Hedge Program and Incremental Reserve Upside Potential
BBtu
HEDGE PROGRAM | YE 2022
Natural Gas Hedges
35,000
■Swaps
Collars
Aquasition Swaps ■Purchased Aquasition Puts
Purchased Calls
30,000
25,000
20,000
15,000
10,000
5,000
2023
2024
2025
2026
2027
2028
1) Based on the guidance range for 2023 natural gas production provided by the Company on 3/7/23
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W&T OFFSHORE | NYSE:WTI
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Mobile Bay transaction required gas hedges at the
SPV level to cover a majority of debt service
W&T has ~60% of 2023 estimated natural gas
production hedged by swaps¹
W&T structured "synthetic long puts" through 1Q25
using purchased calls and sold swaps that protect
against low gas prices while preserving benefits of
higher gas prices
Beyond 2022, ~95% of swaps are covered by purchased calls
W&T is unhedged on oil, which provides considerable
upside if WTI price increases throughout the year
The Company monitors commodity prices and will
opportunistically add hedges when favourable to the
business plan
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