W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today reported operational and financial results for the second
quarter of 2023. This press release includes non-GAAP financial
measures, including Adjusted Net Income (Loss), Adjusted EBITDA,
Free Cash Flow, Net Debt and PV-10, which are described and
reconciled to the most comparable GAAP measures below in the
accompanying tables under “Non-GAAP Information.”
Key highlights for the second quarter of 2023
and through the date of this press release include:
- Increased second quarter 2023
production by 14% over production in the first quarter 2023 to 37.0
thousand barrels of oil equivalent per day (“MBoe/d”) (50%
liquids), or 3.4 million barrels of oil equivalent (“MMBoe”);
- Production was at the midpoint of
guidance and recovered from first quarter 2023 planned and
unplanned downtime;
- Reported a net loss
of $12.1 million, or $0.08 per diluted share in the second quarter
of 2023;
- Adjusted Net Loss
totaled $12.4 million, or $0.08 per share in the second quarter of
2023, which excludes the net unrealized gain on outstanding
derivative contracts and non-recurring costs related to IT services
transition;
- Generated Adjusted
EBITDA of $38.8 million for the second quarter of 2023;
- Produced net cash
from operating activities of $26.2 million and Free Cash Flow of
$9.7 million for the second quarter of 2023, the 22nd consecutive
quarter of positive Free Cash Flow;
- Continued the
amortization of the non-recourse Mobile Bay term loan and repaid an
additional $9.6 million in second quarter 2023;
- Maintained strong
cash and cash equivalents of $171.6 million at June 30, 2023;
- Reported Net Debt
of $231.9 million as of June 30, 2023, which is down substantially
from Net Debt of $331.4 million a year ago;
- Continued to
maintain a low leverage profile with Net Debt to trailing twelve
months (“TTM”) Adjusted EBITDA of 0.9 times;
- Appointed Sameer
Parasnis as Executive Vice President and Chief Financial Officer in
July 2023;
- Was awarded two
shallow water blocks, Eugene Island South Addition block 371 and
Eugene Island South Addition block 387 in the recent Gulf of Mexico
(“GOM”) Lease Sale 259 in March 2023. These two blocks cover a
total of approximately 10,000 gross acres; and
- Reported mid-year
SEC proved reserves, based on a reserve report prepared by
Netherland, Sewell and Associates, Inc. (“NSAI”) using SEC pricing,
of 157.7 MMBoe, and the present value of those SEC proved reserves
discounted at 10% (“PV-10”) was $2.1 billion.
Tracy W. Krohn, W&T’s Board Chair and Chief
Executive Officer, commented, “Our second quarter 2023 production
volumes recovered from first quarter downtime and were up 14% over
first quarter 2023 to 37.0 Mboe per day, which resulted in a good
quarter of positive operational and financial results. Despite
weaker commodity prices, we continued to generate meaningful
Adjusted EBITDA and Free Cash Flow with Adjusted EBITDA of $38.8
million in the second quarter and positive Free Cash Flow of $9.7
million, marking the 22nd consecutive quarter of positive Free
Cash Flow. In early 2023 we strengthened our balance sheet by
issuing $275 million in new 2026 Senior Second Lien Notes, and used
the proceeds along with our considerable cash position to
repurchase all $552.5 million principal amount of the outstanding
2023 Senior Second Lien Notes. The benefits were seen in the second
quarter with our significantly lower interest expense. We
maintained our strong cash and cash equivalents position at $171.6
million and our Net Debt to Adjusted EBITDA ratio remains low
at 0.9 times. Operationally, we continued our
successful workover program and were pleased to recently be awarded
the two leases on which we were high bidders in the GOM lease sale
back in March.”
Mr. Krohn continued, “In early July we appointed
Sameer Parasnis as our new Chief Financial Officer and welcomed him
to our senior leadership team. Sameer has served as a trusted
financial advisor for many years, including on key strategic
initiatives like our drilling joint venture, corporate debt
refinancing, non-recourse term loan financing and our opportunistic
At-The-Market equity offering in 2022. We are confident that his
extensive experience with our business, energy markets and our
leadership team will greatly benefit W&T and our
shareholders.”
Mr. Krohn concluded, “With our financial
flexibility and strong liquidity position, we believe we are very
well positioned to take advantage of potential acquisitions that
may present themselves in the near term and poised to continue
delivering on our strategic vision. Our management team is closely
aligned with our shareholders through our sizeable stock ownership
position. We remain committed to enhancing shareholder value
through a proven strategy focused on free cash flow generation and
operational excellence, which we believe positions us well for the
future.”
Production, Prices, and
Revenue: Production for the second quarter of 2023
was 37.0 MBoe/d, which was at the midpoint of the Company’s
guidance range provided for the quarter. This represented an
increase of 14% from 32.5 Mboe/d for the first quarter of 2023 and
a decrease of 13% from 42.4 MBoe/d for the corresponding period in
2022. The increase in production compared to the first quarter of
2023 was primarily driven by recovery from first quarter 2023
unplanned downtime at non-operated fields and extended planned
downtime associated with a maintenance project at the Company’s
Mobile Bay onshore treatment facility to properly maintain, inspect
and clean out process vessels in the plant as well as pipeline
maintenance, which shut in production at the Mobile Bay field for
35 days. Second quarter 2023 production was comprised of 13.8
MBbl/d of oil (37%), 4.9 MBbl/d of natural gas liquids (“NGLs”)
(13%), and 110.1 million cubic feet per day (“MMcf/d”) of natural
gas (50%).
