W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today reported operational and financial results for the third
quarter of 2023. This press release includes non-GAAP financial
measures, including Adjusted Net Income (Loss), Adjusted EBITDA,
Free Cash Flow and Net Debt which are described and reconciled to
the most comparable GAAP measures below in the accompanying tables
under “Non-GAAP Information.”
Key highlights for the third quarter of 2023
include:
- Maintained strong production of
35.9 thousand barrels of oil equivalent per day (“MBoe/d”) (48%
liquids), or 3.3 million barrels of oil equivalent (“MMBoe”);
- Production was above the midpoint
of guidance and, coupled with improved commodity pricing, drove
increases in Net Income and Adjusted EBITDA compared to the second
quarter of 2023;
- Reported net income
of $2.1 million, or $0.01 per diluted share;
- Adjusted Net Income
totaled $1.8 million, or $0.01 per share, which excludes the net
unrealized gain on outstanding derivative contracts, non-ARO
plugging and abandonment (“P&A”) costs and non-recurring costs
related to IT services transition;
- Increased Adjusted
EBITDA by 45% to $56.3 million compared with $38.8 million in the
second quarter of 2023;
- Produced net cash
from operating activities of $30.0 million and Free Cash Flow of
$25.4 million, the 23rd consecutive quarter of positive Free Cash
Flow;
- Continued the
amortization of the non-recourse Mobile Bay term loan and repaid an
additional $7.1 million;
- Completed accretive
acquisition of producing properties in the Gulf of Mexico (“GOM”)
on September 20, 2023 for $28.9 million, using cash on hand. The
properties included approximately 3.1 MMBoe (49% oil) of proved
developed reserves, which equates to a purchase price of less than
$10 per barrel of oil equivalent;
- Maintained cash and
cash equivalents of $149.0 million at September 30, 2023;
- Reported Net Debt
of $248.2 million as of September 30, 2023, compared with Net Debt
of $254.3 million a year ago;
- Continued to
maintain a low leverage profile with Net Debt to trailing twelve
months (“TTM”) Adjusted EBITDA of 1.2 times;
- Added significant
depth and breadth to the Company’s leadership team with the
appointment of Sameer Parasnis as Executive Vice President and
Chief Financial Officer, promotion of Ford Peters to Vice President
of Land and addition of John Poole as Vice President Health,
Safety, Environmental and Regulatory (“HSE&R”); and
- Continued
commitment to sustainability by publishing the 2022 Corporate
Environmental, Social and Governance (“ESG”) report.
Tracy W. Krohn, W&T’s Board Chair and Chief
Executive Officer, commented, “Our third quarter 2023 saw increased
commodity pricing, strong production volumes, operational
excellence and cost control which resulted in positive operational
and financial results. We saw 45% growth in Adjusted EBITDA to
$56.3 million and our 23rd consecutive quarter of positive Free
Cash Flow of $25.4 million, which was up 162% from $9.7 million in
the second quarter. In early 2023, we strengthened our balance
sheet by issuing new 2026 Senior Second Lien Notes, and
repurchasing all of the outstanding 2023 Senior Second Lien Notes.
We maintained our financial flexibility and a considerable amount
of cash reserves which allows us to be opportunistic in making
accretive acquisitions. In late September 2023, we acquired
accretive producing properties that met the investment criteria
that we have used for the past 40 years in making successful
acquisitions in the GOM. These new assets have strong production
rates, are generating positive free cash flow, and have a solid
base of proved developed reserves and identified upside potential
with meaningful 2P reserves. We will operate these assets and we
see the opportunity to reduce operating costs to further increase
free cash flow. The entire acquisition was funded with cash on hand
and we still ended the quarter with nearly $150 million in cash on
hand. We plan to continue to utilize our significant cash position
and expertise in acquiring complementary GOM assets to enhance the
scale of W&T. Acquisitions have been a key component of how we
have grown reserves and production at W&T and we remain well
positioned to continue to enhance our portfolio through additional
attractive opportunities.”
Mr. Krohn continued, “Over the past several
months, we have appointed or promoted several members to our
leadership team contributing to the sustainable success of W&T
in the future. In July we appointed Sameer Parasnis as our new
Chief Financial Officer and welcomed him to our senior leadership
team. In September, we promoted Ford Peters to Vice President of
Land. In October, we appointed John Poole as our new Vice President
of HSE&R. We are confident that all three additions will become
important members of our senior leadership team. With extensive
experience in each of their areas of expertise, as well as within
the energy industry, I believe that our leadership team and
shareholders will greatly benefit from these additions.”
Mr. Krohn concluded, “As we close out 2023, we
are very well positioned to take advantage of potential
acquisitions that become available on a negotiated basis or through
data rooms and poised to continue delivering on our strategic
vision. Our management team is closely aligned with our
shareholders through our sizeable stock ownership position. We
remain committed to enhancing shareholder value through a proven
strategy focused on free cash flow generation and operational
excellence, which we believe positions us well for the future.”
Production, Prices, and
Revenue: Production for the third quarter of
2023 was 35.9 MBoe/d, which was above the midpoint of the Company’s
guidance range provided for the quarter. This represented a 3%
decrease from 37.0 Mboe/d for the second quarter of 2023 and a
decrease of 13% from 41.5 MBoe/d for the corresponding period in
2022. The small decrease in production compared to the second
quarter of 2023 was primarily driven by natural decline, which was
partially offset by production optimization and workovers. Third
quarter 2023 production was comprised of 13.3 MBbl/d of oil (37%),
3.8 MBbl/d of natural gas liquids (“NGLs”) (11%), and 112.6 million
cubic feet per day (“MMcf/d”) of natural gas (52%).
