W&T Offshore Announces Second Quarter 2025 Results, Declares Dividend for Third Quarter of 2025 and Celebrates 20 Year Anniversary on New York Stock Exchange

2025-08-04

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States

HOUSTON, Aug. 04, 2025 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T,” the “Company,” “we” or “us”) today reported operational and financial results for the second quarter of 2025, declared a third quarter 2025 dividend of $0.01 per share and celebrated 20 years as a public company on the NYSE by ringing the closing bell.

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 measures in the accompanying tables to this press release under “Non-GAAP Information.”

Key highlights for the second quarter of 2025 and through the date of this press release include:

Increased production by 10% over the first quarter of 2025 to 33.5 thousand barrels of oil equivalent per day (“MBoe/d”) (49% liquids), within guidance; The potential revenue benefit from higher volumes in the second quarter of 2025 versus the first quarter of 2025 was offset by lower prices, which reduced quarter-over-quarter revenues from the sale of oil, natural gas liquids (“NGLs”) and natural gas by $8.1 million;

Performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter; Five of the nine workovers were performed in Mobile Bay, W&T’s largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset;

Incurred lease operating expenses (“LOE”) of $76.9 million, within guidance; Reported net loss of $20.9 million, or $(0.14) per diluted share, an improvement from a net loss of $30.6 million, or $(0.21) per diluted share, in the first quarter of 2025; Adjusted Net Loss totaled $11.8 million, or $(0.08) per diluted share (compared to $19.1 million, or $(0.13) per diluted share in the first quarter of 2025), which primarily excludes the net unrealized gain on outstanding derivative contracts and non-ARO plugging and abandonment costs and the related tax effects; Non-ARO plugging and abandonment costs relate to the Company’s assumption of the decommissioning obligations of certain counterparties in past divestiture transactions or third parties in existing leases that have filed for bankruptcy protection or undergone associated reorganizations and may not be able to perform required abandonment obligations;

Grew Adjusted EBITDA by 9% over the first quarter of 2025 to $35.2 million; Generated net cash flow from operating activities of $28.0 million and produced Free Cash Flow of $3.6 million; Reported unrestricted cash and cash equivalents of $120.7 million and lowered total debt to $350.1 million and Net Debt to $229.4 million at June 30, 2025; Added the following costless collar oil hedge: 2,000 barrels per day (“Bbl/d”) for July through December 2025, with a floor price of $63.00 per Bbl and ceiling price of $77.25 per Bbl;

Paid seventh consecutive quarterly dividend of $0.01 per common share in May 2025; Declared third quarter 2025 dividend of $0.01 per share, which will be payable on August 25, 2025 to stockholders of record on August 18, 2025;

Reported mid-year SEC proved reserves of 123.0 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 $1.2 billion; and Announced two positive surety outcomes in June 2025: 1) a settlement agreement with two surety providers representing nearly 70% of W&T’s surety bond portfolio (inclusive of surety providers that were not party to the Company’s litigation) where all claims against W&T were dismissed, without prejudice; and 2) a federal court recommended denial of a preliminary injunction against W&T by two other surety companies.

Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer, commented, “We are delivering strong results including production growth of 10% and Adjusted EBITDA growth of 9% quarter-over-quarter, all while growing our cash position to over $120 million and reducing our net debt by about $15 million. We took advantage of a temporary spike in oil prices by adding to our crude hedging position to provide some additional downside protection. Operationally, we have brought online the remaining two fields from the Cox acquisition, which we expect will continue to ramp up production into the second half of 2025, as you can see from our third quarter and full year guidance. Acquisitions remain a key component of our success, and it is our ability to integrate and enhance the assets that we acquire that has allowed us to successfully operate for over 40 years. We remain focused on Free Cash Flow and Adjusted EBITDA generation through operational excellence, maximizing production and managing our operating costs. Our balance sheet has continued to strengthen in 2025 with the successful issuance of new 10.75% Notes, a new revolving credit facility and material cash additions through a non-core disposition and an insurance settlement. We have over $120 million in cash on our balance sheet and remain prepared to take advantage of potential acquisitions.”

