W&T Offshore(WTI) - 2025 Q2 - Quarterly Results

Production and Operations - Production increased by 10% quarter-over-quarter to 33.5 MBoe/d, with 49% being liquids[2] - In Q2 2025, W&T performed nine low-cost workovers, positively impacting production and revenue, particularly in Mobile Bay, the largest natural gas field[22] - Average daily equivalent sales increased to 33.5 MBoe/d in Q2 2025, compared to 30.5 MBoe/d in Q1 2025, but decreased from 34.9 MBoe/d in Q2 2024[41] - W&T operates approximately 94% of its mid-year 2025 proved reserves, with a composition of 44% liquids and 56% natural gas[23] - The company plans to continue low-cost operations that enhance production and revenue, focusing on short payout strategies[22] Financial Performance - Revenues for Q2 2025 were $122.4 million, a 6% decrease from Q1 2025 due to lower realized prices, partially offset by higher production volumes[5] - Adjusted EBITDA grew by 9% to $35.2 million compared to Q1 2025[2] - Operating loss for Q2 2025 was $12.853 million, compared to a loss of $6.236 million in Q2 2024[39] - The company reported a net loss of $20.884 million for Q2 2025, an improvement from a net loss of $30.577 million in Q1 2025 and a net loss of $15.388 million in Q2 2024[45] - The company reported a net cash provided by operating activities of $27.962 million in Q2 2025, compared to a net cash used in operating activities of $3.196 million in Q1 2025[45] Costs and Expenses - Lease operating expenses were $76.9 million, approximately 8% higher than Q1 2025, driven by increased base operating expenses and workover costs[7] - Average realized price per Boe decreased by 16% to $39.16 from Q1 2025[4] - The company’s average operating expenses per Boe were $39.16 in Q2 2025, a decrease from $46.50 in Q1 2025 and $44.40 in Q2 2024[41] - The company incurred capital expenditures of $10,445,000 for the three months ended June 30, 2025, compared to $8,472,000 in the previous quarter[56] Reserves and Valuation - The mid-year reserve report showed net positive revisions of 1.8 MMBoe, indicating the strength of the asset base[3] - As of June 30, 2025, proved reserves totaled 123.0 MMBoe, a decrease from 127.0 MMBoe at year-end 2024, primarily due to 5.8 MMBoe of production[23] - The pre-tax PV-10 of the mid-year 2025 proved reserves was $1.2 billion, unchanged from year-end 2024, indicating preserved reserve value despite production[24] - Average 12-month oil and natural gas prices used for mid-year 2025 proved reserves were $71.20 per barrel and $2.86 per MMBtu, respectively[25] Debt and Equity - Net debt decreased by $14.7 million to $229.4 million, with a Net Debt to trailing twelve months Adjusted EBITDA ratio of 1.8x[17] - The company declared a third quarter 2025 dividend of $0.01 per share, payable on August 25, 2025[19] - The weighted average shares outstanding for the three months ended June 30, 2025, was 147,847,000, slightly up from 147,598,000 in the previous quarter[51] - The adjusted net loss per common share for the three months ended June 30, 2025, was $(0.08), compared to $(0.13) in the previous quarter[51] Cash Flow - Free Cash Flow for the three months ended June 30, 2025, was $3,583,000, down from $10,483,000 in the previous quarter[56] - Cash and cash equivalents rose to $120.723 million as of June 30, 2025, up from $109.003 million at the end of 2024[43] - Total current assets increased to $237.944 million as of June 30, 2025, compared to $218.458 million at the end of 2024[43] - Total liabilities decreased to $1,126.547 million as of June 30, 2025, down from $1,165.421 million at the end of 2024[43]