W&T’s average realized price per barrel of
oil equivalent (“Boe”) before realized derivative settlements was
$42.48 per Boe in the third quarter of 2023, an increase of 16%
from $36.76 per Boe in the second quarter of 2023 and a decrease of
38% from $68.39 per Boe in the third quarter of 2022. Crude oil,
NGL, and natural gas prices, before realized derivative settlements
for the third quarter of 2023, were $81.77 per barrel, $21.31 per
barrel, and $3.14 per Mcf, respectively. Natural gas prices in the
third quarter of 2023 rose 34% from the second quarter of 2023.
Revenues for the third quarter of 2023 were
$142.4 million, which was 13% higher than second quarter 2023
revenue of $126.2 million due primarily to higher realized prices.
Third quarter 2023 revenue was lower than $266.5 million of revenue
in the third quarter of 2022 due to lower realized prices and lower
production volumes.
Lease Operating
Expense: Lease operating expense (“LOE”),
which includes base lease operating expenses, insurance premiums,
workovers and facilities maintenance, was $61.8 million in the
third quarter of 2023, which was below the midpoint of the
previously provided guidance range. LOE for the third quarter of
2023 was 6% lower compared to $66.0 million in the second quarter
of 2023 due to lower workover expenses and slightly higher than the
$59.0 million for the corresponding period in 2022. On a component
basis for the third quarter of 2023, base LOE and insurance
premiums were $51.3 million, workovers were $1.8 million, and
facilities maintenance and other expenses were $8.7 million. On a
unit of production basis, LOE was $18.72 per Boe in the third
quarter of 2023. This compares to $19.60 per Boe for the second
quarter of 2023 and $15.46 per Boe for the third quarter of
2022.
Gathering, Transportation Costs, and
Production Taxes: Gathering, transportation costs and
production taxes totaled $6.7 million ($2.03 per Boe) in the third
quarter of 2023, compared to $6.8 million ($2.02 per Boe) in the
second quarter of 2023 and $12.2 million ($3.20 per Boe) in the
third quarter of 2022. Production taxes remained relatively flat on
a per Boe basis quarter-over-quarter despite higher realized
natural gas prices during the third quarter of 2023. Gathering,
transportation costs and production taxes decreased by $5.5 million
year-over-year due to decreases in realized pricing and production
volumes.
Depreciation, Depletion, Amortization
and Accretion (“DD&A”): DD&A,
including accretion expense related to asset retirement obligations
(“ARO”), was $11.09 per Boe in the third quarter of 2023. This
compares to $10.66 per Boe and $8.93 per Boe for the second quarter
of 2023 and the third quarter of 2022, respectively.
General & Administrative Expenses
(“G&A”): G&A was $20.0 million for the
third quarter of 2023, which increased from $17.4 million in the
second quarter of 2023 primarily due to higher salary and benefits
costs. G&A decreased by $3.1 million year-over-year from $23.0
million in the third quarter of 2022 primarily due to non-recurring
professional and legal services in 2022. On a unit of production
basis, G&A was $6.05 per Boe in the third quarter of 2023
compared to $5.16 per Boe in the second quarter of 2023 and $6.04
per Boe in the corresponding period of 2022.
Derivative (Gain)
Loss: In the third quarter of 2023, W&T
recorded a net gain of $1.5 million related to commodity derivative
contracts comprised of a $3.5 million unrealized gain related
primarily to the increase in fair value of open contracts,
partially offset by $2.0 million of realized losses. The Company
recognized a net gain of $0.8 million in the second quarter of 2023
and a net loss of $38.7 million in the third quarter of 2022
related to commodity derivative activities.
In the fourth quarter of 2023, W&T has 71.7
MMcf/d hedged for natural gas and no existing hedges for oil. A
significant portion of W&T’s natural gas hedges, in the form of
sold swaps and purchased calls and puts, were entered into in
conjunction with the non-recourse Mobile Bay term loan entered into
by borrowers owned by the Company’s wholly-owned subsidiary
Aquasition Energy LLC and will continue through the life of that
loan.
A summary of the Company’s outstanding
derivative positions is provided on W&T’s website in the
“Investors” section under the “Financial Information” tab.
Interest Expense:
Net interest expense in the third quarter of 2023 was
$9.9 million compared to $10.3 million in the second quarter
of 2023 and $16.8 million in the third quarter of 2022. The
decreases are due to the full redemption of the 9.75% Senior Second
Lien Notes which occurred in February 2023, lower interest expense
on the lower outstanding principal balance of the Term Loan and
increased interest income. These decreases were partially offset by
interest expense incurred on the 11.75% Senior Second Lien Notes
issued in late January 2023.
Other (Income) Expense, net:
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
decommissioning obligations. During the third quarter of 2023, the
Company reassessed the existing decommissioning obligations,
recording an additional $2.1 million.
Income Tax: W&T
recognized income tax expense of $4.8 million in the third quarter
of 2023. This compares to the recognition of income tax expense of
$3.0 million and $16.4 million for the quarters ended June 30, 2023
and September 30, 2022, respectively.
