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RBC Capital Markets Energy Conference – W&T Offshore Inc.

W&T Offshore Inc. · Jun 2, 2008 · 43 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. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 1
    W&T Offshore, Inc. RBC Capital Markets Energy Conference June 2, 2008 New York, NY
  2. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 2
    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…
  3. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 3
    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…
  4. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 4
    Reserves and Production Overview
  5. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 5
    Proved Reserves December 31, 2007 By Geographic Region PDP 31% Western PDNP 51% 17% PUD 34% Central 35% 32% Eastern Oil & NGLs Gas Total PV-10 (2) By Category (MMbbls) (Bcf) (Bcfe) (In millions) Net Proved Reserves: (1)…
  6. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 6
    Production growth 160.0 Oil & NGLs Gas 7 140.0 2000-200 GR 27 % CA 126.5 Full-Year Guidance 120.0 115-140 99.2 100.0 49.8 Bcfe 79.0 82.4 71.1 80.0 38.8 54.2 26.2 29.1 60.0 24.5 42.3 2Q 14.8 Guidance 40.0 76.7…
  7. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 7
    History of reserve growth 800.0 Oil & NGLs (Bcfe) 00 -2 007 735.2 20 Natural Gas (Bcf) 3% CAGR 2 638.8 600.0 334.0 491.5 444.7 467.5 306.0 Bcfe 400.0 357.5 213.6 240.0 275.6 245.7 138.6 207.4 200.0 91.2 401.2 103.8…
  8. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 8
    Drilling Overview
  9. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 9
    Development and Exploration Success In 2007, W&T continued its strong performance with total average success rate of 89% Development Drilling Exploration Drilling 2006 Kerr-McGee 9 100% 100% 100% 100% 50 100% 100% 100% 8 86%…
  10. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 10
    Exploration Success 2000 - 2007 78% 84% 80% 57% Success Rate 140 120 28 100 15 80 60 102 40 77 20 3 10 12 13 0 Total Exploration Conventional Deep Shelf Deepwater W ells Shelf Successful Non-Commercial 99
  11. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 11
    Acquisitions
  12. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 12
    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,…
  13. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 13
    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…
  14. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 14
    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…
  15. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 15
    Kerr-McGee Report Card We believe the integration of KMG into Kerr-McGee from close to 3/31/08 ( 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,…
  16. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 16
    Transaction Report Card Value created from 7 Major Transactions from 1999-2008 ( in millions) 3,072* 3,000 2,500 2,000 Cumulative Revenue PV-10 Value 1,500 less at 12/31/07 (1) Expenditures 1,000 and Transaction 500…
  17. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 17
    Drilling Prospects by Acquisition 105 wells drilled on 190 fields acquired is just over 1/2 a well per field to date Year Producing Development Exploration Well(s) in 2008 Transaction Acq'd Fields Acq'd Wells Drilled Wells Drilled…
  18. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 18
    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…
  19. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 19
    Recent Events
  20. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 20
    Green Canyon 82 - Healey 100% W&T Working Interest EW 784 Lease purchased in 2004 Tarantula EW 828 Development options under review Lobster FPS Subsea tieback Black Widow Lobster platform Morpeth TLP Morpeth Prince TLP…
  21. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 21
    2008 Exploration & Development Program
  22. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 22
    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…
  23. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 23
    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 45 leases in the GOM Lease Sales Since 2002, W&T has acquired 101 undeveloped…
  24. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 24
