W&t Offshore, Inc. · NYSE:WTI
W&t Offshore — Non-Deal Roadshow (August 2007)
34 slides from W&t Offshore's roadshow presentation, Aug 24, 2007
Slide 1: August 2007 Marketing
August 2007 Marketing WaT @FFSHORE
Slide 2: 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 4995, Section 27 of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements give our current expectations or
Slide 3: Company Highlights
Company Highlights WaT OFFSHORE Proved Reserves (Bete) 735 Proved Developed Reserves (Bcfe) 479 Proved Developed % 65% Natural Gas % 55% Field Statistics (as of 12/31/06) Ticker WTI (NYSE) # of Producing Fields ww 158 Initial Pubic Offering January 2005 _Appox. Acreage (Gross/Net) 20 millon/1.1 mili
Slide 4: W&T's Business Strategy
W&T’s 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 Shelf and Deepwater — secondary focus > Numerous acquisition
Slide 5: Winning Acquisition Strategy
Winning Acquisition Strategy Key to our successful acquisition strategy is our ability to target under-exploited 1. Cash Flow 2. “Bank-ability” 3. Identified Upside 4. Neglected properties Ker cGee Example KMG has strong production rates, including several behind pipe, workover projects identified 6
Slide 6: Dollars - Report Card
Dollars - Report Card Value created from 5 Major Transactions since 1999 [| KMG from close to 06/30/07 ‘Probable and Possible: Probable and Possible: 499 Bcfe Probable: 102Bcfe. $423 MM PV-10 Possible: 126 Bele MM PV-10, $1500 $1250 $1,000 PV-10 Value at 1231706 $750 PV-10 Value ate ah at 12/3106 ‘T
Slide 7: WaT @FFSHORE
WaT @FFSHORE
Slide 8: Proved Reserve Geographic Diversification
Proved Reserve Geographic Diversification = Our geographic diversity provides additional protection during a hurricane. WsT QFFSHORE
Slide 9: Top Fields — Proved Reserves
Top Fields — Proved Reserves Top 10 Fields Account for: 50% Proved Reserves 44% Proved PV-10 32% Current Production \ Green Canyon 82 WsT @FFSHORE
Slide 10: Production
Production ¢ WsT @FFSHORE
Slide 11: Recent Production Issues
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 *Work program under evaluation =El 205 C-4ST — comp
Slide 12: Production Timing
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 @ Criginal forecast (November 2006) Revised forecast (March 2007) @ _Curont
Slide 13: Production Visibility
Production Visibility > Only includes recent exploration and development projects. > Does not include any incremental production from recently announced exploration drilling programs. (MMcfe/day) Q4 2007 Project Name Mobile Bay 824 South Timbalier 299 Bay Junop (aka "king Lake") High Island 24L Main
Slide 14: Production growth
Production growth 25% production growth at mid-point Oil & NGLs of range for 2007 Gas Satance 008 st oe cAGR 2000 99.2 2g 79.0 82.4 Oo 71.4 a 54.2 42.3 23.8 628 (533 |4gg | 004 284 904 12.4 2000 2001 + 2002 «2003 «2004 «= 2005" +2006: 2007E 1 100 radon dos noted 174 Btodtrl cose by sv hares 1 ZtvePo
Slide 15: WaT @FFSHORE
WaT @FFSHORE
Slide 16: Development Drilling
Development Drilling 2000 - 2006 Overall Drilling success: 38 of 42, 90% success rate _ 100% : = 100% 100% m- - - -m 100% a 6% 9 8 = 86% “1 66% 7 : 87%, ° 6 5 4 3 2 : a 0 2000 2001 2002 2003 2004 2005 2006 2007 Gross Wells mmm Successful Non-Commercial - ™ -% Successful ae WerOrFsHORE
Slide 17: Exploration Drilling
Exploration Drilling 2000-2006 Overall Drilling success: 96 of 123, 78% success rate , Ls 35 100% 100% 400% . - 2008? 30 ~ 25 75% E 10 a2 5 BEE 0) 2000 ©=2001_:«S «2002-2 2003S 2004 «= 2005S 2006 )= 2007E Gross Wells mmm Successful mmm Non-Commercial ~ ™ -% Successful _ yerOrrsHORE
Slide 18: WaT @FFSHORE
WaT @FFSHORE
Slide 19: 2007 Capital Expenditures Program
