W&T Offshore, Inc. Pritchard Capital Partners ENERGIZE 2008 San Francisco, California January 10, 2008
Company Highlights Reserve Data (as of 12/31/06) Proved Reserves (Bcfe) 735 Proved Developed Reserves (Bcfe) 479 Proved Developed % 65% Oil and Liquids % 45% Highlights Field Statistics (as of 12/31/06) 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…
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…
Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Cumulative production through 2006 was 346 Bcfe Annual Reserves 2003 YE 2004 YE 2005 YE 2006 YE Acquisition (date) Compound Acq'd…
Acquisitions Report Card Value created from 5 Major Transactions since 1999 Kerr-McGee from close to 09/30/07 ( in millions) ( in millions) Probable and Possible: Probable and Possible: 499 Bcfe Probable: 102 Bcfe 423 MM PV-10…
Proved Reserve Geographic Diversification Total Proved Our geographic diversity provides additional protection during a hurricane East West 20% 29% Western Central Eastern Central 51% Mobile Metairie Viosca Knoll Main W. Main…
Production growth 25% production growth at mid-point 140.0 Oil & NGLs of range for 2007 120.0 Gas Full-Year Guidance 6 4Q 121 - 127 2 000-200 99.2 28.8 R 100.0 CA G 34.8 27% 82.4 Actual Bcfe 80.0 79.0 71.1 38.8 3Q…
Mix of Production % Oil / Liquids Production Year-to-Date Through 09/30/07 50% 45% 40% 40% 40% 35% 33% 32% 30% 23% 20% 10% 0% SGY WTI ATPG EPL ME CPE BDE 11 11
Recent Asset Acquisition SS349 Mahogany First commercial field in the subsalt play in the GOM 5 productive horizons below salt at depths as deep as 17,000 feet Purchased 25% interest as part of BP/Amoco transaction in 1999…
2008 Capital Expenditures Program W&T has budgeted 800 million for capital in 2008 2008 budget represents a 77% increase over 2007 ( in millions) 2008 Budget Revised 2007 Budget 2006A Exploration 330 41% 185 41% 252 43% Development…
2007 Exploration & Development Results + Near-Term Drilling Program
Operations Update SOUTH TIMBALIER 41 B-3 KMG Drilled and Online WEST CAMERON 181 KMG Online 4Q 2007 Online 2Q 2007 Completed drilling but not online Currently drilling or to be drilled MAIN PASS AREA - KMG 1 non-commercial well…
Green Canyon 82 Healey Overview Seismic Courtesy of PGS 100% Working Interest to W&T 3 W&T wells drilled to date Not online or producing Healey 1 (2006) 4 Drilled Healey 3 (2006/2007) Healey 4 (TD Dec 2007) 5 Primary Reservoirs…
From Evaluation to Implementation Kerr- McGee Prospects
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…
Ship Shoal Area Ship Shoal Program 1 Approximately 45% W&T working interest 4 Drilling locations proposed for 2008 Most drilled from existing platform with existing production facilities Total net unrisked exploration potential…
Ship Shoal 300 Area Former Kerr-McGee Property W&T operated with 75% Working Interest 250-300 Feet Water Depth 7-10In-Field Exploration Prospects Proposed 2008 Moderate Drilling Depths: 2300 TVD to 12,200 TVD Drilling began…
Main Pass/Viosca Knoll Area 6-9 well program in 2007/2008, most drilled from platforms with existing production facilities Total Net Unrisked Exploration Potential 154 Bcfe 1 non-commercial well at Main Pass 162 A-3 Viosca…
2008 Anticipated Drilling Locations Unrisked Potential: 848 Bcfe Risked Potential: 445 Bcfe 27 of 50 Prospects from Kerr-McGee Unrisked Res. (Bcfe) 39 Conv Shelf 371 9 Deep Shelf 315 2 Deepwater 162 Mobile Metairie Viosca…
W&T Liquidity - Opportunities 2008 ( in millions) 2007E Projected Cash on hand 9/30/2007 and projected cash 187 192 Less: Remaining Non-Discretionary items (73) - Less: Remaining Discretionary items (113) - Less: 2008 Budget -…
Key Drivers High cash-on-cash return Superior Metrics vs. Peers W&T trading at a discount to NAV Proven Track-Record of Acquiring and Exploiting Opportunity and size of Future Transactions Large inventory of prospects Favorable…
Appendix
Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 31 31
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 32 32
Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 33 33
High Island 22 High Island 22 100% W&T working interest 1st well drilled on former Kerr-McGee property Successfully drilled and completed B-3ST in January 2007 Current rate of 6.0 MMcfe/day gross 34 34
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…
High Island 24 High Island 24 Area 25% W&T working interest 40 feet of water depth HI 8 HI 9 Initial discovery well drill Sept 2006 500 gross pay- 300 net gas Initial production test 49 MMcfe/day gross HI 25 HI 24 HI 23…
Bay Junop Field 100% GWI in S/L 17993 1 ST Terrebonne Parish, LA 8 Feet Water Depth 1ST reached a Total MD of 18,553 feet on 10/10/06 The Well Logged 42 Net Gas in the Big 2 Sand 10 to 15 Bcfe 3P estimated WTIs Deepest Operated…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Nine Months Ended Year Ended December 31, September 30, 2000 2001 2002…
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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