W&t Offshore, Inc. · NYSE:WTI
W&t Offshore — Scotia Howard Weil Energy Conference 2015
40 slides from W&t Offshore's conference presentation, Mar 25, 2015
Slide 1: Scotia Howard Weil Energy Conference
March 25, 2015, New Orleans, LA Scotia Howard Weil Energy Conference
Slide 2: W&T Offshore Overview
1 W&T Offshore Overview (NYSE: WTI) Financial Summary 1) See the slide titled “Reconciliation of Net Income to Adjusted EBITDA” for an analysis of the change between Net Income and Adjusted EBITDA Track Record of Growth Revenue $ 948.7 $ 984.1 Adjusted EBITDA (1) $ 569.2 $ 606.7 Financial Overview (
Slide 3: Premium Assets in Three Prolific Basins
2 Premium Assets in Three Prolific Basins Permian Basin • ~ 40,900 gross acres (~31,700 net acres) • ~ 7 % of Daily Production • 1P reserves – 37.3 MMBoe • 2P reserves of 61.8 MMBoe • Over 90% of acreage is HBP from vertical program with horizontal program expanding to test multiple benches Gulf of
Slide 4: High Impact Projects Drive Long Term Growth
3 High Impact Projects Drive Long Term Growth Deepwater success will add significant value over next several years • Recent large discoveries yield multi - year reserve additions • Provides increased visibility of future growth • Current deepwater projects provide potential for production additions
Slide 5: Incremental Cash Flow Associated with Probable and Possible Reserves
4 Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside (1) Figures reflect year - end 2014 SEC price case. (2) Probable and possible reserves with no direct CAPEX requirements that are largely associated with PNP
Slide 6: Proved Reserve Bookings Example
5 Proved Reserve Bookings Example
Slide 7: 3P Reserves Provides Long Term Value
6 3P Reserves of 247 MMBoe Provides Long Term Value Substantial probable and possible reserves provide future growth Note: Figures reflect year end 2014 SEC price case Our reserves as of year end 2014 do not include that of recent discoveries including Troubadour and multiple target benches for Perm
Slide 8: 2015 Guidance vs. 2014 Actuals
7 2015 Guidance vs. 2014 Actuals ($ in millions) (1) We have included 3.6 Bcfe of downtime for weather related situations. Actual Mid-point 2014 Production Oil and NGLs (MMBbls) 9.3 - 10.3 9.8 9.3 Natural Gas (Bcf) 44.0 - 48.6 46.3 50.1 Total (Bcfe) 100.0 - 110.2 (1) 105.1 105.8 Total (MMBoe) 16.6 -
Slide 9: 2015 Reduction Efforts
8 2015 Reduction Efforts ($ in millions) • The Company expects significant reductions in 2015 spending. Currently we see: • Capital Expenditures down by ~ 69% • Lease Operating Expenses down by ~ 15% • General & Administrative Expenses down by ~ 17% • Further reductions to LOE & G&A are likely Reduc
Slide 10: 2015 Capital Budget Focused on GOM Deepwater
2015 Capital Budget Focused on GOM Deepwater GOM Deepwater: 84.5% $169.0 million GOM Shelf : 7.8% $ 15.5 million Onshore: 7.5 % $14.9 million Seismic, Leasehold & Other: 0.3% $.6 million 2015 Budget of ~$200 Million • Budget is designed for flexibility to respond to market conditions and fund key pr
Slide 11: Deepwater Gulf of Mexico
\ \ =| abe es DEEPWATER __ Gulf of Mexico
Slide 12: Deepwater Acquisitions Drive Growth
11 Deepwater Acquisitions Drive Growth 2010 2010 2013 2012 Newfield $206 million • 78 lease blocks • 65 deepwater blocks • 1P – 4.7 MMBoe • 2P – 6.9 MMBoe • 3P – 9.3 MMBoe Callon $82 million • Medusa (prod. is 88% oil) • 1P – 2.1 MMBoe • 2P – 4.3 MMBoe • 3P – 6.5 MMBoe • Currently completing the fir
Slide 13: Significant Growth in the Deepwater GOM
Significant Growth in the Deepwater GOM Between 2009 and 2014, average deepwater production has grown nearly 700% and proved reserves (1) are up 800%. Gross Acres have increased 348 % from 2009 to now. (1) P roved reserves at year - end 2014 do not include unbooked potential reserves associated with
Slide 14: Deepwater GOM Overview
