W&T Offshore, Inc. (NYSE: WTI) (“W&T,” the “Company” or
“us”) today reported operational and financial results for the
third quarter of 2024 and declared a fourth quarter 2024 dividend
of $0.01 per share.
This press release includes non-GAAP financial
measures, including Adjusted Net (Loss) Income, Adjusted EBITDA,
Free Cash Flow and Net Debt, which are described and reconciled to
the most comparable GAAP financial measures below in the
accompanying tables under “Non-GAAP Information.”
Key highlights for the third quarter of 2024 and
through the date of this press release include:
- Produced 31.0
thousand barrels of oil equivalent per day (“MBoe/d”) (52% liquids)
within the Company’s third quarter guidance despite impacts from
hurricanes and downtime;
- Incurred lease
operating expenses (“LOE”) of $72.4 million, 6% lower than the
bottom end of the Company’s third quarter guidance range;
- Generated net
cash from operating activities of $14.8 million and Free Cash Flow
of $3.9 million in the third quarter of 2024, marking the 27th
consecutive quarter of positive Free Cash Flow;
- Reported net
loss of $36.9 million, or $(0.25) per diluted share;
- Adjusted Net
Loss totaled $25.7 million, or $(0.17) per share, which primarily
excludes the net unrealized gain on outstanding derivative
contracts, non-ARO plugging and abandonment (“P&A”) costs and
related tax effect;
- Posted Adjusted
EBITDA of $26.7 million;
- Increased cash
and cash equivalents to $126.5 million and lowered Net Debt to
$266.0 million at September 30, 2024;
- Maintained a
low leverage profile with Net Debt to trailing twelve months
(“TTM”) Adjusted EBITDA of 1.6x, which does not include the benefit
of the full expected production acquired in 2024;
- Paid fourth
consecutive quarterly dividend of $0.01 per common share in August
2024;
- Declared fourth
quarter of 2024 dividend of $0.01 per share, which will be payable
on November 29, 2024 to stockholders of record on November 21,
2024;
- Reduced 2024
full year capital expenditure budget from $35 to $45 million to $25
to $35 million;
- Continued
commitment to sustainability by publishing the 2023 Corporate
Environmental, Social and Governance (“ESG”) report; and
- Named as one of
five finalists for the Best Proxy Statement in the small cap
category at the 18th Annual Corporate Governance Awards hosted by
Governance Intelligence (formerly Corporate Secretary) which
recognizes outstanding achievements in governance, risk and
compliance.
Tracy W. Krohn, W&T’s Board Chair and Chief
Executive Officer, commented, “We remain committed to executing our
strategic vision focused on free cash flow generation, maintaining
solid production and maximizing margins. This commitment enabled
W&T to deliver another quarter of solid results despite
production being temporarily impacted by approximately 3.5 MBoe/d
of shut-ins associated with hurricanes and other unplanned
downtime, but production was still within our guidance range for
the quarter. In October, we have seen production levels recover to
around 34.0 Mboe/d. We continue to make progress integrating our
2024 acquired assets into W&T with four of the six fields
online, but we still have more work to do to return the remaining
two fields to production, which provides additional upside.
Additionally, we continue to reduce costs and capture synergies
associated with our asset acquisitions with LOE 6% below the bottom
end of our guidance range. We remain focused on generating Adjusted
EBITDA and Free Cash Flow and the third quarter 2024 marked the
27th consecutive quarter of positive Free Cash Flow. Our proven and
successful strategy and operational excellence should help us
continue to produce strong results both operationally and
financially for the remainder of 2024 and into 2025.”
“We continue to demonstrate our commitment to a
high quality, comprehensive ESG effort by issuing our 2023 ESG
report. This is our fourth sustainability report, and we continue
to make strides regarding shareholder rights, board structure and
oversight, human rights, labor, health and safety and environmental
initiatives. We are constantly seeking to improve our capabilities
to better allow us to report on an increasing number of SASB
standards and GRI standards for the oil and gas sector. W&T’s
culture of success and sustainability is built on environmental
stewardship, sound corporate governance, and contributing
positively to our employees and the communities where we work and
operate. In 2023, we added a new Board member, Dr. Nancy Chang, who
is the chair of our Environmental, Safety and Governance committee
that oversees our ESG efforts. Dr. Chang has helped to guide
W&T in its ongoing commitment to high standards of ESG and
corporate governance. We invite you to review this report to learn
more about our sustainability program and our plans for improvement
in the future. In addition, W&T was named as one of five
finalists for the Best Proxy Statement in the small cap category at
the 18th Annual Corporate Governance Awards. Our proxy statement
clearly demonstrated our ongoing commitment to excellence and high
standards of transparency and corporate governance.”
Production, Prices and
Revenue: Production for the third quarter of 2024 was
31.0 MBoe/d, within the Company’s third quarter guidance and down
compared with 34.9 MBoe/d for the second quarter of 2024 and 35.9
MBoe/d for the corresponding period in 2023. Production in the
third quarter of 2024 was temporarily reduced by approximately 3.5
MBoe/d mainly due to hurricanes and third party downtime. The
year-over-year decrease was partially offset by increased
production from wells acquired in January 2024. Third quarter 2024
production was comprised of 13.2 thousand barrels per day
(“MBbl/d”) of oil (43%), 2.8 MBbl/d of natural gas liquids (“NGLs”)
(9%), and 90.1 million cubic feet per day (“MMcf/d”) of natural gas
(48%). Two of the six fields acquired in early 2024 remain shut-in.
W&T continues to work on returning these fields 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 $41.92 per Boe in the third
quarter of 2024, a decrease of 6% from $44.40 per Boe in the second
quarter of 2024 and a decrease of 1% from $42.48 per Boe in the
third quarter of 2023. Third quarter 2024 oil, NGL and natural gas
prices before realized derivative settlements were $75.09 per
barrel of oil, $21.51 per barrel of NGL and $2.79 per Mcf of
natural gas.
Revenues for the third quarter of 2024 were
$121.4 million, which was approximately 15% lower than the second
quarter of 2024 revenue of $142.8 million driven by lower realized
prices for liquids and lower production volumes. Third quarter 2024
revenue was approximately 15% lower than $142.4 million of revenue
in the third quarter of 2023 due to lower average realized prices
and lower production volumes.