Balance Sheet and
Liquidity: As of September 30, 2023, W&T
had available liquidity of $199.0 million comprised of $149.0
million in 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 (“Calculus”). At
quarter-end, the Company had total debt of $397.2 million, or Net
Debt of $248.2 million, net of cash and cash equivalents. Of the
Company’s total debt of $397.2 million, only $279.0 million is
recourse to W&T. The remaining $118.2 million is held at
W&T’s subsidiary, Aquasition Energy LLC, and is non-recourse to
W&T. As of September 30, 2023, Net Debt to TTM Adjusted EBITDA
was 1.2 times.
Capital Expenditures and
Acquisitions: Capital expenditures (excluding acquisitions
and changes in working capital associated with investing
activities) in the third quarter of 2023 were $8.0 million, and
asset retirement costs totaled $13.1 million. Also, during the
third quarter of 2023, W&T completed the acquisition of
additional producing properties for a net investment of $28.9
million. For the first nine months of 2023, capital expenditures
excluding acquisitions totaled $31.0 million and asset retirement
costs were $24.9 million. In August, W&T lowered its 2023
estimated capital expenditures guidance (excluding acquisitions) by
about $40 million to a new range between $50 million and $70
million. W&T continues to expect that range for the full year
2023.
OPERATIONS UPDATE
Front-end Engineering and Design and permitting
processes are underway on the Holy Grail well at Garden Banks 783
in the Magnolia Field.
Well Recompletions and
Workovers
During the third quarter of 2023, the Company
performed six workovers that positively impacted production for the
quarter. W&T plans to continue performing these low cost, short
payout operations that impact both production and revenue.
Accretive Acquisition of Producing
Properties in the GOM
On September 21, 2023 the Company announced that
it had completed the acquisition of working interests in eight
shallow water oil and gas producing assets in the central and
eastern shelf region of the GOM from an undisclosed private seller.
The acquisition had a closing date of September 20, 2023, and an
effective date of June 1, 2023. The assets were acquired for a
gross consideration of $32.0 million, and after normal and
customary post-effective date adjustments (including net operating
cash flow attributable to the properties from the effective date of
June 1, 2023 to the closing date), cash consideration of $28.9
million was paid to the sellers. W&T used its cash on hand to
pay the net purchase price. Key highlights of the transaction are
as follows:
-
Provides additional producing properties located within W&T’s
existing area of operations in water depths ranging from 25 to 265
feet;
-
High average working interest of around 72%;
-
Adds proved reserves of 3.1 MMBoe (49% oil) – 100% of the reserves
are proved developed;
- Based on cash
consideration paid of $28.9 million this equates to less than $10
per Boe; and
-
Accretive gross purchase price multiple of approximately 1.0x last
twelve months cash flows as of the effective date and production
multiple of approximately $13,500 per barrel of oil equivalent per
day (based on production as of September 12, 2023).
Additions to Senior
Management
In July 2023, W&T appointed Sameer Parasnis
to the position of Executive Vice President and Chief Financial
Officer. Mr. Parasnis has 25 years of financial and operational
experience, of which 20 have been in banking. He has advised
companies in the Oil & Gas and Energy Transition industries on
equity capital markets, debt capital markets and strategic M&A.
Prior to joining W&T, Mr. Parasnis served as Managing Director
of Stifel Financial Corporation’s Energy & Energy Transition
team in Houston. He has served as a trusted financial advisor to
W&T over the years on key strategic initiatives of the Company,
including its drilling joint venture and corporate debt refinancing
in 2018, the non-recourse term loan financing with Munich Re
Reserve Risk Financing, Inc. in 2021 as well as its opportunistic
at-the-market equity offering in 2022.
In September 2023, W&T promoted Ford Peters
to Vice President of Land. Mr. Peters joined W&T in 2021 and
has served in various positions of increasing responsibility. Mr.
Peters has over 13 years of industry and land-related experience.
Prior to joining W&T, he held various land and legal related
positions with Fieldwood Energy LLC. He has also worked for
multiple oil and gas companies as well as real estate firms.
In early October 2023, W&T appointed John
Poole to Vice President of HSE&R. Mr. Poole has nearly 30 years
of industry experience in HSE and regulatory compliance. In the 12
years prior to joining W&T, he held successive roles in the
field of HSE&R for several E&P companies in the GOM,
including Apache Corporation, Fieldwood Energy, EnVen Energy and
Talos Energy. Mr. Poole will assist W&T in building upon its
safety and environmental record by applying decades of HSE&R
experience in the GOM.
Issued 2022 Corporate ESG
Report
The 2022 ESG report provides detailed
information about W&T’s ESG initiatives and provides important
performance data for the four-year period from 2019 through 2022.
The Company consulted the Sustainability Accounting Standards
Board’s (“SASB”) Oil and Gas Exploration and Production
Sustainability Accounting Standard, the Global Reporting
Initiative’s (“GRI”) standard for the oil and gas sector, and other
reporting guidance from industry frameworks and standards in the
preparation of the report. The report is available on W&T’s
website at www.wtoffshore.com/corporate-responsibility.
Highlights of the report include:
- Decreased total Scope 1 GHG
emissions 20% from over 435,000 metric tons of CO2-e in 2019 to
350,000 metric tons of CO2-e in 2022;
- Decreased onshore facilities air
emissions significantly from 2019 to 2022, particularly a 54%
reduction in SOx emissions;
- Implemented new procedures to
estimate and track all waste that is recycled, injected, or sent to
landfills;
- Enacted additional substantive
changes to compensation programs based on feedback from our
shareholders, affirming our commitment to say on pay and
performance alignment over the long-term;
- Established an ESG Committee, 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; and
- Increased the Board of Directors to
five members with Dr. Nancy Chang, the new chair of the ESG
Committee, expanding the size and diversity of the Board.