Deepwater GOM Overview 13 Current Project Activities Other Significant Deepwater Producing Leases Deepwater Developed Leases Undeveloped Deepwater Exploration Leases “Avg. Gross Prod” is an estimate of recent daily gross average production. T he above production amounts are as of and for the month o
Slide 15: Deepwater Success – MC Big Bend
14 Deepwater Success – MC 698 “Big Bend” MC 698 Big Bend (WI: 20%; NRI: 16.70%) • Located about 165 miles SSE of New Orleans, LA • Gross resource estimate of 30 to 65 MMBoe with potential additional 30 – 50 MMBoe (P75 – P25) (1) • Targeting first production in late 2015 • S ub - sea development with
Slide 16: Deepwater Success – MC Dantzler
15 Deepwater Success – MC 782 “Dantzler” Dantzler #1 and Dantzler #2 o il discoveries MC 782 “Dantzler” (WI: 20%; NRI: 16.25 %) • Located about 160 miles SSE of New Orleans, LA • Two oil discovery wells o The Dantzler #2 appraisal well encountered 122 net feet of crude oil pay in two high - quality
Slide 17: Deepwater Success – Rio Grande Loop System
16 Deepwater Success – Rio Grande Loop System Dantzler #1 & #2 Big Bend • Subsea development tie - back from Big Bend and Dantzler wells • Connects to Thunder Hawk platform • Loop system is at ~ 7,000’ water d epth • Work is ongoing and we estimate first production: • Big Bend in late 2015 • D antzl
Slide 18: Exploration Opportunities at MC Medusa
17 Exploration Opportunities at MC 538 “Medusa” Medusa (MC 538/582) acquired via the Callon Transaction in 2013 ( WI: 15%; NRI: 15%*) – August average daily production of roughly 760 Boepd net to W&T (~86% oil) – Medusa spar is also the host facility for the W&T owned “Gladden” production at MC 800
Slide 19: Neptune Field
18 Neptune Field Neptune Field (WI: 20.0%, NRI: 17.5% ) • Atwater Valley 574, 575 and 618 • January estimated gross average daily production rate of 9,618 Boe (1,683 Boe net to W&T’s interest) (~88% oil) • W ater depth of 6,200’; TLP is situated on Block 574 where the water depth is about 5,500’ • A
Slide 20: Neptune Field and Other Woodside Acquisition Upside
19 Neptune Field and Other Woodside Acquisition Upside Neptune Upside • Drilling – Northern half of field has never been tested due to the difficulty of seismic imaging under the salt overhang. Significant upside exists to potentially double the size of the field if future exploration efforts are su
Slide 21: Multi Well Potential at Ewing Bank
20 Multi Well Potential at Ewing Bank 910 Current Drilling Plans • Initial two well drilling program in a 50% / 50% joint venture, with potential for third well thereafter, in 2015 (1) Net mean success rate. • T he first well (A - 5 ST) is currently drilling • First production expected in Second Qua
Slide 22: Deepwater GOM – Production Growth Outlook
Deepwater production, predominantly oil, is expected to grow over 50% to a rate of ~23,500 Boe per day in January 2016 (2) R epeatable deepwater growth • We anticipate one - two additional deepwater exploration wells per year • D eepwater production acquisitions • Evaluating other drilling opportuni
Slide 23: Shelf Gulf of Mexico
SHELF Gulf of Mexico
Slide 24: Well Positioned on the Shelf
Well Positioned on the Shelf 23 “ Avg. Gross Prod” is an estimate of recent daily gross average production . P roduction amounts are as and for the month of January 2015, except SS 222 which is Dec ember 2014. EC 321 Cum Gross Prod: 105.3 MMBoe Avg. Gross Prod: 1.3 MBoepd Company Operated HI 111 Cum
Slide 25: 2015 Seismic Data Reviews Driving Long Term GOM Shelf Program
24 2015 Seismic Data Reviews Driving Long Term GOM Shelf Offshore Program Seismic data reviews plus recent drilling success on GOM Shelf, especially at our Mahogany Field, are creating further opportunities • Eight wells have been drilled and completed by us at Mahogany since 2011. These wells, reco
Slide 26: GOM Shelf – Exploration at Ship Shoal in 2014
