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Howard Weil 41st Annual Energy Conference – W&T Offshore Inc.

W&T Offshore Inc. · Mar 20, 2013 · 31 slides

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Slides

  1. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 1
    Howard Weil 41st Annual Energy Conference New Orleans March 20th, 2013
  2. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 2
    W&T OFFSHORE Overview (NYSE: WTI) 12 months ended ( in millions) December 31st, 2012 Operating Locations Revenues 874.5 EBITDA 525.7 Proved Reserves (MMBoe) 117.5 Dividend Yield 6.9% Permian Basin East Texas Capital Spending…
  3. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 3
    W&T OFFSHORE 2013 Outlook for W&T Reserve and production portfolio continues to become more oily Proved developed oil reserves increased more than 50% in 2012 Big offshore oil fields continue to get bigger SS 349 Mahogany…
  4. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 4
    W&T OFFSHORE Growth Opportunities Across the Board ONSHORE TEXAS GOM DEEPWATER GULF OF MEXICO SHELF Yellow Rose field 481,200 gross acres 710,760 gross acres 23,400 net acres Sanction of Big Bend well Newly acquired leases…
  5. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 5
    W&T OFFSHORE Focused On Organic Growth Through Exploration Exploration activities account for 2/3rds of the budget in 2013, 285 million Supports continuous, organic growth of the companys reserves in 2013 Heavier weighting in 2013…
  6. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 6
    W&T OFFSHORE Exploration is the Capital Budget Focus in 2013 450 million budget weighted towards offshore exploration W&T Capital Budget Allocation ( in millions) Nearly half of the budget is 72 focused on offshore…
  7. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 7
    W&T OFFSHORE Reserves Growth with a Focus on Oil Proved Reserves (MMBoe) There continues to be 120.0 significant growth potential 100.0 from our 3P reserves 80.0 60.0 40.0 20.0 3P Reserves (in MMBoe) 0.0 2009 2010 2011 2012…
  8. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 8
    W&T OFFSHORE Pricing Premiums Drive Higher Returns W&T continues to benefit from Gulf Coast oil premiums, which result in higher returns per barrel produced 130 Monthly Avg EUR Brent Spot 120 LLS Monthly Average 110 W&T…
  9. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 9
    W&T OFFSHORE Onshore and Offshore, a Balanced Approach Onshore Long-life reserves, lower IRRs, predictable growth in a long term outlook book reserves upfront spend cash as development occurs inventory of drilling activity for…
  10. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 10
    W&T OFFSHORE Offshore Superior Cash Flow, High Rate of Return Tremendous rock properties lead to quick payback and higher IRRs IRRs often greater than 100% Deep water = Bigger risk, but much bigger rewards W&T has a large…
  11. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 11
    Exploration Big Opportunities in the Deepwater GOM W&T has 357,000 gross MC 698 Big Bend (WI: 20%) exploratory acres in the Summary Well targeted the Big Hum sand deepwater GOM covering 82 at 15,300 feet and logged 150 feet of oil…
  12. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 12
    Exploration GOM Exploratory Wells - Shoal 349 Mahogany (1) SS 349 A-14 (WI: 100%) Summary Targeting new reservoir (T- sand) with secondary target up-hole in primary field pay (P-sand) Initial Est. Cost - 39.0 million Target oil at…
  13. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 13
    Exploration GOM Exploratory Wells Main Pass 108 (1) MP 108 B-1 (WI: 100%) Summary Targeting new reserve additions and production near term Initial Est. cost - 24.5 million Target IP 1,200 Boepd Target well depth 14,000 TVD Well…
  14. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 14
    Development GOM Development Wells MC 243 Matterhorn (1) Mississippi Canyon 243 A-2 ST (WI: 100%) Summary Side-track well to re-establish production from the A sand at 6,800 (previous completion sanded up post-Isaac) Initial Est.…
  15. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 15
