Barclays CEO Energy-Pow er Conference New York September 6, 2011 - PowerPoint PPT Presentation

Barclays CEO Energy-Pow er Conference New York September 6, 2011

Company by the Numbers LTM (1) Key Financials ($ in MMs) 2010 2009 Revenue $820 $706 $611 Adjusted EBITDA $549 $450 $341 CAPEX (2) $692 $416 $276 Field Statistics (3) # of Producing Fields w/WI 67 Offshore Acreage (Gross/Net) 854,000 / 553,000 % Held-by-Production 82 % Onshore Net Acreage ~31,000 Reserve Data (4) PF 6/30/2011 2010 2009 Proved Reserves (Bcfe) 741 485 371 Proved Developed % 65 % 81 % 76 % Oil and Liquids % 57 % 47 % 55 % Current Production (5) Average Daily Production (MMcfe) 313 +/- Oil and Liquids % 46 % Operated Production % (net) 81 % (1) Latest twelve months ended June 30, 2011. (2) Includes acquisition-related CAPEX. (3) Data as of 12/31/10 for offshore properties, pro forma for the Fairway field acquisition. Producing fields include offshore fields only. (4) Proved reserves at June 30, 2011, pro forma for 54.5 Bcfe related to the acquisition of the Fairway field from Shell. (5) Most recent data for August 2011 inclusive of Fairway field acquisition. 1 1

Key Investment Considerations • Strong operating track record with 27+ year history of success in the Gulf of Mexico • Recent movement onshore via Permian Basin Property acquisition • Gulf Coast oil production generating premiums to market and strong cash flow • Strong liquidity level and cash flow generation • Pro forma proved reserves continue to increase and are 57% oil and liquids • Proven, experienced management team whose interests align with all stakeholders (CEO owns over 50% of stock) 2

Company Overview • Large acreage position in the Gulf of Mexico primarily held by production • Proved reserves on a pro forma basis at historic high and more oily • Permian Basin Properties acquired on May 11, 2011 create next area of growth – 91% oil and liquids – Longer-lived proved reserves – Provides “predictable growth” opportunities • Strong cash flow – 2010 cash flow from operating activities of $465 million – LTM ended June 30, 2011 Adjusted EBITDA of $549 million • Active 2011 drilling and acquisition program 3

Company Operations Permian Basin GOM Shelf (1) • Proved Reserves: 175 Bcfe / • Proved Reserves: 397 Bcfe / 29 MMBoe 66 MMBoe • Acreage: ~30,000 Net • Acreage: 715,981 Gross / • ~5% of Production 459,542 Net • ~65% of Production GOM Deepwater • Proved Reserves: 168 Bcfe / 28 MMBoe • Acreage: 137,792 Gross / 93,670 Net • ~30% of Production Gulf Coast (1) Includes impact of Fairway acquisition. 4 4

Strategic Plan • Drill and develop our Permian Basin Properties • Expand acreage positions onshore • Continue to explore and develop our large Gulf of Mexico acreage position • Continue to pursue GOM acquisition opportunities, both shelf and deepwater • Pursue active and balanced drilling program to increase reserves and production • Take prudent and managed risk 5 5

2011 Plan Yielding Grow th • Expanding into new areas onshore, including Permian Basin, East Texas and Gulf Coast • Recent acquisitions have provided significant reserve increases and upside opportunities • Estimated pro forma mid-year proved reserves increased by 53% to 740.6 Bcfe or 123.4 MMBoe – Oil and liquids now represent 57% of total proved reserves • During the first half of 2011, we participated in the drilling of 10 onshore wells and 3 offshore wells, all of which were successful • Amounts spent for capital expenditures and acquisitions through June 30, 2011 of $482 million with $224 million remaining in budget • Drilled or plan to drill at least 52 wells comprised of: – 9 conventional shelf and 1 deepwater well in the GOM – 42 to 49 onshore wells 6

Onshore

West Texas Permian Basin Overview • Next growth phase for the Company • Currently in several distinct areas • Current total net acreage of ~30,000 • Continue to expand acreage position • 6 drilling rigs currently running in Permian Basin 8 8

Wolfberry West Texas • Primary focus in the West Texas Permian Basin is the Wolfberry • Potential upside includes 20-acre spacing and deeper zones • Wells drilled to total vertical depths of 11,000’ to 13,000’ • Horizontal wells planned for late 2011 and for 2012 9