Fourth Quarter and Full Year 2023
Production and Expense Guidance
The guidance for the fourth quarter and full
year 2023 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 |
Fourth Quarter 2023 |
Full Year 2023 |
Oil (MBbl) |
1,200 – 1,320 |
4,750 – 5,250 |
NGLs (MBbl) |
330 – 370 |
1,350 – 1,480 |
Natural gas (MMcf) |
9,700 – 10,750 |
36,300 – 40,200 |
Total equivalents (MBoe) |
3,147 – 3,482 |
12,150 – 13,430 |
Average daily equivalents (MBoe/d) |
34 – 38 |
33 – 37 |
Expenses |
Fourth Quarter 2023 |
Full Year 2023 |
Lease operating expense ($MM) |
$61.0 – $68.0 |
$240.0 – $260.0 |
Gathering, transportation & production taxes ($MM) |
$8.0 – $9.0 |
$27.0 – $31.0 |
|
|
|
General & administrative - cash ($MM) |
$15.4 – $17.0 |
$63.0 – $68.0 |
General & administrative – non-cash ($MM) |
$2.9 – $3.3 |
$10.5 – $12.0 |
|
|
|
DD&A ($ per Boe) |
|
$10.15 – $11.15 |
|
|
|
W&T expects substantially all taxes in 2023
to be deferred.
Conference Call
Information: W&T will hold a conference
call to discuss its financial and operational results on Wednesday,
November 8, 2023 at 9:00 a.m. Central Time (10:00 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, 2023, the Company had working interests in 54
fields in federal and state waters (which include 45 fields in
federal waters and nine in state waters). The Company has under
lease approximately 602,100 gross acres (446,800 net acres)
spanning across the outer continental shelf off the coasts of
Louisiana, Texas, Mississippi and Alabama, with approximately
440,600 gross acres on the conventional shelf, approximately
153,500 gross acres in the deepwater and 8,000 gross acres in
Alabama onshore. 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. These forward-looking statements, including
but not limited to, any forward-looking guidance provided herein,
reflect our current views with respect to future events, based on
what we believe are reasonable estimates and assumptions. No
assurance can be given, however, that these events will occur or
that our estimates will be correct. These statements are subject to
risks and uncertainties that could cause actual results to differ
materially including, among other things, market conditions,
commodity price volatility, uncertainties inherent in oil and gas
production operations and estimating reserves, uncertainties of the
timing and impact of bringing new wells online and repairing and
restoring infrastructure due to hurricane damage, the ability to
achieve leverage targets, unexpected future capital expenditures,
competition, the success of our risk management activities,
governmental regulations, uncertainties and other factors described
or referenced in W&T’s Annual Report on Form 10-K for the year
ended December 31, 2022 and subsequent Quarterly Reports on Form
10-Q found at www.sec.gov or on our website at www.wtoffshore.com
under the Investor Relations section. For more information on risks
and uncertainties related to our 2022 Corporate Environmental,
Social, and Governance Report, please refer to the Forward-Looking
Statement Commentary and Disclaimer in that report. Our
forward-looking statements in this press release are based upon
assumptions made, and information known, by the Company as of the
date of this release; it should not be assumed that the Company
will undertake to revise or update any such forward-looking
statements as such assumptions and information changes, except as
required under applicable law. Investors are urged to consider
closely the disclosures and risk factors in these
reports.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND SUBSIDIARIES |
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, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
$ |
100,331 |
|
|
$ |
89,982 |
|
|
$ |
130,560 |
|
|
$ |
287,313 |
|
|
$ |
412,526 |
|
NGLs |
|
|
7,415 |
|
|
|
10,385 |
|
|
|
16,875 |
|
|
|
25,595 |
|
|
|
47,430 |
|
Natural gas |
|
|
32,515 |
|
|
|
23,438 |
|
|
|
113,673 |
|
|
|
80,757 |
|
|
|
257,452 |
|
Other |
|
|
2,150 |
|
|
|
2,376 |
|
|
|
5,377 |
|
|
|
6,651 |
|
|
|
13,889 |
|
Total revenues |
|
|
142,411 |
|
|
|
126,181 |
|
|
|
266,485 |
|
|
|
400,316 |
|
|
|
731,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
61,826 |
|
