Confidential W&T Offshore, Inc. Houston Energy Financial Forum November 15, 2007 Houston, Texas
Company Highlights Reserve Data (as of 12/31/06) Proved Reserves (Bcfe) 735 Proved Developed Reserves (Bcfe) 479 Proved Developed % 65% Natural Gas % 55% Highlights Field Statistics (as of 12/31/06) Ticker WTI (NYSE) of Producing…
W&Ts Business Strategy Strong emphasis on cash flow returns and generation Increase reserves and revenue through the drill bit and by acquisition Continued focus on offshore Gulf of Mexico Conventional shelf primary focus Deep…
Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited assets Key Acquisition Factors Kerr-McGee Example 1. Cash Flow KMG has strong production rates, including several behind…
Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Annual Reserves 2003 YE 2004 YE 2005 YE 2006 YE Acquisition (date) Compound Acq'd Reserves Reserves Reserves Reserves Change (1)…
Acquisitions Report Card Value created from 5 Major Transactions since 1999 Kerr-McGee from close to 09/30/07 ( in millions) ( in millions) Probable and Possible: Probable and Possible: 499 Bcfe Probable: 102 Bcfe 423 MM PV-10…
Confidential Reserves and Production Overview
Proved Reserve Geographic Diversification Total Proved Our geographic diversity provides additional protection during a hurricane East West 20% 29% Western Central Eastern Central 51% Mobile Metairie Viosca Knoll Main W. Main…
Production growth 25% production growth at mid-point 140.0 Oil & NGLs of range for 2007 120.0 Gas Full-Year Guidance 6 4Q 121 - 127 2 000-200 99.2 28.8 R 100.0 CA G 34.8 27% 82.4 Actual Bcfe 80.0 79.0 71.1 38.8 3Q…
2007 Capital Expenditures Program W&T has budgeted 453 million for capital in 2007 ( in millions) 2006 Original 2007 Additions Revised 2007 Exploration 252 133 52 185 Development 302 193 43 236 Seismic 35 27 5 32 Total Capital Budget…
Confidential 2007 Exploration & Development + Near-Term Exploration & Development Plans
Projects for 2007 WEST CAMERON 181 KMG SOUTH TIMBALIER 41 B-3 KMG Online 2Q 2007 Online 4Q 2007 HIGH ISLAND 22 - KMG Online 1Q 2007 Mobile Viosca Knoll VERMILION 331 Main W. Online 2Q 2007 Main Pass HIGH ISLAND 24L Cameron…
Operated Rig Analysis Our 2007 drilling plan includes approximately 10 13 wells Rig types by level of complexity Barge Platform Specialty Jack-Ups Specialty J/U Semi-Submersible…
Green Canyon 82 Healey Overview Seismic Courtesy of PGS 2 W&T operated wells drilled to date Healey 1 (2006) Healey 3 (2006/2007) Healey 4 On site 5 Primary Reservoirs 9,450 Oil 11,300 Oil 10,900 Gas 12,250 Oil 11,200 Gas For…
Confidential From Evaluation to Implementation Kerr- McGee Prospects
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…
Ship Shoal 300 Area Former Kerr-McGee Property W&T operated with 75% Working Interest 250-300 Feet Water Depth 7-10In-Field Exploration Prospects Proposed 2007- 2008 Moderate Drilling Depths: 2300 TVD to 12,200 TVD First…
Ship Shoal Area Ship Shoal Program 1 Approximately 40% W&T working interest 5 Drilling locations proposed for 2007- 2008 All drilled from existing platform with existing production facilities SS219 First drilling to begin 4th…
Main Pass/Viosca Knoll Area 6-9 well program in 2007/2008, most drilled from platforms with existing production facilities Total Net Unrisked Exploration Potential 154 Bcfe Viosca Knoll Recent new state-of-the-art 3-D seismic…
18 Months Drilling Portfolio for Budgeting Consideration Unrisked Potential: 848 Bcfe Risked Potential: 445 Bcfe 27 of 50 Prospects from Kerr-McGee Unrisked Res. (Bcfe) 39 Shelf 371 9 Deep Shelf 315 2 Deepwater 162 Mobile…
W&T Liquidity - Opportunities ( in millions) Cash on hand 9/30/2007 187 Less: Announced Non-Discretionary items (73) Less: Announced Discretionary items (113) Cash less Capital 1 Plus: Adjusted EBITDA* 191 Free Cash Flow 192…
Key Drivers High cash-on-cash return Superior Metrics vs. Peers W&T trading at a discount to NAV Proven Track-Record of Acquiring and Exploiting Opportunity and size of Future Transactions Large inventory of prospects Favorable…
Confidential Appendix
Proved Reserve Bookings Example Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 28 28
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 29 29
Pluto MC 718 3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006 30 30
High Island 22 High Island 22 100% W&T working interest 1st well drilled on former Kerr-McGee property Successfully drilled and completed B-3ST in January 2007 Current rate of 6.0 MMcfe/day gross 31 31
High Island 24 High Island 24 Area 25% W&T working interest 40 feet of water depth HI 8 HI 9 Initial discovery well drill Sept 2006 500 gross pay- 300 net gas Initial production test 49 MMcfe/day gross HI 25 HI 24 HI 23…
Bay Junop Field 100% GWI in S/L 17993 1 ST Terrebonne Parish, LA 8 Feet Water Depth 1ST reached a Total MD of 18,553 feet on 10/10/06 The Well Logged 42 Net Gas in the Big 2 Sand 10 to 15 Bcfe 3P estimated WTIs Deepest Operated…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Nine Months Ended Year Ended December 31, September 30, 2000 2001 2002…
Confidential 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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