W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today reported operational and financial results for the second
quarter of 2024 and declared a third quarter 2024 dividend of $0.01
per share.
This press release includes non-GAAP financial
measures, including Adjusted Net Loss, Adjusted EBITDA, Free Cash
Flow, Net Debt and PV-10, 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 second quarter of 2024
and through the date of this press release include:
- Produced 34.9
thousand barrels of oil equivalent per day (“MBoe/d”) (55% liquids)
at the midpoint of the Company’s second quarter guidance;
- Incurred lease
operating expenses (“LOE”) of $74.0 million, which was below the
bottom end of the Company’s second quarter guidance range;
- Generated net
cash from operating activities of $37.4 million and Free Cash Flow
of $18.7 million in the second quarter of 2024, marking the 26th
consecutive quarter of positive Free Cash Flow;
- Reported net
loss of $15.4 million, or $(0.10) per diluted share;
- Adjusted Net
Loss totaled $8.0 million, or $(0.05) per share, which excludes
non-recurring costs, the net unrealized loss on outstanding
derivative contracts, non-ARO plugging and abandonment (“P&A”)
costs and related tax effect;
- Posted Adjusted
EBITDA of $45.9 million;
- Reported cash
and cash equivalents of $123.4 million, an increase of 30%, and Net
Debt of $268.5 million, a decrease of 9%, at
June 30, 2024 compared to the first quarter of 2024;
- Continued to
maintain a low leverage profile with Net Debt to trailing twelve
months (“TTM”) Adjusted EBITDA of 1.4x;
- Paid third
consecutive quarterly dividend of $0.01 per common share in May
2024;
- Declared third
quarter of 2024 dividend of $0.01 per share, which will be payable
on August 27, 2024 to stockholders of record on August 20, 2024;
and
- Reported
mid-year SEC proved reserves of 141.9 million barrels of oil
equivalent (“MMBoe”), using SEC prices and based on a reserve
report prepared by Netherland, Sewell and Associates, Inc.
(“NSAI”), and a present value of those SEC proved reserves
discounted at 10% (“PV-10”) of $1.4 billion, an increase of 15% and
28%, respectively, compared to year-end 2023.
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 while increasing proved
reserves and PV-10. This commitment enabled W&T to deliver
another quarter of solid results where production was at the
midpoint of our guidance range, LOE was below the bottom end of our
guidance range and more importantly, we increased our cash on hand
by 30% while decreasing net debt by 9% compared to March 31, 2024.
We generated strong Adjusted EBITDA of $45.9 million during the
second quarter and our focus on quality free cash flow generation
resulted in W&T reporting $18.7 million in Free Cash Flow, the
26th consecutive quarter of positive Free Cash Flow. We continue to
make progress integrating our 2024 acquired assets into W&T,
and we now have four of the six fields online, but we still have
more work to do that should help to increase production from the
new fields.”
“Our 2024 mid-year reserve report generated by
NSAI shows a meaningful increase in reserves and PV-10 value, which
demonstrates the resiliency and strength of our asset base. Our
improved balance sheet enables us to continue to grow both
organically and through targeted, complementary acquisitions in the
Gulf of Mexico that allow us to leverage our scale and expertise in
the basin. We are well positioned to capture and enhance value,
while returning capital to our shareholders through the quarterly
dividend program. Our proven and successful strategy and
operational excellence should help us to continue to produce strong
results both operationally and financially for the remainder of
2024 and into 2025.”
Production, Prices and Revenue: Production
for the second quarter of 2024 was 34.9 MBoe/d, at the midpoint of
the Company’s second quarter guidance and virtually flat compared
with 35.1 MBoe/d for the first quarter of 2024 and 37.0 MBoe/d for
the corresponding period in 2023. Second quarter 2024 production
was comprised of 15.2 thousand barrels per day (“MBbl/d”) of oil
(44%), 3.7 MBbl/d of natural gas liquids (“NGLs”) (11%), and 96.4
million cubic feet per day (“MMcf/d”) of natural gas (45%).
Production in the second quarter of 2024 was negatively impacted by
the Company’s primary Mobile Bay processing plant getting shut-in
by the third-party operator to perform a turnaround. This forced
W&T to re-route Mobile Bay volumes to a separate third-party
processing plant that did not have the same capacity, leading to
curtailed production and sales. These decreases were partially
offset by increased production from wells acquired in both January
2024 and September 2023. The primary processing plant was back
online in June 2024 and is now processing the Company’s Mobile Bay
volumes at its existing capacity. Regarding W&T’s acquisition
of assets in January 2024:
- Successfully
negotiated a new beneficial agreement with the MO916 gas processor
and returned the field to production on May 27th at rates
consistent with expectations;
- With the return
of MO916 to production, four of the six fields acquired are now on
production; and
- For the two
remaining shut-in fields, engineering design studies are in
progress as W&T continues to work parallel paths on each to
expedite their return to production, either through existing
third-party sales routes or alternative Company-owned sales
routes.
