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Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc.

W&T Offshore Inc. · Jan 11, 2007 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 1
    Confidential W&T Offshore, Inc. Pritchard Capital Partners ENERGIZE 2007: New Year, New Realities Conference San Francisco, California January 11, 2007
  2. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 2
    W&Ts Business Strategy, Part I How We Got Here 1. Generate high return on equity focusing on GOM assets 2. Enhance returns and growth rate through the drill bit Large prospect inventory generated from high held-by-production position 3.…
  3. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 3
    W&Ts Business Strategy, Part II Deeper and Deeper and Deeper in Deeper Continued long-term success for W&T will depend on our success in finding oil and gas reserves as we move further away from the shoreline or drill deeper under the…
  4. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 4
    Significant GOM Footprint 3rd Largest Shelf GOM Acreage Position 2.0 Million Gross Acres 400 +/- MMcfe/day Production Mobile Metairie Viosca Knoll Main W. Main Pass Cameron Pass S. and E. Houston Grand Isle West Eugene Ship…
  5. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 5
    Myths vs. Facts about W&T Offshore Myths Myths Facts Facts 1. 100% Leverage to Natural Gas 1. Actually, W&T will be over 30% Production Crude Oil/NGL production pro- forma for KMG 2. Lack of prospects in KMG 2. Actually, W&T had…
  6. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 6
    Operated Rig Analysis Our proposed 2007 drilling plan includes approximately 25 wells Rig types by level of complexity Types of rigs necessary for proposed 2007 drilling program. 66
  7. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 7
    W&T versus Peers
  8. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 8
    Reserve Growth Leads to Cash 2001-2005 CAGR: Reserve Growth 2001-2005 CAGR: Production Growth 25% 22% 15% 14% 19% 20% 10% 14% 13% 9% 15% 10% 9% 10% 5% 5% 0% 0% 0% -5% -10% -5% -11% -6% -15% -6% ATPG WTI BDE EPL ME CPE -10%…
  9. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 9
    Lower Costs and Focus Equals Higher LT Margins 2001-2005 Average Expenses per Mcfe % Oil Production and GOM Focus 3.00 100% % Oil/Liquids Production YTD Through 06/30/06 60% 100% 100% 2.58 2.58 86% % GOM Production YTD…
  10. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 10
    2001-2005 ROACE Weighted Average Peers Everyone 60% Else 60% 50% 50% 50% 50% 39% 40% 40% 35% 35% 31% 30% 30% 25% 20% 19% 20% 17% 20% 8% 9% 10% 10% 7% 1% 0% 0% WTI BDE ME EPL CPE ATPG WTI MRK GOOG XOM SBUX AMZN YHOO F…
  11. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 11
    Confidential Acquisition Overview
  12. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 12
    Winning Acquisition Strategy Key to our successful 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 pipe,…
  13. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 13
    Transaction History Ability to overcome natural decline rates Strong acquire and exploit capabilities Reserves 2003 YE 2004 YE 2005 YE Annual Compound Acquisition (year) (1) Acq'd Reserves Reserves Reserves Change Vastar (1999) 18…
  14. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 14
    Volumes - Report Card Approximately 2X initial reserve bookings (Bcfe) 682 Bcfe 700 600 Initial 290 Bcfe of Booked Production from Reserves 290 Bcfe Transactions 682 Bcfe 500 (Aggregate Total Net at Estimated Transaction)…
  15. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 15
    Dollars - Report Card Value created from Major Transactions since 1999 ( in millions) 2,250 Probable and Possible: 2,041 Probable: 102 Bcfe 557MM PV-10 Possible: 69 Bcfe 346 MM PV-10 1,750 PV-10 Value at 12/31/05 1,250 750…
  16. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 16
    Past vs. Present Avg Fields Reserves Transaction Acq. Acq. Avg. Price Transaction Commodity Acq'd Acq'd Price (MM) Multiple Multiple Spread Price Vastar 7 18 Bcfe 9.9 0.55 2.65 - 0.55 = 2.10 Amoco 5 64 Bcfe 26.1 0.41 4.60 -…
  17. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 17
    Confidential Reserves Overview
  18. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 18
    Combined Company Proved Reserves Mid Year 2006 WTI Reserves Combined Reserves 32% 32% 45% Natural Gas 55% Natural Gas 68% 505 Bcfe 68% KMG Reserves 785 Bcfe 32% 74% Natural Gas Reserve Reconciliation Reserves Mid Year…
  19. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 19
    Proved and Probable & Possible Reserves Mid Year 2006 WTI Reserves 35% 48% Combined Reserves 40% Natural Gas 25% 31% 17% 52% Natural 1,050 Bcfe Gas KMG Reserves 26% 38% 44% 68% Natural Gas 1,782 Bcfe 36% 732 Bcfe…
  20. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 20