Lease Operating Expense: LOE,
which includes base lease operating expenses, insurance premiums,
workovers and facilities maintenance expenses, was $72.4 million in
the third quarter of 2024, which was below the bottom end of the
previously provided guidance range of $77.0 to $85.0 million. 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 third quarter of 2024 was approximately 2% lower compared
to $74.0 million in the second quarter of 2024 and up approximately
17% from $61.8 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 third quarter of 2024, base LOE and insurance
premiums were $58.5 million, workovers were $0.9 million, and
facilities maintenance and other expenses were $13.0 million. On a
unit of production basis, LOE was $25.37 per Boe in the third
quarter of 2024. This compares to $23.29 per Boe for the second
quarter of 2024 and $18.72 per Boe for the third quarter of 2023,
reflecting a decrease in production in the periods.
Gathering, Transportation Costs and
Production Taxes: Gathering, transportation costs and
production taxes totaled $6.1 million ($2.15 per Boe) in the third
quarter of 2024, compared to $8.6 million ($2.70 per Boe) in the
second quarter of 2024 and $6.7 million ($2.03 per Boe) in the
third quarter of 2023. Gathering, transportation costs and
production taxes decreased in the third quarter of 2024 from the
prior quarter due to higher processing fees for W&T’s
Mobile Bay production that had to be re-routed to a different
processing plant in the second quarter of 2024.
Depreciation, Depletion and Amortization
(“DD&A”): DD&A was $11.99 per Boe in the third
quarter of 2024. This compares to $11.55 per Boe and $9.15 per Boe
for the second quarter of 2024 and the third quarter of 2023,
respectively.
Asset Retirement Obligations
Accretion: Asset retirement obligations accretion was
$2.75 per Boe in the third quarter of 2024. This compares to $2.64
per Boe and $1.94 per Boe for the second quarter of 2024 and the
third quarter of 2023, respectively.
General & Administrative Expenses
(“G&A”): G&A was $19.7 million for the third
quarter of 2024, which decreased from $21.4 million in the second
quarter of 2024 primarily due to the decrease in non-recurring
professional and legal fees incurred in the second quarter of 2024
partially offset by an increase in non-cash compensation expense in
the third quarter of 2024 associated with the annual equity grant.
G&A totaled $20.0 million in the third quarter of 2023. On a
unit of production basis, G&A was $6.91 per Boe in the third
quarter of 2024 compared to $6.72 per Boe in the second quarter of
2024 and $6.05 per Boe in the corresponding period of 2023. These
differences are primarily related to production variances.
Derivative (Gain) Loss, net: In
the third quarter of 2024, W&T recorded a net gain of $3.2
million related to commodity derivative contracts comprised of a
$1.8 million unrealized gain related to the increase in fair value
of open contracts and $1.4 million of realized gains. W&T
recognized a net loss of $2.4 million in the second quarter of 2024
and a net gain of $1.5 million in the third 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 third quarter of 2024 was $10.0 million
compared to $10.2 million in the second quarter of 2024 and $9.9
million in the third 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 P&A
costs. During the third quarter of 2024, the Company reassessed its
existing obligations and recorded an additional $16.6 million.
Income Tax (Benefit) Expense:
W&T recognized an income tax benefit of $4.5 million in the
third quarter of 2024. This compares to the recognition of an
income tax benefit of $4.6 million and an income tax expense of
$4.8 million for the quarters ended June 30, 2024 and
September 30, 2023, respectively.
Balance Sheet and Liquidity: As
of September 30, 2024, W&T had available liquidity of
$176.5 million comprised of $126.5 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 September 30, 2024, the
Company had total debt of $392.6 million and Net Debt of $266.0
million. Of W&T’s total debt of $392.6 million, only $278.4
million is recourse to W&T. The remaining $114.2 million is
held at W&T’s wholly owned subsidiary, Aquasition Energy LLC,
and is non-recourse to W&T. As of September 30, 2024,
Net Debt to TTM Adjusted EBITDA was 1.6x.
Capital Expenditures and Asset
Retirement Settlements: Capital expenditures on an accrual
basis (excluding acquisitions) in the third quarter of 2024 were
$4.5 million, and asset retirement settlement costs totaled $8.3
million. For the nine months ended September 30, 2024, capital
expenditures on an accrual basis (excluding acquisitions) totaled
$16.4 million and asset retirements costs were $20.3 million.
Investments related to acquisitions in the nine months ended
September 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 third quarter of 2024, the Company
performed one workover and three recompletions that positively
impacted production for the quarter. W&T plans to continue
performing these low cost and low risk short payout operations that
impact both production and revenue.
Cash Dividend Policy
The Company paid its third quarter 2024 dividend
of $0.01 per share on August 29, 2024 to stockholders of record on
August 21, 2024.
The Board of Directors declared a fourth quarter
2024 dividend of $0.01 per share which is to be paid on November
29, 2024 to stockholders of record on November 21, 2024.
Issued 2023 Corporate ESG
Report
The 2023 ESG report provides detailed
information about W&T’s sustainability initiatives and provides
important ESG performance data for the five year period from 2019
through 2023.
Highlights of the report include:
- Decreased total
Scope 1 GHG emissions 26% from over 435,000 metric tons of CO2-e in
2019 to 325,000 metric tons of CO2-e in 2023;
- Decreased scope
1 GHG production intensity by 42% across the past five years;
- Maintained
detailed efforts and procedures in place to estimate and track all
waste management that is recycled, injected, or sent to
landfills;
- Continued
reaching out and engaging directly with W&T’s largest
shareholders, affirming the Company’s commitment to shareholders
and ensuring alignment over the long-term; and
- Established an
ESG Committee, chaired by Dr. Nancy Chang, which will assist in
setting the Company’s general strategy relating to ESG matters and
in developing, implementing, and monitoring initiatives and
policies based on that strategy.
