Raymond James Institutional Investors Conference March 10, 2010
Company Highlights Highlights Reserve Data 2009 2008 Ticker WTI (NYSE) Proved Reserves (Bcfe) 371 491 Initial Public Offering January 2005 Proved Developed Reserves (Bcfe) 284 334 Employees 286 Proved Developed % 76 % 68 % (1) Market…
Key Investment Considerations Large acreage position in the Gulf of Mexico Operating in the Gulf of Mexico for 26 years Experienced staff Strong cash flow & good liquidity Balanced oil and gas reserve mix Focused on growth…
Proved Reserve Geographic Diversification Our geographic diversity provides additional protection during a hurricane 3
What is great about the Gulf of Mexico Great history of production and reserves Reserves at deeper but virtually untapped zones, significant upside potential (i.e. Davy Jones, Jack, etc.) Highly prolific with multiple pay zones…
Our Historical Gulf of Mexico Focus Operating successfully in the Gulf of Mexico for 26 years 10 year exploration drilling success rate of 78% 10 year development drilling success rate of 90% Established infrastructure allows for…
Accomplishments in 2009 77% success in 2009 exploration and development drilling program, including successfully drilling eight of ten exploration wells and two of three development wells Asset retirement obligations decreased 199.1…
2010 Goals & Objectives: Focusing on Growth and Profitability Grow reserves Initial drilling program of 10 wells 187 Bcfe net unrisked most likely reserves Pursue acquisitions with proved reserves and exploitation opportunities…
2010 Goals & Objectives: Focusing on Growth and Profitability Contd Cost management LOE controls Possible divestiture on non-core properties Committed to competitive F&D metrics Improve EBITDA margins closer to historic levels…
Reserve Growth Opportunities Acquisitions Prices have declined substantially since 2008 Deal flow is accelerating Experienced A&D team Evaluating onshore (long life reserves) and offshore (deepwater) Aggressively pursue…
2010 Capital Expenditures Budget 450 million budget is 63% higher than in 2009 153 million is allocated to: Ten wells, including nine exploration and one development Well recompletions, facilities capital, seismic and leasehold…
Proposed 2010 Drilling Program Development MP 108 E3 WI: 67% Exploration Shelf MP 98 - 1 Non-commercial WI: 100% Shelf Viosca Knoll Bay Marchand 2 Main W. WI: 30% Main Pass Cameron Shelf Pass S. and E. S. Pass West E. Add…
Strategic Budgeting with a Long-Term Focus Capital Expenditures ( in millions) We drill within cash flow 1,800 Focus on maintaining 1,600 liquidity 1,400 Reduce capital budget when 1,200 service costs are high and 1,062 commodity…
Proved Reserves by Year Oil & NGLs (Bcfe) Natural Gas (Bcf) 800.0 Total CapEx 1,800 735.2 Reserves & production 1,650.8 1,600 growth typically track capital 638.8 spending levels 1,400 600.0 334.0 Negative pricing & adverse…
Production Profile Oil & NGLs (Bcfe) Natural Gas (Bcf) 2010 production guidance of 126.5 60 to 80 BCFE is based on the initial 7 well budget and 99.2 97.9 150 million cap-ex program 94.8 not full 450 million budget Bcfe 71.1…
Proved & 3P Reserves Mix 2009 Proved Reserves 2009 - 3P Reserves Proved PDP 40% 43% PUD Possible Probable 24% 44% PDNP 16% 33% Oil Gas Total Oil Gas Total Mbo MMcf MMcfe Mbo MMcf MMcfe PDP 12,667 86,561 162,564 43%…
Strategic Acquisition Criteria Opportunistic Approach Properties generating cash flow Strong current production rates Financeable Large portion of reserve base is proved developed and can be financed Identified upside Properties…
Prudent Investment Strategy Proven, experienced and expanding A&D team Improving transaction market (1) Domestic E&P transactions of 5.8 billion in 2009 compared to 26.6 billion in 2008 Deals of 7.8 billion done thus far in 2010…
Adjusted EBITDA Margins Improving Cost of goods & services have historically tracked with commodity prices in the GOM From 2000 thru 2007, Adj. EBITDA margins averaged 79% despite variable commodity prices In 2009, margins were…
W&T Liquidity - Opportunities Reduced debt by 200 million and ARO by 200 million Cash balance at February 25, 2010 250 million Revolver availability at February 25, 2010 = 262 million with 405 million borrowing base We redrew the…
Key Drivers Large acreage position Operating in the Gulf of Mexico for 26 years Strong cash flow & liquidity Focus on achieving sustainable production and reserve growth Improving operating metrics and margins Growing staff to…
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, 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
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
Appendix
2010 Guidance and Capital Budget Estimated Production (1) Full-Year 2010 Crude oil (MMBbls) 4.6 6.2 Natural gas (Bcf) 32.4 42.8 Total (Bcfe) 60.0 80.0 Operating Expenses ( in millions) Full-Year 2010 Lease operating expenses 168…
Hedging Strategy & Schedule The Company has hedged 11.9 Bcf of its 2010 natural gas production and 1.27 MMBbls of its 2010 oil production Hedges were put in place to augment the borrowing base and the 2010 drilling budget Natural…
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