W&t Offshore, Inc. · NYSE:WTI
W&t Offshore — CLSA Energy Forum 2011
29 slides from W&t Offshore's conference presentation, May 11, 2011
Slide 1: CLSA Energy Forum
Exhibit 99.1 CLSA Energy Forum New York May 11, 2011
Slide 2: Current Snapshot
Current Snapshot Key Financials ($ in MMs) 1Q11 2010 2009 Reserve Data 2010 2009 Revenue $211 $706 $611 Proved Reserves (Bcfe) 485 371 Adjusted EBITDA $133 $450 $341 Proved Developed % 81 % 76 % CAPEX $40 $416 $276 Oil and Liquids % 47 % 55 % (1) (3) Field Statistics Current Production # of Producin
Slide 3: Key Investment Considerations
Key Investment Considerations 1) R/P increases from 5.2 to 6.5 years and W&T’s % of oil / liquids increases from 47% to 58% with recently announced onshore acquisition 2) Adding Permian Basin to the portfolio with recent acquisition – Oily, longer-lived proved reserves – Provides “predictable growth
Slide 4: Company Diversification in Progress
Company Diversification in Progress • Since April 2010, we have diversified our existing portfolio by acquiring producing assets at attractive prices in the deepwater GOM and the Permian basin Permian Basin (1) GOM Shelf • Proved Reserves: 164 Bcfe / • Proved Reserves: 341 Bcfe/ 27 MMBoe 57 MMBoe •
Slide 5: Company Strategy – Focus on Growth
Company Strategy – Focus on Growth • Complete pending GOM Shelf acquisition with Shell Offshore • Effectively incorporate recently announced acquisition of West Texas property into existing operations • Exploit recently acquired Shell properties - Tahoe and S.E. Tahoe properties • Continue evaluatio
Slide 6: Onshore
WaT OFFSHORE Onshore
Slide 7: Permian Basin Acquisition Provides Base for Transformation
Permian Basin Acquisition Provides Base for Transformation • Signed purchase and sale agreement to acquire approximately 21,900 gross acres (21,500 net acres) from private sellers for approximately $377 million • Strong volumes from proved developed production – Current gross daily production of abo
Slide 8: Permian Basin Acquisition Provides Long-term Growth
Permian Basin Acquisition Provides Long-term Growth • Low risk operations with a multi-year extensive drilling inventory – 450 to 500 drilling locations indentified for future exploration and development – Currently operating on 40 acre spacing but certain nearby operators are using 20 acre spacing
Slide 9: Newly Acquired Assets in West Texas
Newly Acquired Assets in West Texas : Martin, Dawson, Andrews & Gaines Counties 8
Slide 10: Wolfberry West Texas Completions
Wolfberry West Texas Completions * Clear- fork Average Cased Depth of Wellbore Fractured Stimulation Stages Dean Limestone Pay Sandstone Play Non-organic Shale Non-pay Organic Rich Shale Play 12,500’ Devonian 13,250’ Silurian * Not drawn to scale.