W&T’s average realized price per Boe before
realized derivative settlements was $44.40 per Boe in the second
quarter of 2024, an increase of 4% from $42.55 per Boe in the first
quarter of 2024 and an increase of 21% from $36.76 per Boe in the
second quarter of 2023. Second quarter 2024 oil, NGL and natural
gas prices before realized derivative settlements were $80.29 per
barrel, $24.43 per barrel, and $2.50 per Mcf, respectively.
Revenues for the second quarter of 2024 were
$142.8 million, which was approximately 1% higher than first
quarter of 2024 revenue of $140.8 million due to modestly higher
realized prices partially offset by lower production volumes.
Second quarter 2024 revenue was approximately 13% higher than
$126.2 million of revenue in the second quarter of 2023 due to
higher average realized prices, partially offset by moderately
lower natural gas and NGL production volumes.
Lease Operating Expense: LOE,
which includes base lease operating expenses, insurance premiums,
workovers and facilities maintenance expenses, was $74.0 million in
the second quarter of 2024, which was below the bottom end of the
previously provided guidance range. LOE came in lower than expected
as the Company continued to realize synergies from asset
acquisitions in late 2023 and early 2024. LOE for the second
quarter of 2024 was approximately 4% higher compared to $70.8
million in the first quarter of 2024 and up approximately 12% from
$66.0 million for the corresponding period in 2023 primarily due to
higher base lease operating expenses related to the asset
acquisitions in late 2023 and early 2024. On a component basis for
the second quarter of 2024, base LOE and insurance premiums were
$57.0 million, workovers were $2.4 million, and facilities
maintenance and other expenses were $14.6 million. On a unit of
production basis, LOE was $23.29 per Boe in the second quarter of
2024. This compares to $22.14 per Boe for the first quarter of 2024
and $19.60 per Boe for the second quarter of 2023.
Gathering, Transportation Costs and
Production Taxes: Gathering, transportation costs and
production taxes totaled $8.6 million ($2.70 per Boe) in the second
quarter of 2024, compared to $7.5 million ($2.36 per Boe) in the
first quarter of 2024 and $6.8 million ($2.02 per Boe) in the
second quarter of 2023. Gathering, transportation costs and
production taxes increased primarily due to higher processing
fees for W&T’s Mobile Bay production that had to be re-routed
to a different processing plant.
Depreciation, Depletion and Amortization
(“DD&A”): DD&A was $11.55 per Boe in the second
quarter of 2024. This compares to $10.61 per Boe and $8.37 per Boe
for the first quarter of 2024 and the second quarter of 2023,
respectively.
Asset Retirement Obligations
Accretion: Asset retirement obligations accretion was
$2.64 per Boe in the second quarter of 2024. This compares to $2.49
per Boe and $2.29 per Boe for the first quarter of 2024 and the
second quarter of 2023, respectively.
General & Administrative Expenses
(“G&A”): G&A was $21.4 million for the second
quarter of 2024, which increased from $20.5 million in the first
quarter of 2024, and from $17.4 million in the second quarter of
2023 primarily due to non-recurring professional and legal
services. On a unit of production basis, G&A was $6.72 per Boe
in the second quarter of 2024 compared to $6.41 per Boe in the
first quarter of 2024 and $5.16 per Boe in the corresponding period
of 2023. G&A in the second quarter of 2024 included $1.4
million of non-cash compensation expense compared with $3.0 million
in the first quarter of 2024 and $2.1 million in the second quarter
of 2023.
Derivative Loss (Gain), net: In
the second quarter of 2024, W&T recorded a net loss of $2.4
million related to commodity derivative contracts comprised of a
$2.7 million unrealized loss related to the decrease in fair value
of open contracts and $0.3 million of realized gains. W&T
recognized a net gain of $4.9 million in the first quarter of 2024
and a net gain of $0.8 million in the second quarter of 2023
related to commodity derivative activities.
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 second quarter of 2024 was $10.2 million
compared to $10.1 million in the first quarter of 2024 and $10.3
million in the second quarter of 2023.
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 plugging and
abandonment costs. During the second quarter of 2024, the Company
reassessed its existing obligations and recorded an additional $1.7
million.
Income Tax (Benefit) Expense:
W&T recognized an income tax benefit of $4.6 million in the
second quarter of 2024. This compares to the recognition of income
tax expense of $1.0 million and $3.0 million for the quarters ended
March 31, 2024 and June 30, 2023, respectively.
