Confidential W&T Offshore, Inc. August 2007 Marketing
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…
Dollars - Report Card Value created from 5 Major Transactions since 1999 KMG from close to 06/30/07 ( in millions) ( in millions) Probable and Possible: Probable and Possible: 499 Bcfe Probable: 102 Bcfe 423 MM PV-10 Possible: 126…
Confidential Reserves 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…
Top Fields Proved Reserves Top 10 Fields Account for: MO 823 50% Proved Reserves 44% Proved PV-10 WC 180 32% Current Production MP 108 Mobile HI 177 Metairie Viosca Knoll Main W. Main Pass Cameron Pass S. and E. Houston Grand…
Confidential Production Overview
Recent Production Issues On July 13, 2007, we announced revised full-year production guidance The significant contributors to the revision are: MC 718 Pluto delay in shift of sleeve EW 989 Cypress completion sanded up on June 25, 2007…
Production Timing Current timing adjustments have been both favorable and unfavorable Seven projects had favorable timing adjustments from revised March 2007 forecast Several unfavorable adjustments are due to weather Original…
Production Visibility Only includes recent exploration and development projects. Does not include any incremental production from recently announced exploration drilling programs. (MMcfe/day) Project Name Category WI Q3 2007 Q4 2007…
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 28.0 R 100.0 CA G 36.2 27% 82.4 Bcfe 80.0 79.0 38.8 3Q 71.1 27.5 26.2…
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 301 193 43 236 Seismic 35 27 5 32 Total Capital…
Confidential 2007 Exploration & Development + Near-Term Exploration & Development Plans
Projects for 2007 WEST CAMERON 181 KMG SOUTH TIMBALIER 41 B-3 - KMG Drilling completed 1Q 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 2nd half 2007 drilling plan includes approximately 10 13 wells Rig types by level of complexity Barge Platform 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) 5 Primary Reservoirs 9,450 Oil 10,900 Gas 11,200 Gas 11,300 Oil 12,250 Oil For primary…
High Island 22/24 area High Island 24 Area 25% W&T working interest 40 feet of water depth Initial discovery well drill Sept 2006 500 gross pay- 300 net gas Initial production test 49 MMcfe/day gross Successful offset well…
Confidential From Evaluation to Implementation
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…
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…
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…
Seismic Coverage Goal is to obtain a continuous 3-D database covering all W&T properties Recent new 3-D seismic acquisition 660 blocks of SEI 3-D across offshore Texas 68 blocks of WesternGECO/GPI across Mass Pass New seismic is…
18 Months of Potential Drilling Prospects for Budgeting Consideration Un-risked Potential: 848 Bcfe Risked Potential: 445 Bcfe 27 of 50 Prospects from Kerr-McGee Reserves (Bcfe) 39 Shelf 371 9 Deep Shelf 315 2 Deepwater 162 Mobile…
Liquidity and Discretionary Cash Flow ( in thousands) Liquidity 6/30/2007 Cash on Hand 102,090 Undrawn Revolver 300,000 Total Liquidity 402,090 Non-Discretionary Items * 1H2007 2H2007E Interest Expense (33,442) (33,442)…
Conclusions 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…
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Six Months Year Ended December 31, Ended June 30, 2000 2001 2002 2003…
Confidential W&T Offshore, Inc. August 2007 Marketing
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