W&T Offshore Announces Third Quarter 2024 Results and Declares Dividend for Fourth Quarter of 2024
W&T Offshore reported Q3 2024 financial results with production of 31.0 MBoe/d (52% liquids), generating net cash from operating activities of $14.8 million and Free Cash Flow of $3.9 million. The company reported a net loss of $36.9 million, or $(0.25) per diluted share, with Adjusted EBITDA of $26.7 million. Key highlights include reduced lease operating expenses at $72.4 million (6% below guidance), increased cash position to $126.5 million, and maintained low leverage with Net Debt to TTM Adjusted EBITDA of 1.6x. The company declared a Q4 2024 dividend of $0.01 per share and reduced its 2024 full-year capital expenditure budget to $25-35 million.
W&T Offshore ha riportato i risultati finanziari del terzo trimestre 2024 con una produzione di 31,0 MBoe/giorno (52% liquidi), generando un flusso di cassa netto dalle attività operative di 14,8 milioni di dollari e un flusso di cassa libero di 3,9 milioni di dollari. L’azienda ha registrato una perdita netta di 36,9 milioni di dollari, pari a $(0,25) per azione diluita, con un EBITDA rettificato di 26,7 milioni di dollari. Punti salienti includono una riduzione delle spese operative di leasing a 72,4 milioni di dollari (6% al di sotto delle previsioni), un aumento della posizione di cassa a 126,5 milioni di dollari e un basso leverage mantenuto con un rapporto Debito Netto a EBITDA Rettificato TTM di 1,6 volte. L’azienda ha dichiarato un dividendo per il quarto trimestre 2024 di 0,01 dollari per azione e ha ridotto il budget per le spese in conto capitale dell'intero anno 2024 a 25-35 milioni di dollari.
W&T Offshore reportó resultados financieros del tercer trimestre de 2024 con una producción de 31.0 MBoe/día (52% líquidos), generando un flujo de caja neto de actividades operativas de $14.8 millones y un Flujo de Caja Libre de $3.9 millones. La empresa reportó una pérdida neta de $36.9 millones, o $(0.25) por acción diluida, con un EBITDA ajustado de $26.7 millones. Puntos destacados incluyen la reducción de los gastos operativos de arrendamiento a $72.4 millones (6% por debajo de la guía), el aumento de la posición de efectivo a $126.5 millones y el mantenimiento de un bajo apalancamiento con una relación de Deuda Neta a EBITDA Ajustado TTM de 1.6x. La compañía declaró un dividendo para el cuarto trimestre de 2024 de $0.01 por acción y redujo su presupuesto de gastos de capital para todo el año 2024 a $25-35 millones.
W&T Offshore는 2024년 3분기 재무 결과를 보고했으며, 생산량은 31.0 MBoe/일 (52% 액화물)로, 운영 활동에서 1,480만 달러의 순 현금을 발생시키고, 자유 현금 흐름은 390만 달러에 달했습니다. 회사는 3,690만 달러의 순손실을 기록했으며, 주당 희석 손실은 $(0.25)이고, 조정된 EBITDA는 2,670만 달러입니다. 주요 하이라이트로는 리스 운영 경비가 7240만 달러로 감소(가이던스보다 6% 낮음), 현금 보유가 1억 2650만 달러로 증가, 조정된 EBITDA TTM에 대한 순부채 비율이 1.6배로 낮게 유지되었다는 점이 있습니다. 회사는 2024년 4분기 주당 0.01달러의 배당금을 선언하고, 2024년 전체 연도 자본 지출 예산을 2500만~3500만 달러로 줄였습니다.
W&T Offshore a rapporté ses résultats financiers pour le troisième trimestre 2024 avec une production de 31,0 MBoe/jour (52% liquides), générant un flux de trésorerie net provenant des activités opérationnelles de 14,8 millions de dollars et un flux de trésorerie libre de 3,9 millions de dollars. L’entreprise a enregistré une perte nette de 36,9 millions de dollars, soit $(0,25) par action diluée, avec un EBITDA ajusté de 26,7 millions de dollars. Points forts comprennent des dépenses d'exploitation de location réduites à 72,4 millions de dollars (6% en dessous des prévisions), une position de trésorerie augmentée à 126,5 millions de dollars, et un faible niveau d'endettement avec un ratio de dette nette par rapport à l'EBITDA ajusté TTM de 1,6x. L'entreprise a déclaré un dividende pour le quatrième trimestre 2024 de 0,01 dollar par action et a réduit son budget d'investissement pour l'année 2024 à 25-35 millions de dollars.
W&T Offshore hat die finanziellen Ergebnisse für das dritte Quartal 2024 gemeldet, mit einer Produktion von 31,0 MBoe/Tag (52% Flüssigkeiten), die einen Nettokassenfluss aus Betriebstätigkeiten von 14,8 Millionen Dollar und einen freien Cashflow von 3,9 Millionen Dollar generiert. Das Unternehmen berichtete über einen Nettoverlust von 36,9 Millionen Dollar oder $(0,25) pro verwässerter Aktie, mit einem bereinigten EBITDA von 26,7 Millionen Dollar. Wichtige Highlights umfassen gesenkte Betriebskosten für das Leasing in Höhe von 72,4 Millionen Dollar (6% unter der Prognose), eine erhöhte liquiden Mittelposition von 126,5 Millionen Dollar und eine niedrige Verschuldung mit einem Verhältnis von Nettoschulden zu bereinigtem EBITDA TTM von 1,6-fach. Das Unternehmen erklärte eine Dividende für das vierte Quartal 2024 von 0,01 Dollar pro Aktie und reduzierte sein Investitionsausgabenbudget für das Jahr 2024 auf 25-35 Millionen Dollar.
