Achieving 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 Third Quarter EPS increased to 0.36 from a loss of 0.02 in Q3 2009 and increased to 0.43 excluding special items Adjusted EBITDA increased 26% to 118 million and cash balance grew to 180.5…
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…
Offshore Property Acquisition from Shell Acquired or agreed to acquire interests in six producing fields in the Gulf of Mexico, five of which are in Deepwater Purchase price of 450 million, plus 50 million ARO, to be adjusted for…
Proved Producing Property Acquisition from Shell GOM Shelf (1) (1) (2) Tahoe SE Tahoe Marlin Dorado Property Droshky (3) Shell's Interest 70% WI 100% WI 11.5% - 25% WI 25% WI 64.3% WI 6.25% ORRI Post close operator W&T W&T Third…
Attractive Acquisition Economics Based on 450 million price, plus 50 million ARO, we acquired 25.7MMboe of proven reserves for 19.44/boe 97% of daily production (38% oil / 62% natural gas) is PDP or from overriding royalty, so future…
Investment Highlights of Tahoe and SE Tahoe Deepwater Assets W&T is the operator and has a large ownership position VK 784 SE Tahoe (100% working interest) VK 783 Tahoe (70% working interest) Strong volumes from proved developed…
Investment Highlights of Droshky Deepwater Assets Overriding royalty interest (ORRI) in Green Canyon 244 Significant cost free cash flow from 6.25% ORRI Carries no lease operating expense or future development costs Net production…
Investment Highlights of Dorado and Marlin Deepwater Assets W&T will have a non-operated interest in large resource base* VK 871 & 915 Dorado ( 25% working interest) VK 871 & 915 Marlin (11.5% - 25% working interest) Production of…
Investment Highlights of Conventional Shelf Property Letter of intent to acquire the sixth field which is located in water depth of 20 to 30 feet W&T will be operator and have a large ownership position 64.3% working interest…
Newly Acquired Fields and Focus Areas 13
W&Ts Current Operations Production 2010 production guidance on November 2, 2010 is between 83 Bcfe and 87.3 Bcfe excluding impact of Shell acquisition MP 108 field still shut in due to 3rd party pipeline outage reducing volumes by…
2010 Drilling Program Development MP 108 E-3 South Louisiana WI: 100% Exploration WI: 50% Shelf MP 98 1 Non-commercial Onshore (Drilled and successful) WI: 100% South Texas Shelf Rig on location WI: 24% (Drilled and successful)…
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 26 yrs 10 year exploration drilling success rate of 78% 10 year development drilling success rate of 90% Established infrastructure allows for…
Proved Reserves by Year Natural Gas (Bcf) Oil & NGLs (Bcfe) Mid Year, less 2H10 Production Shell Acquisition Acquisitions, drilling and Total CapEx pricing contribute to 800 2,000 735 increase in 2010 1,800 639 1,600 Reserves…
Production Profile Oil & NGLs (Bcfe) 140.0 Natural Gas (Bcf) Production guidance 126.5 before Shell property 120.0 acquisition 99.2 97.9 Full-Year 49.8 94.8 Guidance 100.0 83.0 87.3 Since second half of Bcfe 2008 focused…
Adjusted EBITDA Margins Cost of goods & services 14.00 100% have historically tracked with commodity prices in the 12.00 80% GOM 74% 73% 80% 10.00 From 2000 thru 2007, Adj. Adj. EBITDA Margin % 63% EBITDA margins averaged…
W&Ts Strong Liquidity Cash balance at September 30, 2010 181 million Borrowing Base of 405.5 million was reaffirmed on October 29, 2010. No debt maturities until 2014 Net cash provided by operating activities 392.9 million for the…
Key Investment Considerations Focused on safety, growth and profitability with environmentally responsible operations Large acreage position in the Gulf of Mexico Operating in the Gulf of Mexico for 26 years Strong cash flow &…
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, Nine months 2005 2006 2007 2008 2009 2010 ( in…
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
Hedging Strategy & Schedule The Company has hedged approximately 1.8 Bcf of its remaining 2010 natural gas production, 0.63 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 29
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