Balance Sheet and Liquidity: As
of June 30, 2024, W&T had available liquidity of
$173.4 million comprised of $123.4 million in unrestricted 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. As of June 30, 2024, the Company
had total debt of $391.9 million and Net Debt of $268.5 million. Of
W&T’s total debt of $391.9 million, only $280.2 million is
recourse to W&T. The remaining $111.7 million is held at
W&T’s wholly owned subsidiary, Aquasition Energy LLC, and is
non-recourse to W&T. As of June 30, 2024, Net Debt to
TTM Adjusted EBITDA was 1.4x.
Capital Expenditures: Capital
expenditures on an accrual basis (excluding acquisitions) in the
second quarter of 2024 were $8.8 million, and asset retirement
settlement costs totaled $8.2 million. For the first six months
ended June 30, 2024, capital expenditures on an accrual basis
(excluding acquisitions) totaled $11.9 million and asset
retirements costs were $12.0 million. Investments related to
acquisitions in the six months ended June 30, 2024
totaled $80.6 million, which included $77.3 million for the Cox
acquisition and $3.3 million of final purchase price adjustments
related to W&T’s acquisition of properties in September
2023.
OPERATIONS UPDATE
Well Recompletions and
Workovers
During the second quarter of 2024, the Company
performed three workovers and two recompletions 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.
Cash Dividend Policy
The Company paid its second quarter 2024
dividend of $0.01 per share on May 31, 2024 to stockholders of
record on May 24, 2024.
The Board of Directors declared a third quarter
2024 dividend of $0.01 per share which is to be paid on August 27,
2024 to stockholders of record on August 20, 2024.
Mid-Year 2024 Proved
Reserves
As calculated by NSAI, W&T’s independent
reserve engineering consultants, proved reserves using SEC pricing
methodology totaled 141.9 MMBoe at June 30, 2024,
compared with 123.0 MMBoe at year-end 2023. The increase in proved
reserves was primarily driven by acquisition additions of 21.8
MMBoe and positive revisions of 3.5 MMBoe, partially offset by 6.3
MMBoe of production in the first half of 2024. The mid-year proved
reserves, which were 54% proved developed producing, 29% proved
developed non-producing, and 17% proved undeveloped, were 47%
liquids (38% oil and 9% NGLs) and 53% natural gas. W&T operates
approximately 94% of its mid-year 2024 proved reserves.
The pre-tax PV-10 of the mid-year 2024 proved
reserves using SEC pricing was $1.4 billion (before consideration
of expenditures for asset retirement obligations), an increase of
28% compared with the PV-10 of $1.1 billion at year-end 2023 using
SEC pricing. The increase was primarily driven by the six
additional fields acquired in January 2024. Mid-year 2024 SEC
proved reserves and PV-10 were based on an average 12-month oil and
natural gas prices of $79.45 per barrel and $2.32 per MMBtu,
respectively. Prices used to determine proved reserves and PV-10
for year-end 2023 were $78.21 per barrel of oil and $2.64 per MMBtu
of natural gas.
Third Quarter and Full Year 2024
Production and Expense Guidance
The guidance for the third 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. Third quarter and full year 2024 guidance reflects the
impact of third-party pipeline issues due to the Cox
bankruptcy.
W&T plans to spend more on LOE in the third
quarter of 2024 to undertake some of the projects deferred earlier
in the year. However, full year estimated LOE was reduced to a
range of $280 million to $315 million, or about 5% at the
mid-point, to take into account W&T’s ability to lower costs
and the benefit of synergies from recent acquisitions.
|
|
|
|
|
|
Production |
Third Quarter 2024 |
|
Full Year 2024 |
|
Oil (MBbl) |
1,175-1,325 |
|
5,000-5,500 |
|
NGLs (MBbl) |
250-300 |
|
1,150-1,350 |
|
Natural gas (MMcf) |
8,500-9,500 |
|
34,500-38,500 |
|
Total equivalents (MBoe) |
2,842-3,208 |
|
11,900-13,267 |
|
Average daily equivalents (MBoe/d) |
30.9-34.9 |
|
32.5-36.2 |
|
Expenses |
Third Quarter 2024 |
|
Full Year 2024 |
|
Lease operating expense ($MM) |
77.0-85.0 |
|
280.0-315.0 |
|
Gathering, transportation & production taxes ($MM) |
7.5-8.5 |
|
31.0-34.0 |
|
General & administrative – cash ($MM) |
16.0-17.5 |
|
66.0-74.0 |
|
General & administrative – non-cash ($MM) |
3.7-4.1 |
|
11.5-13.5 |
|
DD&A ($ per Boe) |
|
|
13.00-14.00 |
|
|
|
|
|
W&T expects substantially all taxes in 2024
to be deferred.