- Generated positive Free Cash Flow for 27th consecutive quarter
- LOE reduced 6% below guidance to $72.4 million
- Strong liquidity position with $126.5 million in cash
- Low leverage profile with Net Debt to TTM Adjusted EBITDA of 1.6x
- Production levels recovered to 34.0 Mboe/d in October
- Net loss of $36.9 million ($0.25 per diluted share)
- Production decreased to 31.0 MBoe/d from 34.9 MBoe/d in Q2
- Revenue declined 15% to $121.4 million quarter-over-quarter
- Two acquired fields remain shut-in
- Additional $16.6 million contingent loss accrual for P&A costs
Insights
W&T Offshore's Q3 2024 results reveal significant operational challenges. The company reported a
Key financial metrics show a mixed picture: revenue declined
The reduced capital expenditure budget from
HOUSTON, Nov. 07, 2024 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T,” the “Company” or “us”) today reported operational and financial results for the third quarter of 2024 and declared a fourth quarter 2024 dividend of
This press release includes non-GAAP financial measures, including Adjusted Net (Loss) Income, Adjusted EBITDA, Free Cash Flow and Net Debt, which are described and reconciled to the most comparable GAAP financial measures below in the accompanying tables under “Non-GAAP Information.”
Key highlights for the third quarter of 2024 and through the date of this press release include:
- Produced 31.0 thousand barrels of oil equivalent per day (“MBoe/d”) (
52% liquids) within the Company’s third quarter guidance despite impacts from hurricanes and downtime; - Incurred lease operating expenses (“LOE”) of
$72.4 million ,6% lower than the bottom end of the Company’s third quarter guidance range; - Generated net cash from operating activities of
$14.8 million and Free Cash Flow of$3.9 million in the third quarter of 2024, marking the 27th consecutive quarter of positive Free Cash Flow; - Reported net loss of
$36.9 million , or$(0.25) per diluted share;
- Adjusted Net Loss totaled
$25.7 million , or$(0.17) per share, which primarily excludes the net unrealized gain on outstanding derivative contracts, non-ARO plugging and abandonment (“P&A”) costs and related tax effect;
- Adjusted Net Loss totaled
- Posted Adjusted EBITDA of
$26.7 million ; - Increased cash and cash equivalents to
$126.5 million and lowered Net Debt to$266.0 million at September 30, 2024; - Maintained a low leverage profile with Net Debt to trailing twelve months (“TTM”) Adjusted EBITDA of 1.6x, which does not include the benefit of the full expected production acquired in 2024;
- Paid fourth consecutive quarterly dividend of
$0.01 per common share in August 2024;
- Declared fourth quarter of 2024 dividend of
$0.01 per share, which will be payable on November 29, 2024 to stockholders of record on November 21, 2024;
- Declared fourth quarter of 2024 dividend of
- Reduced 2024 full year capital expenditure budget from
$35 t o$45 million to$25 t o$35 million ; - Continued commitment to sustainability by publishing the 2023 Corporate Environmental, Social and Governance (“ESG”) report; and
- Named as one of five finalists for the Best Proxy Statement in the small cap category at the 18th Annual Corporate Governance Awards hosted by Governance Intelligence (formerly Corporate Secretary) which recognizes outstanding achievements in governance, risk and compliance.
Tracy W. Krohn, W&T’s Board Chair and Chief Executive Officer, commented, “We remain committed to executing our strategic vision focused on free cash flow generation, maintaining solid production and maximizing margins. This commitment enabled W&T to deliver another quarter of solid results despite production being temporarily impacted by approximately 3.5 MBoe/d of shut-ins associated with hurricanes and other unplanned downtime, but production was still within our guidance range for the quarter. In October, we have seen production levels recover to around 34.0 Mboe/d. We continue to make progress integrating our 2024 acquired assets into W&T with four of the six fields online, but we still have more work to do to return the remaining two fields to production, which provides additional upside. Additionally, we continue to reduce costs and capture synergies associated with our asset acquisitions with LOE
“We continue to demonstrate our commitment to a high quality, comprehensive ESG effort by issuing our 2023 ESG report. This is our fourth sustainability report, and we continue to make strides regarding shareholder rights, board structure and oversight, human rights, labor, health and safety and environmental initiatives. We are constantly seeking to improve our capabilities to better allow us to report on an increasing number of SASB standards and GRI standards for the oil and gas sector. W&T’s culture of success and sustainability is built on environmental stewardship, sound corporate governance, and contributing positively to our employees and the communities where we work and operate. In 2023, we added a new Board member, Dr. Nancy Chang, who is the chair of our Environmental, Safety and Governance committee that oversees our ESG efforts. Dr. Chang has helped to guide W&T in its ongoing commitment to high standards of ESG and corporate governance. We invite you to review this report to learn more about our sustainability program and our plans for improvement in the future. In addition, W&T was named as one of five finalists for the Best Proxy Statement in the small cap category at the 18th Annual Corporate Governance Awards. Our proxy statement clearly demonstrated our ongoing commitment to excellence and high standards of transparency and corporate governance.”
