Jefferies 2015 Energy Conference November 11-12, 2015, Houston - PowerPoint PPT Presentation

Jefferies 2015 Energy Conference November 11-12, 2015, Houston

W&T Offshore Overview (NYSE: WTI) Financial & Operations Overview Highlights Twelve Months Ended • Drilling success rate offshore has 9/30/15 12/31/14 been 100% the last two years $ 948.7 Revenue $ 599.9 Adjusted EBITDA $ 276.8 $ 569.2 • Total production rate is steady year- over-year, while oil is up 12% based on See the slide titled “Reconciliation of Net Income to Adjusted EBITDA” for an analysis of the change between Net Income and Adjusted EBITDA continued success with the drill bit. Achieved despite 60% drop in capital Proved Reserves of 82.7 ( MMBoe) at 12/31/14 spending Reserves • In first nine months of 2015, proved Mix Oil 46% reserves, excluding Yellow Rose, 43% NGLs declined only slightly, despite a 40% 11% Nat. Gas decline in crude oil prices and a 30% decline in natural gas prices Reserves and Reserves Mix reflect adjustments to exclude reserves attributable to the Spraberry Field, which was sold in October 2015. • Reserve additions from two wells at Nine Months Ended Medusa and one well at EW 910 (and Daily Production 9/30/15 9/30/14 upward revisions at Mahogany ) were big Oil (MBbls/d) 21.2 19.6 contributors. However, Big Bend & NGLs (MBbls/d) 4.5 5.7 Dantzler came on line in the 4 th quarter Natural Gas (MMcf/d) 129.9 135.4 Total (MBoe/d) 47.4 47.8 • Production exit rate estimated at Total (MMcfe/d) 284.1 286.8 50,000 Boe per day with 49% from oil 1

Premium Assets in the Gulf of Mexico Deepwater Gulf of Mexico • ~ 384,000 gross acres (~179,000 net acres) • ~ 38% of daily production • 1P reserves of 28.9 MMBoe • 2P reserves of 50.9 MMBoe • Substantial upside from numerous projects (Big Bend, Dantzler, Medusa, EW 910 and others) Gulf of Mexico Shelf • ~ 561,000 gross acres (~392,000 net acres) • ~ 56% of daily production • 1P reserves of 53.8 MMBoe • 2P reserves of 73.9 MMBoe • Future growth potential from sub-salt prospects identified with advanced seismic Notes: • Reserves are as of 12/31/2014 • The estimates “% of daily production” are for the nine months ended September 30, 2015 and exclude approximately 6% which is attributable to the Yellow Rose Field located in the Permian Basin. The Company closed on the sale of this field on October 15, 2015 2

Recent Events Enhance Liquidity Sale of Yellow Rose Field in Permian Basin Yielded Net Proceeds of ~$376 Million • Closing occurred October 15, 2015 • A portion of the proceeds were used to pay down the revolving bank credit facility to zero. Remaining funds will provide additional liquidity for future operations and acquisitions • Retained one to four percent sliding scale ORRI in the field • Liquidity improves to $485 million • Amended bank credit agreement and revised Borrowing Base Current deepwater projects are adding substantial production throughout 2015 & beyond • Expect an exit rate for 2015 of about 50,000 Boe per day, 49% oil 3

Corporate Overview • We focus on projects that will grow reserves, increase production and generate profit – Exploration  We are focusing more and more on deepwater opportunities – Acquisitions  Requirements are: – Cash flow – Upside drilling – Workover / Recompletion / Facility upgrades – Development & Re-Development of existing assets  Utilizing new seismic data • Historically, W&T’s EBITDA margins are in the range of 60 – 70% • With over 30 years of experience, we are a safe, efficient and reliable operator 4

Probable and Possible Reserves Fuel Growth to Proved Reserves and Future Value 5

Incremental Cash Flow Associated with Probable and Possible Reserves (1) Probables and Possibles provide hidden value and significant upside $2.8 Billion $1.2 Billion Total PV-10 Created with Primarily PNP / Incremental Value Increases with PUD CAPEX $774 Million PV-10 Created CAPEX with No Future CAPEX $0 $0 $209 $225 $264 $451 Cumulative CAPEX (1) The Company sold all of its interests in the Spraberry Field in October 2015. The above chart and amounts reflect estimates for reductions due to such sale of reserves. (2) Except for “Cumulative CAPEX”, figures reflect year-end 2014 SEC price case. Cumulative CAPEX reflect estimates as of 6/30/15. (3) Probable and possible reserves with no direct CAPEX requirements that are largely associated with PNP and PUD reserves and therefore have associated future indirect CAPEX requirements. 6 (4) Probable and possible cases that are largely associated with producing wellbores and require no additional future CAPEX requirements.