Conference Call Information:
W&T will hold a conference call to discuss its financial and
operational results on Wednesday, August 7, 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 June 30, 2024, the Company had working interests in 63 fields in
federal and state waters (which include 55 fields in federal waters
and eight in state waters). The Company has under lease
approximately 678,100 gross acres (520.400 net acres) spanning
across the outer continental shelf off the coasts of Louisiana,
Texas, Mississippi and Alabama, with approximately 519,000 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, 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.
|
W&T OFFSHORE, INC. |
|
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, |
| |
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
$ |
110,965 |
|
|
$ |
107,015 |
|
|
$ |
89,982 |
|
|
$ |
217,980 |
|
|
$ |
186,982 |
|
|
NGLs |
|
8,160 |
|
|
|
7,469 |
|
|
|
10,385 |
|
|
|
15,629 |
|
|
|
18,180 |
|
|
Natural gas |
|
21,910 |
|
|
|
21,616 |
|
|
|
23,438 |
|
|
|
43,526 |
|
|
|
48,242 |
|
|
Other |
|
1,722 |
|
|
|
4,687 |
|
|
|
2,376 |
|
|
|
6,409 |
|
|
|
4,502 |
|
|
Total revenues |
|
142,757 |
|
|
|
140,787 |
|
|
|
126,181 |
|
|
|
283,544 |
|
|
|
257,906 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
73,987 |
|
|
|
70,830 |
|
|
|
66,021 |
|
|
|
144,817 |
|
|
|
131,207 |
|
|
Gathering, transportation and production taxes |
|
8,578 |
|
|
|
7,540 |
|
|
|
6,802 |
|
|
|
16,118 |
|
|
|
12,938 |
|
|
Depreciation, depletion, and amortization |
|
36,674 |
|
|
|
33,937 |
|
|
|
28,177 |
|
|
|
70,611 |
|
|
|
50,801 |
|
|
Asset retirement obligations accretion |
|
8,400 |
|
|
|
7,969 |
|
|
|
7,717 |
|
|
|
16,369 |
|
|
|
15,227 |
|
|
General and administrative expenses |
|
21,354 |
|
|
|
20,515 |
|
|
|
17,393 |
|
|
|
41,869 |
|
|
|
37,312 |
|
|
Total operating expenses |
|
148,993 |
|
|
|
140,791 |
|
|
|
126,110 |
|
|
|
289,784 |
|
|
|
247,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
(6,236 |
) |
|
|
(4 |
) |
|
|
71 |
|
|
|
(6,240 |
) |
|
|
10,421 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
10,164 |
|
|
|
10,072 |
|
|
|
10,323 |
|
|
|
20,236 |
|
|
|
25,036 |
|
| Derivative loss (gain),
net |
|
2,374 |
|
|
|
(4,877 |
) |
|
|
(829 |
) |
|
|
(2,503 |
) |
|
|
(40,069 |
) |
| Other expense (income),
net |
|
1,250 |
|
|
|
5,230 |
|
|
|
(311 |
) |
|
|
6,480 |
|
|
|
(78 |
) |
| (Loss) income before income
taxes |
|
(20,024 |
) |
|
|
(10,429 |
) |
|
|
(9,112 |
) |
|
|
(30,453 |
) |
|
|
25,532 |
|
| Income tax (benefit)
expense |
|
(4,636 |
) |
|
|
1,045 |
|
|
|
2,997 |
|
|
|
(3,591 |
) |
|
|
11,636 |
|
| Net (loss) income |
$ |
(15,388 |
) |
|
$ |
(11,474 |
) |
|
$ |
(12,109 |
) |
|
$ |
(26,862 |
) |
|
$ |
13,896 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.18 |
) |
|
$ |
0.09 |
|
|
Diluted |
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
(0.08 |
) |
|
|
(0.18 |
) |
|
|
0.09 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
146,943 |
|
|
|
146,857 |
|
|
|
146,452 |
|
|
|
146,900 |
|
|
|
146,435 |
|
|
Diluted |
|
146,943 |
|
|
|
146,857 |
|
|
|
146,452 |
|
|
|
146,900 |
|
|
|
149,045 |
|
|
W&T OFFSHORE, INC. |
|
Condensed Operating Data |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six MonthsEnded |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| |
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Net sales volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
1,382 |
|
|
|
1,400 |
|
|
|
1,254 |
|
|
|