W&T’s average realized price per barrel of
oil equivalent (“Boe”) before realized derivative settlements was
$36.76 per Boe in the second quarter of 2023, a decrease of 17%
from $44.32 per Boe in the first quarter of 2023 and a decrease of
47% from $69.55 per Boe in the second quarter of 2022. Crude oil,
NGL, and natural gas prices, before realized derivative settlements
for the second quarter of 2023, were $71.76 per barrel, $23.44 per
barrel, and $2.34 per Mcf, respectively.
Revenues for the second quarter of 2023 were
$126.2 million, which was lower than first quarter 2023 revenue of
$131.7 million and lower than $273.8 million in the second quarter
of 2022, due primarily to lower realized prices.
Lease Operating
Expense: Lease operating expense (“LOE”), which
includes base lease operating expenses, insurance premiums,
workovers and facilities maintenance, was $66.0 million in the
second quarter of 2023, which was below the midpoint of the
previously provided guidance range. This compared to $65.2 million
in the first quarter of 2023 and $53.0 million for the
corresponding period in 2022. On a component basis for the second
quarter of 2023, base LOE and insurance premiums were $48.2
million, workovers were $9.0 million, and facilities maintenance
and other expenses were $8.8 million. On a unit of production
basis, LOE was $19.60 per Boe in the second quarter of 2023. This
compares to $22.29 per Boe for the first quarter of 2023 and $13.73
per Boe for the second quarter of 2022.
Gathering, Transportation Costs, and
Production Taxes: Gathering, transportation costs and
production taxes totaled $6.8 million ($2.02 per Boe) in the second
quarter of 2023, compared to $6.1 million ($2.10 per Boe) in the
first quarter of 2023 and $9.2 million ($2.38 per Boe) in the
second quarter of 2022. Production taxes decreased on a
per Boe basis due to lower realized natural gas prices during the
second quarter of 2023.
Depreciation, Depletion, Amortization
and Accretion (“DD&A”): DD&A, including
accretion expense related to asset retirement obligations (“ARO”),
was $10.66 per Boe in the second quarter of 2023. This compares to
$10.31 per Boe and $8.90 per Boe for the first quarter of 2023 and
the second quarter of 2022, respectively.
General & Administrative Expenses
(“G&A”): G&A was $17.4 million for the second
quarter of 2023, which decreased by 13% compared to the first
quarter of 2023. Employee salaries and benefits costs were higher
in the first quarter of 2023 due to payment of the amounts due
under the 2022 short-term incentive compensation plan in the first
quarter of 2023. General and administrative expense increased year
over year primarily due to an increase in employee costs and
incentive compensation, as well as increased costs for
non-recurring professional and legal services compared to 2022. On
a unit of production basis, G&A was $5.16 per Boe in the second
quarter of 2023 compared to $6.81 per Boe in the first quarter of
2023 and $3.88 per Boe in the corresponding period of
2022.
Derivative (Gain) Loss: In
the second quarter of 2023, W&T recorded a net gain of $0.8
million related to commodity derivative contracts comprised of a
$1.1 million unrealized gain related primarily to the increase in
fair value of open contracts, partially offset by $0.3 million of
realized losses. The Company recognized a net gain of $39.2 million
in the first quarter of 2023 and $8.9 million in the second quarter
of 2022 related to commodity derivative activities.
For the remainder of 2023, W&T is
approximately 64% hedged for natural gas and currently has no
hedges for oil. A significant portion of the W&T’s natural gas
hedges, in the form of sold swaps and purchased calls and puts,
were entered into in conjunction with the non-recourse Mobile Bay
term loan entered into by borrowers owned by the Company’s
wholly-owned subsidiary Aquasition Energy LLC and will continue
through the life of that loan.
A summary of the Company’s outstanding
derivative positions is provided on W&T’s website in the
“Investors” section under the “Financial Information” tab.
Interest Expense: Net
interest expense in the second quarter of 2023 was
$10.3 million compared to $14.7 million in the first quarter
of 2023 and $18.2 million in the second quarter of 2022. The
decreases are due to the full redemption of the 9.75% Senior Second
Lien Notes which occurred in February 2023, lower interest expense
on the lower outstanding principal balance of the Term Loan and
increased interest income. These decreases were partially offset by
interest expense incurred on the 11.75% Senior Second Lien Notes
issued in late January 2023.
Income Tax: W&T
recognized income tax expense of $3.0 million in the second quarter
of 2023. This compares to the recognition of income tax expense of
$8.6 million and $31.1 million for the quarters ended March 31,
2023 and June 30, 2022, respectively.
Balance Sheet and
Liquidity: As of June 30, 2023, W&T had available
liquidity of $221.6 million comprised of $171.6 million in cash and
cash equivalents and $50.0 million of borrowing availability under
W&T’s first priority secured revolving facility provided by
Calculus Lending LLC (“Calculus”). At quarter-end, the Company had
total debt of $403.6 million, or Net Debt of $231.9 million, net of
cash and cash equivalents. Of total debt of $403.6
million, only $278.6 million is recourse to W&T. The remaining
$125.0 million is held at our subsidiary, Aquasition Energy LLC,
and is non-recourse to W&T. As of June 30, 2023, Net Debt to
TTM Adjusted EBITDA was 0.9 times.
Capital Expenditures and
Acquisitions: Capital expenditures (excluding changes
in working capital associated with investing activities) in the
second quarter of 2023 were $15.6 million, and asset retirement
costs totaled $3.2 million. For the first six months of 2023,
capital expenditures totaled $23.0 million and asset retirement
costs were $11.8 million.
