W&t Offshore, Inc. · NYSE:WTI
W&t Offshore — RBC Capital Markets Global Energy and Power Conference 2011
28 slides from W&t Offshore's conference presentation, Jun 7, 2011
Slide 1: RBC Capital Markets Global Energy and Power Conference
Exhibit 99.1 RBC Capital Markets Global Energy and Power Conference June 7, 2011
Slide 2: Company Snapshot
Company Snapshot (1) Includes acquisition-related CAPEX. (2) Data as of 12/31/10 for offshore properties. Producing fields include offshore fields only. (3) Average daily production from 5/11/11 to 5/19/11; includes recently announced Permian acquisition production of 2,950 Boe/d. 1
Slide 3: Key Investment Considerations
Key Investment Considerations • Strong operating track record with 27+ year history of success in the Gulf of Mexico • High-quality, oil-exposed reserve base with history of reserve and production growth • Strong financial position and healthy liquidity level • Conservative operating strategy with d
Slide 4: Company Overview
Company Overview • Large acreage position in the Gulf of Mexico primarily held by production • Added Permian Basin to the portfolio with acquisition on May 11, 2011 – Oily, longer-lived proved reserves – Provides “predictable growth” opportunities, and complements GOM conventional shelf and deepwate
Slide 5: 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: 182 Bcfe / • Proved Reserves: 341 Bcfe/ 30 MMBoe 57 MMBoe •
Slide 6: Strategic Plan
Strategic Plan • Pursue drilling and development of our recently acquired Permian Basin properties – Integrate West Texas operations • Expand/acquire acreage positions in onshore prospect areas • Continue evaluations of other potential acquisitions • Pursue active and balanced drilling program to in
Slide 7: Onshore
W&T OFFSHORE Onshore
Slide 8: 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 net daily production of about
Slide 9: 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 identified for future exploration and development – Proved reserves based on 40 acre spacing but certain nearby operators are using 20 acre spacing
Slide 10: Newly Acquired Assets in West Texas
Newly Acquired Assets in West Texas: Martin, Dawson, Andrews & Gaines Counties 9
Slide 11: Wolfberry West Texas Completions
Wolfberry West Texas Completions * Clear- fork Fractured Stimulation Stages Dean Limestone Pay Sandstone Play Non-organic Shale Non-pay Organic Rich Shale Play Average Cased Depth of Wellbore 12,500’ Devonian 13,250’ Silurian * Not drawn to scale.
Slide 12: Other Onshore Activities
Other Onshore Activities • In addition to our West Texas Permian Basin acquisition, we are actively involved: – In South Texas – • Our initial well, in which we have a 25% non-operating working interest (WI), was completed and found 22 feet of gas and condensate. This area has potential for addition
Slide 13: 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 14: Gulf of Mexico
W&T OFFSHORE Gulf of Mexico
Slide 15: Gulf of Mexico Highlights
Gulf of Mexico Highlights • Strong operating track record – 10 year exploration drilling success rate of 77% and 10 year development drilling success rate of 91% – Proved reserve replacement rate of 231% in 2010 – Excellent safety track record and culture of operating success – All-in F&D costs in 2
Slide 16: Gulf of Mexico Proved Reserve with Geographic Diversification
Gulf of Mexico Proved Reserve with Geographic Diversification • 67 fields • 80% operated • 846,975 gross acres, 548,841 net acres • 82% held by production • Producing 274 MMcfe per day • 44% oil & liquids / 56% gas 15
Slide 17: Gulf of Mexico Recent Activity
Gulf of Mexico Recent Activity • We are integrating two purchases closed in 2010 consisting of virtually all proved, producing reserves – We acquired two properties from Total and closed the acquisition on 5/3/10 – We acquired three properties from Shell and closed 11/3/10 • Currently working to clo
Slide 18: Concentrated Operations in Recently Acquired GOM Fields and Focus Areas
Concentrated Operations in Recently Acquired GOM Fields and Focus Areas 17
Slide 19: 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 Viosca Knoll Main W. Pass Cameron Main S. and E. Pass West MP 108 D-3 ST Grand Delta E. Ship Isle W
Slide 20: Regulatory Developments -- Deepwater
Regulatory Developments -- Deepwater • Permits approved for 14 unique deepwater wells since drilling was halted after last year’s spill • Well control options – Operators to show how they would respond to subsea well control issue. – Helix Well Containment Group (HWCG) – Marine Well Containment Comp
Slide 21: Other Operational and Financial Information
Other Operational and Financial Information
Slide 22: Proved Reserves
Proved Reserves Pro Forma 2010 2010 PUD 19% PUD 35% PDP 41% 668 485 PDP 49% Bcfe Bcfe PDNP 32% PDNP 24% 21
Slide 23: 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 Estimate $800 $700 $687+ $600 $500 $450 $416 $400 $359 $341 $276 $300 $200 $100 $0 2007 2008 2009 2010 2011E Adj. E
Slide 24: Liquidity Profile
Liquidity Profile • Cash balance at May 25, 2011 ~ $71 million • New four-year revolver with $525 million borrowing base – Borrowing base increases to $575 million when the fourth Shell property closes – The newly acquired Permian Basin assets have yet to be considered for an increase to the borrowi
Slide 25: Appendix
W&T OFFSHORE Appendix
Slide 26: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA The following table presents a reconciliation of our consolidated net income to consolidated EBITDA to Adjusted EBITDA: Twelve Months Three Months Ended Ended Year Ended December 31, March 31, March 31, 2007 2008 2009 2010 2010 2011 2011 ($ in thousands) Net in
Slide 27: 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
Slide 28: W&T Offshore, Inc. (NYSE: WTI)
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.investorrelations@wtoffshore.com
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