W&T Offshore settles lawsuit with major surety providers

HOUSTON - W&T Offshore, Inc. (NYSE:WTI) announced today it has reached a settlement agreement with two of its largest surety providers, resulting in the dismissal of a previously filed lawsuit.

Under the terms of the settlement, the surety providers will withdraw their current collateral demands and are prohibited from making additional collateral demands or increasing premiums through December 31, 2026.

The agreement covers nearly 70% of W&T’s surety bond portfolio when combined with another major provider who did not attempt to increase premiums or demand collateral. Premium rates for existing bonds will remain at W&T’s historical rates through the end of 2026.

"We are pleased with the agreement that we have reached with two of our largest surety providers," said Tracy W. Krohn, W&T’s Chairman and Chief Executive Officer. "This outcome is very positive for W&T overall, as we will not acquiesce to unjustified collateral demands."

The settlement includes dismissal of all claims in the lawsuit without prejudice. W&T is not required to provide any collateral to the applicable sureties, and the providers must immediately withdraw all demands for collateral.

W&T Offshore continues to pursue pending litigation against other surety providers that the company claims "have unlawfully colluded and decided to not deal fairly with W&T and other independent oil and gas producers."

The company operates in the Gulf of Mexico with working interests in 52 fields across federal and state waters as of March 31, 2025. W&T holds leases covering approximately 634,700 gross acres offshore.

The information in this article is based on a press release statement from W&T Offshore.

In other recent news, W&T Offshore Inc. reported its first-quarter 2025 earnings, revealing 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. The company also saw a 2% increase in adjusted EBITDA from the previous quarter, amounting to $32.2 million. Additionally, W&T Offshore managed to reduce its total debt by $43 million, ending the quarter with $350 million in total debt.

The company has projected a 13% increase in production for the second quarter of 2025, forecasting an output of 34,500 barrels of oil equivalent per day. Analysts from firms like ROTH Capital and Stifel have shown interest in the company’s strategy, noting its focus on acquisitions over new drilling projects. W&T Offshore is committed to a low-risk acquisition strategy, which executives believe will positively impact the company. The company also benefited from a regulatory update that reduces financial assurance costs, potentially improving its financial flexibility.

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