OPERATIONS UPDATE
Front-end Engineering and Design and permitting
processes are underway on the Holy Grail well at Garden Banks 783
in the Magnolia Field.
Well Recompletions and
Workovers
During the second quarter of 2023, the Company
performed seven workovers that positively impacted production for
the quarter. W&T plans to continue performing these low cost,
short payout operations that impact both production and
revenue.
Addition to Senior ManagementIn
early July 2023, W&T appointed Sameer Parasnis to the position
of Executive Vice President and Chief Financial Officer. Mr.
Parasnis has 25 years of financial and operational experience, of
which 20 have been in banking. He has advised companies in the Oil
& Gas and Energy Transition industry on equity capital markets,
debt capital markets and strategic M&A. Prior to joining
W&T, Mr. Parasnis served as Managing Director of Stifel
Financial Corporation’s Energy & Energy Transition team in
Houston. He has served as a trusted financial advisor to W&T
over the years on key strategic initiatives of the Company,
including its drilling joint venture and corporate debt refinancing
in 2018, the non-recourse term loan financing with Munich Re
Reserve Risk Financing, Inc. in 2021 as well as its opportunistic
At-The-Market equity offering in 2022.
Lease Sale 259W&T was
recently awarded a 100% working interest in two shallow water
blocks, Eugene Island South Addition block 371 and Eugene Island
South Addition block 387 on which it was the apparent high bidder
during the GOM lease sale held in March 2023. These two blocks
cover a total of approximately 10,000 gross acres and together cost
approximately $340,000. The blocks have a lease term of five years
and an 18.75% royalty.
Mid-Year 2023 Proved
Reserves
As calculated by NSAI, W&T’s independent
reserve engineering consultants, proved reserves using SEC pricing
methodology totaled 157.7 MMBoe at June 30, 2023, compared with
165.3 MMBoe at year-end 2022. The decrease in proved reserves was
primarily driven by downward price revisions of 4.8 MMBoe and 6.3
MMBoe of production in the first half of 2023, partially offset by
3.5 MMBoe of positive technical revisions related primarily to
increases in performance-based projections across several producing
fields. There were no reserve additions from acquisitions during
the period. The mid-year proved reserves, which were 71% proved
developed producing, 16% proved developed non-producing, and 13%
proved undeveloped, were 36% liquids (24% crude oil and 12% NGLs)
and 64% natural gas. W&T operates approximately 92% of its
mid-year 2023 proved reserves.
The pre-tax PV-10 of the mid-year 2023 proved
reserves using SEC pricing was $2.1 billion (before consideration
of expenditures for asset retirement obligations), a decrease of
35% compared with the PV-10 of $3.1 billion at year-end 2022 using
SEC pricing. The decrease was driven by lower overall pricing.
Mid-year 2023 SEC proved reserves and PV-10 were based on an
average 12-month crude oil and natural gas prices of $83.23 per
barrel and $4.76 per MMBtu, respectively. Prices used to determine
proved reserves and PV-10 for year-end 2022 were $94.14 per barrel
of oil and $6.36 per MMBtu of natural gas.
Third Quarter and Full Year 2023
Production and Expense Guidance
Addressing updated guidance for the balance of
2023, Tracy Krohn commented, “We have always believed that the key
to long-term sustainability is to prioritize free cash flow
generation. In the first half of 2023, we have seen commodity price
weakness, with much lower natural gas prices and soft oil prices.
As a result, we decided to proactively reduce our current year
capital budget and delay a significant portion of our drilling
capital investments until 2024. We believe that the lower pricing
scenario enhances acquisition opportunities, and we have a strong
cash position and balance sheet to act quickly should we see the
right acquisition opportunity arise. We feel that patience is
important as we are looking for strategic value and free cash flow
generation potential in all acquisition opportunities that we are
currently evaluating. Assuming no acquisitions for the remainder of
the year, we are reducing our capital expenditure plans for 2023
from a range of $90 to $110 million to $50 to $70 million, and are
focused on maintaining cash which will result in a related deferral
of production. We will continue to invest in workovers and
recompletions this year to help mitigate natural declines in
production. We have successfully built W&T over the past 40
years with a proven acquisition strategy and believe the market
will afford us several opportunities in the near term. One of the
most attractive attributes of our asset base is our ability to
adjust our drilling plans without losing drilling opportunities
since our leases are largely held by existing production.”
The guidance for the third quarter and full year
2023 in the table below represents the Company’s current
expectations. Please refer to the section entitled “Forward-Looking
and Cautionary Statements” below for risk factors that could impact
guidance.
Production |
Third Quarter 2023 |
Full Year 2023 |
Oil (MBbl) |
1,130 – 1,260 |
4,750 – 5,250 |
NGLs (MBbl) |
320 – 360 |
1,350 – 1,480 |
Natural gas (MMcf) |
9,900 – 11,000 |
36,300 – 40,200 |
Total equivalents (MBoe) |
3,100 – 3,453 |
12,150 – 13,430 |
Average daily equivalents (MBoe/d) |
34 – 37 |
33 – 37 |
Expenses |
Third Quarter 2023 |
Full Year 2023 |
Lease operating expense ($MM) |
$60.0 – $67.0 |
$240.0 – $260.0 |
Gathering, transportation & production taxes ($MM) |
$7.4 – $8.4 |
$27.0 – $31.0 |
|
|
|
General & administrative - cash ($MM) |
$15.4 – $17.3 |
$63.0 – $68.0 |
General & administrative – non-cash ($MM) |
$3.1 – $3.5 |
$10.5 – $12.0 |
|
|
|
DD&A ($ per Boe) |
|
$9.00 – $10.00 |
|
|
|
We expect all taxes in 2023 to be
deferred.
