Oil & Gas Investment Symposium San Francisco, CA October 13, 2010
Company Highlights Key Financials ( in MMs) 1H10 2009 2008 Reserve Data 1H 2010 (3) 2009 Revenue 349 611 1,216 Proved Reserves (Bcfe) 427 371 Adjusted EBITDA 211 342 884 Proved Developed % 76 % 76 % CAPEX 206 276 658 Oil and Liquids %…
Proved Reserve Geographic Diversification Our geographic diversity provides additional protection during a hurricane 2
2010 Goals & Objectives: Focusing on Growth and Profitability Grow reserves Increase production Focus on producing oil reserves Cost control Improve EBITDA margins 3
Accomplishments During and After the Second Quarter Acquired two deepwater fields on April 30 Mid-year proved reserves increased 15% since year-end Production at high end of second quarter guidance EPS increased to 0.37 from a loss of…
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…
Asset Acquisition from Total On April 30, 2010, we acquired two operated and producing deepwater fields from Total E&P U.S.A. MC 243 Matterhorn (100% working interest) VK 822 and 823 Virgo (64% working interest) Purchase price of…
Matterhorn - Regional Location Map Matterhorn Field is located in a prolific area of Mississippi Canyon, on trend with many other discoveries and producing fields. Regional Fields and Recovery Map . 7
Matterhorn - MC 243 Platform Matterhorn Mississippi Canyon 243 2800 WD . Installed: 2003 Date of First Production: 11/2003 Tension Leg Platform 4 Decks 9 Slots 7 Dry Trees 5 Active Wells 2 Inactive Wells 2 Open Slots…
Virgo - Regional Location Map Virgo Field is located in the prolific Viosca Knoll area of the central Gulf of Mexico with adjacent fields in similar depositional environments. Regional Fields and Reserves Map 9
Virgo - Viosca Knoll 823 Platform Virgo Viosca Knoll 823 1130 WD Installed: 1999 Date of First Production: 11/1999 12 Skirt Pile Structure 6 Leg Deck 3 Decks 14 Slots 5 Active Wells 5 Inactive Wells 2 Open Slots 10
Gulf of Mexico Attributes Great history of production and reserves Highly prolific with multiple pay zones Reserves at deeper but virtually untapped zones, significant upside potential Established infrastructure on shelf…
Our Historical Gulf of Mexico Focus Operating successfully in the Gulf of Mexico for nearly 27 yrs 10 year exploration drilling success rate of 78% 10 year development drilling success rate of 90% Established infrastructure allows…
2010 Capital Expenditures Budget Budget is 450 million and 63% higher than in 2009 Allocated 165 million to drilling, recompletions, seismic and leaseholds Acquired two deepwater fields for 117 million Remainder is allocated to:…
W&Ts Current Operations in the GOM Drilling plans The balance of the 2010 drilling program is located on the conventional shelf and onshore Gulf Coast No long-term drilling contracts One deepwater well was originally included in…
Update - 2010 Drilling Program MP 108 E-3 South Louisiana WI: 67% Development WI: 50% Shelf MP 98 1 Exploration Onshore (Drilling) WI: 100% Shelf Non-commercial (Drilled and successful) Rig on location Viosca Knoll Main South…
Proved Reserves by Year Natural Gas (Bcf) Oil & NGLs (Bcfe) 800.0 Total CapEx 2,000 735.2 Reserves & production 1,800 growth typically track capital 638.8 spending levels 1,600 600.0 1,650.8 We drill within cash flow and 1,400…
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%…
Production Profile Oil & NGLs (Bcfe) Production guidance 140.0 Natural Gas (Bcf) based on allocated 126.5 capital of only 280 120.0 million - not full 450 99.2 Full-Year million budget 97.9 94.8 100.0 49.8 Guidance 75 90 Active…
Adjusted EBITDA Margins 14.00 100% Cost of goods & services 12.42 have historically tracked with 12.00 80% commodity prices in the 74% 73% 80% GOM 10.00 From 2000 thru 2007, Adj. Adj. EBITDA Margin % 8.80 60% 8.07 56% 60%…
W&Ts Strong Liquidity Cash balance at September 30, 2010 191 million Borrowing Base of 405.5 million. Revolving credit facility undrawn. No debt maturities until 2014 Net cash provided by operating activities 244 million for…
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 at…
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 2005 2006 2007 2008 2009 2010 ( in thousands)…
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 (1) Estimated Production 3Q 2010 Full-Year 2010 Crude oil (MMBbls) 1.4 - 1.8 6.1 - 7.3 Natural gas (Bcf) 8.8 - 10.8 38.4 - 46.0 Total (Bcfe) 17.4 - 21.3 75 - 90 Operating Expenses ( in millions) 3Q…
Hedging Strategy & Schedule The Company has hedged approximately 3.7 Bcf of its remaining 2010 natural gas production, 1.11 MMBbls of its remaining 2010 oil production, 1.91 MMBbls of its 2011 oil production and 1.10 MMBbls of its…
% Oil Production and Proved Reserves Profile Total Company 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 1H10 Reserves % Oil and Liquids Production % Oil and Liquids 28
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