Slide 11: Onshore 2011 Drilling Program
Onshore 2011 Drilling Program Development • In addition to the recently announced Exploration Permian acquisition, we have also acquired 9,400 net exploratory acres in West Texas WI: 25% to 100% the Permian basin 7 - 8 Wells West Texas WI: 100% East Texas 15 – 20 Wells WI: 25% 1 well South Texas WI:
Slide 12: Gulf of Mexico
WsT QFFSHORE Gulf of Mexico
Slide 13: Gulf of Mexico Attributes
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 – Substantial percentage of oil reserves – Reserve to production profil
Slide 14: Our Historical Gulf of Mexico Focus
Our Historical Gulf of Mexico Focus • Operating successfully in the Gulf of Mexico for 27 yrs – 10 year exploration drilling success rate of 77% – 10 year development drilling success rate of 91% – Established infrastructure allows for accelerated cash flow – Excellent safety track record and cultur
Slide 15: Gulf of Mexico Proved Reserve with Geographic Diversification
Gulf of Mexico Proved Reserve with Geographic Diversification • 67 fields • 78% operated • 548,841 net acres • 82% held by production • Producing 272 MMcfe per day • 43% oil & liquids / 57% gas 14
Slide 16: Recent Deepwater Acquisitions
Recent Deepwater Acquisitions Sellers Shell Total Number of Deepwater Properties Acquired 3 2 Close date 11/3/2010 5/3/2010 (1) Purchase Price ($MM) $138 $150 (1) Proved Res. (MMBoe) 13.9 11.6 (1) Purchase Price per Unit $1.66/Mcfe; $9.93/Boe $2.15/Mcfe; $12.90/Boe (2)(3) % Liquids 10% 64% Block loc
Slide 17: Investment Highlights of Conventional Shelf Property
Investment Highlights of Conventional Shelf Property • Letter of intent to acquire a fourth field from Shell Offshore, Inc. 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 • Strong volumes from proved developed prod
Slide 18: Main Pass 108 Field - Back Online
Main Pass 108 Field - Back Online • Pipeline was down since June 2010 and affected production at MP 98, MP 108, MP 163 and MP 180 fields • Production is back online as of March 31, 2011 via a new pipeline route – Netbacks should increase with the new route • High-yield condensate field with net prod
Slide 19: Concentrated Operations in Recently Acquired GOM Fields and Focus Areas
Concentrated Operations in Recently Acquired GOM Fields and Focus Areas 18
Slide 20: Offshore 2011 Drilling Program
Offshore 2011 Drilling Program MP 108 #8 & Tex W5 Development WI: 75% Exploration West Cameron 73 #2 Shelf WI: 30% MP 180 A-2 Deep Shelf WI: 100% Shelf SS 349 B (Drilled and WI: 100% successful) Shelf VioscaKnoll Main W. Pass Cameron Main S. and E. Pass West MP 108 D-3 ST Grand Delta E. Ship Isle WI
Slide 21: Regulatory Developments -- Deepwater
Regulatory Developments -- Deepwater • Ten drilling permits approved since such work was halted after last year’s spill (as of 5/8/11) • Well control options – Operators to show how they would respond to subsea well control issue. – Helix Well Containment Group (HWCG) – Marine Well Containment Compa
Slide 22: Other Operational and Financial Information
Other Operational and Financial Information
Slide 23: Proved Reserves by Year
Proved Reserves by Year 2010 proved reserves increased 31% over 2009 2010 2009 PUD PUD 19% 24% PDP 485 PDP 371 43% Bcfe 49% Bcfe PDNP 32% PDNP 33% 22
Slide 24: Production Profile
Production Profile Oil & NGLs (Bcfe) Full-Year Natural Gas (Bcf) Guidance 140.0 87.0 – 101.1 120.0 100.0 94.8 87.0 80.0 43.2 42.3 60.0 40.0 51.6 20.0 44.7 1Q 22.7 0.0 2009 2010 2011E 23
Slide 25: Drilling Within Cash Flow
Drilling Within Cash Flow Capital expenditures funded largely through internally generated cash flow Adjusted EBITDA vs. Capital Expenditures ($ in millions) $1,000 $884 $900 $820 $775 $800 $700 $687+ $600 $500 $450 $416 $400 $359 $341 $276 $300 $200 $100 $0 2007 2008 2009 2010 2011E Adj. EBITDA CAP
Slide 26: W&T’s Strong Liquidity
W&T’s Strong Liquidity • Cash balance at April 26, 2011 ~ $140 million • New four-year revolver with $525 million borrowing base • Borrowing base increases to $575 million when the fourth Shell property closes; the newly acquired Permian Basin assets have yet to be considered • Net cash provided by
Slide 27: Key Investment Considerations
Key Investment Considerations 1) R/P increases from 5.2 to 6.5 years and W&T’s % of oil / liquids increases from 47% to 58% with recently announced onshore acquisition 2) Adding Permian Basin to the portfolio with recent acquisition – Oily, longer-lived proved reserves – Provides “predictable growth
Slide 28: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: We define EBITDA as net income (loss) plus income tax expense (benefit), net interest expense (which includes interest income), depreciation,
Slide 29: Forward-Looking Statement Disclosure
Forward-Looking Statement Disclosure This presentation, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements give our current expectations or