W&T Offshore(US:WTI)2025-11-06 11:31Revenue Performance - Total revenues for the three months ended September 30, 2025, were $127.5 million, an increase of $6.1 million compared to $121.4 million in the same period of 2024[97]. - Total revenues decreased by $25.2 million to $379.7 million for the nine months ended September 30, 2025, with oil revenues down $56.9 million and natural gas revenues up $40.6 million[109]. - The company declared cash dividends of $4.7 million during the nine months ended September 30, 2025[136]. Oil and Gas Revenue Breakdown - Oil revenues decreased by $6.7 million to $84.1 million, while natural gas revenues increased by $14.3 million to $37.4 million[97]. - Oil revenues fell by $56.98 million, while natural gas revenues increased by $40.64 million during the same period[109]. Production and Sales Volumes - Production volumes increased by 421 MBoe to 3,275 MBoe, primarily due to well stimulation work and reduced downtime[97]. - Production volumes decreased by 159 MBoe to 9,071 MBoe during the nine months ended September 30, 2025, primarily due to low gas availability and shut-ins in certain fields[109]. - Average daily equivalent sales increased by 4,576 Boe/day to 35,598 Boe/day compared to the same period in 2024[97]. Operating Expenses - Lease operating expenses rose by $3.8 million to $76.2 million, while total operating expenses decreased slightly by $0.2 million to $140.1 million[98]. - Total operating expenses decreased by $16.7 million to $413.5 million for the nine months ended September 30, 2025, with lease operating expenses increasing by $6.9 million[110]. - Average total operating expenses per Boe sold decreased by $6.38 to $42.79[98]. Depreciation and Amortization - Depreciation, depletion and amortization (DD&A) decreased by $5.6 million to $8.73 per Boe for the three months ended September 30, 2025, compared to $11.99 per Boe for the same period in 2024[102]. - Depreciation, depletion, and amortization (D&A) expenses decreased by $16.9 million, with the D&A rate dropping to $9.69 per Boe from $11.36 per Boe[114]. Financial Position and Liquidity - As of September 30, 2025, the company had $124.8 million in unrestricted cash and $50.0 million available under its New Credit Agreement, indicating strong liquidity[123]. - As of September 30, 2025, the company had $359.1 million in long-term debt outstanding, with $9.1 million due within the next twelve months[135]. Cash Flow and Investments - Net cash provided by operating activities decreased by $12.6 million to $51.3 million for the nine months ended September 30, 2025, primarily due to a $25.2 million decrease in revenues[127]. - Cash flows used in investing activities were $31.6 million for the nine months ended September 30, 2025, compared to $(104.0) million in 2024, indicating a significant improvement[128]. - Capital expenditures for exploration and development increased to $42.2 million for the nine months ended September 30, 2025, compared to $102.0 million in 2024[130]. Tax and Interest Expenses - The effective tax rate for the three months ended September 30, 2025 was not meaningful, with a $59.9 million valuation allowance recorded against net deferred tax assets[108]. - Interest expense, net decreased by $2.7 million to $27.5 million for the nine months ended September 30, 2025, primarily due to a decrease from the redemption of the 11.75% Notes[117]. Derivative Gains and Other Expenses - Derivative gain, net increased by $4.1 million to a gain of $4.1 million for the three months ended September 30, 2025, compared to a gain of $3.2 million in the same period in 2024[106]. - Other expenses decreased by $11.1 million for the three months ended September 30, 2025, primarily due to a reduction in accruals for net abandonment obligations[120]. Strategic Initiatives - The company is monitoring the impact of tariffs announced by the U.S. federal government, but does not expect a material financial impact in 2025[96]. - The company has made strategic acquisitions in the Gulf of America to exploit additional drilling projects and reduce costs[132].