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Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc.

W&T Offshore Inc. · Mar 7, 2006 · 29 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. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 1
    Confidential W&T Offshore, Inc. Raymond James 27th Annual Institutional Investors Conference Orlando, Florida March 7, 2006
  2. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 2
    W&T Overview
  3. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 3
    Company Strategy Acquire high quality properties in all pricing environments Use full-cycle economics in evaluation process Leverage managements 20+ years of experience in the GOM Exploit extensive drilling inventory Use…
  4. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 4
    Evolution of W&T Founded in 1983 with 12,000 of capital As of February 2006 W&Ts market capitalization exceeded 2.5 billion 2002 Dec: Jefferies Capital Partners buys former 2004 2006 1996 shareholders interest Drilled first Jan 24:…
  5. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 5
    W&Ts Recent Track Record 9 9 months 2005 Revenue, EBITDA, and Net Income each exceeded 17% increase over 9 months 2004 9 79% Success rate in Exploration & Development wells for 2005 Reserves Production 2004 500 445 468 250 231…
  6. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 6
    Development and Exploration Success In 2005, W&T continued its strong performance with total average success rate of 79% Development Drilling Exploration Drilling 8 100% 100% 100% 35 100% 100% 100% 86% 86% 86% 7 90% 90% 30 83%…
  7. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 7
    Success with the Drillbit 3 Year Exploration & Development 2005 Exploration & Development (2003-2005) 6 for 7 100% 67 for 87 56 for 68 23 for 29 15 for 18 100% 83% 83% 86% 77% 8 for 14 3 for 5 79% 80% 80% 60% 2 for 4 57%…
  8. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 8
    2005 Exploration Drilling Program Conventional Shelf Deepwater Main Pass 185 Ship Shoal 149 Eugene Island 93 Eugene Island 219 West Cameron 328 Ship Shoal 130 Mississippi Canyon 804 Eugene Island 218 High Island A443…
  9. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 9
    Hurricane Update Deferment Reasons Consistent for both W&T and Kerr-McGee Field Sales Systems affects 22 Fields Host Platforms: South Pass 89B; East Cameron 338A Export Sales Lines: East Cameron 321; Garden Banks 208 Field…
  10. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 10
    Kerr-McGee Transaction
  11. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 11
    Transaction Overview W&T has entered into an agreement with Kerr-McGee for its GOM shelf assets for approximately 1.3 billion, as of 10/1/05 Adds 95+ exploration prospects Top-three combined acreage holder in Shelf GOM KMG Gulf of…
  12. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 12
    Rationale for Kerr-McGee Transaction Critical Mass and Scale Creates 830 Bcfe GOM Pure-Play 34% Western; 35% Central, Diversity within the Gulf of Mexico 31% Eastern Large Exploration Inventory / 95+ Exploration Prospects…
  13. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 13
    Combined Area of Focus Total W&T Offshore Total Kerr-McGee Highlights include: 533 Leases 2,269,000 Gross Acres 13 13
  14. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 14
    Pro Forma Combined Proved Reserves By Geographic 830 BCFE Proved 48% Region Western 34% 22% Central Eastern 60% 30% Natural Gas By Category 8% 66% Shelf 8% 84% Deep Shelf Proved Developed Deepwater Proved Undeveloped…
  15. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 15
    Pro Forma Combined Summary Reserve Data W&T Kerr-McGee Combined Proved Reserves (Bcfe) (1) 468 362 830 Proved Developed % 62% 72% 66% Gas % 49% 74% 60% Operated Production % 72% 66% 69% Field Statistics W&T Kerr-McGee Combined of…
  16. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 16
    Top Producing Fields The 20 top producing fields are well dispersed throughout the GOM, and primarily located on the conventional shelf On a combined basis, these fields account for approximately: 51% of proved PV10 51% of proved…
  17. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 17
    Diversity within Top Producing Fields These fields represent 52% of total reserves HI 022 MO 823 SMI 269 MP 108 HI 84 HI 110/111 BS 20 SS 300 HI 177 ST 41 GA 352 SS 176 HI A442 EC 321 ST 316 HI A379 SS 349 GC 19 BA 133…
  18. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 18
    Kerr-McGee High Potential Exploration Deep & Ultra Deep NW GULF 15 Prospects Conventional Shelf 10 Prospects Ultra Deep Central Total W&T Offshore Frontier Deep Shelf Kerr-McGee HBP 8 Prospects 9 Prospects Kerr-McGee…
  19. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 19
    Kerr-McGee In-Field Exploration West Cameron 2 Prospects Breton Sound Main Pass 2+ Prospects 5+ Prospects Ship Shoal 4+ Prospects South Timbalier 2+ Prospects Ship Shoal Ship Shoal 8+ Prospects 2+ Prospects Garden Banks Ewing…
  20. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 20
    Total Prospect Inventory The combination provides increased exploration inventory, adding over 95 new drilling prospects W&T Offshore Kerr-McGee Total In-Field Exploration of Prospects 38 54 92 Net Unrisked Potential (Bcfe) 108 350…
  21. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 21
    Financial Overview
  22. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 22
    Turning Reserves into Cash EBITDA Cash Provided by Operating Activities ( in Millions) ( in Millions) 400 396 400 377 37% CAGR 351 344 350 324 350 31% CAGR 300 300 263 250 250 200 200 148 150 133 147 150 124 82 97 100 100 50 50 0…
  23. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 23
    Consistently Delivering Strong EBITDA Margins Average Realized Price (Mcfe) 4.31 4.00 3.50 5.33 6.16 7.52 7.00 6.00 Realized Price (/Mcfe) 5.00 6.11 4.00 82% 4.81 3.46 4.09 79% 3.00 77% 80% 2.00 3.14 2.72 79% 78% 1.00…
  24. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 24
    2006 Capital Expenditures Program W&T has budgeted 400MM for capital and major expenditures in 2006 on a stand alone basis The budget includes 25 exploration wells and 7 development wells to be drilled in 2006 Of the exploration…
  25. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 25
    Combined Capital and Major Expense Program 36% 2006 Program by Area 2006 Program by Category 6% 58% Co n ven ti o n al Sh el f Deep Sh el f Deep w ater 36% 33% 12% 6% 58% 55% Conventional Shelf Deep Shelf…
  26. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 26
    Debt / Financing Reducing Revolving Facility 300 Million Senior Secured Revolving Credit Facility Three Year Maturity Term A 500 Million Senior Secured Term Loan A 18 Month Maturity Quarterly Principal Payments Term B 300 Million…
  27. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 27
    W&T Hedging Schedule Swaps Collars Crude Oil (Bbls/d) Volumes Price Floor Ceiling 2Q2006 4,000 69.33 -- -- 3Q2006 1,800 69.72 -- -- 4Q2006 2,700 69.85 -- -- 2007 4,300 -- 61.68 76.40 2008 2,800 -- 60.00 74.50 Natural Gas (Mmbtu/d)…
  28. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 28
    Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA: Year Ended December 31, Period Ending ( in thousands) 2000 2001 2002 2003 2004 9/30/2005 Net…
  29. Raymond James 27th Annual Institutional Investors Conference – W&T Offshore Inc. – slide 29
    Confidential W&T Offshore, Inc. (NYSE: WTI) Eight Greenway Plaza Suite 1330 Houston, TX 77046 Main line - 713-626-8525 Fax - 713-626-8527 Investor Relations - 713-297-8024 www.wtoffshore.com investorrelationswtoffshore.net

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