Proxy Statement Award
W&T was one of five entrants named as a
finalist for the Best Proxy Statement in the small cap category at
the 18th Annual Corporate Governance Awards out of 75 entrants (22
in the small cap category). These awards are hosted by Governance
Intelligence (formerly Corporate Secretary) which recognize
outstanding achievements in governance, risk and compliance. The
award recognizes the unwavering commitment of W&T Offshore to
excellence, transparency and innovation in shareholder
communications.
The Corporate Governance Awards celebrate
outstanding achievements by the governance profession in areas such
as proxy statements, hosting annual general meetings (AGMs),
compliance and ethics programs, ESG reporting, entity management,
use of technology, investor engagement and corporate transactions.
Winners will be selected by an independent panel of judges and
announced at an in-person ceremony on November 7, 2024, in New
York.
Fourth Quarter and Full Year 2024
Production and Expense Guidance
The guidance for the fourth quarter and full
year 2024 in the table below represents the Company’s current
expectations. Please refer to the section entitled “Forward-Looking
and Cautionary Statements” below for risk factors that could impact
guidance.
W&T plans to spend more on LOE in the fourth
quarter of 2024 compared to the third quarter of 2024 to undertake
some of the projects deferred earlier in the year. Full year
estimated LOE was reduced in August 2024 by approximately 5% at the
midpoint, to a range of $280 million to $315 million, which
demonstrates W&T’s commitment to lowering costs and reflects
the Company’s ability to capture the benefit of synergies from
recent acquisitions. The Company reduced its 2024 full year capital
expenditure budget from $35 to $45 million to $25 to $35
million.
|
|
|
|
|
Production |
Fourth Quarter 2024 |
Full Year 2024 |
|
Oil (MBbl) |
1,200 – 1,330 |
5,000 – 5,500 |
|
NGLs (MBbl) |
260 – 290 |
1,150 – 1,350 |
|
Natural gas (MMcf) |
8,800 – 9,800 |
34,500 – 38,500 |
|
Total equivalents (MBoe) |
2,927 – 3,253 |
11,900 – 13,267 |
|
Average daily equivalents (MBoe/d) |
31.8 – 35.4 |
32.5 – 36.2 |
|
Expenses |
Fourth Quarter 2024 |
Full Year 2024 |
|
Lease operating expense ($MM) |
73.0 – 81.0 |
280.0 – 315.0 |
|
Gathering, transportation & production taxes ($MM) |
6.8 – 7.6 |
31.0 – 34.0 |
|
General & administrative – cash ($MM) |
15.5 – 17.2 |
66.0 – 74.0 |
|
General & administrative – non-cash ($MM) |
3.6 – 4.2 |
11.5 – 13.5 |
|
DD&A ($ per Boe) |
|
13.00 – 14.00 |
|
|
|
|
W&T expects substantially all income taxes
in 2024 to be deferred.
Conference Call Information:
W&T will hold a conference call to discuss its financial and
operational results on Friday, November 8, 2024 at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time). Interested parties may dial
1-844-739-3797. International parties may dial 1-412-317-5713.
Participants should request to connect to the “W&T Offshore
Conference Call.” This call will also be webcast and available on
W&T’s website at www.wtoffshore.com under “Investors.” An audio
replay will be available on the Company’s website following the
call.
About W&T Offshore
W&T Offshore, Inc. is an independent oil and
natural gas producer with operations offshore in the Gulf of Mexico
and has grown through acquisitions, exploration and development. As
of September 30, 2024, the Company had working interests
in 53 fields in federal and state waters (which include 46 fields
in federal waters and 7 in state waters). The Company has under
lease approximately 673,100 gross acres (515,400 net acres)
spanning across the outer continental shelf off the coasts of
Louisiana, Texas, Mississippi and Alabama, with approximately
514,000 gross acres on the conventional shelf, approximately
153,500 gross acres in the deepwater and 5,600 gross acres in
Alabama state waters. A majority of the Company’s daily production
is derived from wells it operates. For more information on W&T,
please visit the Company’s website at www.wtoffshore.com.
Forward-Looking and Cautionary
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements other than statements of
historical facts included in this release regarding the Company’s
financial position, operating and financial performance, business
strategy, plans and objectives of management for future operations,
projected costs, industry conditions, potential acquisitions,
sustainability initiatives, the impact of and integration of
acquired assets, and indebtedness are forward-looking statements.
When used in this release, forward-looking statements are generally
accompanied by terms or phrases such as “estimate,” “project,”
“predict,” “believe,” “expect,” “continue,” “anticipate,” “target,”
“could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may”
or other words and similar expressions that convey the uncertainty
of future events or outcomes, although not all forward-looking
statements contain such identifying words. Items contemplating or
making assumptions about actual or potential future production and
sales, prices, market size, and trends or operating results also
constitute such forward-looking statements.
These forward-looking statements are based on
the Company’s current expectations and assumptions about future
events and speak only as of the date of this release. While
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond the Company’s control. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, as results actually achieved may differ materially from
expected results described in these statements. The Company does
not undertake, and specifically disclaims, any obligation to update
any forward-looking statements to reflect events or circumstances
occurring after the date of such statements, unless required by
law.
Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially including, among other things, the regulatory
environment, including availability or timing of, and conditions
imposed on, obtaining and/or maintaining permits and approvals,
including those necessary for drilling and/or development projects;
the impact of current, pending and/or future laws and regulations,
and of legislative and regulatory changes and other government
activities, including those related to permitting, drilling,
completion, well stimulation, operation, maintenance or abandonment
of wells or facilities, managing energy, water, land, greenhouse
gases or other emissions, protection of health, safety and the
environment, or transportation, marketing and sale of the Company’s
products; inflation levels; global economic trends, geopolitical
risks and general economic and industry conditions, such as the
global supply chain disruptions and the government interventions
into the financial markets and economy in response to inflation
levels and world health events; volatility of oil, NGL and natural
gas prices; the global energy future, including the factors and
trends that are expected to shape it, such as concerns about
climate change and other air quality issues, the transition to a
low-emission economy and the expected role of different energy
sources; supply of and demand for oil, natural gas and NGLs,
including due to the actions of foreign producers, importantly
including OPEC and other major oil producing companies (“OPEC+”)
and change in OPEC+’s production levels; disruptions to, capacity
constraints in, or other limitations on the pipeline systems that
deliver the Company’s oil and natural gas and other processing and
transportation considerations; inability to generate sufficient
cash flow from operations or to obtain adequate financing to fund
capital expenditures, meet the Company’s working capital
requirements or fund planned investments; price fluctuations and
availability of natural gas and electricity; the Company’s ability
to use derivative instruments to manage commodity price risk; the
Company’s ability to meet the Company’s planned drilling schedule,
including due to the Company’s ability to obtain permits on a
timely basis or at all, and to successfully drill wells that
produce oil and natural gas in commercially viable quantities;
uncertainties associated with estimating proved reserves and
related future cash flows; the Company’s ability to replace the
Company’s reserves through exploration and development activities;
drilling and production results, lower–than–expected production,
reserves or resources from development projects or
higher–than–expected decline rates; the Company’s ability to obtain
timely and available drilling and completion equipment and crew
availability and access to necessary resources for drilling,
completing and operating wells; changes in tax laws; effects of
competition; uncertainties and liabilities associated with acquired
and divested assets; the Company’s ability to make acquisitions and
successfully integrate any acquired businesses; asset impairments
from commodity price declines; large or multiple customer defaults
on contractual obligations, including defaults resulting from
actual or potential insolvencies; geographical concentration of the
Company’s operations; the creditworthiness and performance of the
Company’s counterparties with respect to its hedges; impact of
derivatives legislation affecting the Company’s ability to hedge;
failure of risk management and ineffectiveness of internal
controls; catastrophic events, including tropical storms,
hurricanes, earthquakes, pandemics and other world health events;
environmental risks and liabilities under U.S. federal, state,
tribal and local laws and regulations (including remedial actions);
potential liability resulting from pending or future litigation;
the Company’s ability to recruit and/or retain key members of the
Company’s senior management and key technical employees;
information technology failures or cyberattacks; and governmental
actions and political conditions, as well as the actions by other
third parties that are beyond the Company’s control, and other
factors discussed in W&T Offshore’s most recent Annual Report
on Form 10-K and subsequent Quarterly Reports on Form 10-Q found at
www.sec.gov or at the Company’s website at www.wtoffshore.com under
the Investor Relations section.
|
W&T OFFSHORE, INC. |
|
Condensed Consolidated Statements of
Operations |
|
(In thousands, except per share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
$ |
90,862 |
|
|
$ |
110,965 |
|
|
$ |
100,331 |
|
|
$ |
308,842 |
|
|
$ |
287,313 |
|
|
NGLs |
|
5,636 |
|
|
|
8,160 |
|
|
|
7,415 |
|
|
|
21,265 |
|
|
|
25,595 |
|
|
Natural gas |
|
23,148 |
|
|
|
21,910 |
|
|
|
32,515 |
|
|
|
66,674 |
|
|
|
80,757 |
|
|
Other |
|
1,726 |
|
|
|
1,722 |
|
|
|
2,150 |
|
|
|
8,135 |
|
|
|
6,651 |
|
|
Total revenues |
|
121,372 |
|
|
|
142,757 |
|
|
|
142,411 |
|
|
|
404,916 |
|
|
|
400,316 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
72,412 |
|
|
|
73,987 |
|
|
|
61,826 |
|
|
|
217,229 |
|
|
|
193,033 |
|
|
Gathering, transportation and production taxes |
|
6,147 |
|
|
|
8,578 |
|
|
|
6,692 |
|
|
|
22,265 |
|
|
|
19,630 |
|
|
Depreciation, depletion, and amortization |
|
34,206 |
|
|
|
36,674 |
|
|
|
30,218 |
|
|
|
104,817 |