2,782 |
|
|
|
2,604 |
|
|
NGLs (MBbls) |
|
334 |
|
|
|
343 |
|
|
|
443 |
|
|
|
677 |
|
|
|
738 |
|
|
Natural gas (MMcf) |
|
8,769 |
|
|
|
8,733 |
|
|
|
10,023 |
|
|
|
17,502 |
|
|
|
17,699 |
|
|
Total oil and natural gas (MBoe)(1) |
|
3,177 |
|
|
|
3,199 |
|
|
|
3,368 |
|
|
|
6,376 |
|
|
|
6,292 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average daily equivalent sales
(MBoe/d) |
|
34.9 |
|
|
|
35.1 |
|
|
|
37.0 |
|
|
|
35.0 |
|
|
|
34.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average realized sales prices
(before the impact of derivative settlements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
$ |
80.29 |
|
|
$ |
76.44 |
|
|
$ |
71.76 |
|
|
$ |
78.35 |
|
|
$ |
71.81 |
|
|
NGLs ($/Bbl) |
|
24.43 |
|
|
|
21.78 |
|
|
|
23.44 |
|
|
|
23.09 |
|
|
|
24.63 |
|
|
Natural gas ($/Mcf) |
|
2.50 |
|
|
|
2.48 |
|
|
|
2.34 |
|
|
|
2.49 |
|
|
|
2.73 |
|
|
Barrel of oil equivalent ($/Boe) |
|
44.40 |
|
|
|
42.55 |
|
|
|
36.76 |
|
|
|
43.47 |
|
|
|
40.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average operating expenses per
Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
$ |
23.29 |
|
|
$ |
22.14 |
|
|
$ |
19.60 |
|
|
$ |
22.71 |
|
|
$ |
20.85 |
|
|
Gathering, transportation and production taxes |
|
2.70 |
|
|
|
2.36 |
|
|
|
2.02 |
|
|
|
2.53 |
|
|
|
2.06 |
|
|
Depreciation, depletion, and amortization |
|
11.55 |
|
|
|
10.61 |
|
|
|
8.37 |
|
|
|
11.07 |
|
|
|
8.07 |
|
|
Asset retirement obligations accretion |
|
2.64 |
|
|
|
2.49 |
|
|
|
2.29 |
|
|
|
2.57 |
|
|
|
2.42 |
|
|
General and administrative expenses |
|
6.72 |
|
|
|
6.41 |
|
|
|
5.16 |
|
|
|
6.57 |
|
|
|
5.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
| |
|
|
|
|
|
| |
June 30, |
|
December 31, |
| |
2024 |
|
|
2023 |
|
|
Assets |
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
123,375 |
|
|
$ |
173,338 |
|
|
Restricted cash |
|
4,417 |
|
|
|
4,417 |
|
|
Receivables: |
|
|
|
|
|
|
Oil and natural gas sales |
|
71,547 |
|
|
|
52,080 |
|
|
Joint interest, net |
|
20,478 |
|
|
|
15,480 |
|
|
Other |
|
2,223 |
|
|
|
2,218 |
|
|
Prepaid expenses and other assets |
|
25,890 |
|
|
|
17,447 |
|
|
Total current assets |
|
247,930 |
|
|
|
264,980 |
|
| |
|
|
|
|
|
| Oil and natural gas properties
and other, net |
|
802,401 |
|
|
|
749,056 |
|
| Restricted deposits for asset
retirement obligations |
|
22,479 |
|
|
|
22,272 |
|
| Deferred income taxes |
|
42,365 |
|
|
|
38,774 |
|
| Other assets |
|
33,396 |
|
|
|
38,923 |
|
| Total assets |
$ |
1,148,571 |
|
|
$ |
1,114,005 |
|
| |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
89,129 |
|
|
$ |
78,857 |
|
|
Accrued liabilities |
|
29,004 |
|
|
|
31,978 |
|
|
Undistributed oil and natural gas proceeds |
|
63,150 |
|
|
|
42,134 |
|
|
Advances from joint interest partners |
|
2,565 |
|
|
|
2,962 |
|
|
Current portion of asset retirement obligation |
|
35,627 |
|
|
|
31,553 |
|
|
Current portion of long-term debt, net |
|
14,925 |
|
|
|
29,368 |
|
|
Total current liabilities |
|
234,400 |
|
|
|
216,852 |
|
|
|
|
|
|
|
|
| Asset retirement
obligations |
|
498,848 |
|
|
|
467,262 |
|
| Long-term debt, net |
|
376,979 |
|
|
|
361,236 |
|
| Other liabilities |
|
16,668 |
|
|
|
19,420 |
|
| Commitments and
contingencies |
|
16,671 |
|
|
|
18,043 |
|
| |
|
|
|
|
|
| Shareholders’ equity: |
|
|
|
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
|
Common stock |
|
2 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
589,678 |
|
|
|
586,014 |
|
|
Retained deficit |