DEEPWATER Gulf of Mexico

Deepwater Acquisitions Drive Growth Through acquisitions and lease sales, W&T now holds interests in ~ 384,000 gross / 179,000 net acres in the deepwater of the Gulf of Mexico, approximately 41% of total net offshore acres Newfield Total Woodside $206 million $115 million $51 million • 78 lease blocks • Matterhorn • Neptune (prod. is 87% oil) • 65 deepwater blocks • Virgo • 27 deepwater blocks • 1P – 4.7 MMBoe • 1P – 8.6 MMBoe • 1P – 1.3 MMBoe • 2P – 6.9 MMBoe • 2P – 15.3 MMBoe • 2P – 2.9 MMBoe • 3P – 9.3 MMBoe • 3P – 24.3 MMBoe • Initial exploratory well placed • Paid out in Nov. 2014 • Paid out in August 2011 into production in 2014 4 th Qtr 2010 2012 2014 2010 2013 Callon Shell Deepwater $82 million $116 million • Medusa (prod. is 88% oil) • Tahoe • 1P – 2.1 MMBoe • Droshky • 2P – 4.3 MMBoe • 1P – 6.1 MMBoe • 3P – 6.5 MMBoe • 3P – 12.1 MMBoe • Two exploration wells brought on production in June 2015 . September • Paid out in Nov. 2012 combined gross rate is 13,000 Boepd 8

Deepwater GOM Overview VK 822/823 “Virgo” MC 538/582 “Medusa” VK 783/784 “Tahoe” Cum Gross Prod: 22.3 MMBoe Cum Gross Prod: 98.2 MMBoe Cum Gross Prod: 66.9 MMBoe Avg. Gross Prod: 1.5 MBoepd Avg. Gross Prod: 5.4 MBoepd Avg. Gross Prod: 17.1 MBoepd Company Operated Company Operated Non-operated GB 258 “Powerplay” MC 243 “Matterhorn” Cum Gross Prod: 11.8 MMBoe Avg. Gross Prod: 4.0 MBoepd Cum Gross Prod: 26.6 MMBoe Non-operated Avg. Gross Prod: 3.3 MBoepd MC 800 “Gladden” Company Operated Cum Gross Prod: 5.3 MMBoe Avg. Gross Prod: 2.4 MBoepd Company Operated EW 910 Cum Gross Prod: 15.0 MMBoe Avg. Gross Prod: .4 MBoepd Company Operated MC 698 “Big Bend” Non-operated MC 782 MC 506 “Wrigley” 2015 Current Project Activities “Dantzler” Cum Gross Prod: 8.6 MMBoe AT 574/575/618 Other Significant Deepwater Producing Leases Avg. Gross Prod: 2.0 MBoepd Non-operated “Neptune” Company Operated Cum Gross Prod: 36.6 MMBoe Deepwater Developed Leases Avg. Gross Prod: 11.3 MBoepd Non-operated Undeveloped Deepwater Exploration Leases “Avg. Gross Prod” is an estimate of recent daily gross average production. The above production amounts are as of and for the month of September 2015 9 except for EW 910 which is July 2015.

Deepwater Success – MC 698 “Big Bend” First production on October 26, 2015 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) • Currently producing at a gross rate in MC 698 “Big Bend” excess of 20,000 Boe per day oil discovery • Sub-sea development with tie-back to Thunder Hawk Platform (1) Represents operator’s published gross production and reserve assumptions. 10

Deepwater Success – MC 782 “Dantzler” MC 782 “Dantzler” First production on November 1, 2015 (WI: 20%; NRI: 16.25%) • Located about 160 miles SSE of New Orleans, LA • Two oil discovery wells Two high-quality Miocene reservoirs o • Gross resource estimate of 65 to 100 MMBoe (P75 – P25 case) (1) • Tie-back with Big Bend to nearby Thunder Hawk Platform Dantzler #1 and • Both wells are dual completions that Dantzler #2 will produce from multiple reservoirs oil discoveries (1) Represents operator’s published gross production and reserve assumptions. 11

Rio Grande Loop System Enhances Return on Investment Big Bend Thunder Hawk Platform Dantzler #1 & #2 Subsea tie-back from Big Bend and Dantzler fields established first production to the host “Thunder Hawk” platform in October 2015 Combined rate from Big Bend and Dantzler expected to reach in excess of 8,000 barrels per day by year-end 2015, net to our interest (~81% oil) 12

MC 538 “Medusa” – 2015 Expansion Activities Medusa (MC 538/582) acquired via the Callon Transaction in 2013 (WI: 15%; NRI: 15%*) Expansion activity recently completed at Medusa  The SS 6 well reached TD at year-end encountering net pay in both primary zones. The well logged over 180’ of net pay. The SS 6 well was completed in April  The SS 7 well was drilled to TD in early March and encountered over 100’ of net pay. The SS 7 well was completed in June  The SS 6 and SS 7 wells produced at average gross rates in September 2015 of about 6,514 and 6,483 Boe per day, respectively (a combined net rate to W&T of ~1,950 Boe per day) * This provides for royalty suspension 13