|
|
66,021 |
|
|
|
59,010 |
|
|
|
193,033 |
|
|
|
155,397 |
|
Gathering, transportation and production taxes |
|
|
6,692 |
|
|
|
6,802 |
|
|
|
12,199 |
|
|
|
19,630 |
|
|
|
26,647 |
|
Depreciation, depletion, amortization and accretion |
|
|
36,632 |
|
|
|
35,894 |
|
|
|
34,113 |
|
|
|
102,660 |
|
|
|
99,384 |
|
General and administrative expenses |
|
|
19,978 |
|
|
|
17,393 |
|
|
|
23,047 |
|
|
|
57,290 |
|
|
|
51,790 |
|
Total operating expenses |
|
|
125,128 |
|
|
|
126,110 |
|
|
|
128,369 |
|
|
|
372,613 |
|
|
|
333,218 |
|
Operating income |
|
|
17,283 |
|
|
|
71 |
|
|
|
138,116 |
|
|
|
27,703 |
|
|
|
398,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
9,925 |
|
|
|
10,323 |
|
|
|
16,849 |
|
|
|
34,960 |
|
|
|
54,915 |
|
Derivative (gain) loss, net |
|
|
(1,491 |
) |
|
|
(829 |
) |
|
|
38,749 |
|
|
|
(41,560 |
) |
|
|
109,892 |
|
Other expense (income) , net |
|
|
1,927 |
|
|
|
(311 |
) |
|
|
(600 |
) |
|
|
1,849 |
|
|
|
(1,229 |
) |
Income (loss) before income taxes |
|
|
6,922 |
|
|
|
(9,112 |
) |
|
|
83,118 |
|
|
|
32,454 |
|
|
|
234,501 |
|
Income tax expense |
|
|
4,777 |
|
|
|
2,997 |
|
|
|
16,397 |
|
|
|
16,413 |
|
|
|
46,801 |
|
Net income (loss) |
|
$ |
2,145 |
|
|
$ |
(12,109 |
) |
|
$ |
66,721 |
|
|
$ |
16,041 |
|
|
$ |
187,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
$ |
0.46 |
|
|
$ |
0.11 |
|
|
$ |
1.30 |
|
Diluted |
|
|
0.01 |
|
|
|
(0.08 |
) |
|
|
0.46 |
|
|
|
0.11 |
|
|
|
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
146,483 |
|
|
|
146,452 |
|
|
|
143,116 |
|
|
|
146,451 |
|
|
|
143,026 |
|
Diluted |
|
|
151,459 |
|
|
|
146,452 |
|
|
|
145,882 |
|
|
|
149,856 |
|
|
|
144,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND SUBSIDIARIES |
Condensed Operating Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
|
1,227 |
|
|
|
1,254 |
|
|
|
1,447 |
|
|
|
3,831 |
|
|
|
4,227 |
|
NGLs (MBbls) |
|
|
348 |
|
|
|
443 |
|
|
|
454 |
|
|
|
1,086 |
|
|
|
1,187 |
|
Natural gas (MMcf) |
|
|
10,359 |
|
|
|
10,023 |
|
|
|
11,499 |
|
|
|
28,058 |
|
|
|
33,965 |
|
Total oil and natural gas (MBoe) (1) |
|
|
3,302 |
|
|
|
3,368 |
|
|
|
3,818 |
|
|
|
9,593 |
|
|
|
11,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily equivalent sales (MBoe/d) |
|
|
35.9 |
|
|
|
37.0 |
|
|
|
41.5 |
|
|
|
35.1 |
|
|
|
40.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized sales prices (before the impact of derivative
settlements): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
|
$ |
81.77 |
|
|
$ |
71.76 |
|
|
$ |
90.23 |
|
|
$ |
75.00 |
|
|
$ |
97.59 |
|
NGLs ($/Bbl) |
|
|
21.31 |
|
|
|
23.44 |
|
|
|
37.17 |
|
|
|
23.57 |
|
|
|
39.96 |
|
Natural gas ($/Mcf) |
|
|
3.14 |
|
|
|
2.34 |
|
|
|
9.89 |
|
|
|
2.88 |
|
|
|
7.58 |
|
Barrel of oil equivalent ($/Boe) |
|
|
42.48 |
|
|
|
36.76 |
|
|
|
68.39 |
|
|
|
41.04 |
|
|
|
64.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average operating expenses per Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
$ |
18.72 |
|
|
$ |
19.60 |
|
|
$ |
15.46 |
|
|
$ |
20.12 |
|
|
$ |
14.03 |
|
Gathering, transportation and production taxes |
|
|
2.03 |
|
|
|
2.02 |
|
|
|
3.20 |
|
|
|
2.05 |
|
|
|
2.41 |
|
Depreciation, depletion, amortization and accretion |
|
|
11.09 |
|
|
|
10.66 |
|
|
|
8.93 |
|
|
|
10.70 |
|
|
|
8.97 |
|
General and administrative expenses |
|
|
6.05 |
|
|
|
5.16 |
|
|
|
6.04 |
|
|
|
5.97 |
|
|
|
4.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
148,993 |
|
|
$ |
461,357 |
|
Restricted cash |
|
|
4,417 |
|
|
|
4,417 |
|
Receivables: |
|
|
|
|
|
|
Oil and natural gas sales |
|
|
48,522 |
|
|
|
66,146 |
|
Joint interest, net |
|
|
16,049 |
|
|
|
14,000 |
|
Income taxes |
|
|
275 |
|
|
|
— |
|
Total receivables |
|
|
64,846 |
|
|
|
80,146 |
|
Prepaid expenses and other assets |
|
|
30,476 |
|
|
|
24,343 |
|
Total current assets |
|
|
248,732 |
|
|
|
570,263 |
|
|
|
|
|
|
|
|
Oil and natural gas properties and other |
|
|
8,951,577 |
|
|
|
8,834,319 |
|
Less accumulated depreciation, depletion, amortization and
impairment |
|
|
8,180,123 |
|
|
|
8,099,104 |
|
Oil and natural gas properties and other, net |
|
|
771,454 |
|
|
|
735,215 |
|
Restricted deposits for asset retirement obligations |
|
|
22,168 |
|
|
|
21,483 |
|
Deferred income taxes |
|
|
42,633 |
|
|
|
57,280 |