|
|
|
81,019 |
|
|
Asset retirement obligations accretion |
|
7,848 |
|
|
|
8,400 |
|
|
|
6,414 |
|
|
|
24,217 |
|
|
|
21,641 |
|
|
General and administrative expenses |
|
19,723 |
|
|
|
21,354 |
|
|
|
19,978 |
|
|
|
61,592 |
|
|
|
57,290 |
|
|
Total operating expenses |
|
140,336 |
|
|
|
148,993 |
|
|
|
125,128 |
|
|
|
430,120 |
|
|
|
372,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating (loss) income |
|
(18,964 |
) |
|
|
(6,236 |
) |
|
|
17,283 |
|
|
|
(25,204 |
) |
|
|
27,703 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
9,992 |
|
|
|
10,164 |
|
|
|
9,925 |
|
|
|
30,228 |
|
|
|
34,960 |
|
| Derivative (gain) loss,
net |
|
(3,199 |
) |
|
|
2,374 |
|
|
|
(1,491 |
) |
|
|
(5,702 |
) |
|
|
(41,560 |
) |
| Other expense, net |
|
15,709 |
|
|
|
1,250 |
|
|
|
1,927 |
|
|
|
22,189 |
|
|
|
1,849 |
|
| (Loss) income before income
taxes |
|
(41,466 |
) |
|
|
(20,024 |
) |
|
|
6,922 |
|
|
|
(71,919 |
) |
|
|
32,454 |
|
| Income tax (benefit)
expense |
|
(4,545 |
) |
|
|
(4,636 |
) |
|
|
4,777 |
|
|
|
(8,136 |
) |
|
|
16,413 |
|
| Net (loss) income |
$ |
(36,921 |
) |
|
$ |
(15,388 |
) |
|
$ |
2,145 |
|
|
$ |
(63,783 |
) |
|
$ |
16,041 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.25 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.01 |
|
|
$ |
(0.43 |
) |
|
$ |
0.11 |
|
|
Diluted |
|
(0.25 |
) |
|
|
(0.10 |
) |
|
|
0.01 |
|
|
|
(0.43 |
) |
|
|
0.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
147,206 |
|
|
|
146,943 |
|
|
|
146,483 |
|
|
|
147,002 |
|
|
|
146,451 |
|
|
Diluted |
|
147,206 |
|
|
|
146,943 |
|
|
|
151,459 |
|
|
|
147,002 |
|
|
|
149,856 |
|
|
W&T OFFSHORE, INC. |
|
Condensed Operating Data |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| |
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Net sales volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
1,210 |
|
|
|
1,382 |
|
|
|
1,227 |
|
|
|
3,992 |
|
|
|
3,831 |
|
|
NGLs (MBbls) |
|
262 |
|
|
|
334 |
|
|
|
348 |
|
|
|
939 |
|
|
|
1,086 |
|
|
Natural gas (MMcf) |
|
8,289 |
|
|
|
8,769 |
|
|
|
10,359 |
|
|
|
25,791 |
|
|
|
28,058 |
|
|
Total oil and natural gas (MBoe)(1) |
|
2,854 |
|
|
|
3,177 |
|
|
|
3,302 |
|
|
|
9,230 |
|
|
|
9,593 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average daily equivalent sales
(MBoe/d) |
|
31.0 |
|
|
|
34.9 |
|
|
|
35.9 |
|
|
|
33.7 |
|
|
|
35.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average realized sales prices
(before the impact of derivative settlements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
$ |
75.09 |
|
|
$ |
80.29 |
|
|
$ |
81.77 |
|
|
$ |
77.37 |
|
|
$ |
75.00 |
|
|
NGLs ($/Bbl) |
|
21.51 |
|
|
|
24.43 |
|
|
|
21.31 |
|
|
|
22.65 |
|
|
|
23.57 |
|
|
Natural gas ($/Mcf) |
|
2.79 |
|
|
|
2.50 |
|
|
|
3.14 |
|
|
|
2.59 |
|
|
|
2.88 |
|
|
Barrel of oil equivalent ($/Boe) |
|
41.92 |
|
|
|
44.40 |
|
|
|
42.48 |
|
|
|
42.99 |
|
|
|
41.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average operating expenses per
Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
$ |
25.37 |
|
|
$ |
23.29 |
|
|
$ |
18.72 |
|
|
$ |
23.54 |
|
|
$ |
20.12 |
|
|
Gathering, transportation and production taxes |
|
2.15 |
|
|
|
2.70 |
|
|
|
2.03 |
|
|
|
2.41 |
|
|
|
2.05 |
|
|
Depreciation, depletion, and amortization |
|
11.99 |
|
|
|
11.55 |
|
|
|
9.15 |
|
|
|
11.36 |
|
|
|
8.45 |
|
|
Asset retirement obligations accretion |
|
2.75 |
|
|
|
2.64 |
|
|
|
1.94 |
|
|
|
2.62 |
|
|
|
2.26 |
|
|
General and administrative expenses |
|
6.91 |
|
|
|
6.72 |
|
|
|
6.05 |
|
|
|
6.67 |
|
|
|
5.97 |
|
(1) MBoe is determined using the
ratio of six Mcf of natural gas to one Bbl of crude oil, condensate
or NGLs (totals may not compute due to rounding). The conversion
ratio does not assume price equivalency and the price on an
equivalent basis for oil, NGLs and natural gas may differ
significantly. The realized prices presented above are
volume-weighted for production in the respective period.
|
W&T OFFSHORE, INC. |
|
Consolidated Balance Sheets |
|
(In thousands) |
|
(Unaudited) |
| |
|
|
|
|
|
| |
September 30, |
|
December 31, |
| |
|
2024 |
|
|
|
2023 |
|
|
Assets |
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
126,544 |
|
|
$ |
173,338 |
|
|
Restricted cash |
|
4,417 |
|
|
|
4,417 |
|
|
Receivables: |
|
|
|
|
|
|
Oil and natural gas sales |
|
52,025 |
|
|
|
52,080 |
|
|
Joint interest, net |
|
19,753 |
|
|
|
15,480 |
|
|
Other |
|
557 |
|
|
|
2,218 |
|
|
Prepaid expenses and other assets |
|
23,116 |
|
|
|
17,447 |
|
|
Total current assets |
|
226,412 |
|
|
|
264,980 |
|
| |
|
|
|
|
|
| Oil and natural gas properties
and other, net |
|
798,705 |
|
|
|
749,056 |
|
| Restricted deposits for asset
retirement obligations |
|
22,625 |
|
|
|
22,272 |
|
| Deferred income taxes |
|
46,910 |
|
|
|
38,774 |
|
| Other assets |
|
32,624 |
|
|
|
38,923 |
|
| Total assets |
$ |
1,127,276 |
|
|
$ |
1,114,005 |
|
| |
|
|
|
|
|
|
Liabilities and Shareholders’ (Deficit)
Equity |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
86,866 |
|
|
$ |
78,857 |
|
|
Accrued liabilities |
|
21,629 |
|
|
|
31,978 |
|
|
Undistributed oil and natural gas proceeds |
|
54,461 |
|
|
|
42,134 |
|
|
Advances from joint interest partners |
|
2,489 |
|
|
|
2,962 |
|
|
Current portion of asset retirement obligations |
|
45,139 |
|
|
|
31,553 |
|
|
Current portion of long-term debt, net |
|
20,968 |
|
|
|
29,368 |
|
|
Total current liabilities |
|
231,552 |
|
|
|
216,852 |