Conference Call
Information: W&T will hold a conference
call to discuss its financial and operational results on Wednesday,
August 2, 2023 at 9:00 a.m. Central Time (10:00 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 June 30, 2023, the Company had working interests in 46 fields in
federal and state waters (which include 38 fields in federal waters
and eight in state waters). The Company has under lease
approximately 578,000 gross acres (419,000 net acres) spanning
across the outer continental shelf off the coasts of Louisiana,
Texas, Mississippi and Alabama, with approximately 8,000 gross
acres in Alabama State waters, 416,500 gross acres on the
conventional shelf and approximately 153,500 gross acres in the
deepwater. 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. These forward-looking statements, including
but not limited to, any forward-looking guidance provided herein,
reflect our current views with respect to future events, based on
what we believe are reasonable estimates and assumptions. No
assurance can be given, however, that these events will occur or
that our estimates will be correct. These statements are subject to
risks and uncertainties that could cause actual results to differ
materially including, among other things, market conditions,
commodity price volatility, uncertainties inherent in oil and gas
production operations and estimating reserves, uncertainties of the
timing and impact of bringing new wells online and repairing and
restoring infrastructure due to hurricane damage, the ability to
achieve leverage targets, unexpected future capital expenditures,
competition, the success of our risk management activities,
governmental regulations, uncertainties and other factors described
or referenced in W&T’s Annual Report on Form 10-K for the year
ended December 31, 2022 and subsequent Quarterly Reports on Form
10-Q found at www.sec.gov or on our website at www.wtoffshore.com
under the Investor Relations section. Our forward-looking
statements in this press release are based upon assumptions made,
and information known, by the Company as of the date of this
release; it should not be assumed that the Company will undertake
to revise or update any such forward-looking statements as such
assumptions and information changes, except as required under
applicable law. Investors are urged to consider closely the
disclosures and risk factors in these reports.
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Consolidated Statements of Operations |
(In
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
$ |
89,982 |
|
|
$ |
97,000 |
|
|
$ |
159,264 |
|
|
$ |
186,982 |
|
|
$ |
281,966 |
|
NGLs |
|
|
10,385 |
|
|
|
7,795 |
|
|
|
16,735 |
|
|
|
18,180 |
|
|
|
30,555 |
|
Natural gas |
|
|
23,438 |
|
|
|
24,804 |
|
|
|
92,413 |
|
|
|
48,242 |
|
|
|
143,779 |
|
Other |
|
|
2,376 |
|
|
|
2,126 |
|
|
|
5,396 |
|
|
|
4,502 |
|
|
|
8,512 |
|
Total revenues |
|
|
126,181 |
|
|
|
131,725 |
|
|
|
273,808 |
|
|
|
257,906 |
|
|
|
464,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
66,021 |
|
|
|
65,186 |
|
|
|
52,976 |
|
|
|
131,207 |
|
|
|
96,387 |
|
Gathering, transportation and production taxes |
|
|
6,802 |
|
|
|
6,136 |
|
|
|
9,181 |
|
|
|
12,938 |
|
|
|
14,448 |
|
Depreciation, depletion, amortization and accretion |
|
|
35,894 |
|
|
|
30,134 |
|
|
|
34,360 |
|
|
|
66,028 |
|
|
|
65,271 |
|
General and administrative expenses |
|
|
17,393 |
|
|
|
19,919 |
|
|
|
14,967 |
|
|
|
37,312 |
|
|
|
28,743 |
|
Total operating expenses |
|
|
126,110 |
|
|
|
121,375 |
|
|
|
111,484 |
|
|
|
247,485 |
|
|
|
204,849 |
|
Operating income |
|
|
71 |
|
|
|
10,350 |
|
|
|
162,324 |
|
|
|
10,421 |
|
|
|
259,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
10,323 |
|
|
|
14,713 |
|
|
|
18,183 |
|
|
|
25,036 |
|
|
|
38,066 |
|
Derivative
(gain) loss, net |
|
|
(829 |
) |
|
|
(39,240 |
) |
|
|
(8,854 |
) |
|
|
(40,069 |
) |
|
|
71,143 |
|
Other
(income) expense, net |
|
|
(311 |
) |
|
|
233 |
|
|
|
(1,534 |
) |
|
|
(78 |
) |
|
|
(629 |
) |
(Loss) income before income taxes |
|
|
(9,112 |
) |
|
|
34,644 |
|
|
|
154,529 |
|
|
|
25,532 |
|
|
|
151,383 |
|
Income tax
expense |
|
|
2,997 |
|
|
|
8,639 |
|
|
|
31,093 |
|
|
|
11,636 |
|
|
|
30,404 |
|
Net (loss) income |
|
$ |
(12,109 |
) |
|
$ |
26,005 |
|
|
$ |
123,436 |
|
|
$ |
13,896 |
|
|
$ |
120,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.08 |
) |