|
Other assets |
|
|
40,386 |
|
|
|
47,549 |
|
Total assets |
|
$ |
1,125,373 |
|
|
$ |
1,431,790 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
80,465 |
|
|
$ |
65,570 |
|
Undistributed oil and natural gas proceeds |
|
|
34,649 |
|
|
|
41,934 |
|
Advances from joint interest partners |
|
|
3,106 |
|
|
|
3,181 |
|
Asset retirement obligations |
|
|
33,169 |
|
|
|
25,359 |
|
Accrued liabilities |
|
|
34,264 |
|
|
|
74,041 |
|
Current portion of long-term debt, net |
|
|
30,015 |
|
|
|
582,249 |
|
Total current liabilities |
|
|
215,668 |
|
|
|
792,334 |
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
367,144 |
|
|
|
111,188 |
|
Asset retirement obligations, less current portion |
|
|
465,245 |
|
|
|
441,071 |
|
Other liabilities |
|
|
47,329 |
|
|
|
79,563 |
|
Shareholders’ equity: |
|
|
— |
|
|
|
|
Common stock, $0.00001 par value; 200,000 shares authorized;
149,443 issued and 146,574 outstanding at
September 30, 2023; 149,002 issued and 146,133
outstanding at December 31, 2022 |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
582,900 |
|
|
|
576,588 |
|
Retained deficit |
|
|
(528,747 |
) |
|
|
(544,788 |
) |
Treasury stock, at cost; 2,869 shares for both dates presented |
|
|
(24,167 |
) |
|
|
(24,167 |
) |
Total shareholders’ equity |
|
|
29,987 |
|
|
|
7,634 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,125,373 |
|
|
$ |
1,431,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Cash
Flows |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,145 |
|
|
$ |
(12,109 |
) |
|
$ |
66,721 |
|
|
$ |
16,041 |
|
|
$ |
187,700 |
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
36,632 |
|
|
|
35,894 |
|
|
|
34,113 |
|
|
|
102,660 |
|
|
|
99,384 |
|
Share-based compensation |
|
|
3,250 |
|
|
|
2,087 |
|
|
|
2,645 |
|
|
|
7,259 |
|
|
|
5,179 |
|
Amortization and write off of debt issuance costs |
|
|
1,351 |
|
|
|
1,114 |
|
|
|
1,749 |
|
|
|
5,714 |
|
|
|
6,114 |
|
Derivative (gain) loss |
|
|
(1,491 |
) |
|
|
(829 |
) |
|
|
38,749 |
|
|
|
(41,560 |
) |
|
|
109,892 |
|
Derivative cash payments (receipts), net |
|
|
(1,696 |
) |
|
|
901 |
|
|
|
(71,249 |
) |
|
|
(6,123 |
) |
|
|
(1,022 |
) |
Derivative cash premium payments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(46,111 |
) |
Deferred income taxes |
|
|
3,067 |
|
|
|
7,184 |
|
|
|
13,140 |
|
|
|
14,647 |
|
|
|
40,171 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas receivables |
|
|
(7,180 |
) |
|
|
4,183 |
|
|
|
9,960 |
|
|
|
17,624 |
|
|
|
(34,276 |
) |
Joint interest receivables |
|
|
(2,174 |
) |
|
|
3,241 |
|
|
|
(3,445 |
) |
|
|
(2,049 |
) |
|
|
(7,070 |
) |
Prepaid expenses and other assets |
|
|
(1,442 |
) |
|
|
(4,497 |
) |
|
|
3,276 |
|
|
|
25,550 |
|
|
|
(26,816 |
) |
Asset retirement obligation settlements |
|
|
(13,077 |
) |
|
|
(3,199 |
) |
|
|
(21,510 |
) |
|
|
(24,918 |
) |
|
|
(61,285 |
) |
Cash advances from joint interest partners |
|
|
(3 |
) |
|
|
(50 |
) |
|
|
(2,242 |
) |
|
|
(74 |
) |
|
|
(12,055 |
) |
Accounts payable, accrued liabilities and other |
|
|
8,937 |
|
|
|
(1,135 |
) |
|
|
18,928 |
|
|
|
(34,475 |
) |
|
|
65,566 |
|
Income tax |
|
|
1,711 |
|
|
|
(6,588 |
) |
|
|
(1,743 |
) |
|
|
(634 |
) |
|
|
1,480 |
|
Net cash provided by operating activities |
|
|
30,030 |
|
|
|
26,197 |
|
|
|
89,092 |
|
|
|
79,662 |
|
|
|
326,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in oil and natural gas properties and equipment |
|
|
(7,960 |
) |
|
|
(15,632 |
) |
|
|
(4,477 |
) |
|
|
(30,959 |
) |
|
|
(29,966 |
) |
Changes in operating assets and liabilities associated with
investing activities |
|
|
3,623 |
|
|
|
3,453 |
|
|
|
(2,451 |
) |
|
|
1,285 |
|
|
|
(8,237 |
) |
Acquisition of property interests |
|
|
(28,863 |
) |
|
|
— |
|
|
|
(3,849 |
) |
|
|
(28,863 |
) |
|
|
(51,474 |
) |
Deposit related to acqusition of property interests |
|
|
(8,850 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,850 |
) |
|
|
— |
|
Purchases of furniture, fixtures and other |
|
|
(2,863 |
) |
|
|
(9,045 |
) |
|
|
— |
|
|
|
(12,064 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(44,913 |
) |
|
|
(21,224 |
) |
|
|
(10,777 |
) |
|
|
(79,451 |
) |
|
|
(89,677 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of TVPX Loan |
|
|
(275 |
) |
|
|