New ly Acquired Assets in West Texas : Martin, Daw son, Andrew s & Gaines Counties • Acquired 21,400 net acres in May 2011 for $399.5 million • Currently producing 2,777 Boe per day from 90 wells • Proved reserves of 30 MMBoe and probable reserves of 25 MMBoe • EUR of ~100 MBoe net per well and 40 acre spacing on PUDs • Days to drill to total depth: 15 to 19 days (average of 17 days) • Oil and liquids are 91% of proved reserves 10 10

Permian Basin Acquisition Provides Long-term Grow th • 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 nearby operators are using 20- acre spacing while others are drilling horizontal wells – Focused on improving operating efficiency • Plan for 3 drilling rigs working throughout remainder of 2011 – Primarily targeting the “Wolfberry” trend, but deeper targets have been tested and are producing – 2011 Capital Expenditures between $50 and $60 million – Drilled 14 wells and completed 28 wells since closing in the second quarter – Anticipate drilling a total of 27 to 33 development wells from close to the end of 2011 11 11

Other Permian Basin Activity • Have acquired approximately 9,100 net acres in Terry County • Anticipate 2011 drilling to include 8 to 11 exploratory wells • Have drilled 2 wells to date and are currently drilling 3 more in Terry county • Working interests vary from 35.6% to 80% 12 12

East Texas Activity • 2 prospective exploratory areas • 1 area covers approximately 146,000 net acres • Have drilled 1 well to date and will possibly drill 2 to 3 more • Working interests vary from 35% to 100% • W&T is the operator in both prospective areas 13 13

Gulf of Mexico

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 • Large acreage position – Over 850,000 gross acres with more than 80% held by production • 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 • Attractive reservoir characteristics • Costs historically adjust quickly to commodity prices due to shorter contract terms 15

Gulf of Mexico Proved Reserve w ith Geographic Diversification • 67 fields • 81% operated • 853,773 gross acres, 553,212 net acres • 82% held by production • Producing 296 MMcfe per day • 43% oil & liquids / 57% gas 16 16

Gulf of Mexico Recent Activity • Integrated two deepwater purchases closed in 2010 • Closed on the acquisition of a GOM shelf property in August 2011 • Restored production to the Main Pass 108 Field early in the 2011 second quarter • Successfully drilled development sidetracks at our MP 108 D-3 and MP 108 D-2 BP1 wells • Anticipate drilling two more exploratory wells and five more development wells offshore during the remainder of the year 17

Investment Highlights of Fairw ay Field and Yellow hammer Plant • Acquired the Fairway field and Yellowhammer gas processing plant from Shell Offshore, Inc. on August 10, 2011 for $36. 7 million – Completes the Shell transaction from 2010 • Fairway field is south of Mobile, Alabama in water depths of 20 to 30 feet – W&T is the operator with a 64.3% working interest • The Yellowhammer plant is located onshore in Alabama about 17 miles northwest of the Fairway Field • Fairway has proved reserves of 54.5 Bcfe as of June 30, 2011 – 39.4 Bcf of natural gas; 2.5 MMBbls of NGLs • Currently producing 26.8 MMcfe per day, net 18 18

Concentrated Operations in Recently Acquired GOM Fields and Focus Areas 19 19

Offshore 2011 Drilling Program Development MP 108 D-3 ST & MP 108 D-2 ST BP01 Exploration WI: 100% Shelf (Both Drilled and Successful) MP 180 A-2 MP 108 #9 WI: 100% WI: 100% Shelf Shelf (Drilled and successful) MP 108 #8 (Currently Drilling) WI: 100% Shelf MC 243 A-4 WI: 100% SS 349 A-11 ST WI: Deepwater 100% Shelf ST 41 E-1 ST WI: 40% Shelf ST 315 A-3 ST02 WI: 50% Shelf SS 349 A-1 ST #4 WI: 100% Shelf 20 20

Other Operational and Financial Information

Proved Reserves – as of June 30, 2011 (Pro Forma) (1) Reserves by Category Product Mix 123.4 MMBoe (740.6 Bcfe) Oil PNP 57% PDP 17% 48% Gas PUD 43% 35% (1) 2011 Proved reserves include the recently acquired Shell Fairway property. 22 22