|
$ |
0.18 |
|
|
$ |
0.86 |
|
|
$ |
0.09 |
|
|
$ |
0.85 |
|
Diluted |
|
|
(0.08 |
) |
|
|
0.17 |
|
|
|
0.85 |
|
|
|
0.09 |
|
|
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
146,452 |
|
|
|
146,418 |
|
|
|
143,020 |
|
|
|
146,435 |
|
|
|
142,981 |
|
Diluted |
|
|
146,452 |
|
|
|
148,726 |
|
|
|
144,525 |
|
|
|
149,045 |
|
|
|
144,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Operating Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net sales
volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
|
1,254 |
|
|
1,350 |
|
|
1,476 |
|
|
2,604 |
|
|
2,780 |
|
NGLs (MBbls) |
|
|
443 |
|
|
294 |
|
|
384 |
|
|
738 |
|
|
733 |
|
Natural gas (MMcf) |
|
|
10,023 |
|
|
7,677 |
|
|
11,995 |
|
|
17,699 |
|
|
22,466 |
|
Total oil and natural gas (MBoe) (1) |
|
|
3,368 |
|
|
2,924 |
|
|
3,859 |
|
|
6,292 |
|
|
7,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
daily equivalent sales (MBoe/d) |
|
|
37.0 |
|
|
32.5 |
|
|
42.4 |
|
|
34.8 |
|
|
40.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
realized sales prices (before the impact of derivative
settlements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
|
$ |
71.76 |
|
$ |
71.85 |
|
$ |
107.90 |
|
$ |
71.81 |
|
$ |
101.43 |
|
NGLs ($/Bbl) |
|
|
23.44 |
|
|
26.51 |
|
|
43.58 |
|
|
24.63 |
|
|
41.68 |
|
Natural gas ($/Mcf) |
|
|
2.34 |
|
|
3.23 |
|
|
7.70 |
|
|
2.73 |
|
|
6.40 |
|
Barrel of oil equivalent ($/Boe) |
|
|
36.76 |
|
|
44.32 |
|
|
69.55 |
|
|
40.27 |
|
|
62.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
operating expenses per Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
$ |
19.60 |
|
$ |
22.29 |
|
$ |
13.73 |
|
$ |
20.85 |
|
$ |
13.28 |
|
Gathering, transportation and production taxes |
|
|
2.02 |
|
|
2.10 |
|
|
2.38 |
|
|
2.06 |
|
|
1.99 |
|
Depreciation, depletion, amortization and accretion |
|
|
10.66 |
|
|
10.31 |
|
|
8.90 |
|
|
10.49 |
|
|
8.99 |
|
General and administrative expenses |
|
|
5.16 |
|
|
6.81 |
|
|
3.88 |
|
|
5.93 |
|
|
3.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(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. AND SUBSIDIARIES |
Condensed
Consolidated Balance Sheets |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
171,627 |
|
|
$ |
461,357 |
|
Restricted cash |
|
|
4,417 |
|
|
|
4,417 |
|
Receivables: |
|
|
|
|
|
|
Oil and natural gas sales |
|
|
41,342 |
|
|
|
66,146 |
|
Joint interest, net |
|
|
13,875 |
|
|
|
14,000 |
|
Income taxes |
|
|
1,941 |
|
|
|
— |
|
Total receivables |
|
|
57,158 |
|
|
|
80,146 |
|
Prepaid expenses and other assets |
|
|
21,365 |
|
|
|
24,343 |
|
Total current assets |
|
|
254,567 |
|
|
|
570,263 |
|
|
|
|
|
|
|
|
Oil and
natural gas properties and other |
|
|
8,887,645 |
|
|
|
8,834,319 |
|
Less accumulated depreciation, depletion, amortization and
impairment |
|
|
8,149,905 |
|
|
|
8,099,104 |
|
Oil and natural gas properties and other, net |
|
|
737,740 |
|
|
|
735,215 |
|
Restricted
deposits for asset retirement obligations |
|
|
22,092 |
|
|
|
21,483 |
|
Deferred
income taxes |
|
|
45,700 |
|
|
|
57,280 |
|
Other
assets |
|
|
42,118 |
|
|
|
47,549 |
|
Total assets |
|
$ |
1,102,217 |
|
|
$ |
1,431,790 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
67,303 |
|
|
$ |
65,570 |
|
Undistributed oil and natural gas proceeds |
|
|
31,178 |
|
|
|
41,934 |
|
Advances from joint interest partners |
|
|
3,110 |
|
|
|
3,181 |
|
Asset retirement obligations |
|
|
37,763 |
|
|
|
25,359 |
|
Accrued liabilities |
|
|
39,323 |
|
|
|
74,041 |
|
Current portion of long-term debt, net |
|
|
30,550 |
|
|
|
582,249 |
|
Total current liabilities |
|
|
209,227 |
|
|
|
792,334 |
|
|
|
|
|
|
|
|
Long-term
debt, net |
|
|
373,021 |
|
|
|
111,188 |
|
Asset
retirement obligations, less current portion |
|
|
443,069 |
|
|
|
441,071 |
|
Other
liabilities |
|
|
52,109 |
|
|
|
79,563 |
|
Shareholders’ equity: |
|
|
|
|
|
|
Common stock, $0.00001 par value; 200,000 shares authorized;
149,350 issued and 146,481 outstanding at June 30, 2023;
149,002 issued and 146,133 outstanding at
December 31, 2022 |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
579,849 |
|
|
|
576,588 |
|
Retained deficit |
|
|
(530,892 |
) |
|
|
(544,788 |
) |
Treasury stock, at cost; 2,869 shares for both dates presented |
|
|
(24,167 |
) |
|
|
(24,167 |
) |
Total shareholders’ equity |
|
|
24,791 |
|
|
|
7,634 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,102,217 |
|
|
$ |
1,431,790 |
