Louisiana Energy Conference New Orleans June 20th, 2013
Overview - W&T OFFSHORE (NYSE: WTI) Quarter ended ( in millions) March 31, 2013 Operating Locations Revenues 259.2 Adjusted EBITDA 168.3 Proved Reserves (PV-10) 2,820.0 Permian Basin (As of December 31, 2012) East Texas Dividend Yield…
Why Invest in W&T Offshore Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Balanced approach between Onshore and Offshore Offshore activity…
Exploration is the Capital Budget Focus in 2013 450 million budget weighted towards exploration and oil projects Nearly half of the budget is W&T Capital Budget Allocation ( in millions) focused on offshore exploration activity…
Organic Growth in 2013 Exploration activities account for 2/3rds of the budget in 2013 Supports continuous, organic growth of the companys reserves in 2013 Heavier weighting in 2013 towards offshore, oil-focused projects Development…
Organic Growth with a Focus on Oil Proved Reserves (MMBoe) 120.0 Significant growth potential 100.0 from our 3P reserves 80.0 Gross resource potential extends well beyond our 3P reserves 60.0 40.0 3P Reserves (in MMBoe) 20.0…
Pricing Premiums Drive Higher Returns W&T continues to benefit from Gulf Coast oil premiums, which result in higher returns per barrel produced 130 Monthly Avg EUR Brent Spot 120 LLS Monthly Average 110 W&T Average 100…
Onshore and Offshore, a Balanced Approach for Growth Onshore Long-life reserves, lower IRRs, predictable growth in a long term outlook book reserves upfront spend cash as development occurs inventory of drilling activity for…
Balance The Offshore Component Tremendous rock properties lead to quick payback and higher IRRs IRRs often greater than 100% Deep water = Bigger risk, but much bigger rewards W&T has a large acreage position Shelf: 710,000 gross…
Exploration and Development - GOM MP 108 WC 73 2 Exploration Awaiting Completion B-1 ST: Reached TD and currently st 1 production: Q4 2013 running production casing MC 243 Matterhorn Development & Reservoir Support HI 21 A-2…
Exploration - Deepwater GOM MC 698 Big Bend (WI: 20%, NRI: 16.7%) Summary Well targeted the Big Hum sand at 15,300 feet and logged 150 feet of oil pay in two high quality Miocene sands Initial Est. Cost - 20.2 million (Drill and TA)…
Exploration GOM Shelf SS 349 Mahogany 2013 Activity at SS 349 A Sub-Salt Exploration and Development Project (WI: 100%, NRI: 83.3%) SS 349 A-4 Recomplete Average production profile for wells at Mahogany 74% Oil, 3% NGLs, 23% Gas…
Exploration GOM Shelf SS 349 A-14 Well (WI: 100%, NRI: 83.3%) Summary Targeting new reservoir A-14 Project NPV: (T-sand) with secondary target up- 116 million hole in primary field pay (P-sand) (T-Sand target only) Initial Est. Cost -…
Exploration GOM Shelf SS 349 A-15 Well (WI: 100%, NRI: 83.3%) Summary Single well bore targeting five separate sands (N,O,P,Q,Q5) Initial Est. Cost - 34.5 million SS 349 Target spud date Q3 2013 Target well depth from A-15 Project…
Exploration GOM Shelf MP 108 B-2 MP 108 B-1 & B-2 Pending (WI: 100%, NRI 82%) Summary wells targeting new reserve additions and production near term E Platform D Platform A Platform Initial Est. cost - 24 million Target IP 1,200…
Exploration GOM Shelf EC 321 A-2 ST (WI: 100%, NRI: 83.3%) Summary Targeting new reserves in the Lent 1 sand by drilling a side-track from the existing A-2 well bore) Initial Est. Cost - 13.6 million Target well depth 8,500 TVD…
Development Deepwater GOM MC 243 A-2 well MC 243 Matterhorn Matterhorn Producing (WI: 100%, NRI: 100%*) TLP NPV 33 MM A-5 Well: Water injection well for pressure maintenance, expected to increase reserves on eastern sector of field…
Development GOM Shelf High Island 21 (WI: 100%, NRI: 81%) Summary Low risk gas and liquids development targeting the LH 20 sands Initial Est. cost - 25.0 million Target well depth 12,500 Target IP 1,500 Boepd Est. 1st production Q3…
Current Offshore Projects Driving Value Growth PROJECT Unbooked Net Resource Net Value Timing Potential (MMBoe ) (NPV10, MM) MC 698 Big Bend 5-11 200-425 2013 Sanction Deepwater Development Well 2015 First Oil SS349 A14 (T-sand only)…
Balance The Onshore Component Onshore provides: Onshore Proved Reserves (MMBoe) Long life reserves with more predictable growth 32 31 IRRs that are lower than offshore 30 29 Provides for reserve additions more quickly 28 27 than…
Exploration and Development - Onshore Yellow Rose average production mix Yellow Rose (WI: 100%, NRI: 78%) 71% crude oil, 18% NGLs, 11% gas Summary: Permian basin exploration and development project with long-life reserves 2013…
Exploration and Development - Onshore Yellow Rose Average 30 Day IP - Verticals Wells 120 Implemented new W&T 105 100 completion technique 85 80 59 60 47 41 40 15 17 17 20 11 11 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD…
Current Yellow Rose Resource Potential This does not account for additional benches beyond the Wolfcamp A Estimated resource value at strip pricing 1.37 Billion 20 acre unbooked - 56 MMBoe Unbooked Potential Reserves - 119 MMBoe…
Regional Players Near W&T Acreage W&Ts Permian Yellow Rose Diamondbacks Acreage UL 7-4-9 well Two recent Pioneers MABEE K 1H Pioneer well peak 24 hour permitted wells rate of 1,572 Boepd 24
Exploration - Onshore 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) with ongoing lease…
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) 603 million Cash balance(1) 49.7 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 Dividends per share 1.20 1.11 W&T recently increased 1.00 the quarterly dividend to 0.80 0.79 0.09 per share 0.80 0.60 0.51 0.40 0.36 In 2012, we had a dividend yield* of 6.9%, which compares to a…
Aligned Interests: Shareholder View 60% 53.6% 50% *Average inside ownership among peers is 7% vs. W&T at 53.6% 40% 30% 20% 10% 0% WTI 2 3 4 5 6 7 8 9 10 11 12 13 *Peers include: Apache, Bill Barrett, Cabot Oil &…
How We Provide Value to Our Investors Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Balanced approach between Onshore and Offshore Offshore…
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, Three Months Ended March 31, 2009 2010 2011 2012…
2013 Guidance Second Quarter Full Year Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.1 - 2.3 8.1 - 9.0 Natural Gas (Bcf) 11.8 - 13.1 52.9 - 58.5 Total (Bcfe) 24.3 - 26.8 102.0 - 112.0 Total (MMBbls) 4.0 - 4.5 17.0 -…
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 (1) All figures reflect weighted averages for the specified period (2) WTI hedge position only represents January and February. No current positions for March 2014 36
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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