W&t Offshore, Inc. · NYSE:WTI
W&t Offshore — Pritchard Capital Partners ENERGIZE 2008
40 slides from W&t Offshore's conference presentation, Jan 10, 2008
Slide 1: W&T Offshore, Inc. Pritchard Capital Partners ENERGIZE 2008
W&T Offshore, Inc. Pritchard Capital Partners ENERGIZE 2008 San Francisco, California January 10, 2008 Exhibit 99.1
Slide 2: Forward-Looking Statement Disclosure
1 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
Slide 3: Company Highlights
2 Company Highlights Reserve Data (as of 12/31/06) Highlights Field Statistics (as of 12/31/06) Key Financials ($ in MMs) 2006 9 months ended 9/30/2007 Production - as of 12/15/07 Market capitalization as of January 4, 2008 Proved Reserves (Bcfe) Proved Developed Reserves (Bcfe) Proved Developed % 6
Slide 4: W&T's Business Strategy
3 W&T’s Business Strategy Cash flow returns and generation is our top priority 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 opportun
Slide 5: Winning Acquisition Strategy
4 Winning Acquisition Strategy Key Acquisition Factors Kerr-McGee Example 1. Cash Flow Key to our successful acquisition strategy is our ability to target under-exploited assets KMG has strong production rates, including several behind pipe, workover projects identified 68% of reserves were proved d
Slide 6: Transaction History
5 Transaction History Acquisition (date) Reserves Acq'd 2003 YE Reserves 2004 YE Reserves 2005 YE Reserves 2006 YE Reserves Annual Compound Change (1) ( Net of Production ) 1. Assume all transactions occur at 6/30 of the given year. Ability to overcome natural decline rates Strong acquire and exploi
Slide 7: Acquisitions Report Card
6 Acquisitions Report Card Cumulative Revenue less Expenditures and Transaction Cost PV-10 Value at 12/31/06 Value created from 5 Major Transactions since 1999 ($ in millions) Kerr-McGee from close to 09/30/07 ($ in millions) PV-10 Value at 12/31/06 Cumulative Revenue less Expenditures and Transacti
Slide 8: Higher Long-Term Margins
7 Higher Long-Term Margins 35% 38% 17% 14% 12% 2002-2006 EBITDA-EBIT Margins Weighted Average 73% 80% 81% W&T Offshore High EBITDA Margins 79% 72% 69% 61% 54% 48% 43% 0% 20% 40% 60% 80% WTI CPE BDE* ATPG* SGY EPL* EBITDA EBIT $8.40 $8.07 $4.31 $4.00 $3.50 $5.33 $6.16 $8.23 79% 77% 78% 79% 80% $0.00
Slide 9: Reserves and Production Overview
Reserves and Production Overview
Slide 10: Proved Reserve Geographic Diversification
9 Proved Reserve Geographic Diversification Western Central Eastern Proved Developed East 23% Central 37% Total Proved Central 51% East 20% Ship Shoal Green Canyon Garden Banks Vermilion W. Cameron High Island Galveston Brazos West Delta Mustang Island East Breaks Matagorda Island Eugene Island Sout
Slide 11: Production growth
10 11.4 13.9 14.8 26.2 29.1 24.5 38.8 4Q 28.8 – 34.8 Production growth 12.4 28.4 39.4 52.8 53.3 46.6 60.4 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2000 2001 2002 2003 2004 2005 2006 2007E Oil & NGLs Gas Actual 3Q – 28.9 23.8 42.3 54.2 79.0 82.4 2005 production does not included 17.4 Bcfe of deferra
Slide 12: Mix of Production: % Oil / Liquids
11 % Oil / Liquids Production Year-to-Date Through 09/30/07 Mix of Production 45% 40% 40% 35% 33% 32% 23% 0% 10% 20% 30% 40% 50% SGY WTI ATPG EPL ME CPE BDE
Slide 13: Drilling Overview
Drilling Overview
Slide 14: Development Drilling