Production, Prices and Revenue: Production for the third quarter of 2024 was 31.0 MBoe/d, within the Company’s third quarter guidance and down compared with 34.9 MBoe/d for the second quarter of 2024 and 35.9 MBoe/d for the corresponding period in 2023. Production in the third quarter of 2024 was temporarily reduced by approximately 3.5 MBoe/d mainly due to hurricanes and third party downtime. The year-over-year decrease was partially offset by increased production from wells acquired in January 2024. Third quarter 2024 production was comprised of 13.2 thousand barrels per day (“MBbl/d”) of oil (
W&T’s average realized price per Boe before realized derivative settlements was
Revenues for the third quarter of 2024 were
Lease Operating Expense: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance expenses, was
Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled
Depreciation, Depletion and Amortization (“DD&A”): DD&A was
Asset Retirement Obligations Accretion: Asset retirement obligations accretion was
General & Administrative Expenses (“G&A”): G&A was
Derivative (Gain) Loss, net: In the third quarter of 2024, W&T recorded a net gain of
A summary of the Company’s outstanding derivative positions is provided in the investor presentation posted on W&T’s website.
Interest Expense: Net interest expense in the third quarter of 2024 was
Other Expense: During 2021 and 2022, as a result of the declaration of bankruptcy by a third party that is the indirect successor in title to certain offshore interests that were previously divested by the Company, W&T recorded a contingent loss accrual related to anticipated non-ARO P&A costs. During the third quarter of 2024, the Company reassessed its existing obligations and recorded an additional
Income Tax (Benefit) Expense: W&T recognized an income tax benefit of
Balance Sheet and Liquidity: As of September 30, 2024, W&T had available liquidity of
Capital Expenditures and Asset Retirement Settlements: Capital expenditures on an accrual basis (excluding acquisitions) in the third quarter of 2024 were
OPERATIONS UPDATE
Well Recompletions and Workovers
During the third quarter of 2024, the Company performed one workover and three recompletions that positively impacted production for the quarter. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue.
Cash Dividend Policy
The Company paid its third quarter 2024 dividend of
The Board of Directors declared a fourth quarter 2024 dividend of
Issued 2023 Corporate ESG Report
The 2023 ESG report provides detailed information about W&T’s sustainability initiatives and provides important ESG performance data for the five year period from 2019 through 2023.
Highlights of the report include:
- Decreased total Scope 1 GHG emissions
26% from over 435,000 metric tons of CO2-e in 2019 to 325,000 metric tons of CO2-e in 2023; - Decreased scope 1 GHG production intensity by
42% across the past five years; - Maintained detailed efforts and procedures in place to estimate and track all waste management that is recycled, injected, or sent to landfills;
- Continued reaching out and engaging directly with W&T’s largest shareholders, affirming the Company’s commitment to shareholders and ensuring alignment over the long-term; and
- Established an ESG Committee, chaired by Dr. Nancy Chang, which will assist in setting the Company’s general strategy relating to ESG matters and in developing, implementing, and monitoring initiatives and policies based on that strategy.
Proxy Statement Award
W&T was one of five entrants named as a finalist for the Best Proxy Statement in the small cap category at the 18th Annual Corporate Governance Awards out of 75 entrants (22 in the small cap category). These awards are hosted by Governance Intelligence (formerly Corporate Secretary) which recognize outstanding achievements in governance, risk and compliance. The award recognizes the unwavering commitment of W&T Offshore to excellence, transparency and innovation in shareholder communications.
The Corporate Governance Awards celebrate outstanding achievements by the governance profession in areas such as proxy statements, hosting annual general meetings (AGMs), compliance and ethics programs, ESG reporting, entity management, use of technology, investor engagement and corporate transactions. Winners will be selected by an independent panel of judges and announced at an in-person ceremony on November 7, 2024, in New York.
Fourth Quarter and Full Year 2024 Production and Expense Guidance
The guidance for the fourth quarter and full year 2024 in the table below represents the Company’s current expectations. Please refer to the section entitled “Forward-Looking and Cautionary Statements” below for risk factors that could impact guidance.