(183 |
) |
|
|
— |
|
|
|
(458 |
) |
|
|
— |
|
Issuance of 11.75% Senior Second Lien Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
275,000 |
|
|
|
— |
|
Repayments on 9.75% Second Senior Lien Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(552,460 |
) |
|
|
— |
|
Repayments on Term Loan |
|
|
(7,148 |
) |
|
|
(9,629 |
) |
|
|
(8,896 |
) |
|
|
(26,329 |
) |
|
|
(33,837 |
) |
Debt issuance costs |
|
|
(128 |
) |
|
|
(898 |
) |
|
|
(716 |
) |
|
|
(7,380 |
) |
|
|
(2,006 |
) |
Other |
|
|
(200 |
) |
|
|
(25 |
) |
|
|
703 |
|
|
|
(948 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(7,751 |
) |
|
|
(10,735 |
) |
|
|
(8,909 |
) |
|
|
(312,575 |
) |
|
|
(35,843 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(22,634 |
) |
|
|
(5,762 |
) |
|
|
69,406 |
|
|
|
(312,364 |
) |
|
|
201,331 |
|
Cash and cash equivalents and restricted cash, beginning of
period |
|
|
176,044 |
|
|
|
181,806 |
|
|
|
382,141 |
|
|
|
465,774 |
|
|
|
250,216 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
153,410 |
|
|
$ |
176,044 |
|
|
$ |
451,547 |
|
|
$ |
153,410 |
|
|
$ |
451,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Income (Loss)”, “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 Income (Loss) to
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) 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) loss net of
derivative premiums, allowance for credit losses, write-off of debt
issuance costs, non-recurring IT-transition costs, non-ARO plugging
and abandonment 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, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,145 |
|
|
$ |
(12,109 |
) |
|
$ |
66,721 |
|
|
$ |
16,041 |
|
|
$ |
187,700 |
|
Selected items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized commodity derivative (gain) loss and effect of
derivative premiums, net |
|
|
(3,462 |
) |
|
|
(1,129 |
) |
|
|
(28,161 |
) |
|
|
(44,061 |
) |
|
|
98,607 |
|
Allowance for credit losses |
|
|
6 |
|
|
|
3 |
|
|
|
(418 |
) |
|
|
9 |
|
|
|
(119 |
) |
Write-off debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,330 |
|
|
|
— |
|
Non-recurring costs related to IT services transition |
|
|
768 |
|
|
|
1,078 |
|
|
|
6,393 |
|
|
|
2,631 |
|
|
|
6,393 |
|
Non-ARO P&A costs |
|
|
2,103 |
|
|
|
— |
|
|
|
— |
|
|
|
2,109 |
|
|
|
— |
|
Other |
|
|
187 |
|
|
|
(294 |
) |
|
|
(600 |
) |
|
|
271 |
|
|
|
(1,229 |
) |
Tax effect of selected items (1) |
|
|
84 |
|
|
|
72 |
|
|
|
4,785 |
|
|
|
7,709 |
|
|
|
(21,767 |
) |
Adjusted Net income (loss) |
|
$ |
1,831 |
|
|
$ |
(12,379 |
) |
|
$ |
48,720 |
|
|
$ |
(12,961 |
) |
|
$ |
269,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
$ |
0.34 |
|
|
$ |
(0.09 |
) |
|
$ |
1.88 |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
$ |
0.33 |
|
|
$ |
(0.09 |
) |
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
146,483 |
|
|
|
146,452 |
|
|
|
143,116 |
|
|
|
146,451 |
|
|
|
143,026 |
|
Diluted |
|
|
151,459 |
|
|
|
146,452 |
|
|
|
145,882 |
|
|
|
146,451 |
|
|
|
144,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 the non-GAAP financial
measures Adjusted EBITDA and Free Cash Flow. The Company defines
Adjusted EBITDA as net income (loss) plus net interest expense,
income tax expense, depreciation, depletion, amortization and
accretion, excluding the unrealized commodity derivative (gain)
loss net of derivative premiums, allowance for credit losses,
non-cash incentive compensation, non-recurring IT-transition costs,
non-ARO plugging and abandonment 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, plugging and
abandonment costs and 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, furniture and fixtures, 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, plugging and abandonment costs and 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 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 tables present (i) a
reconciliation of the Company’s net income (loss), a GAAP measure,
to Adjusted EBITDA and Free Cash Flow, as such terms are defined by
the Company and (ii) 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 Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,145 |
|
|
$ |
(12,109 |
) |
|
$ |
66,721 |
|
|
$ |
16,041 |
|
|
$ |
187,700 |
|
Interest expense, net |