|
|
|
|
|
|
|
|
| Asset retirement
obligations |
|
509,888 |
|
|
|
467,262 |
|
| Long-term debt, net |
|
371,596 |
|
|
|
361,236 |
|
| Other liabilities |
|
16,665 |
|
|
|
19,420 |
|
| Commitments and
contingencies |
|
29,085 |
|
|
|
18,043 |
|
| |
|
|
|
|
|
| Shareholders’ (deficit)
equity: |
|
|
|
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
|
Common stock |
|
2 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
591,602 |
|
|
|
586,014 |
|
|
Retained deficit |
|
(598,947 |
) |
|
|
(530,656 |
) |
|
Treasury stock |
|
(24,167 |
) |
|
|
(24,167 |
) |
|
Total shareholders’ (deficit) equity |
|
(31,510 |
) |
|
|
31,192 |
|
| Total liabilities and
shareholders’ (deficit) equity |
$ |
1,127,276 |
|
|
$ |
1,114,005 |
|
|
W&T OFFSHORE, INC. |
|
Condensed Consolidated Statements of Cash
Flows |
|
(In thousands) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(36,921 |
) |
|
$ |
(15,388 |
) |
|
$ |
2,145 |
|
|
$ |
(63,783 |
) |
|
$ |
16,041 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
42,054 |
|
|
|
45,074 |
|
|
|
36,632 |
|
|
|
129,034 |
|
|
|
102,660 |
|
|
Share-based compensation |
|
1,956 |
|
|
|
1,386 |
|
|
|
3,250 |
|
|
|
6,374 |
|
|
|
7,259 |
|
|
Amortization and write off of debt issuance costs |
|
1,109 |
|
|
|
1,044 |
|
|
|
1,351 |
|
|
|
3,445 |
|
|
|
5,714 |
|
|
Derivative loss (gain), net |
|
(3,199 |
) |
|
|
2,374 |
|
|
|
(1,491 |
) |
|
|
(5,702 |
) |
|
|
(41,560 |
) |
|
Derivative cash settlements, net |
|
1,208 |
|
|
|
2,358 |
|
|
|
(1,696 |
) |
|
|
6,165 |
|
|
|
(6,123 |
) |
|
Deferred income (benefit) taxes |
|
(4,545 |
) |
|
|
(4,324 |
) |
|
|
3,067 |
|
|
|
(8,136 |
) |
|
|
14,647 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
21,913 |
|
|
|
(7,108 |
) |
|
|
(9,354 |
) |
|
|
(2,557 |
) |
|
|
15,575 |
|
|
Prepaid expenses and other current assets |
|
2,502 |
|
|
|
(6,177 |
) |
|
|
(1,442 |
) |
|
|
(3,242 |
) |
|
|
25,550 |
|
|
Accounts payable, accrued liabilities and other |
|
(2,962 |
) |
|
|
26,416 |
|
|
|
10,645 |
|
|
|
22,602 |
|
|
|
(35,183 |
) |
|
Asset retirement obligation settlements |
|
(8,347 |
) |
|
|
(8,209 |
) |
|
|
(13,077 |
) |
|
|
(20,344 |
) |
|
|
(24,918 |
) |
| Net cash provided by operating
activities |
|
14,768 |
|
|
|
37,446 |
|
|
|
30,030 |
|
|
|
63,856 |
|
|
|
79,662 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in oil and natural gas properties and equipment |
|
(9,577 |
) |
|
|
(6,576 |
) |
|
|
(4,337 |
) |
|
|
(23,233 |
) |
|
|
(29,674 |
) |
|
Acquisition of property interests |
|
— |
|
|
|
(120 |
) |
|
|
(28,863 |
) |
|
|
(80,635 |
) |
|
|
(28,863 |
) |
|
Deposit related to acquisition of property interests |
|
— |
|
|
|
— |
|
|
|
(8,850 |
) |
|
|
— |
|
|
|
(8,850 |
) |
|
Purchase of corporate aircraft |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,983 |
) |
|
Purchases of furniture, fixtures and other |
|
(69 |
) |
|
|
(73 |
) |
|
|
(2,863 |
) |
|
|
(166 |
) |
|
|
(3,081 |
) |
| Net cash used in investing
activities |
|
(9,646 |
) |
|
|
(6,769 |
) |
|
|
(44,913 |
) |
|
|
(104,034 |
) |
|
|
(79,451 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
275,000 |
|
|
Repayments of long-term debt |
|
(275 |
) |
|
|
(275 |
) |
|
|
(7,423 |
) |
|
|
(825 |
) |
|
|
(579,247 |
) |
|
Debt issuance costs |
|
(174 |
) |
|
|
(93 |
) |
|
|
(128 |
) |
|
|
(579 |
) |
|
|
(7,380 |
) |
|
Payment of dividends |
|
(1,473 |
) |
|
|
(1,485 |
) |
|
|
— |
|
|
|
(4,427 |
) |
|
|
— |
|
|
Other |
|
(31 |
) |
|
|
(271 |
) |
|
|
(200 |
) |
|
|
(785 |
) |
|
|
(948 |
) |
| Net cash used in financing
activities |
|
(1,953 |
) |
|
|
(2,124 |
) |
|
|
(7,751 |
) |
|
|
(6,616 |
) |
|
|
(312,575 |
) |
| Change in cash, cash
equivalents and restricted cash |
|
3,169 |
|
|
|
28,553 |
|
|
|
(22,634 |
) |
|
|
(46,794 |
) |
|
|
(312,364 |
) |
| Cash, cash equivalents and
restricted cash, beginning of period |
|
127,792 |
|
|
|
99,239 |
|
|
|
176,044 |
|
|
|
177,755 |
|
|
|
465,774 |
|
| Cash, cash equivalents and
restricted cash, end of period |
$ |
130,961 |
|
|
$ |
127,792 |
|
|
$ |
153,410 |
|
|
$ |
130,961 |
|
|
$ |
153,410 |
|
W&T OFFSHORE, INC. AND
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” and
“Free Cash Flow” or are derivable from a combination of these
measures. Management uses these non-GAAP financial measures in its
analysis of performance. These disclosures may not be viewed as a
substitute for results determined in accordance with GAAP and are
not necessarily comparable to non-GAAP performance measures which
may be reported by other companies. Prior period amounts have been
conformed to the methodology and presentation of the current
period.
We calculate Net Debt as total debt (current and
long-term portions), less cash and cash equivalents. Management
uses Net Debt to evaluate the Company’s financial position,
including its ability to service its debt obligations.
Reconciliation of Net (Loss) Income to
Adjusted Net Loss
Adjusted Net (Loss) Income adjusts for certain
items that the Company believes affect comparability of operating
results, including items that are generally non-recurring in nature
or whose timing and/or amount cannot be reasonably estimated. These
items include unrealized commodity derivative gain, net, allowance
for credit losses, write-off of debt issuance costs, non-recurring
legal and IT-related costs, non-ARO P&A costs, and other which
are then tax effected using the Federal Statutory Rate.