|
|
|
|
|
|
|
|
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Consolidated Statements of Cash Flows |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(12,109 |
) |
|
$ |
26,005 |
|
|
$ |
123,436 |
|
|
$ |
13,896 |
|
|
$ |
120,979 |
|
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
35,894 |
|
|
|
30,134 |
|
|
|
34,360 |
|
|
|
66,028 |
|
|
|
65,271 |
|
Amortization and write off of debt issuance costs |
|
|
1,114 |
|
|
|
3,249 |
|
|
|
1,771 |
|
|
|
4,363 |
|
|
|
4,365 |
|
Share-based compensation |
|
|
2,087 |
|
|
|
1,922 |
|
|
|
2,014 |
|
|
|
4,009 |
|
|
|
2,534 |
|
Derivative (gain) loss |
|
|
(829 |
) |
|
|
(39,240 |
) |
|
|
(8,854 |
) |
|
|
(40,069 |
) |
|
|
71,143 |
|
Derivative cash payments (receipts), net |
|
|
901 |
|
|
|
(5,328 |
) |
|
|
100,742 |
|
|
|
(4,427 |
) |
|
|
70,227 |
|
Derivative cash premium payments |
|
|
— |
|
|
|
— |
|
|
|
(46,111 |
) |
|
|
— |
|
|
|
(46,111 |
) |
Deferred income taxes |
|
|
7,184 |
|
|
|
4,396 |
|
|
|
27,764 |
|
|
|
11,580 |
|
|
|
27,031 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas receivables |
|
|
4,183 |
|
|
|
20,621 |
|
|
|
(6,462 |
) |
|
|
24,804 |
|
|
|
(44,236 |
) |
Joint interest receivables |
|
|
3,241 |
|
|
|
(3,116 |
) |
|
|
851 |
|
|
|
125 |
|
|
|
(3,625 |
) |
Prepaid expenses and other assets |
|
|
(4,497 |
) |
|
|
31,489 |
|
|
|
(17,909 |
) |
|
|
26,992 |
|
|
|
(30,092 |
) |
Income tax |
|
|
(6,588 |
) |
|
|
4,243 |
|
|
|
3,179 |
|
|
|
(2,345 |
) |
|
|
3,223 |
|
Asset retirement obligation settlements |
|
|
(3,199 |
) |
|
|
(8,642 |
) |
|
|
(34,283 |
) |
|
|
(11,841 |
) |
|
|
(39,775 |
) |
Cash advances from joint interest partners |
|
|
(50 |
) |
|
|
(21 |
) |
|
|
(1,263 |
) |
|
|
(71 |
) |
|
|
(9,813 |
) |
Accounts payable, accrued liabilities and other |
|
|
(1,135 |
) |
|
|
(42,277 |
) |
|
|
30,987 |
|
|
|
(43,412 |
) |
|
|
46,638 |
|
Net cash provided by operating activities |
|
|
26,197 |
|
|
|
23,435 |
|
|
|
210,222 |
|
|
|
49,632 |
|
|
|
237,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in oil and natural gas properties and equipment |
|
|
(15,632 |
) |
|
|
(7,367 |
) |
|
|
(8,050 |
) |
|
|
(22,999 |
) |
|
|
(25,489 |
) |
Changes in
operating assets and liabilities associated with investing
activities |
|
|
3,453 |
|
|
|
(5,791 |
) |
|
|
(8,416 |
) |
|
|
(2,338 |
) |
|
|
(5,786 |
) |
Acquisition
of property interests |
|
|
— |
|
|
|
— |
|
|
|
(17,472 |
) |
|
|
— |
|
|
|
(47,625 |
) |
Purchases of
furniture, fixtures and other |
|
|
(9,045 |
) |
|
|
(156 |
) |
|
|
— |
|
|
|
(9,201 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(21,224 |
) |
|
|
(13,314 |
) |
|
|
(33,938 |
) |
|
|
(34,538 |
) |
|
|
(78,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of
Note Payable |
|
|
(183 |
) |
|
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
— |
|
Issuance of
11.75% Senior Second Lien Notes |
|
|
— |
|
|
|
275,000 |
|
|
|
— |
|
|
|
275,000 |
|
|
|
— |
|
Repayments
on 9.75% Second Senior Lien Notes |
|
|
— |
|
|
|
(552,460 |
) |
|
|
— |
|
|
|
(552,460 |
) |
|
|
— |
|
Repayments
on Term Loan |
|
|
(9,629 |
) |
|
|
(9,552 |
) |
|
|
(12,311 |
) |
|
|
(19,181 |
) |
|
|
(24,941 |
) |
Debt
issuance costs |
|
|
(898 |
) |
|
|
(6,354 |
) |
|
|
(1,290 |
) |
|
|
(7,252 |
) |
|
|
(1,290 |
) |
Other |
|
|
(25 |
) |
|
|
(723 |
) |
|
|
(434 |
) |
|
|
(748 |
) |
|
|
(703 |
) |
Net cash used in financing activities |
|
|
(10,735 |
) |
|
|
(294,089 |
) |
|
|
(14,035 |
) |
|
|
(304,824 |
) |
|
|
(26,934 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(5,762 |
) |
|
|
(283,968 |
) |
|
|
162,249 |
|
|
|
(289,730 |
) |
|
|
131,925 |
|
Cash and
cash equivalents and restricted cash, beginning of period |
|
|
181,806 |
|
|
|
465,774 |
|
|
|
219,892 |
|
|
|
465,774 |
|
|
|
250,216 |
|
Cash and
cash equivalents and restricted cash, end of period |
|
$ |
176,044 |
|
|
$ |
181,806 |
|
|
$ |
382,141 |
|
|
$ |
176,044 |
|
|
$ |
382,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND
SUBSIDIARIESNon-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,”
“Free Cash Flow” and “PV-10” 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) Income
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) loss net of
derivative premiums, allowance for credit losses, write-off of debt
issuance costs, non-recurring IT-transition costs, non-ARO plugging
and abandonment costs, and other which are then tax effected using
the Federal Statutory Rate.