    Proved Reserve Bookings Well Up dip Potential Gas Proved Reserve Bookings Lowest known gas Non Proved Gas Down dip potential Water 20 20
  21. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 21
    Proved Reserve Bookings A A Lowest Known Gas Amplitude Limit & Amplitude Limit & Estimated Estimated Gas/Water Contact Gas/Water Contact 3-D Seismic Courtesy of WesternGeco 21 21
  22. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 22
    Pluto MC 718 3 M1:50 Deepwater Sand Initial production in mid-September 2006 Current Rate 49.4 MMcfe/d Gross (18.0 MMcfe/d net) Example of limited proved reserve bookings 22 22
  23. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 23
    Confidential Drilling Overview
  24. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 24
    Development Drilling 2000 YTD 2006 9 100% 100% 100% 8 86% 86% 86% 7 2 67% 1 1 1 6 Gross Wells 5 4 3 1 2 1 2 6 3 6 7 6 6 0 2000 2001 2002 2003 2004 2005 YTD 2006 Successful Non-Commercial KMG % Successful 24 24
  25. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 25
    Production Timing Only includes recent exploration and development projects. Does not include any projected drilling programs Project Name Category WI Q4 2006 Q1 2007 Q2 2007 West Cameron 295 Deep Shelf 20% 5.1 MMcfe/day East Cameron…
  26. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 26
    Exploration Drilling 2000 YTD 2006 Overall Drilling success: 95 of 120, 79% success rate 35 100% 100% 2006 Kerr-McGee Transaction 30 11 83% 75% 2008 75% 77% 25 66% 1999 EEX, Vastar, Amoco 6 20 Transactions 5 25 Well…
  27. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 27
    Exploration Prospects Inventory Approximately 200 prospects with 25 prospects per year = 8 years of inventory 90 106 38 30 76 52 28 68 10 82 114 196 Infield High Potential = Total Prospects W&T Offshore Kerr-McGee…
  28. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 28
    Conventional Shelf 2006/2007 Drilling Shelf Drilling 2006 Completions Kerr-McGee Non-Commercial Remainder 2006 / 2007 Drilling Mobile Metairie Viosca Knoll Main W. Main Pass Cameron Pass S. and E. Houston Grand Isle…
  29. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 29
    Deep Shelf Drilling History 15,000 Venice BLD 205 - 15,200 2001 Eugene Island 217 C-3st - 15,400 2006 Venice MLF C-11 15,900 2006 High Island 129 17 - 16,000 2003 Vermilion 84 1 16,100 2004 Eugene Island 217 C-4ST -16,400 West…
  30. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 30
    Deep Shelf 2006/2007 Drilling Deep Shelf Drilling Grand Isle 3 2006 Completions Completion Date: 2006 Non-Commercial Vermilion 84 WI: 25%, Non-Operated Remainder 2006 / 2007 Drilling Timing:2007 WI:73%, Operated Viosca Knoll 519…
  31. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 31
    W & T Timeline to the Deepwater Phase I Phase II 2004 9 Exploration wells in waters up to 2000 1st Deepwater well 4,000 - 5 Successful wells - Operated - 100% Operated by W&T - Farm-in Exploration project - 10 Blocks purchased at…
  32. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 32
    Deepwater 2006/2007 Drilling Deepwater Drilling 4 Identified Drilling Opportunities (3.25 Net) 2006 Completions Total Net Unrisked Reserve Potential 250 Bcfe Total Net Risked Reserve Potential 150 Bcfe Non-Commercial Ewing Bank 994…
  33. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 33
    Remaining 2006 / 2007 Exploration Projects Net Predrill Unrisked Reserves VERMILION 225 VIOSCA KNOLL 519 Location Bcfe MAIN PASS 263 Deepwater 250 VERMILION 84 Deep Shelf 175 MAIN PASS 266 Conventional Shelf 150 SHIP SHOAL 174 Total 575…
  34. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 34
    Confidential Closing Comments
  35. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 35
    Why Buy W&T Today Cash High cash-on-cash return Superior Metrics vs. Peers Premium valuation justified Proven Track-Record of Acquiring and Exploiting KMG transaction mirrors several of our previous transactions Favorable Oil:Gas…
  36. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 36
    Average Daily Production 2001-2007E Visible year-over-year daily production growth(1)(2)(3) 20+% growth at mid-point from 2005-2006E 45+% growth at mid-point from 2006E-2007E Wall Street equity research analyst reports a range of…
  37. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 37
    2006 and 2007 Guidance Initial Full-Year Estimated Production 4Q 2006 Full-Year 2006 2007 Crude oil (MMbls) 2.1 - 2.3 6.4 - 6.6 9.6 - 10.5 Natural gas (Bcf) 22.7 - 24.6 60.2 - 62.1 92.2 - 101.2 Total (Bcfe) 35.0 - 38.1 98.4 - 101.4…
  38. Pritchard Capital Partners ENERGIZE 2007: New Year New Realities Conference – W&T Offshore Inc. – slide 38
    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 Year Ended December 31, Ended Sept. 30, 2000 2001 2002 2003…

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