W&T plans to spend more on LOE in the fourth quarter of 2024 compared to the third quarter of 2024 to undertake some of the projects deferred earlier in the year. Full year estimated LOE was reduced in August 2024 by approximately
| Production | Fourth Quarter 2024 | Full Year 2024 |
| Oil (MBbl) | 1,200 – 1,330 | 5,000 – 5,500 |
| NGLs (MBbl) | 260 – 290 | 1,150 – 1,350 |
| Natural gas (MMcf) | 8,800 – 9,800 | 34,500 – 38,500 |
| Total equivalents (MBoe) | 2,927 – 3,253 | 11,900 – 13,267 |
| Average daily equivalents (MBoe/d) | 31.8 – 35.4 | 32.5 – 36.2 |
| Expenses | Fourth Quarter 2024 | Full Year 2024 |
| Lease operating expense ($MM) | 73.0 – 81.0 | 280.0 – 315.0 |
| Gathering, transportation & production taxes ($MM) | 6.8 – 7.6 | 31.0 – 34.0 |
| General & administrative – cash ($MM) | 15.5 – 17.2 | 66.0 – 74.0 |
| General & administrative – non-cash ($MM) | 3.6 – 4.2 | 11.5 – 13.5 |
| DD&A ($ per Boe) | 13.00 – 14.00 | |
W&T expects substantially all income taxes in 2024 to be deferred.
Conference Call Information: W&T will hold a conference call to discuss its financial and operational results on Friday, November 8, 2024 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Interested parties may dial 1-844-739-3797. International parties may dial 1-412-317-5713. Participants should request to connect to the “W&T Offshore Conference Call.” This call will also be webcast and available on W&T’s website at www.wtoffshore.com under “Investors.” An audio replay will be available on the Company’s website following the call.
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development. As of September 30, 2024, the Company had working interests in 53 fields in federal and state waters (which include 46 fields in federal waters and 7 in state waters). The Company has under lease approximately 673,100 gross acres (515,400 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 514,000 gross acres on the conventional shelf, approximately 153,500 gross acres in the deepwater and 5,600 gross acres in Alabama state waters. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release regarding the Company’s financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, projected costs, industry conditions, potential acquisitions, sustainability initiatives, the impact of and integration of acquired assets, and indebtedness are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. Items contemplating or making assumptions about actual or potential future production and sales, prices, market size, and trends or operating results also constitute such forward-looking statements.
These forward-looking statements are based on the Company’s current expectations and assumptions about future events and speak only as of the date of this release. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, as results actually achieved may differ materially from expected results described in these statements. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, unless required by law.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of the Company’s products; inflation levels; global economic trends, geopolitical risks and general economic and industry conditions, such as the global supply chain disruptions and the government interventions into the financial markets and economy in response to inflation levels and world health events; volatility of oil, NGL and natural gas prices; the global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; supply of and demand for oil, natural gas and NGLs, including due to the actions of foreign producers, importantly including OPEC and other major oil producing companies (“OPEC+”) and change in OPEC+’s production levels; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver the Company’s oil and natural gas and other processing and transportation considerations; inability to generate sufficient cash flow from operations or to obtain adequate financing to fund capital expenditures, meet the Company’s working capital requirements or fund planned investments; price fluctuations and availability of natural gas and electricity; the Company’s ability to use derivative instruments to manage commodity price risk; the Company’s ability to meet the Company’s planned drilling schedule, including due to the Company’s ability to obtain permits on a timely basis or at all, and to successfully drill wells that produce oil and natural gas in commercially viable quantities; uncertainties associated with estimating proved reserves and related future cash flows; the Company’s ability to replace the Company’s reserves through exploration and development activities; drilling and production results, lower–than–expected production, reserves or resources from development projects or higher–than–expected decline rates; the Company’s ability to obtain timely and available drilling and completion equipment and crew availability and access to necessary resources for drilling, completing and operating wells; changes in tax laws; effects of competition; uncertainties and liabilities associated with acquired and divested assets; the Company’s ability to make acquisitions and successfully integrate any acquired businesses; asset impairments from commodity price declines; large or multiple customer defaults on contractual obligations, including defaults resulting from actual or potential insolvencies; geographical concentration of the Company’s operations; the creditworthiness and performance of the Company’s counterparties with respect to its hedges; impact of derivatives legislation affecting the Company’s ability to hedge; failure of risk management and ineffectiveness of internal controls; catastrophic events, including tropical storms, hurricanes, earthquakes, pandemics and other world health events; environmental risks and liabilities under U.S. federal, state, tribal and local laws and regulations (including remedial actions); potential liability resulting from pending or future litigation; the Company’s ability to recruit and/or retain key members of the Company’s senior management and key technical employees; information technology failures or cyberattacks; and governmental actions and political conditions, as well as the actions by other third parties that are beyond the Company’s control, and other factors discussed in W&T Offshore’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q found at www.sec.gov or at the Company’s website at www.wtoffshore.com under the Investor Relations section.