|
Three Months
Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(12,109 |
) |
|
$ |
26,005 |
|
|
$ |
123,436 |
|
|
$ |
13,896 |
|
|
$ |
120,979 |
|
Selected items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
commodity derivative (gain) loss and effect of derivative premiums,
net |
|
|
(1,129 |
) |
|
|
(39,470 |
) |
|
|
86,272 |
|
|
|
(40,599 |
) |
|
|
126,768 |
|
Allowance
for credit losses |
|
|
3 |
|
|
|
— |
|
|
|
181 |
|
|
|
3 |
|
|
|
299 |
|
Write-off
debt issuance costs |
|
|
— |
|
|
|
2,330 |
|
|
|
— |
|
|
|
2,330 |
|
|
|
— |
|
Non-recurring costs related to IT services transition |
|
|
1,078 |
|
|
|
785 |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Non-ARO
P&A costs |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
Other |
|
|
(294 |
) |
|
|
378 |
|
|
|
(1,534 |
) |
|
|
84 |
|
|
|
(629 |
) |
Tax effect
of selected items (1) |
|
|
72 |
|
|
|
7,554 |
|
|
|
(17,833 |
) |
|
|
7,626 |
|
|
|
(26,552 |
) |
Adjusted Net (loss) income |
|
$ |
(12,379 |
) |
|
$ |
(2,412 |
) |
|
$ |
190,522 |
|
|
$ |
(14,791 |
) |
|
$ |
220,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
(loss) income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.08 |
) |
|
$ |
(0.02 |
) |
|
$ |
1.33 |
|
|
$ |
(0.10 |
) |
|
$ |
1.54 |
|
Diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.02 |
) |
|
$ |
1.32 |
|
|
$ |
(0.10 |
) |
|
$ |
1.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
146,452 |
|
|
|
146,418 |
|
|
|
143,020 |
|
|
|
146,435 |
|
|
|
142,981 |
|
Diluted |
|
|
146,452 |
|
|
|
146,418 |
|
|
|
144,525 |
|
|
|
146,435 |
|
|
|
144,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Selected items
were tax effected with the Federal Statutory Rate of 21% for each
respective
period. |
(1) Selected items were tax effected with the Federal Statutory
Rate of 21% for each respective period.
W&T OFFSHORE, INC. AND
SUBSIDIARIESNon-GAAP Information
Adjusted EBITDA/ Free Cash Flow
Reconciliations
The Company also presents the non-GAAP financial
measures Adjusted EBITDA and Free Cash Flow. The Company defines
Adjusted EBITDA as net (loss) income plus net interest expense,
income tax expense, depreciation, depletion, amortization and
accretion, excluding the unrealized commodity derivative (gain)
loss net of derivative premiums, allowance for credit losses,
non-cash incentive compensation, non-recurring IT-transition costs,
non-ARO plugging and abandonment 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, plugging and
abandonment costs and 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, furniture and fixtures, 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, plugging and abandonment costs and 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 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 tables present (i) a
reconciliation of cash flow from operating activities, a GAAP
measure, to Free Cash Flow, as defined by the Company and (ii) 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 |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(12,109 |
) |
|
$ |
26,005 |
|
|
$ |
123,436 |
|
|
$ |
13,896 |
|
|
$ |
120,979 |
|
Interest
expense, net |
|
|
10,323 |
|
|
|
14,713 |
|
|
|
18,183 |
|
|
|
25,036 |
|
|
|
38,066 |
|
Income tax
expense |
|
|
2,997 |
|
|
|
8,639 |
|
|
|
31,093 |
|
|
|
11,636 |
|
|
|
30,404 |
|
Depreciation, depletion, amortization and accretion |
|
|
35,894 |
|
|
|
30,134 |
|
|
|
34,360 |
|
|
|
66,028 |
|
|
|
65,271 |
|
Unrealized
commodity derivative (gain) loss and effect of derivative premiums,
net |
|
|
(1,129 |
) |
|
|
(39,470 |
) |
|
|
86,272 |
|
|
|
(40,599 |
) |
|
|
126,768 |
|
Allowance
for credit losses |
|
|
3 |
|
|
|
— |
|
|
|
181 |
|
|
|
3 |
|
|
|
299 |
|
Non-cash
incentive compensation |
|
|
2,087 |
|
|
|
1,922 |
|
|
|
2,014 |
|
|
|
4,009 |
|
|
|
2,534 |
|
Non-recurring costs related to IT services transition |
|
|
1,078 |
|
|
|
785 |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Non-ARO
P&A costs |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
Other |
|
|
(312 |
) |
|
|
378 |
|
|
|
(1,534 |
) |
|
|
66 |
|
|
|
(629 |
) |
Adjusted EBITDA |
|
$ |
38,832 |
|
|
$ |
43,112 |
|
|
$ |
294,005 |
|
|
$ |
81,944 |
|
|
$ |
383,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in oil and natural gas properties and equipment |
|
|
(15,632 |
) |
|
|
(7,367 |
) |
|
|
(8,050 |
) |
|
|
(22,999 |
) |
|
|
(25,489 |
) |
Asset
retirement obligation settlements |
|
|
(3,199 |
) |
|
|
(8,642 |
) |
|
|
(34,283 |
) |
|
|
(11,841 |
) |
|
|
(39,775 |
) |
Interest
expense, net |
|
|
(10,323 |
) |
|
|
(14,713 |
) |
|
|
(18,183 |
) |
|
|
(25,036 |
) |
|
|
(38,066 |
) |
Free
Cash Flow |
|
$ |