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
|
(in thousands) |
| |
|
(Unaudited) |
| Net (loss)
income |
$ |
(36,921 |
) |
|
$ |
(15,388 |
) |
|
$ |
2,145 |
|
|
$ |
(63,783 |
) |
|
$ |
16,041 |
|
| Unrealized commodity
derivative (gain) loss, net |
|
(1,829 |
) |
|
|
2,738 |
|
|
|
(3,462 |
) |
|
|
(213 |
) |
|
|
(44,061 |
) |
| Allowance for credit
losses |
|
10 |
|
|
|
346 |
|
|
|
6 |
|
|
|
440 |
|
|
|
9 |
|
| Write-off debt issuance
costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,330 |
|
| Non-recurring legal and
IT-related costs |
|
(22 |
) |
|
|
4,202 |
|
|
|
768 |
|
|
|
4,938 |
|
|
|
2,631 |
|
| Non-ARO P&A costs |
|
16,627 |
|
|
|
1,709 |
|
|
|
2,103 |
|
|
|
23,688 |
|
|
|
2,109 |
|
| Other |
|
(633 |
) |
|
|
304 |
|
|
|
204 |
|
|
|
(543 |
) |
|
|
271 |
|
| Tax effect of selected
items(1) |
|
(2,972 |
) |
|
|
(1,953 |
) |
|
|
84 |
|
|
|
(5,945 |
) |
|
|
7,709 |
|
| Adjusted net (loss)
income |
$ |
(25,740 |
) |
|
$ |
(8,042 |
) |
|
$ |
1,848 |
|
|
$ |
(41,418 |
) |
|
$ |
(12,961 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net (loss) income per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.17 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
|
|
($0.28 |
) |
|
$ |
(0.09 |
) |
|
Diluted |
$ |
(0.17 |
) |
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
|
|
($0.28 |
) |
|
$ |
(0.09 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
147,206 |
|
|
|
146,943 |
|
|
|
146,483 |
|
|
|
147,002 |
|
|
|
146,451 |
|
|
Diluted |
|
147,206 |
|
|
|
146,943 |
|
|
|
151,459 |
|
|
|
147,002 |
|
|
|
146,451 |
|
(1) Selected items were tax effected with the Federal
Statutory Rate of 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 P&A costs, and other. Company management believes this
presentation is relevant and useful because it helps investors
understand W&T’s operating performance and makes it easier to
compare its results with those of other companies that have
different financing, capital and tax structures. Adjusted EBITDA
should not be considered in isolation from or as a substitute for
net income, as an indication of operating performance or cash flows
from operating activities or as a measure of liquidity. Adjusted
EBITDA, as W&T calculates it, may not be comparable to Adjusted
EBITDA measures reported by other companies. In addition, Adjusted
EBITDA does not represent funds available for discretionary
use.
The Company defines Free Cash Flow as Adjusted
EBITDA (defined above), less capital expenditures, P&A costs
and net interest expense (all on an accrual basis). For this
purpose, the Company’s definition of capital expenditures includes
costs incurred related to oil and natural gas properties (such as
drilling and infrastructure costs and the lease maintenance costs)
and equipment but excludes acquisition costs of oil and gas
properties from third parties that are not included in the
Company’s capital expenditures guidance provided to investors.
Company management believes that Free Cash Flow is an important
financial performance measure for use in evaluating the performance
and efficiency of its current operating activities after the impact
of accrued capital expenditures, P&A costs and net interest
expense and without being impacted by items such as changes
associated with working capital, which can vary substantially from
one period to another. There is no commonly accepted definition of
Free Cash Flow within the industry. Accordingly, Free Cash Flow, as
defined and calculated by the Company, may not be comparable to
Free Cash Flow or other similarly named non-GAAP measures reported
by other companies. While the Company includes net interest expense
in the calculation of Free Cash Flow, other mandatory debt service
requirements of future payments of principal at maturity (if such
debt is not refinanced) are excluded from the calculation of Free
Cash Flow. These and other non-discretionary expenditures that are
not deducted from Free Cash Flow would reduce cash available for
other uses.
The following table presents a reconciliation of
the Company’s net (loss) income, a GAAP measure, to Adjusted EBITDA
and Free Cash Flow, as such terms are defined by the Company:
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(in thousands) |
| |
(Unaudited) |
| Net (loss)
income |
$ |
(36,921 |
) |
|
$ |
(15,388 |
) |
|
$ |
2,145 |
|
|
$ |
(63,783 |
) |
|
$ |
16,041 |
|
| Interest expense, net |
|
9,992 |
|
|
|
10,164 |
|
|
|
9,925 |
|
|
|
30,228 |
|
|
|
34,960 |
|
| Income tax (benefit)
expense |
|
(4,545 |
) |
|
|
(4,636 |
) |
|
|
4,777 |
|
|
|
(8,136 |
) |
|
|
16,413 |
|
| Depreciation, depletion and
amortization |
|
34,206 |
|
|
|
36,674 |
|
|
|
30,218 |
|
|
|
104,817 |
|
|
|
81,019 |
|
| Asset retirement obligations
accretion |
|
7,848 |
|
|
|
8,400 |
|
|
|
6,414 |
|
|
|
24,217 |
|
|
|
21,641 |
|
| Unrealized commodity
derivative (gain) loss, net |
|
(1,829 |
) |
|
|
2,738 |
|
|
|
(3,462 |
) |
|
|
(213 |
) |
|
|
