W&T OFFSHORE, Inc. (NYSE: WTI) Revenue (1) 971 MM Adjusted EBITDA (1) 646 MM Proved Reserves (2) 701.1 Bcfe / 116.9 MMboe Reserves - Oil & Liquids (2) 59% Acreage Offshore 792,519 gross / 513,281 net Acreage Onshore 206,436…
COMPANY OPERATIONS: SCOPE AND GEOGRAPHIC COVERAGE Permian Basin Proved Reserves: 28 MMBoe Acreage: 32,400 Net East Texas Acreage: 142,000 Net 4% of Production GOM Deepwater Proved Reserves: 25 MMBoe Acreage: 82,200 Net 26%…
GROWTH Goals and Incentives Aligned with Growth and Profitability All personnel are incentivized to accomplish the Companys Goals Overall, we exceeded the targeted goals in 2011 For 2012, our goals include: Reserve growth goal of…
GROWTH Reserves Growth Proved reserves increased 44% in 2011 over 2010 Overall reserve replacement ratio of 312% PV-10* of proved reserves for 2011 of 3.1 billion Oil and Natural Gas Liquids are 59% of 2011 proved reserves versus…
GROWTH Reserve Growth Year After Year Oil and NGL's Natural Gas Growth Goal* 140 117 120 100 81 (MMBoe) 80 62 60 40 20 - 2009 2010 2011 2012E * Growth Goal: 18% or greater over 2011 proved reserves. 5
GROWTH Rising Production Growth Oil and NGL's Natural Gas 20 *16.9 to 18.8 16.9 18 14.5 16 14 (MMBoe) 12 10 8 6 4 2 0 2010 2011 2012E * 2012E volumes represent guidance range. Estimated production for 2012…
GROWTH Oil and natural gas liquids continue to make up a greater portion of the reserves and production mix W&T Offshore receives Gulf Coast premium prices for 85% of its oil production OIL & NGLs PRODUCTION PROVED RESERVES MBO…
GROWTH Oil and liquids are consistently high as a percentage of proved reserves Currently the highest in 5 years Liquids Natural Gas 100% 90% 80% 70% 60% 59% 50% 54% 55% 40% 48% 47% 30% 20% 10% 0% 2007 2008…
GROWTH Widening Areas of Expertise 9
GROWTH Widening Areas of Expertise Movement onshore provides diversity Extends the average reserve life Extensive drilling during 2011 provided insight into cost saving opportunities, future well placement, and best practices to…
GROWTH Having Success with the Plan Proved Reserves are up 44% year over year 59% oil and liquids in 2011 versus 47% in 2010 Production is up nearly 17% year over year Adjusted EBITDA for 2011 is 44% higher than 2010 Acquired…
Growth in
STRATEGY 2012 AND BEYOND Primary focus of 2012 is to make acquisitions to grow the Company (offshore and/or onshore) We are indifferent as to projects, they simply have to have strong full cycle rates of return, or in other words do…
2012 CAPITAL BUDGET The 2012 capital budget represents a 37% increase over 2011. Allocated dollars are aligned with growth goals and strategies. The budget does not include acquisitions. ( in millions) Estimated Capital of wells…
2012 BUDGET DETAILS Exploratory Activities 39% of budget, 25 wells Budget anticipates the drilling of 25 wells with 167 million split 53% offshore and 47% onshore Projects are oil and liquids focused Onshore drilling will be a mix…
GULF OF MEXICO ACTIVITY 2012 Gulf of Mexico remains a focus for us Majority source of our cash flow High rate of return projects with rapid payback We are positioned well in the Gulf of Mexico Fourth largest producer on the Gulf…
SS 349/359 MAHOGANY FIELD (WI:100%) Currently drilling the A-13 well, which is expected to add 1,500 barrels per day net beginning Q3 2012. The A-13 is the third well of potentially a six well drilling program that commenced in…
MC 243 MATTERHORN (WORKING INTEREST: 100%) Currently conducting drilling operations on the A-4 ST, which is a development well targeting the A-sand. This well is expected to produce 3,500 Boe per day net to our interest. Platform…
ONSHORE ACTIVITY PERMIAN BASIN Yellow Rose Project (WI: 100%) 22,858 net acres in Dawson, Martin, Andrews, Gaines counties in Texas In 2011 we drilled 29 wells and have drilled 16 wells thus far in 2012 Current production rate:…
WEST TEXAS WOLFBERRY Primary focus in the West Texas Permian Basin is the Wolfberry Spraberry- Dean primarily terrigenous clastic-dominated system deposited by saline density currents, turbidity currents and suspension settling…
ONSHORE ACTIVITY EAST TEXAS Star Project (WI: 97.6%): Project comprised of 142,000 net acres located in six East Texas counties. Drilled and completed in 2011 a horizontal exploration well to test and target the James Lime formation…
GROWTH THROUGH STRATEGIC ACQUISITIONS Proven Acquisition Guidelines Properties generating cash flow Strong current production rates Financeable Large portion of reserve base is proved developed and can be financed Identified…
W&TS ACQUISITION ADVANTAGE W&T is a preferred buyer in the Gulf of Mexico 28+ years of proven experience for safe operations Known by industry to pursue acquisitions as part of the overall growth plan since inception Strong…
CREATING VALUE Main Pass 252 Increased reserves by 4.5 MMBoe Projected production increase of 10 MMcfe/d (net to W&T) NGL processing arrangements provided significantly higher recoveries Mississippi Canyon 243 Increased…
LIQUIDITY FOR FURTHER GROWTH New four-year revolver with 575 million borrowing base We have 84 million currently drawn on the revolver Current cash balance 12 million We expect our borrowing base to increase Adjusted EBITDA for…
FIVE-YEAR DIVIDEND HISTORY In 2011, we paid the most dividends and had the highest dividend yield* (3.7%) among our peers**, whose average yield was close to 0%. Recently doubled our quarterly dividend to 0.08/share, and looking to…
KEY INVESTMENT CONSIDERATIONS Company is focused on future growth Clear evidence that W&T can grow profitably and make money 2011 Reserve growth of 44% PV10 increased 63% to 3.1 billion from 2010 2011 Adjusted EBITDA 44% higher than…
RECONCILIATION OF NET INCOME TO EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: ( in thousands) Year Ended December 31, 2007 2008 2009 2010 2011 Net…
2011 YEAR-END PROVED RESERVES As of December 31, 2011 Total Equivalent Reserves Barrel Natural Gas % of Oil NGLs Natural Gas Equivalent Equivalent Total Classification of Proved Reserves (MMBbls) (MMGals) (Bcf) (MMBoe) (Bcfe)…
FINANCIAL COMMODITY DERIVATIVES Oil Collars Weighted Average Contract Price Barrels Nymex Pricing ( per barrel) 2012 per Day Floor Ceiling First Quarter 4,000 75.00 97.88 Second Quarter 4,000 75.00 97.88 Third Quarter 1,348 75.00…
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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