Cash consideration:

Evaluated properties including equipment

$

52,167

Unevaluated properties

2,660

Sub-total cash consideration

54,827

Non-cash consideration:

Asset retirement obligations - current

782

Asset retirement obligations - non-current

10,543

Sub-total non-cash consideration

11,325

Total consideration

$

66,152

(unaudited)

Year Ended December 31,

2014 ^(a)

2013

Revenues (b)

$

22,887

$

62,949

Direct operating expenses (b)

4,417

9,583

DD&A (c)

8,374

20,476

G&A (d)

300

800

Interest expense (e)

329

987

Capitalized interest (f)

(19

)

164

Income tax expense (g)

3,320

10,829

(a)

The adjustments for 2014 are for the period from January 1, 2014 to May 20, 2014.

(b)

Revenues and direct operating expenses for the Woodside Properties were derived from the historical financial records of Woodside.

(c)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Woodside Properties’ costs, reserves and production into our full cost pool in order to compute such amounts.  The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation.  ARO was estimated by W&T management.

(d)

Estimated insurance costs related to the Woodside Properties.

(e)

The acquisition was assumed to be funded entirely with borrowed funds.  Interest expense was computed using assumed borrowings of $54.8 million, which equates to the cash component of the acquisition purchase price, and an interest rate of 1.8%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.

(f)

The change to capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings.  The negative amount represents a decrease to net expenses.

(g)

Income tax expense was computed using the 35% federal statutory rate.

(unaudited)

Year Ended December 31,

2013

2012

Revenue

$

1,018,118

$

923,050

Net income

59,015

85,310

Basic and diluted earnings per common share

0.78

1.12

Cash consideration:

Evaluated properties including equipment

$

192,723

Unevaluated properties

13,065

Sub-total cash consideration

205,788

Non-cash consideration:

Asset retirement obligations – current

7,250

Asset retirement obligations - non-current

24,414

Sub-total non-cash consideration

31,664

Total consideration

$

237,452

(unaudited)

Year Ended

December 31, 2012 ^(a)

Revenues (b)

$

105,705

Direct operating expenses (b)

33,186

Insurance costs (c)

475

DD&A (d)

53,408

G&A (e)

(553

)

Interest expense (f)

12,060

Capitalized interest (g)

(643

)

Income tax expense (h)

2,720

(b)

Revenues and direct operating expenses for the Newfield Properties were derived from the historical financial records of Newfield.

(c)

Incremental costs for insurance were estimated from the incremental costs to add the Newfield Properties to W&T’s insurance programs.  The direct operating costs for the Newfield Properties described above excluded insurance costs.

(d)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Newfield Properties’ costs, reserves and production into our currently existing full cost pool in order to compute such amounts.  The purchase price allocated to unevaluated properties for oil and natural gas interests was excluded from the DD&A expense estimation.  ARO was estimated by W&T management.

(e)

G&A adjustments related to incremental transaction expenses, which were assumed to be funded from cash on hand, and were adjusted from 2012 results.

(f)

The acquisition was assumed to be funded entirely with borrowed funds.  Interest expense was computed using assumed borrowings of $205.8 million, which equates to the cash component of the transaction, and an interest rate of 7.7%, which equates to the effective yield on net proceeds for the additional senior notes issued shortly after the acquisition closed.

(g)

Incremental capitalized interest was computed for the addition to the pool of unevaluated properties and the capitalization interest rate was adjusted for the assumed borrowings.  The negative amount represents a decrease to net expenses.

(h)

Income tax expense was computed using the 35% federal statutory rate.