|
|
9,924 |
|
|
|
10,323 |
|
|
|
16,849 |
|
|
|
34,960 |
|
|
|
54,915 |
|
Income tax expense |
|
|
4,777 |
|
|
|
2,997 |
|
|
|
16,397 |
|
|
|
16,413 |
|
|
|
46,801 |
|
Depreciation, depletion, amortization and accretion |
|
|
36,632 |
|
|
|
35,894 |
|
|
|
34,113 |
|
|
|
102,660 |
|
|
|
99,384 |
|
Unrealized commodity derivative (gain) loss and effect of
derivative premiums, net |
|
|
(3,462 |
) |
|
|
(1,129 |
) |
|
|
(28,161 |
) |
|
|
(44,061 |
) |
|
|
98,607 |
|
Allowance for credit losses |
|
|
6 |
|
|
|
3 |
|
|
|
(418 |
) |
|
|
9 |
|
|
|
(119 |
) |
Non-cash incentive compensation |
|
|
3,250 |
|
|
|
2,087 |
|
|
|
2,645 |
|
|
|
7,259 |
|
|
|
5,179 |
|
Non-recurring costs related to IT services transition |
|
|
768 |
|
|
|
1,078 |
|
|
|
6,393 |
|
|
|
2,631 |
|
|
|
6,393 |
|
Non-ARO P&A costs |
|
|
2,103 |
|
|
|
— |
|
|
|
1,428 |
|
|
|
2,109 |
|
|
|
— |
|
Other |
|
|
205 |
|
|
|
(312 |
) |
|
|
(2,028 |
) |
|
|
271 |
|
|
|
(1,229 |
) |
Adjusted EBITDA |
|
$ |
56,348 |
|
|
$ |
38,832 |
|
|
$ |
113,939 |
|
|
$ |
138,292 |
|
|
$ |
497,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in oil and natural gas properties and equipment |
|
|
(7,960 |
) |
|
|
(15,632 |
) |
|
|
(4,477 |
) |
|
|
(30,959 |
) |
|
|
(29,966 |
) |
Asset retirement obligation settlements |
|
|
(13,077 |
) |
|
|
(3,199 |
) |
|
|
(21,510 |
) |
|
|
(24,918 |
) |
|
|
(61,285 |
) |
Interest expense, net |
|
|
(9,924 |
) |
|
|
(10,323 |
) |
|
|
(16,849 |
) |
|
|
(34,960 |
) |
|
|
(54,915 |
) |
Free Cash Flow |
|
$ |
25,387 |
|
|
$ |
9,678 |
|
|
$ |
71,103 |
|
|
$ |
47,455 |
|
|
$ |
351,465 |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
30,030 |
|
|
$ |
26,197 |
|
|
$ |
89,092 |
|
|
$ |
79,662 |
|
|
$ |
326,851 |
|
Allowance for credit losses |
|
|
6 |
|
|
|
3 |
|
|
|
(418 |
) |
|
|
9 |
|
|
|
(119 |
) |
Amortization of debt items and other items |
|
|
(1,351 |
) |
|
|
(1,114 |
) |
|
|
(1,749 |
) |
|
|
(5,714 |
) |
|
|
(6,114 |
) |
Non-recurring costs related to IT services transition |
|
|
768 |
|
|
|
1,078 |
|
|
|
6,393 |
|
|
|
2,631 |
|
|
|
6,393 |
|
Current tax benefit (1) |
|
|
1,710 |
|
|
|
(4,187 |
) |
|
|
3,257 |
|
|
|
1,766 |
|
|
|
6,630 |
|
Changes in derivatives (payable) receivable(1) |
|
|
(275 |
) |
|
|
(1,201 |
) |
|
|
4,339 |
|
|
|
3,622 |
|
|
|
35,848 |
|
Non-ARO P&A costs |
|
|
2,103 |
|
|
|
— |
|
|
|
— |
|
|
|
2,109 |
|
|
|
— |
|
Changes in operating assets and liabilities, excluding asset
retirement obligation settlements |
|
|
151 |
|
|
|
4,846 |
|
|
|
(24,734 |
) |
|
|
(5,942 |
) |
|
|
13,171 |
|
Investment in oil and natural gas properties, equipment and
other |
|
|
(7,960 |
) |
|
|
(15,632 |
) |
|
|
(4,477 |
) |
|
|
(30,959 |
) |
|
|
(29,966 |
) |
Other |
|
|
205 |
|
|
|
(312 |
) |
|
|
(600 |
) |
|
|
271 |
|
|
|
(1,229 |
) |
Free Cash Flow |
|
$ |
25,387 |
|
|
$ |
9,678 |
|
|
$ |
71,103 |
|
|
$ |
47,455 |
|
|
$ |
351,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A reconciliation of the adjustment used to calculate Free Cash
Flow to the Condensed Consolidated Financial Statements is included
below: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax benefit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
$ |
4,777 |
|
|
$ |
2,997 |
|
|
$ |
16,397 |
|
|
$ |
16,413 |
|
|
$ |
46,801 |
|
Less: Deferred income taxes |
|
|
3,067 |
|
|
|
7,184 |
|
|
|
13,140 |
|
|
|
14,647 |
|
|
|
40,171 |
|
Current tax benefit |
|
$ |
1,710 |
|
|
$ |
(4,187 |
) |
|
$ |
3,257 |
|
|
$ |
1,766 |
|
|
$ |
6,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in derivatives receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives payable, end of period |
|
$ |
(952 |
) |
|
$ |
(677 |
) |
|
$ |
(16,659 |
) |
|
$ |
(952 |
) |
|
$ |
(16,659 |
) |
Derivatives payable, beginning of period |
|
|
677 |
|
|
|
(524 |
) |
|
|
20,998 |
|
|
|
4,574 |
|
|
|
6,396 |
|
Derivative premiums paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,111 |
|
Change in derivatives receivable (payable) |
|
$ |
(275 |
) |
|
$ |
(1,201 |
) |
|
$ |
4,339 |
|
|
$ |
3,622 |
|
|
$ |
35,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W and T Offshore (NYSE:WTI)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
W and T Offshore (NYSE:WTI)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024