Court denies surety companies’ injunction against W&T Offshore

Published 30/06/2025, 11:52
Court denies surety companies’ injunction against W&T Offshore

HOUSTON - A U.S. Magistrate Judge has recommended denying preliminary injunction motions from surety companies that sought to force W&T Offshore, Inc. (NYSE:WTI) to post over $100 million in collateral, according to a press release statement from the company on Monday.

Judge Dena Palermo found that the surety companies failed to demonstrate they would suffer irreparable harm if their cash collateral demands were not granted. The ruling effectively nullifies all current collateral requests from the sureties.

The court’s recommendation means W&T will not be required to post any collateral until a determination on the merits of the pending lawsuit with the remaining surety providers is reached.

"We are very pleased with the Magistrate Judge’s recommendation that the Sureties’ preliminary injunction motions be denied," said Tracy W. Krohn, W&T’s Chairman and Chief Executive Officer. "This vindicates W&T’s decision to aggressively defend against unlawful predatory business practices."

W&T Offshore operates in the Gulf of Mexico with working interests in 52 fields in federal and state waters. The company has approximately 634,700 gross acres under lease spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama.

The company’s legal team is led by its General Counsel, George J. Hittner, along with Deputy General Counsels, Steven Lackey and Ted Imperato. W&T’s trial team is led by Yasser A. Madriz, the Managing Partner of the Houston Office of McGuireWoods, LLP.

The court’s decision is subject to final approval by the District Court. For deeper insights into W&T Offshore’s financial health and comprehensive analysis, including additional ProTips and detailed metrics, check out the full company report on InvestingPro, where expert analysis transforms complex data into actionable intelligence.

In other recent news, W&T Offshore reported its first-quarter 2025 earnings, showing a larger-than-expected loss per share of $0.13, compared to the forecasted loss of $0.07. Despite this, the company’s revenue exceeded expectations, reaching $129.87 million against an anticipated $123.95 million. Production increased to 30,500 barrels of oil equivalent per day, nearing the upper end of guidance, and the company reduced total debt by $43 million during the quarter. Additionally, W&T Offshore reached a settlement with two of its largest surety providers, resulting in the dismissal of a lawsuit and ensuring that premium rates for existing bonds remain at historical levels through the end of 2026. This settlement covers nearly 70% of W&T’s surety bond portfolio. The company continues to pursue litigation against other surety providers, claiming unfair practices. Looking forward, W&T Offshore anticipates a 13% rise in production for the second quarter of 2025. The company remains focused on acquisitions rather than new drilling projects, as stated by executives during the earnings call.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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