2007 Capital Expenditures Program » W&T has budgeted $453 million for capital in 2007 (S in Millions) 2006 Original 2007 Additions Revised 2007 Exploration 5 252 $ 133. 7S 52. $ 185 Development 301 193 43 236 Seismic 35 27 5 32 Total Capital Budget___S 5868S 33S joo Ss 453 > We have budgeted for 10-
Slide 20: Near-Term Exploration
Near-Term Exploration & WaT @FFSHORE
Slide 21: Projects for 2007
Projects for 2007 WEST CAMERON 181 — KMG ‘SOUTH TIMBALIER 41 8-3 - KMG Driling completed 10 2007 HIGH ISLAND 22- KMG Online 1.2007 HIGH ISLAND 24L Driling completed 102007 | VERMILION 331 Online 20 2007 WAIN PASS AREA [6-9 Well Program for 2007/2008 ae Gomer tn an, Gnencaon ote GREEN CANYON AREA GRE
Slide 22: Operated Rig Analysis
Operated Rig Analysis Our 2" half 2007 drilling plan includes approximately 10 — 13 wells Rig types by level of complexity Barge Platform Jack-Ups Specialty J/U <2000 HP[| <1000 HP. Workover Tarzan >2000 HP >1000 HP. 200 - 250' Mat Slot Gorilla 200" - 300" Independent Leg Cantilever || Super Gorilla
Slide 23: W&T operated wells drilled to date
2.W&q 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 reservoirs only - 3P Total 260 Bcfe 7 Additional Prospects have a total unrisked exploratory potential of about 219 BCFE Healey
Slide 24: High Island 22/24 area
High Island 22/24 area > High Island 24 Area > 25% WAT working interest » 40 feet of water depth » Initial discovery wel drill Sept 2006 + 500’ gross pay- 300’ net gas * Initial production test ~ 49 MMcfe/day gross » Successful offset well completed in March 2007 + 470’ gross pay ~ 200' net gas * In
Slide 25: From Evaluation to Implementation
“From Evaluation to Ir WaT @FFSHORE
Slide 26: Ship Shoal Area
Ship Shoal Area » Ship Shoal Program 4 * Approximately 40% W&T working | interest * 5 Drilling locations proposed for 2007- 2008 * All drilled from existing platform with existing production facilities * First drilling to begin 4" quarter 2007 * Total net unrisked exploration potential of 44 Befe »
Slide 27: Ship Shoal Area
Ship Shoal 300 Area > Former Kerr-McGee Property > W&q operated with 75% Working Interest > 250-300 Feet Water Depth » 7-10"In-Field” Exploration Prospects Proposed 2007- 2008 » Moderate Drilling Depths: 2300’ TVD to 12,200° TVD » First Drilling to begin Sept 2007 9 9 " » Total Net Unrisked Explorat
Slide 28: Main Pass/Viosca Knoll Area
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 yi: \e | ..|- 5 [Poe | Wi0sea Knoll range BOOoE Ee at = +Recent new state-of-the-art 3-D seismic ~ Be es acquisition 3 +6
Slide 29: Seismic Coverage
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 already showing results on W&T and KMG properties St 5,40
Slide 30: Months of Potential Drilling Prospects for Budgeting Consideration
18 Months of Potential Drilling Prospects for Budgeting Consideration Reserves (Bcfe) © sosnr “Sr S Sveep Seer 315 S_2Deepwater 162 Le | { WsT QFFSHORE
Slide 31: Liquidity and Discretionary Cash Flow
Liquidity and Discretionary Cash Flow (Sin thousands) iquidity 6/30/2007 Cash on Hand $102,090 Undrawn Revolver 300,000 Total Liquidity 402,090" Non-Discretionary Items 12007 2H2007E Interest Expense S$ (33,442) (33,442) Development CAPEX (130,600) (105,400) P8A (13,000) (27,000) Total Non-Discretio
Slide 32: Conclusions
Conclusions » High cash-on-cash return Superior Metrics vs. Peers = W4&QT trading at a discount to NAV » Proven Track-Record of Acquiring and Exploiting = Opportunity and size of Future Transactions » Large inventory of prospects » Favorable Oil:Gas Mix in Volatile Times » Acceptable Debt Levels » C
Slide 33: 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: Six Months ‘Year Ended December 31, Ended June 30, 70002007 Z002 2003 20042008 2006 2007 (Sin thousands) Net income $48,204 $ 63,569 $ 2,049
Slide 34: August 2007 Marketing
August 2007 Marketing WaT @FFSHORE