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Burkenroad Reports Investment Conference – W&T Offshore Inc.

W&T Offshore Inc. · Apr 28, 2006 · 34 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. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 1
    W&T Offshore, Inc. Burkenroad Reports Investment Conference New Orleans, Louisiana April 28, 2006
  2. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 2
    W&T Overview
  3. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 3
    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…
  4. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 4
    Evolution of W&T Founded in 1983 with 12,000 of capital As of April 2006 W&Ts market capitalization exceeded 2.9 billion 2002 Dec: Jefferies Capital Partners buys former 2004 2006 1996 shareholders interest Drilled first Jan 24:…
  5. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 5
    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
  6. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 6
    W&T Reserves Oil & NGLs Gas Total PV-10 Proved Reserves MMbbl Bcf Bcfe 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 Proved…
  7. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 7
    Track record of reserve growth Historical Reserve Growth (Bcfe) Oil (Bcfe) 5 600.0 2 00 0-200 C A GR 491.5 Natural Gas (Bcf) 19% 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…
  8. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 8
    ... 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…
  9. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 9
    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%…
  10. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 10
    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 Exploration Wells 60% 60% 50% 56 for 68 67 for 87 23 for 29…
  11. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 11
    Hurricane Update Deferment Reasons Consistent for both W&T and Kerr-McGee Field Sales Systems currently affects 14 Fields (22 Fields at year-end) Host Platforms: South Pass 89B; East Cameron 338A Export Sales Lines: East Cameron 321;…
  12. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 12
    W&T Acquisition Strategy
  13. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 13
    Significant Transactions since 1999 Fields Reserves Transaction Acq. Multiple Transaction Acqd Acqd Price (MM) /Mcfe Vastar 7 Fields 18 Bcfe 9.9 0.55 Amoco 5 Fields 64 Bcfe 26.1 0.41 EEX 40 Fields 46 Bcfe 43.8 0.95 Burlington…
  14. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 14
    Exploiting Transactions Fields Reserves Wells W&T Has 2005 Transaction Acqd Acqd Drilled to Date Reserves Vastar 7 Fields 18 Bcfe 16 49 Bcfe Amoco 5 Fields 64 Bcfe 5 46 Bcfe EEX 40 Fields 46 Bcfe 13 28 Bcfe Burlington 53…
  15. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 15
    W&T Report Card Previous 5 Transactions Net Estimated Recovery from Major Transactions since 1999 700 600 Initial Booked 290 Bcfe of 290 Bcfe Production from 500 Reserves 682 Bcfe (Aggregate Transactions Total Booked at…
  16. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 16
    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…
  17. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 17
    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…
  18. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 18
    Kerr-McGee Transaction
  19. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 19
    Transaction Overview W&T has entered into an agreement with Kerr-McGee for its GOM shelf assets for approximately 1.3 billion, as of 09/30/05 Adds 95+ exploration prospects Top-three combined acreage holder in Shelf GOM KMG Gulf of…
  20. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 20
    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: Prob & Poss Reserves are internally estimated figures. 20 20
  21. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 21
    Combined Summary Reserve Data W&T Kerr-McGee Proved Reserves (Bcfe) (1) 492 345 Proved Developed % 65% 69% Gas % 44% 73% Operated Production % 69% 65% Field Statistics W&T Kerr-McGee of Producing Fields w/WI 105 72 of Gross…
  22. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 22
    Combined Area of Focus Total W&T Offshore Total Kerr-McGee Highlights include: 533 Leases 2,269,000 Gross Acres 22 22
  23. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 23
    Diversity within Top Producing Fields These fields represent 52% of total reserves HI 022 MO 823 SMI 269 MP 108 HI 110/111 BS 20 SS 300 HI 177 ST 41 GA 352 SS 176 WD 30 HI A442 EC 321 ST 228 ST 316 SS 349 GC 19 BA 133 GB…
  24. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 24
    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…
  25. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 25
    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…
  26. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 26
    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…
  27. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 27
    Financial Overview
  28. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 28
    Summary Historical Performance Revenue ( in millions) 700 585 600 509 500 423 MMs 400 300 170 191 200 104 100 0 2000 2001 2002 2003 2004 2005 EBITDA ( in millions) 700 600 500 472 396 MMs 400 324…
  29. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 29
    Commitment to Maintain Costs Average Realized Price (Mcfe) 4.31 4.00 3.50 5.33 6.16 8.23 7.00 6.00 6.65 Realized Price (/Mcfe) 5.00 4.00 81% 4.81 3.00 3.46 4.09 79% 80% 77% 2.00 3.14 2.72 79% 78% 1.00 0.00 2000 2001…
  30. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 30
    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…
  31. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 31
    Combined Capital and Major Expense Program 36% 2006 Program by Area 2006 Program by Category 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…
  32. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 32
    W&T Hedging Schedule Swaps Collars Crude Oil (Bbls/d) Volumes Price Floor Ceiling 2Q2006 4,000 69.33 -- -- 3Q2006 1,800 69.72 -- -- 4Q2006 2,700 69.85 -- -- 2007 4,300 -- 61.68 76.40 2008 2,800 -- 60.00 74.50 Natural Gas (Mmbtu/d)…
  33. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 33
    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…
  34. Burkenroad Reports Investment Conference – W&T Offshore Inc. – slide 34
    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

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