“Our 2025 mid-year reserve report generated by NSAI showed net positive revisions of 1.8 MMBoe, which continues to demonstrate the strength of our asset base and our ability to maximize value from our fields. Additionally, we have reached a favorable agreement with our two largest surety providers and preliminary injunction motions against W&T from two additional sureties were recommended denied. These positive surety outcomes, coupled with the promising developments in the regulatory environment driven by the White House’s directives, alleviates some of the uncertainty that has unnecessarily and artificially suppressed our stock price and we expect that this will allow us to deliver more value to our shareholders. We are well positioned to continue to enhance our portfolio through additional accretive acquisition opportunities and are committed to enhancing shareholder value while returning value to our shareholders through the quarterly dividend program.”

Production, Prices and Revenue: Production for the second quarter of 2025 was within the Company’s second quarter guidance at 33.5 MBoe/d, an increase of 10% compared with 30.5 MBoe/d for the first quarter of 2025 and a decrease compared with 34.9 MBoe/d for the corresponding period in 2024. The second quarter 2025 production increase was driven by restoring production from fields associated with the 2024 Cox acquisition as well as returning to normal levels the shut-in production caused by freezing in the first quarter of 2025. There was a temporary shut-in of production in Mobile Bay during the second quarter due to a pipeline issue that was resolved by June 30 that reduced second quarter production by about 1,000 barrels of oil equivalent per day (“Boe/d”). Second quarter 2025 production was comprised of 13.8 thousand barrels per day (“MBbl/d”) of oil (41%), 2.7 MBbl/d of natural gas liquids (“NGLs”) (8%), and 102.0 million cubic feet per day (“MMcf/d”) of natural gas (51%).

W&T’s average realized price per Boe before realized derivative settlements was $39.16 per Boe in the second quarter of 2025, a decrease of 16% from $46.50 per Boe in the first quarter of 2025 and 12% from $44.40 per Boe in the second quarter of 2024. Second quarter 2025 oil, NGL and natural gas prices before realized derivative settlements were $63.55 per barrel of oil, $19.24 per barrel of NGL and $3.75 per Mcf of natural gas.

Revenues for the second quarter of 2025 were $122.4 million, which was 6% lower than first quarter of 2025 revenues of $129.9 million due to lower realized prices, which was partially offset by higher production volumes. Second quarter 2025 revenues were lower by 14% compared to $142.8 million of revenues in the second quarter of 2024 due to lower production volumes and lower realized prices.

Lease Operating Expenses: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance expenses, was $76.9 million in the second quarter of 2025, which was within the Company’s guidance range. LOE for the second quarter of 2025 was approximately 8% higher compared to $71.0 million in the first quarter of 2025. Higher LOE in the second quarter of 2025 was primarily driven by higher base operating expenses, insurance expense and workover expenses. LOE for the second quarter of 2025 was slightly higher than the $74.0 million for the corresponding period in 2024. On a component basis for the second quarter of 2025, base LOE and insurance premiums were $59.2 million, workovers were $4.1 million, and facilities maintenance and other expenses were $13.6 million. On a unit of production basis, LOE was $25.20 per Boe in the second quarter of 2025. This was slightly lower than $25.88 per Boe for the first quarter of 2025 and higher than $23.29 per Boe for the corresponding period in 2024.

Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled $5.5 million ($1.80 per Boe) in the second quarter of 2025, compared to $5.7 million ($2.06 per Boe) in the first quarter of 2025 and $8.6 million ($2.70 per Boe) in the second quarter of 2024.

Depreciation, Depletion and Amortization (“DD&A”): DD&A was $8.67 per Boe in the second quarter of 2025. This compares to $11.99 per Boe and $11.55 per Boe for the first quarter of 2025 and the second quarter of 2024, respectively. The decrease in the DD&A rate per Boe for the second quarter of 2025 was driven by the revaluing of W&T’s underlying asset base associated with the midyear 2025 reserve report.

Asset Retirement Obligations Accretion: Asset retirement obligations accretion was $2.84 per Boe in the second quarter of 2025. This compares to $3.06 per Boe and $2.64 per Boe for the first quarter of 2025 and the second quarter of 2024, respectively.