13 Development Drilling 6 6 6 2 2 3 7 8 100% 86% 100% 86% 100% 100% 67% 86% 2000 2001 2002 2003 2004 2005 2006 2007 2008E Successful Non-Commercial % Successful 2000 – 2007 Overall Drilling success: 40 of 44, 91% success rate
Slide 15: Exploration Drilling
14 18 10 17 6 5 6 21 19 6 66% Exploration Drilling 100% 75% 83% 86% 77% 75% 100% 2000 2001 2002 2003 2004 2005 2006 2007 2008E Successful Non-Commercial % Successful 1999 EEX, Vastar, Amoco Transactions 2002 Burlington Transaction 2006 Kerr-McGee Transaction 2000-2007 Overall Drilling success: 102 o
Slide 16: Recent Events
Recent Events
Slide 17: Recent Asset Acquisition – SS349 Mahogany
16 Recent Asset Acquisition – SS349 “Mahogany First commercial field in the subsalt play in the GOM 5 productive horizons below salt at depths as deep as 17,000 feet Purchased 25% interest as part of BP/Amoco transaction in 1999 Purchased additional 34% interest with ConocoPhillips transaction in 20
Slide 18: 2008 Capital Expenditures Program
17 2008 Capital Expenditures Program W&T has budgeted $800 million for capital in 2008 2008 budget represents a 77% increase over 2007 The budget includes 44 exploration wells and 6 development wells 40 Conventional Shelf wells 10 Deep Shelf or Deepwater wells We anticipate fully funding the 2008 bu
Slide 19: 2007 Exploration & Development Results + Near-Term Drilling Program
2007 Exploration & Development Results + Near-Term Drilling Program
Slide 20: Operations Update
19 Operations Update HIGH ISLAND AREA * 1 well drilling SHIP SHOAL AREA – KMG * 2 wells drilling SOUTH TIMBALIER AREA (OBO) * 1 well drilling MAIN PASS AREA 1 well to be drilled Ship Shoal reen Canyon Vermi n W. Camer Galves High Island Brazos Mustang Island East Breaks Matagorda Island Eugene Islan
Slide 21: Rig Overview
20 Rig Overview Rig Rates GOM Jack-Up Supply/Demand $0 $50 $100 $150 $200 $250 $300 $350 3rd Gen Semis >300' Cant. Jackups 250' Slot Jackups Submersibles Sources: Jefferies, ODS-Petrodata
Slide 22: Green Canyon – Healey Overview
21 Green Canyon 82 – Healey Overview 100% Working Interest to W&T 3 W&T wells drilled to date Not online or producing Healey #1 (2006) Healey #3 (2006/2007) Healey #4 (TD Dec 2007) 5 Primary Reservoirs 9,450’ Oil 11,300’ Oil 10,900’ Gas 12,250’ Oil 11,200’ Gas For primary reservoirs only - 3P Total
Slide 23: From Evaluation to Implementation … Kerr-McGee Prospects
“From Evaluation to Implementation …” Kerr- McGee Prospects
Slide 24: Seismic Coverage
23 Seismic Coverage Goal is to obtain a continuous 3-D database covering all W&T properties Recent new 3-D seismic acquisition – as indicated in the green shaded areas 660 blocks of SEI 3-D across offshore Texas 68 blocks of WesternGECO/GPI across Mass Pass New seismic is already showing results on
Slide 25: Ship Shoal Area
24 Ship Shoal Area Ship Shoal Program 1 Approximately 45% W&T working interest 4 Drilling locations proposed for 2008 Most drilled from existing platform with existing production facilities Total net unrisked exploration potential of 20 Bcfe Ship Shoal Program 2 Large acreage position covering Deep
Slide 26: Ship Shoal Area
25 Ship Shoal 300 Area Former Kerr-McGee Property W&T operated with 75% Working Interest 250-300 Feet Water Depth 7-10“In-Field” Exploration Prospects Proposed 2008 Moderate Drilling Depths: 2300’ TVD to 12,200’ TVD Drilling began Sept 2007 SS 300 A-1ST successful SS 300 A-3ST successful Currently d