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| Condensed Consolidated Statements of Operations | |||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Oil | $ | 90,862 | $ | 110,965 | $ | 100,331 | $ | 308,842 | $ | 287,313 | |||||||||
| NGLs | 5,636 | 8,160 | 7,415 | 21,265 | 25,595 | ||||||||||||||
| Natural gas | 23,148 | 21,910 | 32,515 | 66,674 | 80,757 | ||||||||||||||
| Other | 1,726 | 1,722 | 2,150 | 8,135 | 6,651 | ||||||||||||||
| Total revenues | 121,372 | 142,757 | 142,411 | 404,916 | 400,316 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Lease operating expenses | 72,412 | 73,987 | 61,826 | 217,229 | 193,033 | ||||||||||||||
| Gathering, transportation and production taxes | 6,147 | 8,578 | 6,692 | 22,265 | 19,630 | ||||||||||||||
| Depreciation, depletion, and amortization | 34,206 | 36,674 | 30,218 | 104,817 | 81,019 | ||||||||||||||
| Asset retirement obligations accretion | 7,848 | 8,400 | 6,414 | 24,217 | 21,641 | ||||||||||||||
| General and administrative expenses | 19,723 | 21,354 | 19,978 | 61,592 | 57,290 | ||||||||||||||
| Total operating expenses | 140,336 | 148,993 | 125,128 | 430,120 | 372,613 | ||||||||||||||
| Operating (loss) income | (18,964 | ) | (6,236 | ) | 17,283 | (25,204 | ) | 27,703 | |||||||||||
| Interest expense, net | 9,992 | 10,164 | 9,925 | 30,228 | 34,960 | ||||||||||||||
| Derivative (gain) loss, net | (3,199 | ) | 2,374 | (1,491 | ) | (5,702 | ) | (41,560 | ) | ||||||||||
| Other expense, net | 15,709 | 1,250 | 1,927 | 22,189 | 1,849 | ||||||||||||||
| (Loss) income before income taxes | (41,466 | ) | (20,024 | ) | 6,922 | (71,919 | ) | 32,454 | |||||||||||
| Income tax (benefit) expense | (4,545 | ) | (4,636 | ) | 4,777 | (8,136 | ) | 16,413 | |||||||||||
| Net (loss) income | $ | (36,921 | ) | $ | (15,388 | ) | $ | 2,145 | $ | (63,783 | ) | $ | 16,041 | ||||||
| Net (loss) income per share: | |||||||||||||||||||
| Basic | $ | (0.25 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.43 | ) | $ | 0.11 | ||||||
| Diluted | (0.25 | ) | (0.10 | ) | 0.01 | (0.43 | ) | 0.11 | |||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||
| Basic | 147,206 | 146,943 | 146,483 | 147,002 | 146,451 | ||||||||||||||
| Diluted | 147,206 | 146,943 | 151,459 | 147,002 | 149,856 | ||||||||||||||
| W&T OFFSHORE, INC. | |||||||||||||||||||
| Condensed Operating Data | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net sales volumes: | |||||||||||||||||||
| Oil (MBbls) | 1,210 | 1,382 | 1,227 | 3,992 | 3,831 | ||||||||||||||
| NGLs (MBbls) | 262 | 334 | 348 | 939 | 1,086 | ||||||||||||||
| Natural gas (MMcf) | 8,289 | 8,769 | 10,359 | 25,791 | 28,058 | ||||||||||||||
| Total oil and natural gas (MBoe)(1) | 2,854 | 3,177 | 3,302 | 9,230 | 9,593 | ||||||||||||||
| Average daily equivalent sales (MBoe/d) | 31.0 | 34.9 | 35.9 | 33.7 | 35.1 | ||||||||||||||
| Average realized sales prices (before the impact of derivative settlements): | |||||||||||||||||||
| Oil ($/Bbl) | $ | 75.09 | $ | 80.29 | $ | 81.77 | $ | 77.37 | $ | 75.00 | |||||||||
| NGLs ($/Bbl) | 21.51 | 24.43 | 21.31 | 22.65 | 23.57 | ||||||||||||||
| Natural gas ($/Mcf) | 2.79 | 2.50 | 3.14 | 2.59 | 2.88 | ||||||||||||||
| Barrel of oil equivalent ($/Boe) | 41.92 | 44.40 | 42.48 | 42.99 | 41.04 | ||||||||||||||
| Average operating expenses per Boe ($/Boe): | |||||||||||||||||||
| Lease operating expenses | $ | 25.37 | $ | 23.29 | $ | 18.72 | $ | 23.54 | $ | 20.12 | |||||||||
| Gathering, transportation and production taxes | 2.15 | 2.70 | 2.03 | 2.41 | 2.05 | ||||||||||||||
| Depreciation, depletion, and amortization | 11.99 | 11.55 | 9.15 | 11.36 | 8.45 | ||||||||||||||
| Asset retirement obligations accretion | 2.75 | 2.64 | 1.94 | 2.62 | 2.26 | ||||||||||||||
| General and administrative expenses | 6.91 | 6.72 | 6.05 | 6.67 | 5.97 | ||||||||||||||
(1) MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly. The realized prices presented above are volume-weighted for production in the respective period.
