Cash consideration:

Evaluated properties including equipment

$

73,176

Unevaluated properties

9,248

Sub-total – cash consideration

82,424

Non-cash consideration:

Asset retirement obligation - current

90

Asset retirement obligation - non-current

4,143

Sub-total – non-cash consideration

4,233

Total consideration

$

86,657

(unaudited)

Year Ended December 31,

2013

2012

Revenues (a)

$

34,030

$

48,559

Direct operating expenses (a)

6,405

8,525

DD&A (b)

14,856

17,492

G&A (c)

(361

)

—

Interest expense (d)

1,374

1,648

Capitalized interest (e)

(168

)  

288

Income tax expense (f)

4,173

7,212

(a)

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

(b)

DD&A was estimated using the full-cost method and determined as the incremental DD&A expense due to adding the Callon 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.

(c)

G&A adjustments related to incremental transaction expenses, which were assumed to be funded from cash on hand, and were adjusted from the 2013 results.

(d)

The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $82.4 million, which equates to the cash component of the transaction, and an interest rate of 2.0%, which equates to the rates applied to incremental borrowings on the revolving bank credit facility.

(e)

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. Positive amounts represent increases to net expenses. The negative amount represents a decrease to net expenses.

(f)

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

Cash consideration:

Evaluated properties including equipment

$

192,723

Unevaluated properties

13,065

Sub-total – cash consideration

205,788

Non-cash consideration:

Asset retirement obligation - current

7,250

Asset retirement obligation - non-current

24,414

Sub-total – non-cash consideration

31,664

Total consideration

$

237,452

(unaudited)

Year Ended December 31,

2012

2011

Revenues (a)

$

105,705

$

216,761

Direct operating expenses (a)

33,186

24,563

Insurance costs (b)

475

633

DD&A (c)

53,408

102,713

G&A (d)

(553

) 

—

Interest expense (e)

12,060

15,846

Capitalized interest (f)

(643

) 

(868

) 

Income tax expense (g)

2,720

25,856

(a)

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

(b)

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.

(c)

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.

(d)

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

(e)

The acquisition was assumed to be funded entirely with borrowed funds. Interest expense was computed using assumed borrowings of $205.7 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.

(f)

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.

(g)

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

Cash consideration:

Evaluated properties including equipment

$

313,165

Unevaluated properties

81,212

Sub-total – cash consideration

394,377

Non-cash consideration:

Asset retirement obligation - non-current

382

Long-term liability

2,143

Sub-total – non-cash consideration

2,525

Total consideration

$

396,902

Cash consideration:

Evaluated properties including equipment

$

42,870

Non-cash consideration:

Asset retirement obligation - non-current

7,812

Total consideration

$

50,682

(unaudited)
Year Ended
December 31,
2011

Revenue

$

1,023,430

Net income

180,779

Basic and diluted earnings per common share

2.39