General & Administrative Expenses (“G&A”): G&A was $17.7 million for the second quarter of 2025, which decreased from $20.2 million in the first quarter of 2025 and $21.4 million in the second quarter of 2024 primarily due to a decrease in non-recurring legal and professional fees. On a unit of production basis, G&A was $5.79 per Boe in the second quarter of 2025 compared to $7.35 per Boe in the first quarter of 2025 and $6.72 per Boe in the corresponding period of 2024.

Derivative (Gain) Loss, net: In the second quarter of 2025, W&T recorded a net gain of $12.0 million related to commodity derivative contracts comprised of $9.5 million of realized gains, which includes $4.3 million of proceeds from the monetization of the Company’s natural gas put contracts, and $2.5 million of unrealized gains related to the increase in fair value of open contracts. W&T recognized a net loss of $2.8 million in the first quarter of 2025 and a net loss of $2.4 million in the second quarter of 2024 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 2025 was $9.0 million compared to $9.5 million in the first quarter of 2025 and $10.2 million in the second quarter of 2024. These decreases reflect the impact of the Company’s debt refinancing in January 2025.

Other Expense: During the second quarter of 2025, the Company reassessed its non-ARO plugging and abandonment costs and recorded a $13.9 million increase in the contingent loss accrual. This compares with a decrease of $0.2 million in the contingent loss accrual in the first quarter of 2025 and a $1.7 million increase in the contingent loss accrual in the second quarter of 2025. Although it is reasonably possible that the Company could receive state or federal decommissioning orders in the future or be notified of defaulting third parties in existing leases, the Company cannot predict with certainty, if, how or when such orders or notices will be resolved or estimate a possible loss or range of loss that may result from such orders.

Income Tax Benefit: W&T recognized an income tax benefit of $2.4 million in the second quarter of 2025. This compares to the recognition of an income tax benefit of $4.6 million in both the first quarter of 2025 and the second quarter of 2024.

Balance Sheet and Liquidity: As of June 30, 2025, W&T had available liquidity of $170.7 million comprised of $120.7 million in unrestricted cash and cash equivalents and $50.0 million of borrowing availability under W&T’s new revolving credit facility. As of June 30, 2025, the Company had total debt of $350.1 million and Net Debt of $229.4 million, which decreased $14.7 million from $244.1 million at March 31, 2025. As of June 30, 2025, Net Debt to trailing twelve months Adjusted EBITDA was 1.8x.

Capital Expenditures and Asset Retirement Obligation Settlements: Capital expenditures on an accrual basis in the second quarter of 2025 were $10.4 million, and asset retirement obligation settlement costs totaled $12.2 million. The Company continues to expect its full year capital expenditure budget to be between $34 million and $42 million, which excludes potential acquisition opportunities.

Cash Dividend Policy

The Company paid its second quarter 2025 dividend of $0.01 per share on May 27, 2025 to stockholders of record on May 20, 2025.

The Board of Directors declared a third quarter 2025 dividend of $0.01 per share which is to be paid on August 25, 2025 to stockholders of record on August 18, 2025.

Surety Update

As previously announced on June 17, 2025, the Company came to a settlement agreement with two of its largest surety providers which calls for the dismissal of a previously filed lawsuit. The settlement agreement requires the surety providers to withdraw their current collateral demands, and further provides that the surety providers may not make additional collateral demands or increase premiums through December 31, 2026, outside certain limited circumstances involving unlikely events of default. Additionally, premium rates for all existing bonds provided by the two surety providers will be locked in at W&T’s historical rates without increase through December 31, 2026, representing a prolonged rate lock in excess of “ordinary course” rate negotiations, thereby providing consistency and predictability in W&T’s surety premium expense. These two surety providers, together with W&T’s other major surety provider who did not attempt to increase premiums or call for collateral, represent nearly 70% of W&T’s surety bond portfolio.