Slide 27: Main Pass/Viosca Knoll Area
26 Main Pass/Viosca Knoll Area Recent new state-of-the-art 3-D seismic acquisition 68 blocks acquired over concentration of former Kerr-McGee Main Pass acreage 6-9 well program in 2007/2008, most drilled from platforms with existing production facilities Total Net Unrisked Exploration Potential – Bc
Slide 28: 2008 Anticipated Drilling Locations
27 2008 Anticipated Drilling Locations Ship Shoal Green Canyon Garden Banks Vermilion W. Cameron High Island Galveston Brazos West Delta Mustang Island East Breaks Matagorda Island Eugene Island South Timbalier Ewing Bank Atwater Valley Mississippi Canyon Grand Isle E. Cameron S. Pass E. Add Mobile
Slide 29: W&T Liquidity - Opportunities
28 W&T Liquidity - Opportunities Exploratory Drilling Asset Acquisition Corporate Acquisition Debt Repayment Special Dividend Free Cash Flow ($ in millions) 2007E 2008 Projected (1) 3Q 2007 adjusted EBITDA held flat for 2007E and annualized for 2008 projected for illustrative purposes only (2) Does
Slide 30: Key Drivers
29 Key Drivers High cash-on-cash return Superior Metrics vs. Peers W&T 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 Sufficient Liqui
Slide 31: W&T Offshore
WaT @FFSHORE
Slide 32: Proved Reserve Bookings Example
31 Well Non Proved Down dip potential Up dip Potential Proved Reserve Bookings Proved Reserve Bookings Example Lowest known gas
Slide 33: Proved Reserve Bookings - Pluto MC
32 Proved Reserve Bookings - Pluto MC 718 3-D Seismic Courtesy of WesternGeco
Slide 34: Pluto MC #3 Deepwater Sand
33 Pluto MC 718 #3 M1:50 Deepwater Sand Example of limited proved reserve bookings Initial production in mid-September 2006
Slide 35: High Island
34 High Island 22 High Island 22 100% W&T working interest 1 well drilled on former Kerr-McGee property Successfully drilled and completed B-3ST in January 2007 Current rate of 6.0 MMcfe/day gross st
Slide 36: Operated Rig Analysis
35 Operated Rig Analysis Barge Platform Specialty Jack-Ups Specialty J/U Semi-Submersible Drillship <2000 HP <1000 HP Submersible Workover 450' I. L. Cantilever 2 Gen <5000' >2000 HP >1000 HP 150' Mat Cantilever Tarzan 3 Gen >5000' 200' - 250' Mat Slot Gorilla 4 Gen 200' - 300' I. L. Cantilever Supe
Slide 37: High Island
36 High Island 24 High Island 24 Area 25% W&T working interest 40 feet of water depth Initial discovery well drill Sept 2006 500’ gross pay- 300’ net gas Initial production test – MMcfe/day gross Successful offset well completed in March 2007 470’ gross pay – 200’ net gas Initial production test – M
Slide 38: Bay Junop Field
37 Bay Junop Field 100% GWI in S/L 17993 #1 ST Terrebonne Parish, LA 8 Feet Water Depth #1ST reached a Total MD of 18,553 feet on 10/10/06 The Well Logged 42’ Net Gas in the Big 2 Sand 10 to 15 Bcfe 3P estimated WTI’s Deepest Operated Production in the GOM First Production – 4Q 2007 18.0 MMcfe/d net
Slide 39: Reconciliation of Net Income to EBITDA
38 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 plus income tax expense, net interest expense (income), and depreciation, depletion, amortization and accre
Slide 40: W&T Offshore, Inc. contact details
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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