| W&T OFFSHORE, INC. | |||||||
| Consolidated Balance Sheets | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 126,544 | $ | 173,338 | |||
| Restricted cash | 4,417 | 4,417 | |||||
| Receivables: | |||||||
| Oil and natural gas sales | 52,025 | 52,080 | |||||
| Joint interest, net | 19,753 | 15,480 | |||||
| Other | 557 | 2,218 | |||||
| Prepaid expenses and other assets | 23,116 | 17,447 | |||||
| Total current assets | 226,412 | 264,980 | |||||
| Oil and natural gas properties and other, net | 798,705 | 749,056 | |||||
| Restricted deposits for asset retirement obligations | 22,625 | 22,272 | |||||
| Deferred income taxes | 46,910 | 38,774 | |||||
| Other assets | 32,624 | 38,923 | |||||
| Total assets | $ | 1,127,276 | $ | 1,114,005 | |||
| Liabilities and Shareholders’ (Deficit) Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 86,866 | $ | 78,857 | |||
| Accrued liabilities | 21,629 | 31,978 | |||||
| Undistributed oil and natural gas proceeds | 54,461 | 42,134 | |||||
| Advances from joint interest partners | 2,489 | 2,962 | |||||
| Current portion of asset retirement obligations | 45,139 | 31,553 | |||||
| Current portion of long-term debt, net | 20,968 | 29,368 | |||||
| Total current liabilities | 231,552 | 216,852 | |||||
| Asset retirement obligations | 509,888 | 467,262 | |||||
| Long-term debt, net | 371,596 | 361,236 | |||||
| Other liabilities | 16,665 | 19,420 | |||||
| Commitments and contingencies | 29,085 | 18,043 | |||||
| Shareholders’ (deficit) equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock | 2 | 1 | |||||
| Additional paid-in capital | 591,602 | 586,014 | |||||
| Retained deficit | (598,947 | ) | (530,656 | ) | |||
| Treasury stock | (24,167 | ) | (24,167 | ) | |||
| Total shareholders’ (deficit) equity | (31,510 | ) | 31,192 | ||||
| Total liabilities and shareholders’ (deficit) equity | $ | 1,127,276 | $ | 1,114,005 | |||
| W&T OFFSHORE, INC. | |||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Operating activities: | |||||||||||||||||||
| Net (loss) income | $ | (36,921 | ) | $ | (15,388 | ) | $ | 2,145 | $ | (63,783 | ) | $ | 16,041 | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 42,054 | 45,074 | 36,632 | 129,034 | 102,660 | ||||||||||||||
| Share-based compensation | 1,956 | 1,386 | 3,250 | 6,374 | 7,259 | ||||||||||||||
| Amortization and write off of debt issuance costs | 1,109 | 1,044 | 1,351 | 3,445 | 5,714 | ||||||||||||||
| Derivative loss (gain), net | (3,199 | ) | 2,374 | (1,491 | ) | (5,702 | ) | (41,560 | ) | ||||||||||
| Derivative cash settlements, net | 1,208 | 2,358 | (1,696 | ) | 6,165 | (6,123 | ) | ||||||||||||
| Deferred income (benefit) taxes | (4,545 | ) | (4,324 | ) | 3,067 | (8,136 | ) | 14,647 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | 21,913 | (7,108 | ) | (9,354 | ) | (2,557 | ) | 15,575 | |||||||||||
| Prepaid expenses and other current assets | 2,502 | (6,177 | ) | (1,442 | ) | (3,242 | ) | 25,550 | |||||||||||
| Accounts payable, accrued liabilities and other | (2,962 | ) | 26,416 | 10,645 | 22,602 | (35,183 | ) | ||||||||||||
| Asset retirement obligation settlements | (8,347 | ) | (8,209 | ) | (13,077 | ) | (20,344 | ) | (24,918 | ) | |||||||||
| Net cash provided by operating activities | 14,768 | 37,446 | 30,030 | 63,856 | 79,662 | ||||||||||||||
| Investing activities: | |||||||||||||||||||
| Investment in oil and natural gas properties and equipment | (9,577 | ) | (6,576 | ) | (4,337 | ) | (23,233 | ) | (29,674 | ) | |||||||||
| Acquisition of property interests | — | (120 | ) | (28,863 | ) | (80,635 | ) | (28,863 | ) | ||||||||||
| Deposit related to acquisition of property interests | — | — | (8,850 | ) | — | (8,850 | ) | ||||||||||||
| Purchase of corporate aircraft | — | — | — | — | (8,983 | ) | |||||||||||||
| Purchases of furniture, fixtures and other | (69 | ) | (73 | ) | (2,863 | ) | (166 | ) | (3,081 | ) | |||||||||
| Net cash used in investing activities | (9,646 | ) | (6,769 | ) | (44,913 | ) | (104,034 | ) | (79,451 | ) | |||||||||
| Financing activities: | |||||||||||||||||||
| Proceeds from issuance of long-term debt | — | — | — | — | 275,000 | ||||||||||||||
| Repayments of long-term debt | (275 | ) | (275 | ) | (7,423 | ) | (825 | ) | (579,247 | ) | |||||||||
| Debt issuance costs | (174 | ) | (93 | ) | (128 | ) | (579 | ) | (7,380 | ) | |||||||||
| Payment of dividends | (1,473 | ) | (1,485 | ) | — | (4,427 | ) | — | |||||||||||
| Other | (31 | ) | (271 | ) | (200 | ) | (785 | ) | (948 | ) | |||||||||
| Net cash used in financing activities | (1,953 | ) | (2,124 | ) | (7,751 | ) | (6,616 | ) | (312,575 | ) | |||||||||
| Change in cash, cash equivalents and restricted cash | 3,169 | 28,553 | (22,634 | ) | (46,794 | ) | (312,364 | ) | |||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 127,792 | 99,239 | 176,044 | 177,755 | 465,774 | ||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 130,961 | $ | 127,792 | $ | 153,410 | $ | 130,961 | $ | 153,410 | |||||||||
W&T OFFSHORE, INC. AND SUBSIDIARIES
Non-GAAP Information
Certain financial information included in W&T’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are “Net Debt,” “Adjusted Net (Loss) Income,” “Adjusted EBITDA” and “Free Cash Flow” or are derivable from a combination of these measures. Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Prior period amounts have been conformed to the methodology and presentation of the current period.
