W&T Offshore, Inc. IPAA Oil & Gas Investment Symposium New York City, New York April 10, 2006
W&T Overview
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…
Evolution of W&T Founded in 1983 with 12,000 of capital As of April 2006 W&Ts market capitalization exceeded 2.7 billion 2002 Dec: Jefferies Capital Partners buys former 2004 2006 1996 shareholders interest Drilled first Jan 24:…
W&T Area of Operations As of 12/31/05: Total Proved Reserves: 492 Bcfe Proved Developed: 65% Leases: 258 Gross Acres: 931,900 55
W&T Reserves Proved Reserves Oil & NGLs MMbbl Gas Bcf Total Bcfe PV-10 in MMs December 31, 2005 Net Proved Reserves: Proved Developed Producing 8.5 69.0 120.1 737 Proved Developed Non-Producing * 16.3 101.0 198.5 1,055…
Track record of reserve growth Historical Reserve Growth (Bcfe) Oil (Bcfe) 5 600.0 2 00 0-200 A GR 491.5 Natural Gas (Bcf) 19% C 467.5 444.7 400.0 357.5 213.6 240.0 275.6 245.7 138.6 207.4 200.0 91.2 103.8 219.0 231.1…
... and production growth Historical Production Growth (Bcfe) Hurricane Deferral 100.0 Oil & NGLs 00-2005 A GR 20 82.4 88.5 Gas C 79.0 17.4 Bcfe 25% 2005 80.0 17.4 Hurricane 26.2 29.1 Deferral 60.0 54.2 24.5 42.3 14.8 40.0…
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%…
Success with the Drillbit 3 Year Exploration & Development 2005 Exploration & Development (2003-2005) 100% 100% 83% 83%86% 77% 79% 80% 80% 57% 60% Development Wells 60% 60% Exploration Wells 50% 56 for 68 67 for 87 23…
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…
W&T Report Card Previous 5 Transactions Net Estimated Recovery from Major Transactions since 1999 700 600 Initial 290 Bcfe of Booked 290 Bcfe Production from 500 Reserves Transactions 682 Bcfe (Aggregate Total Booked at…
W&T Report Card Previous 5 Transactions Value created from Major Transactions since 1999 2,250 Probable and Possible: 2,041 Probable: 102 Bcfe 557MM PV-10 Possible: 69 Bcfe 346MM PV-10 1,750 PV-10 Value ( in millions) at…
Transaction Commodity Price Spread Ability to obtain quality properties in all pricing environments 6.00 5.37 Average Price Spread: 3.32/Mcfe Average Blended Commodity Price ( per Mcfe) 4.60 4.60 4.00 3.77 2.65 4.78…
Kerr-McGee Transaction
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…
Kerr-McGee Reserves 345 BCFE Proved 1.01 TCFE 3P 34% 31% 33% 73% Natural Gas 69% 33% Proved Developed Proved Probable Possible Proved Undeveloped Note: Proved and Prob & Poss Reserves are internally estimated figures. Third…
Pro Forma Combined Summary Reserve Data W&T Kerr-McGee Combined Proved Reserves (Bcfe) (1) 492 345 837 Proved Developed % 65% 69% 67% Gas % 44% 73% 56% Operated Production % 69% 65% 67% Field Statistics W&T Kerr-McGee Combined of…
Combined Area of Focus Total W&T Offshore Total Kerr-McGee Highlights include: 533 Leases 2,269,000 Gross Acres 22 22
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…
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…
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…
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…
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 8 development wells to be drilled in 2006 Of the exploration…
Combined Capital and Major Expense Program 2006 Program by Area 2006 Program by Category 36% 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…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA: Year Ended December 31, ( in thousands) 2000 2001 2002 2003 2004 2005 Net income 48,204 63,569…
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
Loading...