9,678 |
|
|
$ |
12,390 |
|
|
$ |
233,489 |
|
|
$ |
22,068 |
|
|
$ |
280,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six months ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
26,197 |
|
|
$ |
23,435 |
|
|
$ |
210,222 |
|
|
$ |
49,632 |
|
|
$ |
237,759 |
|
Allowance
for credit losses |
|
|
3 |
|
|
|
— |
|
|
|
181 |
|
|
|
3 |
|
|
|
299 |
|
Amortization
of debt items and other items |
|
|
(1,114 |
) |
|
|
(3,249 |
) |
|
|
(1,771 |
) |
|
|
(4,363 |
) |
|
|
(4,365 |
) |
Non-recurring costs related to IT services transition |
|
|
1,078 |
|
|
|
785 |
|
|
|
— |
|
|
|
1,863 |
|
|
|
— |
|
Current tax
benefit (1) |
|
|
(4,187 |
) |
|
|
4,243 |
|
|
|
3,329 |
|
|
|
56 |
|
|
|
3,373 |
|
Changes in
derivatives (payable) receivable(1) |
|
|
(1,202 |
) |
|
|
5,098 |
|
|
|
40,495 |
|
|
|
3,896 |
|
|
|
31,509 |
|
Non-ARO
P&A costs |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
Changes in
operating assets and liabilities, excluding asset retirement
obligation settlements |
|
|
4,846 |
|
|
|
(10,939 |
) |
|
|
(9,383 |
) |
|
|
(6,093 |
) |
|
|
37,905 |
|
Investment
in oil and natural gas properties, equipment and other |
|
|
(15,632 |
) |
|
|
(7,367 |
) |
|
|
(8,050 |
) |
|
|
(22,999 |
) |
|
|
(25,489 |
) |
Other |
|
|
(312 |
) |
|
|
378 |
|
|
|
(1,534 |
) |
|
|
66 |
|
|
|
(629 |
) |
Free Cash
Flow |
|
$ |
9,678 |
|
|
$ |
12,390 |
|
|
$ |
233,489 |
|
|
$ |
22,068 |
|
|
$ |
280,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A reconciliation
of the adjustment used to calculate Free Cash Flow to the Condensed
Consolidated Financial Statements is included below: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax
benefit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit) |
|
$ |
2,997 |
|
|
$ |
8,639 |
|
|
$ |
31,093 |
|
|
$ |
11,636 |
|
|
$ |
30,404 |
|
Less:
Deferred income taxes |
|
|
7,184 |
|
|
|
4,396 |
|
|
|
27,764 |
|
|
|
11,580 |
|
|
|
27,031 |
|
Current tax
benefit |
|
$ |
(4,187 |
) |
|
$ |
4,243 |
|
|
$ |
3,329 |
|
|
$ |
56 |
|
|
$ |
3,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
derivatives receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
payable, end of period |
|
$ |
(677 |
) |
|
$ |
524 |
|
|
$ |
(20,998 |
) |
|
$ |
(677 |
) |
|
$ |
(20,998 |
) |
Derivatives
payable, beginning of period |
|
|
(524 |
) |
|
|
4,574 |
|
|
|
15,382 |
|
|
|
4,574 |
|
|
|
6,396 |
|
Derivative
premiums paid |
|
|
— |
|
|
|
— |
|
|
|
46,111 |
|
|
|
— |
|
|
|
46,111 |
|
Change in
derivatives receivable (payable) |
|
$ |
(1,201 |
) |
|
$ |
5,098 |
|
|
$ |
40,495 |
|
|
$ |
3,897 |
|
|
$ |
31,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of PV-10 to Standardized
Measure
The Company also discloses PV-10, which is not a
financial measure defined under GAAP. The standardized measure of
discounted future net cash flows is the most directly comparable
GAAP financial measure for proved reserves calculated using SEC
pricing. Company management believes that the non-GAAP financial
measure of PV-10 is relevant and useful for evaluating the relative
monetary significance of oil and natural gas properties. PV-10 is
also used internally when assessing the potential return on
investment related to oil and natural gas properties and in
evaluating acquisition opportunities. Company management believes
that the use of PV-10 is valuable because there are many unique
factors that can impact an individual company when estimating the
amount of future income taxes to be paid. Additionally, Company
management believes that the presentation of PV-10 provides useful
information to investors because it is widely used by professional
analysts and sophisticated investors in evaluating oil and natural
gas companies. PV-10 is not a measure of financial or operating
performance under GAAP, nor is it intended to represent the current
market value of the Company’s estimated oil and natural gas
reserves. PV-10 should not be considered in isolation or as
substitutes for the standardized measure of discounted future net
cash flows as defined under GAAP. Investors should not assume that
PV-10 of the Company’s proved oil and natural gas reserves
represents a current market value of the Company’s estimated oil
and natural gas reserves.
With respect to PV-10 calculated as of an
interim date (i.e. other than year-end), it is not practical for
the Company to reconcile the PV-10 of its SEC pricing proved
reserves as of June 30, 2023 because GAAP does not provide for
disclosure of standardized measure on an interim basis.
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 4 2024 まで 5 2024
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 5 2023 まで 5 2024