    Conventional Shelf Exploration Drilling 34 Gross wells Unrisked Reserve Potential: 315 Bcfe Risked Reserve Potential: 220 Bcfe Mobile Metairie 3 wells Viosca Knoll 2 wells Main Main Pass Pass S. and E. Houston W. Cameron…
  25. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 25
    Exposure to Upside - 2008 Deep Shelf Drilling 10 Gross wells Unrisked Reserve Potential: 235 Bcfe Risked Reserve Potential: 90 Bcfe 7 prospects from Kerr-McGee Mobile Metairie Viosca Knoll Main Main Pass Pass W. S. and E.…
  26. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 26
    Development Drilling 3 from Kerr-McGee 2 BRETON SOUND Timing: 3Q 2008 Working Interest: 100% Expected Rate: 5.0 MMcfe/d SHIP SHOAL 224 Program Timing: 2008 Working Interest: 47% Expected Rate: 3.0 MMcfe/d Additional…
  27. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 27
    2008 Scorecard Drilled and Online (Initial Rate in MMcfe/d) EI 44 1 WI: 60% Currently drilling or Near-Term drilling EI 186 1 WI: 100% Drilled and being Completed VK 519 1 WI: 90% EI 175 H-5 WI: 25% MP 108 Program Drilling to…
  28. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 28
    Financials
  29. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 29
    2008 Capital Expenditures Program ( in millions) 2008 Budget 2007A 2006A Exploration 330 41% 171 47% 252 43% Development 450 56% 129 36% 302 51% Seismic 20 3% 61 17% 35 6% Total Capital Budget 800 100% 361 100% 589 100% W&T spent…
  30. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 30
    Drill from Cash Flow W&T has funded capital expenditures largely through internally generated cash flow Capital Expenditures ( in millions) 820 800 800 700 642 589 600 500 472 396 400 361 324 323 283 279 300 201 200 147 133…
  31. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 31
    W&T Offshore High EBITDA Margins 12.00 11.57 100% 80% 79% 79% 81% 80% 10.00 78% 77% 78% 8.80 80% Avg. Adj. EBITDA Margin of 77% 8.23 8.07 74% Adj. EBITDA Margin % 8.00 60% /Mcfe 6.16 6.00 5.33 4.31 4.00 40% 4.00…
  32. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 32
    Commodity Hedging Schedule Approximately 8% of remaining production is hedged Remaining 2008 Crude Oil (6/1/08 - 12/31/08) Collars Volumes (Bbls/day) 2,800 Volumes (Bbls) 596,400 Floor-Ceiling 60.00 - 74.50 Natural Gas (7/1/08 -…
  33. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 33
    W&T Liquidity - Opportunities 2008 ( in millions) Projected Cash on hand 3/31/2008 277 Less: 2008 Budget - Development (Net) (376) Less: 2008 Budget - Exploration and Seismic (Net) (295) Cash less Capital (394) 1 Plus: Adjusted…
  34. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 34
    Key Drivers High cash-on-cash returns repeatable over many years Great Liquidity and acceptable debt levels Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects 33 33
  35. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 35
    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, 1Q 2000 2001 2002 2003 2004 2005 2006 2007 2008 (…
  36. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 36
    Appendix
  37. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 37
    Operated Rig Analysis Listed below are the type of rigs necessary to complete our 2008 drilling program of approximately 50 wells Rig types by level of complexity Barge Platform Specialty Jack-Ups Specialty J/U Semi-Submersible…
  38. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 38
    Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 38 38
  39. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 39
    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 39 39
  40. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 40
    Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 40 40
  41. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 41
    Mix of Production/Reserves % Oil / Liquids Production at 3/31/08 and Reserves at 12/31/07 70% 62% 60% 56% 50% 48% 50% 46% 46%47% 45% 45% 43% 41% 40% 37% 33% 30% 24% 20% 10% 0% WTI BDE EPL ME SGY ATPG CPE % Oil…
  42. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 42
    Realized prices,Costs per Mcfe & Credit Stats Realized price 2005 2006 2007 1Q 2008 Natural Gas (/Mcf) 8.27 7.08 7.20 8.70 Liquids (/Bbl) 48.85 57.70 67.58 92.52 Realized Price (/Mcfe) 8.23 8.07 8.80 11.57 Cost per Mcfe 2005 2006…
  43. RBC Capital Markets Energy Conference – W&T Offshore Inc. – slide 43
    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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