W&T Offshore, Inc. Houston Energy Financial Forum Houstonian Hotel Houston, TX November 20, 2008
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…
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…
Hurricane Update
Gulf of Mexico Hurricane Gustav/Ike Summary Offshore Platforms Toppled Operated: EI 397A, EI 371B Non-operated: VR 386B, VR 284 A&B, EI 349A, EI 175E, EI 292B, ST 148B Non-operated processing facilities: EW 947A, ST 196A Gas…
Reserves and Production Overview
Proved Reserves December 31, 2007 By Geographic Region PDP 31% Western PDNP 51% PUD 17% 34% Central 35% 32% Eastern By Category Oil & NGLs Gas Total PV-10 (2) (MMbbls) (Bcf) (Bcfe) ( in millions) Net Proved Reserves:…
Production growth 140.0 Oil & NGLs (Bcfe) 7 Natural Gas (Bcf) 2000-200 126.5 GR 120.0 27 % CA Full-Year Guidance 94.6 97.2 100.0 99.2 49.8 4Q 82.4 Guidance Bcfe 80.0 79.0 12.915.6 38.8 71.1 3Q 3Q 19.9 19.9 26.2…
Acquisitions
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,…
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…
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…
Kerr-McGee Report Card We believe the integration of KMG into Kerr-McGee from close to 9/30/08 ( 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,…
Drilling Overview
Development and Exploration Success Thus far in 2008, W&T has continued its strong performance with total average success rate of 82% Development Drilling Exploration Drilling 2006 Kerr-McGee 9 100% 100% 100% 100% 100% 35 100%…
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…
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…
SS349 Mahogany- Deep Prospect A-11 deepest well in Field 18,380 TVD SALT Deepest pay zone X-Sand 17,150 TVD P Sand A-11 TD in lower most Pliocene, essentially all of Miocene & deeper section not penetrated A-11 Well P-Sand…
Green Canyon 646 Daniel Boone W&T working interest 60% and is the operator Front Runner Reserves (Bcfe) Proved 24 Probable 10 Possible 19 3P Total 53 Total measured depth 12,365 feet 119 miles off coast of Louisiana 4,230 feet…
Green Canyon 82 - Healey 100% W&T Working Interest EW 784 Tarantula Lease purchased in 2004 EW 828 Development options under Lobster review EPS Black Widow Subsea tieback Lobster platform Morpeth Morpeth TLP Prince…
2008 Drilling Program Development Exploration Drilled and online Drilled and online 1 Ship Shoal 224 E-19 Shelf 67% 1 Eugene Island 175 H-5 Shelf 25% 2 South Timbalier 230 A-7st Shelf 100% 2 Eugene Island 175 I-2st Shelf 25% 3 High…
Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 24 24
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 25 25
Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 Proved reserves at booking was 2.9 Bcfe gross Cumulative production is 10.5 Bcfe gross 26 26
Financials
2008 Capital Expenditures Program 4Q 2008 9M 2008 (1) ( in millions) Budget Actual 2007A 2006A Exploration 34 196 171 47% 252 43% Development 71 253 129 36% 302 51% (2) Seismic & other 2 55 61 17% 35 6% Total Capital Budget 107…
Drill from Cash Flow W&T has funded capital expenditures largely through internally generated cash flow Capital Expenditures ( in millions) 900 862(2) 820 800 Adj. EBITDA CapEx 700 642 589 611 (3) 600 472 500 396 400 361 324…
W&T Liquidity - Opportunities Cash balance at 11/4/08 500 million Undrawn revolver at 11/4/08 = 500 million Free Cash Flow Exploratory Asset Corporate Debt Special Stock/Bond Drilling Acquisition Acquisition Repayment Dividend…
Key Drivers High cash-on-cash returns repeatable over many years Great Liquidity Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects 33 33
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, 9 Months 2000 2001 2002 2003 2004 2005 2006 2007…
Free Cash Flow Generation Over the last 5 years, W&T has generated 19% Free Cash Flow Yield Year Ended December 31, 9 Months 2003 2004 2005 2006 2007 2008 TOTAL ( in thousands) Revenues 422,587 508,715 585,136 800,466 1,113,749…
Lender Group On October 24, 2008 the borrowing base of the revolving credit facility was reaffirmed Revolving credit facility matures in 2012 W&T has 500 million available at 11/4/2008 No significant exposure to recent credit market…
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 49 leases in the GOM Lease Sales Since 2002, W&T has acquired 101 undeveloped…
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
Loading...