|
(560,508 |
) |
|
|
(530,656 |
) |
|
Treasury stock |
|
(24,167 |
) |
|
|
(24,167 |
) |
|
Total shareholders’ equity |
|
5,005 |
|
|
|
31,192 |
|
| Total liabilities and
shareholders’ equity |
$ |
1,148,571 |
|
|
$ |
1,114,005 |
|
|
W&T OFFSHORE, INC. |
|
Condensed Consolidated Statements of Cash
Flows |
|
(In thousands) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Month Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(15,388 |
) |
|
$ |
(11,474 |
) |
|
$ |
(12,109 |
) |
|
$ |
(26,862 |
) |
|
$ |
13,896 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
45,074 |
|
|
|
41,906 |
|
|
|
35,894 |
|
|
|
86,980 |
|
|
|
66,028 |
|
|
Share-based compensation |
|
1,386 |
|
|
|
3,032 |
|
|
|
2,087 |
|
|
|
4,418 |
|
|
|
4,009 |
|
|
Amortization and write off of debt issuance costs |
|
1,044 |
|
|
|
1,292 |
|
|
|
1,114 |
|
|
|
2,336 |
|
|
|
4,363 |
|
|
Derivative loss (gain), net |
|
2,374 |
|
|
|
(4,877 |
) |
|
|
(829 |
) |
|
|
(2,503 |
) |
|
|
(40,069 |
) |
|
Derivative cash settlements, net |
|
2,358 |
|
|
|
2,599 |
|
|
|
901 |
|
|
|
4,957 |
|
|
|
(4,427 |
) |
|
Deferred income (benefit) taxes |
|
(4,324 |
) |
|
|
733 |
|
|
|
7,184 |
|
|
|
(3,591 |
) |
|
|
11,580 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(7,108 |
) |
|
|
(17,362 |
) |
|
|
7,424 |
|
|
|
(24,470 |
) |
|
|
24,929 |
|
|
Prepaid expenses and other current assets |
|
(6,177 |
) |
|
|
433 |
|
|
|
(4,497 |
) |
|
|
(5,744 |
) |
|
|
26,992 |
|
|
Accounts payable, accrued liabilities and other |
|
26,416 |
|
|
|
(852 |
) |
|
|
(7,773 |
) |
|
|
25,564 |
|
|
|
(45,828 |
) |
|
Asset retirement obligation settlements |
|
(8,209 |
) |
|
|
(3,788 |
) |
|
|
(3,199 |
) |
|
|
(11,997 |
) |
|
|
(11,841 |
) |
| Net cash provided by operating
activities |
|
37,446 |
|
|
|
11,642 |
|
|
|
26,197 |
|
|
|
49,088 |
|
|
|
49,632 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in oil and natural gas properties and equipment |
|
(6,576 |
) |
|
|
(7,080 |
) |
|
|
(12,179 |
) |
|
|
(13,656 |
) |
|
|
(25,337 |
) |
|
Acquisition of property interests |
|
(120 |
) |
|
|
(80,515 |
) |
|
|
— |
|
|
|
(80,635 |
) |
|
|
— |
|
|
Purchase of corporate aircraft |
|
— |
|
|
|
— |
|
|
|
(8,983 |
) |
|
|
— |
|
|
|
(8,983 |
) |
|
Purchases of furniture, fixtures and other |
|
(73 |
) |
|
|
(24 |
) |
|
|
(62 |
) |
|
|
(97 |
) |
|
|
(218 |
) |
| Net cash used in investing
activities |
|
(6,769 |
) |
|
|
(87,619 |
) |
|
|
(21,224 |
) |
|
|
(94,388 |
) |
|
|
(34,538 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
275,000 |
|
|
Repayments of long-term debt |
|
(275 |
) |
|
|
(275 |
) |
|
|
(9,812 |
) |
|
|
(550 |
) |
|
|
(571,824 |
) |
|
Debt issuance costs |
|
(93 |
) |
|
|
(312 |
) |
|
|
(898 |
) |
|
|
(405 |
) |
|
|
(7,252 |
) |
|
Payment of dividends |
|
(1,485 |
) |
|
|
(1,469 |
) |
|
|
— |
|
|
|
(2,954 |
) |
|
|
— |
|
|
Other |
|
(271 |
) |
|
|
(483 |
) |
|
|
(25 |
) |
|
|
(754 |
) |
|
|
(748 |
) |
| Net cash used in financing
activities |
|
(2,124 |
) |
|
|
(2,539 |
) |
|
|
(10,735 |
) |
|
|
(4,663 |
) |
|
|
(304,824 |
) |
| Change in cash, cash
equivalents and restricted cash |
|
28,553 |
|
|
|
(78,516 |
) |
|
|
(5,762 |
) |
|
|
(49,963 |
) |
|
|
(289,730 |
) |
| Cash, cash equivalents and
restricted cash, beginning of period |
|
99,239 |
|
|
|
177,755 |
|
|
|
181,806 |
|
|
|
177,755 |
|
|
|
465,774 |
|
| Cash, cash equivalents and
restricted cash, end of period |
$ |
127,792 |
|
|
$ |
99,239 |
|
|
$ |
176,044 |
|
|
$ |
127,792 |
|
|
$ |
176,044 |
|