25 GOM Shelf – Exploration at Ship Shoal 349 in 2014 SS 349 A - 16 Development Well currently Producing at ~ 2,690 Boepd gross (2,240 Boepd net) (January 2015 Production) SS 349 A - 15 Multi - Sand Target Completed in 4/14; Logged ~ 65’ pay Producing ~ 908 Boepd gross (January 2015 Production) SS 34
Slide 27: Mahogany's Prolific P & T Sand
26 Mahogany’s Prolific “P” & “T” Sand • Mahogany's primary field pay “P” Sand has cumulatively produced approximately 30 million Boe since 1997 from multiple wells • “T” Sand is 3,000 feet deeper and better quality than “P” Sand • Upside potential up - dip from incremental probable reserves for the
Slide 28: Mahogany A-T-Sand – Strong Production
27 Mahogany A - 14 “T - Sand” – Strong Production • Current Rate is 2,479 Boe net (~2,975 gross) • Production is > 74% crude oil • Cumulative production ~ 1,519,000 Boe net (~1,823,000 Boe gross) • Steady production indicates strong water drive and/or large reservoir • Bottom hole pressure has been
Slide 29: Permian Basin Onshore
PERMIAN BASIN | ~ Onshore
Slide 30: Permian Basin: Overview of Asset and Activity
29 Permian Basin: Overview of Asset and Activity Permian Basin (WI: 100%, NRI: ~78%) • ~32,000 net acres with 26,000 highly contiguous net acres in the heart of the Northern Midland Basin portion of the Permian Basin • Current drilling program is suspended pending improved commodity prices and lower
Slide 31: Permian Basin – Northern Midland Basin Portion
30 Permian Basin – Northern Midland Basin Portion W&T’s Acreage Location W&T’s approximately 28,000 gross acre leasehold in the Yellow Rose Field is located in the Northern Midland Basin, slightly east of the basin axis. Deep position allows for higher thermal maturity and higher pressures to increa
Slide 32: Stacked Lateral Drilling
31 Stacked Lateral Drilling W&T is moving towards multi - well pad drilling with stacked laterals to efficiently unlock the value of the stacked pay resource potential.
Slide 33: Significant Activity Near W&T Acreage
32 Significant Activity Near W&T Acreage SM Energy Tatonka 1H 24hr: 549 Boepd (90% oil) FANG KCSL 1701H 24hr: 541 Boepd (92% oil) 1 2 3 FANG Estes 1602H 24hr: 541 Boepd (92% oil) 1 2 3 4 WTI UL 6 - 2 UNIT 4H Waiting on Results 4 5 6 SM UL 6 - 21 UNIT 6H 24hr: 663 Boepd SM UL 6 - 21 UNIT 5H Waiting o
Slide 34: Untapped Reserve and Inventory Growth Potential
33 Untapped Reserve and Inventory Growth Potential Target / Bench Net Drilled Locations Net Booked Locations Preliminary Unbooked Locations (Net) Unbooked Net Potential (MMBOE) 80 Acre Verticals 166 59 0 5 40 Acre Verticals 67 102 0 7 TOTAL VERTICALS 233 161 0 12 Upper Spraberry Horizontal 0 0 212 5
Slide 35: Liquidity Status
34 Liquidity Status • Revolving bank credit facility of $1.2 billion with an $750 million borrowing base – Borrowing base (1) at $750 million with facility maturity of Nov. 2018 – As of January 30, 2015, cash on hand (~ $9.2 million) and amount available under credit facility (~ $298 million) totale
Slide 36: Appendix
Appendix
Slide 37: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA 36 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), d
Slide 38: 2014 Year End Proved Reserves
2014 Year End Proved Reserves 37 1) In accordance with guidelines established by the SEC, our proved reserves as of December 31, 2014 were determined to be economically producible under existing economic conditions, which requires the use of the unweighted arithmetic average of the first - day - of
Slide 39: Forward-Looking Statement Disclosure
Forward - Looking Statement Disclosure 38 This presentation, contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act and Section 21 E of the Exchange Act . Forward - looking statements give our current ex
Slide 40: • Nine Greenway Plaza, Suite • Houston, TX 77046 • Main line: 713 -
• 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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