Greetings and welcome to the W&T Offshore Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lisa Elliott. Please go ahead Ms. Elliot.

Thank you, operator and good morning everyone. We appreciate you joining us for W&T Offshore's conference call to review the fourth quarter 2015 financial results and for an operational update. Before I turn the call over to the company, I have a few items that I would like to point out. If you wish to listen to a replay of today's call, it will be available in a few hours via webcast by going to the Investor Relations' section of the company's website at www.wtoffshore.com or via recorded replay until March 16. To use the replay feature, call 201-612-7415 and dial the pass code 13629410. Information reported on this call speaks only as of today, March 09, 2016 and therefore time-sensitive information may no longer be accurate as of the date of any replay. Please refer to the fourth quarter 2015 financial results announcement we released yesterday for a disclosure on forward-looking statements and reconciliations of non-GAAP measures. At this time, I'd like to turn the call over to Mr. Tracy Krohn, W&T's Chairman and CEO. Tracy?

Thanks Lisa. Good morning, all. Joining me this morning are Jamie Vazquez, our President; Danny Gibbons, our Chief Financial Officer; Tom Murphy, our Chief Operations Officer; and Steve Schroeder, our Chief Technical Officer. Yesterday evening we put out a detailed financial and operations release on the fourth quarter and full year 2015. We also provided guidance for the first quarter and full year of 2016. We won’t repeat all of that again this morning but we are happy to address the question and we will be filing our Form 10-K with more details in a day or so. So throughout last year 2015 we focused on completing the projects that were already in progress at the beginning of the year or that we're committed to with partners' projects like Big Bend and Dantzler with two Medusa wells in the Ewing Bank 910 project. Once we have those projects completed, we could reevaluate our position and plan our moves going forward. Our goal was to maintain our production volumes and protect both our balance sheet and liquidity so that we could successfully navigate through the challenges of this low commodity price environment. We believe we did a good job on those fronts. In 2015 I took the right steps to manage those challenges. Full year production was down only 3.3% in 2015 compared to 2014 despite a 63% drop in capital spending during that same period from $630 million to $231.4 million. Actually, crude oil production was up 7.9% year-over-year, but both natural gas and NGL production was down 8% and 24% respectively. Our 2016 drilling budget is dramatically lower and set at about $15 million not including plug abandonment activities. It includes the completion of the A-8 well Ewing Bank's 954, which came online this month, but no other new…

[Operator Instructions] Our first question today is coming from John Aschenbeck from Seaport Global. Please proceed with your question.

Hi, thanks for taking my question here. I was hoping you could quantify what we should expect coming out of redetermination fees and any idea what a potential cut may look like? Thanks.

Yes, I don’t think I’m prepared to answer that question. We’re just in the beginning of that redetermination. So I don’t really have anything to that I want to impart to the market at this point in time as it could be wrong.

Okay, that's fair enough. And so it looks like the redetermination is set to be completed by the end of March should we expect an announcement around that time?

Yes.

Okay, great appreciate that. A – Tracy Krohn: Sure.

One follow up for me is, in regard to the additional 261 in BOEM bonding, how do you think that will impact liquidity? Yet any idea of what amount of cash or letters of credit you’ll have for that?

We’re having those discussions with the BOEM. I really can’t give you any definitive solution at this point in time. This has been a process that’s been ongoing for months now. And we expect it will continue going forward. Certainly, it has an effect on liquidity and that is a concern for us.

Okay. Really appreciate that. I’ll jump back in the queue. Thanks.

Thank you. Our next question today is coming from Richard Tullis from Capital One Securities. Please proceed with your question.

Hi, thanks. Good morning everyone. Tracy, I understand the- certainly understand the rationale for the $15 million drilling in completion budget this year. What sort of impact you foresee that it could have on 2017 production? Or what you’re looking at, say, 2016 production exit rate with that budget?

I really can’t give you a prediction on 2017 with this budget at this time. I'd be hesitant to do that because we still think there is opportunities out in the Gulf of Mexico for us. We don't know what that can be at this point in time exactly, but normally when we come through these downtimes, we see opportunities that we can take advantage of. So I could give a blow down case, but that would be outside our normal period of guidance.

What is the set of base production decline rate for the overall production, oil production at this point including the new projects online?

This year, it looks like we are about 7% to 8% down on production. That's, kind of where we are looking at.

And then what oil price would you be looking for, Tracy, say to start considering resume in drilling?

That's a great question and people always ask me about the oil pricing and what I always respond is not just about the price, it’s about the margin. It really is about the margin. So the difference in margin is what’s important. The cost of goods and services play a huge role in what we can afford to drill, and exploit in oil purchase. So currently margins were about 44%, I believe for last year. And they are normally around 60%. So we'd like to see the margins being closer to 60%, for we'd say, yes, okay, it’s time to go back to work and do everything we can do to spend money and increase production and reserves. It’s difficult to operate in those margins and of course, as you're seeing from the ceiling test impairments, it’s all price related on that. So I don't think it's necessarily difficult to predict that as prices continue to come down, we will continue to have ceiling impairments and the cost of goods and services needs to catch up with that. So there is still that disparity cost of goods and services. The good news is we're seeing cost of goods and services decelerate in that sense, prices are going down for cost of goods and services.

Okay. That's all for me Tracy. Thank you.

Thank you. Our next question today is coming from Noel Parks from Ladenburg Thalmann. Please proceed with your question.

Good morning. Just had a question about the expense guidance. I was looking at the first quarter items versus the full year. And with the LOE and the gathering lines, is there a ramp up assumption embedded in the quarter? I’m looking those usually more on a unit basis, or is just - we’re just seeing fixed expenses being carryover across the basic line of production?