    Development GOM Development Wells HI 21 and WC 73 High Island A-21 (WI: 100%) Summary Low risk gas and liquids development targeting the LH 20 sands Initial Est. cost - 25.0 million Target well depth 12,500 Target IP 1,500 Boepd…
  16. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 16
    W&T OFFSHORE Balanced Approach The Onshore Component Onshore provides: Onshore Proved Reserves (MMBoe) Long life reserves with more predictable growth 32 IRRs that are lower than offshore 30 28 Provides for reserve additions…
  17. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 17
    Exploration Continued Development in the Permian Basin Yellow Rose Well Economics Early efforts have Vertical Wells 20 wells in 2013 focused on: Upper and Est. D&C costs - 2.3 million Lower Spraberry, Dean, and Wolfcamp Est. IP…
  18. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 18
    Development Yellow Rose (WI: 100%) Permian Basin Development Project with long life reserves and exploration upside Field Summary Approx. 23,400 net acres in Dawson, Martin, Andrews, Gaines counties in Texas 2013 drilling…
  19. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 19
    Exploration STAR Prospect (WI: 97.6%) Low entry cost, pure exploration play in East Texas 5th well on the acreage is planned Background to spud in early Q2 2013 Currently 147,900 net acres in six East Texas counties with ongoing…
  20. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 20
    Acquisitions W&Ts Acquisition Advantage W&T has proven acquisition criteria Properties generate cash flow, are financeable, and have identified upside We are a preferred buyer in the Gulf of Mexico Over 30 years of proven…
  21. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 21
    W&T OFFSHORE Liquidity Available for Further Growth Revolving bank credit facility with 725 million borrowing base Amount available under credit facility(1) 570 million Cash balance(1) 13.1 million 20 banks in our current credit…
  22. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 22
    W&T OFFSHORE Drilling Within Cash Flow Historically, we have not borrowed money for drilling Adj. EBITDA CAPEX, Excl. Acquisitions Acquisition CAPEX 700 600 ( in millions) 500 400 300 200 100 0 2010 2011…
  23. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 23
    W&T OFFSHORE Returning Cash to Investors W&T current quarterly Dividends per share 1.20 1.11 dividend is 0.08 per share 1.00 The next quarterly dividend is payable on 0.80 0.79 March 29th to shareholders of record at 0.80 March…
  24. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 24
    W&T OFFSHORE Aligned Interests: Shareholder View 60% 53.6% *Average inside ownership among 50% peers is 7% vs. W&T at 53.6% 40% 30% 20% 10% 0% WTI 2 3 4 5 6 7 8 9 10 11 12 13 *Peers include: Apache, Bill…
  25. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 25
    W&T OFFSHORE How We Provide Value to Our Investors Focused on organic growth through the drill bit 2013 CAPEX Budget focused on exploration Disciplined approach: drill within cash flow Balanced approach between Onshore and…
  26. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 26
    APPENDIX
  27. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 27
    W&T OFFSHORE 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, 2009 2010 2011 2012 ( in…
  28. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 28
    W&T OFFSHORE 2013 Guidance First Quarter Full Year Estimated Production 2013 2013 Oil and NGLs (MMBbls) 2.0 - 2.2 8.1 - 9.0 Natural Gas (Bcf) 14.2 - 15.7 52.9 - 58.5 Total (Bcfe) 26.0 - 28.7 102.0 - 112.0 Total (MMBbls) 4.3 - 4.8…
  29. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 29
    W&T OFFSHORE 2012 Year End Reserves As of December 31, 2012 Total Equivalent Reserves (1) Classification of Proved Reserves Oil NGLs Natural Gas Oil Equivalent Natural Gas PV-10 (MMBbls) (MMBbls) (Bcf) (MMBoe) Equivalent…
  30. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 30
    W&T OFFSHORE Financial Commodity Derivatives This schedule only contains open hedge positions. Settled months are not included. Brent Swaps WTI Swaps Total Swaps Barrels Swap Barrels Swap Barrels Swap Period Per Day Price Per Day…
  31. Howard Weil 41st Annual Energy Conference – W&T Offshore Inc. – slide 31
    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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