SOUTH TIMBALIER 41 6 - KMG HIGH ISLAND 22 - KMG Drilling completed 1Q 2007 SHIP SHOAL 217 - KMG Mobile Viosca Knoll Main W. Main Pass Cameron Pass S. and E. HIGH ISLAND 24L GrandSOUTH…
  33. IPAA OGIS New York – W&T Offshore Inc. – slide 33
    Green Canyon 82 - Healey Seismic Courtesy of PGS 2 W&T operated wells drilled to date Healey 1 (2006) Healey 3 (2006/2007) 5 Primary Reservoirs 9,450 Oil 10,900 Gas 11,200 Gas 11,300 Oil 12,250 Oil For primary reservoirs only…
  34. IPAA OGIS New York – W&T Offshore Inc. – slide 34
    Production Visibility Only includes recent exploration and development projects. Does not include any projected drilling programs Project Name Category WI Q1 2007 Q2 2007 Q3 2007 East Cameron 321 Shelf 100% 20.8 MMcfe/day Ewing Bank…
  35. IPAA OGIS New York – W&T Offshore Inc. – slide 35
    Capital Expenditures (s in millions) 2006 2006 Program Program by by Category Category 2007E 2007E Program Program by by Category Category Exploration Exploration 46% 37% Seismic 8% Development 54% Development…
  36. IPAA OGIS New York – W&T Offshore Inc. – slide 36
    Confidential Closing Comments
  37. IPAA OGIS New York – W&T Offshore Inc. – slide 37
    Why Buy W&T Today Cash High cash-on-cash return Superior Metrics vs. Peers Premium valuation justified Proven Track-Record of Acquiring and Exploiting KMG transaction mirrors several of our previous transactions Large inventory…
  38. IPAA OGIS New York – W&T Offshore Inc. – slide 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, 2000 2001 2002 2003 2004 2005 2006 ( in thousands)…
  39. IPAA OGIS New York – W&T Offshore Inc. – slide 39
    Confidential W&T Offshore, Inc. IPAA OGIS New York April 23, 2007

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