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,” “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
Adjusted Net Loss 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 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, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
(in thousands) |
| |
|
(Unaudited) |
| Net (loss)
income |
$ |
(15,388 |
) |
|
$ |
(11,474 |
) |
|
$ |
(12,109 |
) |
|
$ |
(26,862 |
) |
|
$ |
13,896 |
|
| Unrealized commodity
derivative loss (gain), net |
|
2,738 |
|
|
|
(1,122 |
) |
|
|
(1,129 |
) |
|
|
1,616 |
|
|
|
(40,599 |
) |
| Allowance for credit
losses |
|
346 |
|
|
|
84 |
|
|
|
3 |
|
|
|
430 |
|
|
|
3 |
|
| Write-off debt issuance
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,330 |
|
| Non-recurring legal and
IT-related costs |
|
4,202 |
|
|
|
758 |
|
|
|
1,078 |
|
|
|
4,960 |
|
|
|
1,863 |
|
| Non-ARO P&A costs |
|
1,709 |
|
|
|
5,352 |
|
|
|
— |
|
|
|
7,061 |
|
|
|
6 |
|
| Other |
|
304 |
|
|
|
(214 |
) |
|
|
(294 |
) |
|
|
90 |
|
|
|
84 |
|
| Tax effect of selected
items(1) |
|
(1,953 |
) |
|
|
(1,020 |
) |
|
|
72 |
|
|
|
(2,973 |
) |
|
|
7,626 |
|
| Adjusted net
loss |
$ |
(8,042 |
) |
|
$ |
(7,636 |
) |
|
$ |
(12,379 |
) |
|
$ |
(15,678 |
) |
|
$ |
(14,791 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
|
Diluted |
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
146,943 |
|
|
|
146,857 |
|
|
|
146,452 |
|
|
|
146,900 |
|
|
|
146,435 |
|
|
Diluted |
|
146,943 |
|
|
|
146,857 |
|
|
|
146,452 |
|
|
|
146,900 |
|
|
|
146,435 |
|
(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 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 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 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, plugging and abandonment 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 |
|
Six Months Ended |
| |
June 30, |
|
|
March 31, |
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(in thousands) |
| |
(Unaudited) |
| Net (loss)
income |
$ |
(15,388 |
) |
|
$ |
(11,474 |
) |
|
$ |
(12,109 |
) |
|
$ |
(26,862 |
) |
|
$ |
13,896 |
|
| Interest expense, net |
|
10,164 |
|
|
|
10,072 |
|
|
|
10,323 |
|
|
|
20,236 |
|
|
|
25,036 |
|
| Income tax (benefit)
expense |
|
(4,636 |
) |
|
|
1,045 |
|
|
|
2,997 |
|
|
|
(3,591 |
) |
|
|
11,636 |
|
| Depreciation, depletion and
amortization |
|
36,674 |
|
|
|
33,937 |
|
|
|
28,177 |
|
|
|
70,611 |
|
|
|
50,801 |
|
| Asset retirement obligations
accretion |
|
8,400 |
|
|
|
7,969 |
|
|
|
7,717 |
|
|
|
16,369 |
|
|
|
15,227 |
|
| Unrealized commodity
derivative loss (gain), net |
|
2,738 |
|
|
|
(1,122 |
) |
|
|
(1,129 |
) |
|
|
1,616 |
|
|
|
(40,599 |
) |
| Allowance for credit
losses |
|
346 |
|
|
|
84 |
|
|
|
3 |
|
|
|
430 |
|
|
|
3 |
|
| Non-cash incentive
compensation |
|
1,386 |
|
|
|
3,032 |
|
|
|
2,087 |
|
|
|
4,418 |
|
|
|
4,009 |
|
| Non-recurring legal and
IT-related costs |
|
4,202 |
|
|
|
758 |
|
|
|
1,078 |
|
|
|
4,960 |
|
|
|
1,863 |
|
| Non-ARO P&A costs |
|
1,709 |
|
|
|
5,352 |
|
|
|
— |
|
|
|
7,061 |
|
|
|
6 |
|
| Other |
|
304 |
|
|
|
(214 |
) |
|
|
(312 |
) |
|
|
90 |
|
|
|
66 |
|
| Adjusted
EBITDA |
$ |
45,899 |
|
|
$ |
49,439 |
|
|
$ |
38,832 |
|
|
$ |
95,338 |
|
|
$ |
81,944 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures, accrual
basis(1) |
$ |
(8,781 |
) |
|
$ |
(3,156 |
) |
|
$ |
(15,632 |
) |
|
$ |
(11,937 |
) |
|
$ |
(22,999 |
) |
| Asset retirement obligation
settlements |
|
(8,209 |
) |
|
|
(3,788 |
) |
|
|
(3,199 |
) |
|
|
(11,997 |
