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Howard Weils 36th Annual Energy Conference – W&T Offshore Inc.

W&T Offshore Inc. · Mar 25, 2009 · 30 slides

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Slides

  1. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 1
    W&T Offshore, Inc. Howard Weils 36th Annual Energy Conference Sheraton New Orleans New Orleans, LA March 25, 2009
  2. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 2
    Company Highlights Reserve Data 2007 2008 Proved Reserves (Bcfe) 639 491 Proved Developed Reserves (Bcfe) 395 334 Proved Developed % 62% 68% Oil and Liquids % 52% 54% Highlights Field Statistics (as of 12/31/08) Ticker WTI (NYSE)…
  3. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 3
    W&Ts Business Strategy Current economic environment creates opportunities Acquisitions Drilling Maintain liquidity Cash flow generation remains high priority Strong cash position and established line of credit Continued focus on…
  4. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 4
    25 Years of Operating Successfully in the Gulf of Mexico
  5. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 5
    Why We Focus on the GOM GOM basin has substantial known reserves 9 year exploration drilling success rate of 78% History of replacing production Maintained steady reserve life Established infrastructure on shelf History of…
  6. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 6
    Proved Reserve Geographic Diversification Proved Reserves by Area Our geographic diversity provides additional protection during a hurricane 57% Western Central Eastern 16% 27% Mobile Viosca Knoll Main W. Main Pass Western…
  7. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 7
    Proved Reserves by Year 800.0 Oil & NGLs (Bcfe) 2 000-2008 GR 11% CA 735.2 Natural Gas (Bcf) 638.8 600.0 334.0 Bcfe 491.5 491.1 467.5 306.0 444.7 400.0 357.5 263.3 213.6 240.0 275.6 138.6 245.7 207.4 200.0 91.2…
  8. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 8
    3P Reserves 2008 3P reserves increased 14% over 2007 2007 2008 Proved Proved 37% 54% Possible 30% Possible Probable Probable 37% 26% 16% Oil & NGLs Gas Total Oil & NGLs Gas Total Mbo MMcf MMcfe Mbo MMcf MMcfe Proved…
  9. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 9
    Proved Reserves Mix 2007 2008 PDP PDP 35% 30% PDNP PUD PDNP PUD 27% 32% 38% 38% 88
  10. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 10
    3P Reserves from 2008 Discoveries W&T grew 3P reserves 14% from 19 explorations wells in 2008 128.2 Bcfe Cumulative 3P adds from exploration program W&T drills wells at optimal recovery points, that may not add the most proven…
  11. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 11
    Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 10 10
  12. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 12
    Constant Reserve Life Profile W&T has had an average R/P ratio of 6.3 over the last 9 years History shows that W&T has been able to replace reserves in various environments High 3P reserves helps support steady long-term R/P ratio…
  13. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 13
    Production growth 140.0 Oil & NGLs (Bcfe) GR 2000-2008 19% CA 126.5 Natural Gas (Bcf) 120.0 99.2 49.8 97.9 100.0 Full-Year Guidance 82.4 106.4 82.4 Bcfe 79.0 80.0 38.8 71.1 41.9 3Q 19.9 26.2 29.1 60.0 54.2 24.5 42.3…
  14. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 14
    Development and Exploration Success In 2008, W&T continued its strong performance with total average success rate of 77% Development Drilling Exploration Drilling 9 100% 100% 100% 100% 100% 35 100% 100% 100% 8 86% 86% 86% 86%…
  15. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 15
    Exploration Success 2000 2008 78% 84% 70% 57% Success Rate 150 34 125 100 18 75 120 50 93 25 6 10 14 13 0 Total Exploration Conventional Deep Shelf Deepwater Wells Shelf Successful Non-Commercial 14 14
  16. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 16
    Acquisitions
  17. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 17
    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,…
  18. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 18
    Disciplined Acquisition Strategy Creates Value W&T has a very active A&D team that evaluates transaction beyond the GOM In 2008, W&T visited or evaluated over 2 billion of acquisition opportunities in data rooms or private…
  19. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 19
    Major Projects
  20. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 20
    Green Canyon 646 Daniel Boone W&T working interest 60% and is the operator Front Runner Reserves (MMBoe) Proved 4 Probable 2 Possible 3 3P Total 9 Total measured depth 12,365 feet 119 miles off coast of Louisiana 4,230 feet…
  21. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 21
    SS349 Mahogany- Update & Deep Prospect Field ranks 1 in PW10% at 20% of total Proved Field ranks 1 in net MBoe at 27% of total SALT Proved A-11 deepest well in Field 18,380 TVD P Sand Average gross rate since A-11 recompletion:…
  22. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 22
    Hurricane Update Gas Pipelines All or part of the ANR gas pipeline remains shut-in ANR estimated to be online in July 2009 Oil Pipelines One major oil pipeline remains shut-in Whitecap Whitecap could be delayed until August 2009…
  23. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 23
    Financials
  24. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 24
    Drill Within Cash Flow W&T has a long history of funded capital expenditures through internally generated cash flow Capital Expenditures ( in millions) 900 884 820 800 Adj. EBITDA CapEx 700 642 658 589 600 472 500 396 400…
  25. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 25
    W&T Offshore High EBITDA Margins 14.00 100% 12.42 12.00 80% 79% 79% 81% 80% 78% 77% 74% 80% 10.00 Avg. Adj. EBITDA Margin of 76% Adj. EBITDA Margin % 8.80 73% 8.23 8.07 60% 8.00 /Mcfe 6.16 6.00 5.33 40% 4.31 4.00…
  26. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 26
    W&T Liquidity - Opportunities Cash balance at 1/31/09 300 million Undrawn revolver at 12/31/08 = 500 million Borrowing Base expected to decrease after bank redetermination in April 2009 Borrowing Base maturity is 2012 ( in…
  27. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 27
    2009 Guidance and Capital Budget Estimated Production Full-Year 2009 Crude oil (MMBbls) 6.5 8.4 Natural gas (Bcf) 43.6 56.1 Total (Bcfe) 82.8 106.4 Operating Expenses ( in millions) Full-Year 2009 Lease operating expenses 214 256…
  28. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 28
    Key Drivers Proven Track-Record of Acquiring and Exploiting assets Large inventory of prospects Flexibility Sufficient Liquidity 27 27
  29. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 29
    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 ( in…
  30. Howard Weils 36th Annual Energy Conference – W&T Offshore Inc. – slide 30
    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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