We calculate Net Debt as total debt (current and long-term portions), less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to service its debt obligations.
Reconciliation of Net (Loss) Income to Adjusted Net Loss
Adjusted Net (Loss) Income adjusts for certain items that the Company believes affect comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include unrealized commodity derivative gain, net, allowance for credit losses, write-off of debt issuance costs, non-recurring legal and IT-related costs, non-ARO P&A costs, and other which are then tax effected using the Federal Statutory Rate.
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Net (loss) income | $ | (36,921 | ) | $ | (15,388 | ) | $ | 2,145 | $ | (63,783 | ) | $ | 16,041 | ||||||
| Unrealized commodity derivative (gain) loss, net | (1,829 | ) | 2,738 | (3,462 | ) | (213 | ) | (44,061 | ) | ||||||||||
| Allowance for credit losses | 10 | 346 | 6 | 440 | 9 | ||||||||||||||
| Write-off debt issuance costs | — | — | — | — | 2,330 | ||||||||||||||
| Non-recurring legal and IT-related costs | (22 | ) | 4,202 | 768 | 4,938 | 2,631 | |||||||||||||
| Non-ARO P&A costs | 16,627 | 1,709 | 2,103 | 23,688 | 2,109 | ||||||||||||||
| Other | (633 | ) | 304 | 204 | (543 | ) | 271 | ||||||||||||
| Tax effect of selected items(1) | (2,972 | ) | (1,953 | ) | 84 | (5,945 | ) | 7,709 | |||||||||||
| Adjusted net (loss) income | $ | (25,740 | ) | $ | (8,042 | ) | $ | 1,848 | $ | (41,418 | ) | $ | (12,961 | ) | |||||
| Adjusted net (loss) income per common share: | |||||||||||||||||||
| Basic | $ | (0.17 | ) | $ | (0.05 | ) | $ | 0.01 | ( | ) | $ | (0.09 | ) | ||||||
| Diluted | $ | (0.17 | ) | $ | (0.05 | ) | $ | 0.01 | ( | ) | $ | (0.09 | ) | ||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 147,206 | 146,943 | 146,483 | 147,002 | 146,451 | ||||||||||||||
| Diluted | 147,206 | 146,943 | 151,459 | 147,002 | 146,451 | ||||||||||||||
(1) Selected items were tax effected with the Federal Statutory Rate of
W&T OFFSHORE, INC. AND SUBSIDIARIES
Non-GAAP Information
Adjusted EBITDA/ Free Cash Flow Reconciliations
The Company also presents non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net (loss) income plus net interest expense, income tax (benefit) expense, depreciation, depletion and amortization, ARO accretion, excluding the unrealized commodity derivative loss (gain), allowance for credit losses, non-cash incentive compensation, non-recurring legal and IT-related costs, non-ARO P&A costs, and other. Company management believes this presentation is relevant and useful because it helps investors understand W&T’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as W&T calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.
The Company defines Free Cash Flow as Adjusted EBITDA (defined above), less capital expenditures, P&A costs and net interest expense (all on an accrual basis). For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and the lease maintenance costs) and equipment but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company’s capital expenditures guidance provided to investors. Company management believes that Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of its current operating activities after the impact of accrued capital expenditures, P&A costs and net interest expense and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. There is no commonly accepted definition of Free Cash Flow within the industry. Accordingly, Free Cash Flow, as defined and calculated by the Company, may not be comparable to Free Cash Flow or other similarly named non-GAAP measures reported by other companies. While the Company includes net interest expense in the calculation of Free Cash Flow, other mandatory debt service requirements of future payments of principal at maturity (if such debt is not refinanced) are excluded from the calculation of Free Cash Flow. These and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses.