As previously announced on June 30, 2025, a U.S. Magistrate Judge recommended denying two surety companies motions for preliminary injunction, through which they collectively asked for full monetization of over $100 million. The Court found, in relevant part, the sureties failed to demonstrate they would suffer irreparable harm if their cash collateral demands were not granted. W&T will not be required to post collateral (if at all) until a determination on the merits of the pending lawsuit with the remaining surety providers.

OPERATIONS UPDATE

Well Recompletions and Workovers

During the second quarter of 2025, W&T performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter. Five of the nine workovers were performed in Mobile Bay, W&T’s largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue.

Mid-Year 2025 Proved Reserves

As calculated by NSAI, W&T’s independent reserve engineering consultants, proved reserves using SEC pricing methodology totaled 123.0 MMBoe at June 30, 2025, compared with 127.0 MMBoe at year-end 2024. The decrease in proved reserves was primarily driven by 5.8 MMBoe of production in the first half of 2025, partially offset by net positive revisions of 1.8 MMBoe. The mid-year proved reserves, which were 67% proved developed producing, 27% proved developed non-producing and 6% proved undeveloped, were 44% liquids (34% oil and 10% NGLs) and 56% natural gas. W&T operates approximately 94% of its mid-year 2025 proved reserves.

The pre-tax PV-10 of the mid-year 2025 proved reserves using SEC pricing was $1.2 billion (before consideration of expenditures for asset retirement obligations). This compares to the pre-tax PV-10 of $1.2 billion at year-end 2024, as W&T was able to preserve its reserve value despite six months of production. Mid-year 2025 SEC proved reserves and PV-10 were based on an average 12-month oil and natural gas prices of $71.20 per barrel and $2.86 per MMBtu, respectively. Prices used to determine proved reserves and PV-10 for year-end 2024 were $76.32 per barrel of oil and $2.13 per MMBtu of natural gas.

Third Quarter and Full Year 2025 Production and Expense Guidance

The guidance for the third quarter and full year 2025 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.

| | | | | Production | Third Quarter 2025 | Full Year 2025 | | Oil (MBbl) | 1,320 – 1,460 | 5,150 ‒ 5,690 | | NGLs (MBbl) | 210 – 235 | 1,020 ‒ 1,140 | | Natural gas (MMcf) | 9,080 – 10,040 | 34,880 ‒ 38,560 | | Total equivalents (MBoe) | 3,043 – 3,368 | 11,983 – 13,257 | | Average daily equivalents (MBoe/d) | 33.1 – 36.6 | 32.8 – 36.3 | | Expenses | Third Quarter 2025 | Full Year 2025 | | Lease operating expense ($MM) | 71.5 – 79.3 | 280.0 – 310.0 | | Gathering, transportation & production taxes ($MM) | 6.7 – 7.5 | 27.1 – 30.1 | | General & administrative – cash ($MM) | 15.6 – 17.4 | 62.0 – 69.0 | | DD&A ($ per Boe) | | 13.40 – 14.90 | | | | |

W&T expects substantially all income taxes in 2025 to be deferred.

Conference Call Information: W&T will hold a conference call to discuss its financial and operational results on Tuesday, August 5, 2025 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.

W&T Offshore, Inc. Rang New York Stock Exchange Closing Bell on August 4

W&T Offshore, Inc. rang the closing bell at the NYSE in commemoration of twenty years of being listed on the NYSE. The Company has been a publicly traded company since 2005. W&T’s Founder, Chairman, Chief Executive Officer and President, Tracy W. Krohn, rang the bell alongside the board of directors of the Company and other employees.

The closing bell was rung on August 4, 2025, at 4:00 p.m. Eastern Time. Interested parties may review the coverage of the bell ringing as well as a video on demand on the NYSE’s website at nyse.com/bell. Videos and photos of the ceremony will be posted on W&T’s web site under the Investors section and shared on the NYSE and W&T social media channels.

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of America and has grown through acquisitions, exploration and development. As of June 30, 2025, the Company had working interests in 50 fields in federal and state waters (which include 43 fields in federal waters and seven in state waters). The Company has under lease approximately 629,700 gross acres (491,900 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 482,200 gross acres on the conventional shelf, approximately 141,900 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 .