No. You’re correct. There is a bit of ramp up. And that's because of seasonality. We generally tend to go back - go out and do more work in the better weather months. So that’s spring, summer as opposed to winter and fall because the weather is little worse in those appearances - if these are still working in the better weather months.

Great, thanks. And roughly whether in the quarter or currently, the bands were in Big Bend production, where does it stand roughly?

Well, we are still in the 40,000 barrels to 50,000 barrel a day range. We are monitoring it, we are changing choke sizes, we are analyzing reservoir drive mechanisms. So it's a little bit up and down, but generally 45,000 barrels to 50,000 barrels a day.

Okay, great. That's all for me.

Thank you. Your next question is coming from Steven Karpel from Credit Suisse. Please proceed with your question.

Good morning, Tracy. I was trying to understand with the bonding point that $260 million - it doesn't seem like an overwhelming amount for the bonding market. Can you give us a sense on your conversations of talking to surety - the surety - talking with surety fund providers is 260, a very achievable number that doesn't require you to go outside of that i.e. post direct fashion in lieu of.

I can tell you that the surety bond market has closed. It's gotten very tight and the reason is because the OEM is expecting bonding from everybody now. That's their stated mission. And so that market has gotten a lot tighter. I guess it's probably not I could say it's absolutely closed. It hasn't. But as far as I can tell is really very narrow right now. Our sureties are somewhat nervous about their exposures. So yes, that's been a problem for not just as per other companies.

So then the follow up to that is, what does that mean for existing surety bonds that are already outstanding. And then secondly, what does that mean or direct, practically LCs between companies. I think you have - I think you're the recipient of a couple of those as well.

Yes, we are. I think BOEM needs to work through these issues and not only with us, but other companies to resolve different methods of allowing for abandonment. And there are different ways to manage that and we are having those discussions with them as we go through this cycle.

And just - then maybe I'll ask qualitative point of view comment. Does the BOEM grasp the magnitude of the issue with - on individual companies? And what that means to the market? Thank you.

The short answer to that is they have a lot of data to work through. And I think they understand the magnitude of the issue. I'm not sure that everybody is quite on the same wavelength and seldom are you with regulatory agencies. But I don't think the intent is to close down the Gulf of Mexico at this point. I think there are reactions that they've had to - situations that they have had to deal with. The other problem that they've had is that they have a lot of temporary directors rotating in and out of the office in New Orleans. And that's made it more difficult to solve some of the problems that need to be there. Apparently, we have not just an acting director, but a main director in New Orleans now. So I think that's going to help solve some of the situation we have a little bit of permanency and in that position.

Thank you.

[Operator Instructions] Our next question is coming from Jon Evans from JWest. Please proceed with your question.

Hi Tracy, I was hoping maybe you could elaborate a little bit more about the production issues that you had coming in the fourth quarter did you. In the third quarter, you averaged about 46, 47 a day. I mean if you take out the sale that was about 23. And if you know you brought on eight from Big Bend. So can you just help us understand the pipeline issues and maybe what others usually have?

Yes, one of them was scheduled and in fact we are in the middle of that right now - its beside, pipeline scheduled maintenance and then one of them was unscheduled that serviced our field a little bit closer to around Ship Shoal. That repair has been completed but preside is now that - that affects our Mahogany field as well. So big chunk of production there that's down for probably total is about 2 weeks. And so hopefully that answers your question.

And then did you have any other problems with any of your existing wells, you kind of alluded to that in your comments or I just heard you wrong, I apologize.

No, you didn’t hear me wrong. We’ve had a couple of well issues that deal with the production we’ve got one well at in deepwater that has a - an effect from asphalting production we're working on solving that now. We actually have begun to inject [xylene] [ph] through a control line to help solving - we’re having a little bit success we’re still not back on production. So that's been the biggest impact.

And just the follow up to that, I mean you feel like you guys will be able to bring that back on or give any insight? A – Tracy Krohn: Yes, the short answer is yes, the question is whether we bring it back on through a remedial action that doesn’t require an intervention vessel or whether we put an intervention vessel along the on the well side itself. So, we are working to not have to use intervention vessel and we think we are having some moderate success with that. So as long as we can do that, that’s the direction we will hit.

Okay. Thank you for your time.

Thank you. The next question is a follow up from John Aschenbeck from Seaport Global. Please proceed with your question.

Thanks. I was wondering if you could, potentially talk on your comfort level and an ability to perhaps pull off some type of debt swap restructuring or perhaps even a significant asset sale that help right size the balance sheet.

Well, okay, I could talk a lot about that, do you have something specific you want to answer.

Yes, I guess really the follow up is, assuming the strip plays out through 2016 leverage that does start to creep up a little bit. I guess really just want to get your thoughts on where leverage would fit by the end of 2016 and any solutions you may have to just draw down debt and help credit metrics.

The short answer is, the run way is a function of not of margins. So it's not just price of oil again it's price as a function of cost of goods and services as well. Our margins is a function of cost of goods and services as well. So, clearly if prices stay down for a longer period of time than that will put more risk in the equation. If prices go up and obviously that makes it better for us and clearly if the cost of goods and services will margin lockstep with pricing i.e. go down then that will extend that run way as well. Clearly we recognize we have a debt issues that needs to solved and we've hired advisors to help us do that.

Okay, great understood. So, I guess it's not just only bringing down debt but you could look to boost the denominator, keep margins up and help beyond that front. So really appreciate the color there.

Thank you. We’ve reached end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

Well, operator that's all I have. We'll talk again in the not too distant future. Thanks so much.

Thank you. So this concludes today's teleconference. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.