The following table presents a reconciliation of the Company’s net (loss) income, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Net (loss) income | $ | (36,921 | ) | $ | (15,388 | ) | $ | 2,145 | $ | (63,783 | ) | $ | 16,041 | ||||||
| Interest expense, net | 9,992 | 10,164 | 9,925 | 30,228 | 34,960 | ||||||||||||||
| Income tax (benefit) expense | (4,545 | ) | (4,636 | ) | 4,777 | (8,136 | ) | 16,413 | |||||||||||
| Depreciation, depletion and amortization | 34,206 | 36,674 | 30,218 | 104,817 | 81,019 | ||||||||||||||
| Asset retirement obligations accretion | 7,848 | 8,400 | 6,414 | 24,217 | 21,641 | ||||||||||||||
| Unrealized commodity derivative (gain) loss, net | (1,829 | ) | 2,738 | (3,462 | ) | (213 | ) | (44,061 | ) | ||||||||||
| Allowance for credit losses | 10 | 346 | 6 | 440 | 9 | ||||||||||||||
| Non-cash incentive compensation | 1,956 | 1,386 | 3,250 | 6,374 | 7,259 | ||||||||||||||
| Non-recurring legal and IT-related costs | (22 | ) | 4,202 | 768 | 4,938 | 2,631 | |||||||||||||
| Non-ARO P&A costs | 16,627 | 1,709 | 2,103 | 23,688 | 2,109 | ||||||||||||||
| Other | (633 | ) | 304 | 204 | (543 | ) | 271 | ||||||||||||
| Adjusted EBITDA | $ | 26,689 | $ | 45,899 | $ | 56,348 | $ | 122,027 | $ | 138,292 | |||||||||
| Capital expenditures, accrual basis(1) | $ | (4,461 | ) | $ | (8,781 | ) | $ | (7,960 | ) | $ | (16,398 | ) | $ | (30,959 | ) | ||||
| Asset retirement obligation settlements | (8,347 | ) | (8,209 | ) | (13,077 | ) | (20,344 | ) | (24,918 | ) | |||||||||
| Interest expense, net | (9,992 | ) | (10,164 | ) | (9,925 | ) | (30,228 | ) | (34,960 | ) | |||||||||
| Free Cash Flow | $ | 3,889 | $ | 18,745 | $ | 25,386 | $ | 55,057 | $ | 47,455 | |||||||||
(1) A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below:
| Capital expenditures, accrual basis reconciliation | |||||||||||||||||||
| Investment in oil and natural gas properties and equipment | $ | (9,577 | ) | $ | (6,576 | ) | $ | (4,337 | ) | $ | (23,233 | ) | $ | (29,674 | ) | ||||
| Less: acquisition related expenditures included in investment in oil and natural gas properties and equipment | (4,929 | ) | — | — | (4,929 | ) | — | ||||||||||||
| Less: changes in operating assets and liabilities associated with investing activities | (187 | ) | 2,205 | 3,623 | (1,906 | ) | 1,285 | ||||||||||||
| Capital expenditures, accrual basis | $ | (4,461 | ) | $ | (8,781 | ) | $ | (7,960 | ) | $ | (16,398 | ) | $ | (30,959 | ) | ||||
The following table presents a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company:
| Three Months Ended | Nine Months | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Net cash provided by operating activities | $ | 14,768 | $ | 37,446 | $ | 30,030 | $ | 63,856 | $ | 79,662 | |||||||||
| Allowance for credit losses | 10 | 346 | 6 | 440 | 9 | ||||||||||||||
| Amortization of debt items and other items | (1,109 | ) | (1,044 | ) | (1,351 | ) | (3,445 | ) | (5,714 | ) | |||||||||
| Non-recurring legal and IT-related costs | (22 | ) | 4,202 | 768 | 4,938 | 2,631 | |||||||||||||
| Current tax (benefit) expense(1) | — | (312 | ) | 1,710 | — | 1,766 | |||||||||||||
| Change in derivatives (payable) receivable(1) | 162 | (1,994 | ) | (275 | ) | (676 | ) | 3,622 | |||||||||||
| Non-ARO P&A costs | 16,627 | 1,709 | 2,103 | 23,688 | 2,109 | ||||||||||||||
| Changes in operating assets and liabilities, excluding asset retirement obligation settlements | (21,453 | ) | (13,131 | ) | 151 | (16,803 | ) | (5,942 | ) | ||||||||||
| Capital expenditures, accrual basis | (4,461 | ) | (8,781 | ) | (7,960 | ) | (16,398 | ) | (30,959 | ) | |||||||||
| Other | (633 | ) | 304 | 204 | (543 | ) | 271 | ||||||||||||
| Free Cash Flow | $ | 3,889 | $ | 18,745 | $ | 25,386 | $ | 55,057 | $ | 47,455 | |||||||||
(1) A reconciliation of the adjustments used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below:
| Current tax (benefit) expense: | |||||||||||||||||||
| Income tax (benefit) expense | $ | (4,545 | ) | $ | (4,636 | ) | $ | 4,777 | $ | (8,136 | ) | $ | 16,413 | ||||||
| Less: Deferred income (benefit) taxes | (4,545 | ) | (4,324 | ) | 3,067 | (8,136 | ) | 14,647 | |||||||||||
| Current tax (benefit) expense | $ | — | $ | (312 | ) | $ | 1,710 | $ | — | $ | 1,766 | ||||||||
| Changes in derivatives receivable (payable) | |||||||||||||||||||
| Derivatives (payable) receivable, end of period | $ | (405 | ) | $ | (567 | ) | $ | (952 | ) | $ | (405 | ) | $ | (952 | ) | ||||
| Derivatives payable (receivable), beginning of period | 567 | (1,427 | ) | 677 | (271 | ) | 4,574 | ||||||||||||
| Change in derivatives (payable) receivable | $ | 162 | $ | (1,994 | ) | $ | (275 | ) | $ | (676 | ) | $ | 3,622 | ||||||
| CONTACT: | Al Petrie | Sameer Parasnis |
| Investor Relations Coordinator | Executive VP and CFO | |
| investorrelations@wtoffshore.com | sparasnis@wtoffshore.com | |
| 713-297-8024 | 713-513-8654 |
This press release was published by a CLEAR® Verified individual.
FAQ
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