(44,061 |
) |
| Allowance for credit
losses |
|
10 |
|
|
|
346 |
|
|
|
6 |
|
|
|
440 |
|
|
|
9 |
|
| Non-cash incentive
compensation |
|
1,956 |
|
|
|
1,386 |
|
|
|
3,250 |
|
|
|
6,374 |
|
|
|
7,259 |
|
| Non-recurring legal and
IT-related costs |
|
(22 |
) |
|
|
4,202 |
|
|
|
768 |
|
|
|
4,938 |
|
|
|
2,631 |
|
| Non-ARO P&A costs |
|
16,627 |
|
|
|
1,709 |
|
|
|
2,103 |
|
|
|
23,688 |
|
|
|
2,109 |
|
| Other |
|
(633 |
) |
|
|
304 |
|
|
|
204 |
|
|
|
(543 |
) |
|
|
271 |
|
| Adjusted
EBITDA |
$ |
26,689 |
|
|
$ |
45,899 |
|
|
$ |
56,348 |
|
|
$ |
122,027 |
|
|
$ |
138,292 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures, accrual
basis(1) |
$ |
(4,461 |
) |
|
$ |
(8,781 |
) |
|
$ |
(7,960 |
) |
|
$ |
(16,398 |
) |
|
$ |
(30,959 |
) |
| Asset retirement obligation
settlements |
|
(8,347 |
) |
|
|
(8,209 |
) |
|
|
(13,077 |
) |
|
|
(20,344 |
) |
|
|
(24,918 |
) |
| Interest expense, net |
|
(9,992 |
) |
|
|
(10,164 |
) |
|
|
(9,925 |
) |
|
|
(30,228 |
) |
|
|
(34,960 |
) |
| Free Cash
Flow |
$ |
3,889 |
|
|
$ |
18,745 |
|
|
$ |
25,386 |
|
|
$ |
55,057 |
|
|
$ |
47,455 |
|
(1) A reconciliation of the adjustment used to calculate Free
Cash Flow to the Condensed Consolidated Financial Statements is
included below:
| Capital expenditures, accrual
basis reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in oil and natural gas properties and equipment |
$ |
(9,577 |
) |
|
$ |
(6,576 |
) |
|
$ |
(4,337 |
) |
|
$ |
(23,233 |
) |
|
$ |
(29,674 |
) |
|
Less: acquisition related expenditures included in investment in
oil and natural gas properties and equipment |
|
(4,929 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,929 |
) |
|
|
— |
|
|
Less: changes in operating assets and liabilities associated with
investing activities |
|
(187 |
) |
|
|
2,205 |
|
|
|
3,623 |
|
|
|
(1,906 |
) |
|
|
1,285 |
|
|
Capital expenditures, accrual basis |
$ |
(4,461 |
) |
|
$ |
(8,781 |
) |
|
$ |
(7,960 |
) |
|
$ |
(16,398 |
) |
|
$ |
(30,959 |
) |
The following table presents a reconciliation of
cash flow from operating activities, a GAAP measure, to Free Cash
Flow, as defined by the Company:
| |
Three Months Ended |
|
Nine Months |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| |
(in thousands) |
| |
(Unaudited) |
| Net cash provided by
operating activities |
$ |
14,768 |
|
|
$ |
37,446 |
|
|
$ |
30,030 |
|
|
$ |
63,856 |
|
|
$ |
79,662 |
|
| Allowance for credit
losses |
|
10 |
|
|
|
346 |
|
|
|
6 |
|
|
|
440 |
|
|
|
9 |
|
| Amortization of debt items and
other items |
|
(1,109 |
) |
|
|
(1,044 |
) |
|
|
(1,351 |
) |
|
|
(3,445 |
) |
|
|
(5,714 |
) |
| Non-recurring legal and
IT-related costs |
|
(22 |
) |
|
|
4,202 |
|
|
|
768 |
|
|
|
4,938 |
|
|
|
2,631 |
|
| Current tax (benefit)
expense(1) |
|
— |
|
|
|
(312 |
) |
|
|
1,710 |
|
|
|
— |
|
|
|
1,766 |
|
| Change in derivatives
(payable) receivable(1) |
|
162 |
|
|
|
(1,994 |
) |
|
|
(275 |
) |
|
|
(676 |
) |
|
|
3,622 |
|
| Non-ARO P&A costs |
|
16,627 |
|
|
|
1,709 |
|
|
|
2,103 |
|
|
|
23,688 |
|
|
|
2,109 |
|
| Changes in operating assets
and liabilities, excluding asset retirement obligation
settlements |
|
(21,453 |
) |
|
|
(13,131 |
) |
|
|
151 |
|
|
|
(16,803 |
) |
|
|
(5,942 |
) |
| Capital expenditures, accrual
basis |
|
(4,461 |
) |
|
|
(8,781 |
) |
|
|
(7,960 |
) |
|
|
(16,398 |
) |
|
|
(30,959 |
) |
| Other |
|
(633 |
) |
|
|
304 |
|
|
|
204 |
|
|
|
(543 |
) |
|
|
271 |
|
| Free Cash
Flow |
$ |
3,889 |
|
|
$ |
18,745 |
|
|
$ |
25,386 |
|
|
$ |
55,057 |
|
|
$ |
47,455 |
|
(1) A reconciliation of the adjustments used to calculate Free
Cash Flow to the Condensed Consolidated Financial Statements is
included below:
| Current tax (benefit)
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
$ |
(4,545 |
) |
|
$ |
(4,636 |
) |
|
$ |
4,777 |
|
|
$ |
(8,136 |
) |
|
$ |
16,413 |
|
|
Less: Deferred income (benefit) taxes |
|
(4,545 |
) |
|
|
(4,324 |
) |
|
|
3,067 |
|
|
|
(8,136 |
) |
|
|
14,647 |
|
|
Current tax (benefit) expense |
$ |
— |
|
|
$ |
(312 |
) |
|
$ |
1,710 |
|
|
$ |
— |
|
|
$ |
1,766 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in derivatives
receivable (payable) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives (payable) receivable, end of period |
$ |
(405 |
) |
|
$ |
(567 |
) |
|
$ |
(952 |
) |
|
$ |
(405 |
) |
|
$ |
(952 |
) |
|
Derivatives payable (receivable), beginning of period |
|
567 |
|
|
|
(1,427 |
) |
|
|
677 |
|
|
|
(271 |
) |
|
|
4,574 |
|
|
Change in derivatives (payable) receivable |
$ |
162 |
|
|
$ |
(1,994 |
) |
|
$ |
(275 |
) |
|
$ |
(676 |
) |
|
$ |
3,622 |
|
|
|
|
|
|
CONTACT: |
Al Petrie |
Sameer Parasnis |
| |
Investor Relations
Coordinator |
Executive VP and CFO |
| |
investorrelations@wtoffshore.com |
sparasnis@wtoffshore.com |
| |
713-297-8024 |
713-513-8654 |
This press release was published by a CLEAR® Verified
individual.
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 11 2024 まで 12 2024
W and T Offshore (NYSE:WTI)
過去 株価チャート
から 12 2023 まで 12 2024
