About W&T Offshore

W&T Offshore, Inc. operates as an independent oil and natural gas producer. The company engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. As of December 31, 2022, the company held working interests in 47 offshore producing fields in federal and state waters. The company’s working interests in fields, leases, structures and equipment are primarily owned by the company and its wholly-owned subsidiaries, Aquasition LLC (‘A-I LLC’), Aquasition II LLC (‘A-II LLC’), and W&T Energy VI, LLC, Delaware limited liability companies and through the company’s proportionately consolidated interest in Monza Energy, LLC (‘Monza’). Business Strategy The company follows a proven and consistent business strategy: maintaining high quality conventional asset base with low decline; and strategically pursuing the acquisition of compelling producing assets. The elements of the company’s business strategy include exploiting existing and acquired properties to add additional reserves and production; exploring for reserves on its extensive acreage holdings and in other areas of the Gulf of Mexico; acquiring reserves with substantial upside potential and additional leasehold acreage complementary to its existing acreage position; and carrying out its business strategy in a safe and socially responsible manner. Oil and Natural Gas Marketing and Delivery Commitments The company sells its crude oil, NGLs and natural gas to third-party customers. In 2022, approximately 31% of the company’s revenues were received from BP Products North America and approximately 13% from Chevron-Texaco. Properties The company’s producing fields are located in federal and state waters in the Gulf of Mexico in water depths ranging from less than 10 feet up to 7,300 feet. The reservoirs in the company’s offshore fields are generally characterized as having high porosity and permeability, with higher initial production rates relative to other domestic reservoirs. As of December 31, 2022, two of the company’s fields located in the conventional shelf accounted for approximately 66.7% the company’s proved reserves on an energy equivalent basis. The Mobile Bay Properties (as defined below) and Ship Shoal 349 (Mahogany) (as defined below) field are two areas of operations of major significance, which the company defines as having year-end proved reserves of 10% or more of the company’s total proved reserves on an energy equivalent basis. Following are descriptions of these areas of operations: Mobile Bay Properties A-I LLC and all of its interests in certain oil and gas leasehold interests and associated wells and units located off the coast of Alabama, in state coastal and federal Gulf of Mexico waters approximately 70 miles south of Mobile, Alabama are referred to as the ‘Mobile Bay Properties.’ In 2021, the company consolidated the Fairway field into the Mobile Bay Properties in conjunction with the sale of the Mobile Bay Properties. The company acquired its initial 64.3% working interest, along with operatorship, in the Fairway field and associated Yellowhammer gas processing plant, from Shell Offshore, Inc. in August 2011 and acquired the remaining working interest of 35.7% in September 2014. In August 2019, the company acquired varied operated working interests in the other Mobile Bay Properties ranging from 25% to 100% in nine producing fields from Exxon (effective January 1, 2019), and the company became the operator of the fields in December 2019. During September 2019 to December 2019, transitioning activities occurred to transfer operatorship of the Mobile Bay Properties from Exxon to the company. During 2020, the company completed the purchase of the remaining interest in two federal Mobile Bay fields from Chevron U.S.A. Inc. Cumulative field production for the combined Mobile Bay and Fairway properties through 2022 is approximately 854.7 MMBoe (million barrels of oil equivalent) gross. The Mobile Bay Properties produce from the Jurassic age Norphlet eolian sandstone at an average depth of 21,000 feet total vertical depth. Ship Shoal 349 Field (Mahogany) Ship Shoal 349 field is located off the coast of Louisiana, approximately 235 miles southeast of New Orleans, Louisiana. The field area covers Ship Shoal federal OCS blocks 349 and 359, with a single production platform on Ship Shoal block 349 in 375 feet of water (the ‘Ship Shoal 349’). Phillips Petroleum Company discovered the Ship Shoal 349. The company owns a 100% working interest in this field except for an interest in one well owned by the Joint Venture Drilling Program. Cumulative field production through 2022 is approximately 61.4 MMBoe gross. This field is a sub-salt development with nine productive horizons below salt at depths up to 18,000 feet. Reporting of Natural Gas and Natural Gas Liquids The company produces NGLs as part of the processing of its natural gas. The extraction of NGLs in the processing of natural gas reduces the volume of natural gas available for sale. Acreage The company’s net acreage was 44,746 net acres as of December 31, 2022. Approximately 83.8% of the company’s net acreage is held by production. The company has the right to propose future exploration and development projects on the majority of the company’s acreage. Compliance with Government Regulations Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement, both agencies under the U.S. Department of the Interior (‘DOI’), have adopted regulations pursuant to the Outer Continental Shelf Lands Act (‘OCSLA’) that apply to the company’s operations on federal leases in the Gulf of Mexico. The Federal Trade Commission (‘FTC’), the Federal Energy Regulatory Commission, and the Commodity Futures Trading Commission (‘CFTC’) hold statutory authority to monitor certain segments of the physical and futures energy commodities markets. These agencies have imposed broad regulations prohibiting fraud and manipulation of such markets. The company is required to observe the market related regulations enforced by these agencies with regard to the company’s physical sales of crude oil or other energy commodities, and any related hedging activities that the company undertakes. Most of the company’s offshore operations are conducted on federal oil and natural gas leases in the outer continental shelf waters of the Gulf of Mexico. Compliance with Environmental Regulations Air emissions from the company’s operations are subject to the federal Clean Air Act, as amended (‘CAA’), and comparable state and local requirements. History W&T Offshore, Inc. was founded in 1983. The company was incorporated in 2004.