W&T Offshore reports stable production and reserve growth

Published 03/03/2025, 22:54
W&T Offshore reports stable production and reserve growth

HOUSTON - W&T Offshore, Inc. (NYSE: WTI), an independent oil and natural gas producer, announced its fourth-quarter and full-year 2024 operational and financial results, including the company’s year-end 2024 reserve report. The company also provided detailed guidance for the first quarter and full year 2025 and declared its first-quarter 2025 dividend.

In 2024, W&T achieved a full-year production of 33.3 thousand barrels of oil equivalent per day (MBoe/d), which was within the company’s guidance range despite disruptions from three hurricanes in the Gulf of America and other downtime primarily related to the Cox acquisition. The company reached the mid-point of its annual oil production guidance and saw a year-over-year increase of 4%.

For the fourth quarter of 2024, production was 32.1 MBoe/d, and the company’s year-end 2024 proved reserves increased to 127.0 million barrels of oil equivalent (MMBoe), with oil reserves growing by 39%. The present value of estimated future oil and natural gas revenues, discounted at a 10% annual rate (PV-10), rose to $1.2 billion, marking a 14% increase from the previous year’s PV-10, despite lower SEC pricing.

W&T’s lease operating expenses (LOE) for the full year 2024 were $281.5 million, at the low end of the guidance range, and $64.3 million in the fourth quarter, which was 12% below the company’s quarterly guidance. The company also successfully completed the acquisition of six shallow water Gulf of America fields in January 2024 for $77.3 million, funded with cash on hand. Furthermore, W&T sold a non-core interest in Garden Banks Blocks 385 and 386 for $11.9 million in January 2025.

The company strengthened its balance sheet early in 2025 by refinancing its debt and entering into a new credit agreement for a $50 million revolving credit facility. W&T also received a $58.5 million insurance settlement in the first quarter of 2025, which bolstered its balance sheet further.

W&T reported a net loss for the full year 2024 of $87.1 million, or $(0.59) per diluted share, and a net loss of $23.4 million, or $(0.16) per diluted share, for the fourth quarter of 2024. Adjusted Net Loss was $67.6 million, or $(0.46) per diluted share, for the full year 2024, and $26.2 million, or $(0.18) per diluted share, for the fourth quarter. The company generated Adjusted EBITDA of $153.6 million for the full year and $31.6 million for the fourth quarter.

The company declared a first-quarter 2025 dividend of $0.01 per share, payable on March 24, 2025, to stockholders of record on March 17, 2025. This represents a current dividend yield of 2.4%, according to InvestingPro data. The platform’s analysis indicates that net income is expected to decline this year, which could impact future dividend sustainability. This information is based on a press release statement and InvestingPro metrics.

In other recent news, W&T Offshore Inc. has extended the maturity date of its credit agreement to January 31, 2025. This amendment, known as the Twentieth Amendment, was made on December 27, 2024, and involves W&T Offshore, its guarantor subsidiaries, administrative agent Alter Domus (US) LLC, and various lenders. The company had not utilized this credit agreement for borrowings as of September 30, 2024, although it had $4.4 million in outstanding letters of credit secured with cash collateral by the end of 2024 and 2023. The details of this financial move were disclosed in a Form 8-K filing with the United States Securities and Exchange Commission. This strategic financial decision may interest investors and stakeholders as it reflects W&T Offshore’s current financial arrangements.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.