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August 2008 Marketing – W&T Offshore Inc.

W&T Offshore Inc. · Aug 12, 2008 · 39 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. August 2008 Marketing – W&T Offshore Inc. – slide 1
    W&T Offshore, Inc. August 2008 Marketing
  2. August 2008 Marketing – W&T Offshore Inc. – slide 2
    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…
  3. August 2008 Marketing – W&T Offshore Inc. – slide 3
    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…
  4. August 2008 Marketing – W&T Offshore Inc. – slide 4
    Reserves and Production Overview
  5. August 2008 Marketing – W&T Offshore Inc. – slide 5
    Proved Reserves December 31, 2007 By Geographic Region PDP 31% Western PDNP 51% 17% PUD 34% Central 35% 32% Eastern Oil & NGLs Gas Total PV-10 (2) By Category (MMbbls) (Bcf) (Bcfe) (In millions) Net Proved Reserves: (1)…
  6. August 2008 Marketing – W&T Offshore Inc. – slide 6
    Production growth 140.0 Oil & NGLs (Bcfe) 7 Natural Gas (Bcf) 2 000-200 126.5 R CA G 120.0 27% Full-Year Guidance 115-125 100.0 99.2 49.8 82.4 Bcfe 80.0 79.0 38.8 3Q 71.1 Guidance 26.929.2 26.2 29.1 60.0 54.2 24.5…
  7. August 2008 Marketing – W&T Offshore Inc. – slide 7
    History of reserve growth 800.0 Oil & NGLs (Bcfe) 00 -2 007 735.2 20 Natural Gas (Bcf) 3% CAGR 2 638.8 600.0 334.0 491.5 444.7 467.5 306.0 Bcfe 400.0 357.5 213.6 240.0 275.6 245.7 138.6 207.4 200.0 91.2 401.2 103.8…
  8. August 2008 Marketing – W&T Offshore Inc. – slide 8
    Drilling Overview
  9. August 2008 Marketing – W&T Offshore Inc. – slide 9
    Development and Exploration Success In 2007, W&T continued its strong performance with total average success rate of 89% Development Drilling Exploration Drilling 2006 Kerr-McGee 9 100% 100% 100% 100% 100% 35 100% 100% 8 86%…
  10. August 2008 Marketing – W&T Offshore Inc. – slide 10
    Exploration Success 2000 August 5, 2008 79% 84% 76% 57% Success Rate 140 31 120 100 17 80 60 114 40 88 20 4 10 13 13 0 Total Exploration Conventional Deep Shelf Deepwater Wells Shelf Successful Non-Commercial 99
  11. August 2008 Marketing – W&T Offshore Inc. – slide 11
    Acquisitions
  12. August 2008 Marketing – W&T Offshore Inc. – slide 12
    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,…
  13. August 2008 Marketing – W&T Offshore Inc. – slide 13
    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…
  14. August 2008 Marketing – W&T Offshore Inc. – slide 14
    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…
  15. August 2008 Marketing – W&T Offshore Inc. – slide 15
    Kerr-McGee Report Card We believe the integration of KMG into Kerr-McGee from close to 6/30/08 ( 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,…
  16. August 2008 Marketing – W&T Offshore Inc. – slide 16
    Transaction Report Card Value created from 7 Major Transactions from 1999-2008 ( in millions) 3,072* 3,000 2,500 2,000 Cumulative Revenue PV-10 Value 1,500 less at 12/31/07 (1) Expenditures 1,000 and Transaction 500…
  17. August 2008 Marketing – W&T Offshore Inc. – slide 17
    Drilling Prospects by Acquisition 105 wells drilled on 190 fields acquired is just over 1/2 a well per field to date Year Fields Development Exploration Well in 2008 Transaction Acq'd Acq'd Wells Drilled Wells Drilled Program*…
  18. August 2008 Marketing – W&T Offshore Inc. – slide 18
    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…
  19. August 2008 Marketing – W&T Offshore Inc. – slide 19
    Recent Events
  20. August 2008 Marketing – W&T Offshore Inc. – slide 20
    Green Canyon 82 - Healey 100% W&T Working Interest EW 784 Lease purchased in 2004 Tarantula EW 828 Development options under review Lobster FPS Subsea tieback Black Widow Lobster platform Morpeth TLP Morpeth Prince TLP…