) |
|
|
(11,841 |
) |
| Interest expense, net |
|
(10,164 |
) |
|
|
(10,072 |
) |
|
|
(10,323 |
) |
|
|
(20,236 |
) |
|
|
(25,036 |
) |
| Free Cash
Flow |
$ |
18,745 |
|
|
$ |
32,423 |
|
|
$ |
9,678 |
|
|
$ |
51,168 |
|
|
$ |
22,068 |
|
(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 |
$ |
(6,576 |
) |
|
$ |
(7,080 |
) |
|
$ |
(12,179 |
) |
|
$ |
(13,656 |
) |
|
$ |
(25,337 |
) |
|
Less: changes in operating assets and liabilities associated with
investing activities |
|
2,205 |
|
|
|
(3,924 |
) |
|
|
3,453 |
|
|
|
(1,719 |
) |
|
|
(2,338 |
) |
|
Capital expenditures, accrual basis |
$ |
(8,781 |
) |
|
$ |
(3,156 |
) |
|
$ |
(15,632 |
) |
|
$ |
(11,937 |
) |
|
$ |
(22,999 |
) |
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 |
|
Six Months |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(in thousands) |
| |
(Unaudited) |
|
Net cash provided by operating activities |
$ |
37,446 |
|
|
$ |
11,642 |
|
|
$ |
26,197 |
|
|
$ |
49,088 |
|
|
$ |
49,632 |
|
| Allowance for credit
losses |
|
346 |
|
|
|
84 |
|
|
|
3 |
|
|
|
430 |
|
|
|
3 |
|
| Amortization of debt items and
other items |
|
(1,044 |
) |
|
|
(1,292 |
) |
|
|
(1,114 |
) |
|
|
(2,336 |
) |
|
|
(4,363 |
) |
| Non-recurring legal and
IT-related costs |
|
4,202 |
|
|
|
758 |
|
|
|
1,078 |
|
|
|
4,960 |
|
|
|
1,863 |
|
| Current tax (benefit)
expense(1) |
|
(312 |
) |
|
|
312 |
|
|
|
(4,187 |
) |
|
|
— |
|
|
|
56 |
|
| Change in derivatives
(payable) receivable(1) |
|
(1,994 |
) |
|
|
1,156 |
|
|
|
(1,201 |
) |
|
|
(838 |
) |
|
|
3,897 |
|
| Non-ARO P&A costs |
|
1,709 |
|
|
|
5,352 |
|
|
|
— |
|
|
|
7,061 |
|
|
|
6 |
|
| Changes in operating assets
and liabilities, excluding asset retirement obligation
settlements |
|
(13,131 |
) |
|
|
17,781 |
|
|
|
4,846 |
|
|
|
4,650 |
|
|
|
(6,093 |
) |
| Capital expenditures, accrual
basis |
|
(8,781 |
) |
|
|
(3,156 |
) |
|
|
(15,632 |
) |
|
|
(11,937 |
) |
|
|
(22,999 |
) |
| Other |
|
304 |
|
|
|
(214 |
) |
|
|
(312 |
) |
|
|
90 |
|
|
|
66 |
|
| Free Cash
Flow |
$ |
18,745 |
|
|
$ |
32,423 |
|
|
$ |
9,678 |
|
|
$ |
51,168 |
|
|
$ |
22,068 |
|
(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 |
$ |
(4,636 |
) |
|
$ |
1,045 |
|
|
$ |
2,997 |
|
|
$ |
(3,591 |
) |
|
$ |
11,636 |
|
|
Less: Deferred income (benefit) taxes |
|
(4,324 |
) |
|
|
733 |
|
|
|
7,184 |
|
|
|
(3,591 |
) |
|
|
11,580 |
|
|
Current tax (benefit) expense |
$ |
(312 |
) |
|
$ |
312 |
|
|
$ |
(4,187 |
) |
|
$ |
— |
|
|
$ |
56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in derivatives
receivable (payable) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives receivable (payable), end of period |
$ |
(567 |
) |
|
$ |
1,427 |
|
|
$ |
(677 |
) |
|
$ |
(567 |
) |
|
$ |
(677 |
) |
|
Derivatives (receivable) payable, beginning of period |
|
(1,427 |
) |
|
|
(271 |
) |
|
|
(524 |
) |
|
|
(271 |
) |
|
|
4,574 |
|
|
Change in derivatives (payable) receivable |
$ |
(1,994 |
) |
|
$ |
1,156 |
|
|
$ |
(1,201 |
) |
|
$ |
(838 |
) |
|
$ |
3,897 |
|
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, 2024 because GAAP does not provide for
disclosure of standardized measure on an interim basis.
|
CONTACT: |
Al Petrie |
Sameer Parasnis |
| |
Investor Relations
Coordinator |
Executive VP and CFO |
| |
investorrelations@wtoffshore.com |
sparasnis@wtoffshore.com |
| |
713-297-8024 |
713-513-8654 |
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 7 2024 まで 8 2024
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 8 2023 まで 8 2024