  21. August 2008 Marketing – W&T Offshore Inc. – slide 21
    2008 Exploration & Development Program
  22. August 2008 Marketing – W&T Offshore Inc. – slide 22
    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…
  23. August 2008 Marketing – W&T Offshore Inc. – slide 23
    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…
  24. August 2008 Marketing – W&T Offshore Inc. – slide 24
    Revised 2008 Conventional Shelf Exploration Drilling Mobile Metairie 3 wells Viosca Knoll 3 wells Main Main Pass Pass S. and E. Houston W. Cameron Grand Ship Isle West Eugene Shoal Delta S. Pass Island E. Add 4 wells High…
  25. August 2008 Marketing – W&T Offshore Inc. – slide 25
    Revised 2008 Exposure to Upside: Deep Shelf Drilling Mobile Metairie Viosca Knoll Main Main Pass Pass W. S. and E. Houston Cameron Grand Ship Isle West Eugene Shoal Delta S. Pass Island E. Add High E. Island South…
  26. August 2008 Marketing – W&T Offshore Inc. – slide 26
    Revised 2008 Development Drilling SHIP SHOAL 224 Program Timing: 2008 Working Interest: 47% Expected Rate: 3.0 MMcfe/d Additional Exploration Opportunities SHIP SHOAL 349/359 Timing: 4Q 2008 Working Interest: 100%…
  27. August 2008 Marketing – W&T Offshore Inc. – slide 27
    2008 Scorecard Drilled and Online (Initial Rate in MMcfe/d) EI 186 1 WI: 100% VK 519 1 WI: 90% Currently drilling or Near-Term drilling MP 108 Program EI 175 I-2ST WI: 25% Drilled and being Completed WI: 50 - 75% Non-Commercial EI…
  28. August 2008 Marketing – W&T Offshore Inc. – slide 28
    Financials
  29. August 2008 Marketing – W&T Offshore Inc. – slide 29
    W&T Offshore High EBITDA Margins 14.00 13.23 100% 12.00 80% 79% 79% 81% 80% 80% 78% 77% 74% 80% 10.00 Avg. Adj. EBITDA Margin of 77% Adj. EBITDA Margin % 8.80 8.23 8.07 60% 8.00 /Mcfe 6.16 6.00 5.33 40% 4.31 4.00…
  30. August 2008 Marketing – W&T Offshore Inc. – slide 30
    Commodity Hedging Schedule Approximately 9% of remaining production is hedged Remaining 2008 Crude Oil (7/1/08 - 12/31/08) Collars Volumes (Bbls/day) 2,800 Volumes (Bbls) 515,200 Floor-Ceiling 60.00 - 74.50 Natural Gas (8/1/08 -…
  31. August 2008 Marketing – W&T Offshore Inc. – slide 31
    Key Drivers High cash-on-cash returns repeatable over many years Great Liquidity and acceptable debt levels Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects 30 30
  32. August 2008 Marketing – W&T Offshore Inc. – slide 32
    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, 1H 2000 2001 2002 2003 2004 2005 2006 2007 2008 (…
  33. August 2008 Marketing – W&T Offshore Inc. – slide 33
    Appendix
  34. August 2008 Marketing – W&T Offshore Inc. – slide 34
    Operated Rig Analysis Listed below are the type of rigs necessary to complete our 2008 drilling program of approximately 50 wells Rig types by level of complexity Barge Platform Specialty Jack-Ups Specialty J/U Semi-Submersible…
  35. August 2008 Marketing – W&T Offshore Inc. – slide 35
    Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 35 35
  36. August 2008 Marketing – W&T Offshore Inc. – slide 36
    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 36 36
  37. August 2008 Marketing – W&T Offshore Inc. – slide 37
    Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 37 37
  38. August 2008 Marketing – W&T Offshore Inc. – slide 38
    Realized prices,Costs per Mcfe & Credit Stats Realized price 2005 2006 2007 1H 2008 Natural Gas (/Mcf) 8.27 7.08 7.20 10.09 Liquids (/Bbl) 48.85 57.70 67.58 103.46 Realized Price (/Mcfe) 8.23 8.07 8.80 13.23 Cost per Mcfe 2005 2006 2007…
  39. August 2008 Marketing – W&T Offshore Inc. – slide 39
    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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