W&T Offshore Q1 Loss Narrower Than Expected, Revenues Decline Y/Y

Core Viewpoint - W&T Offshore Inc. reported a narrower loss in Q1 2025 compared to estimates, but the loss increased year-over-year, with total revenues beating estimates but declining from the previous year [1][2]. Financial Performance - The company reported a loss of 13 cents per share, better than the Zacks Consensus Estimate of a loss of 14 cents, but worse than the prior year's loss of 5 cents per share [1]. - Total quarterly revenues were $129.9 million, exceeding the Zacks Consensus Estimate of $125 million, but down from $141 million in the same quarter last year [1]. Production Statistics - Average production for the quarter was 30.5 thousand barrels of oil equivalent per day (MBoe/d), down from 35.1 MBoe/d in Q1 2024, affected by freezing conditions [3]. - Oil production totaled 1,230 thousand barrels (MBbls), a decrease from 1,400 MBbls year-over-year, missing the estimate of 1,236 MBbls [3]. - Natural gas liquids output was 200 MBbls, down from 343 MBbls in the prior year, missing the estimate of 224 MBbls [4]. - Natural gas production was 7,884 million cubic feet (MMcf), lower than 8,733 MMcf in the previous year but above the estimate of 7,734 MMcf [4]. Realized Commodity Prices - The average realized price for oil was $71.31 per barrel, down from $76.44 year-over-year, but above the estimate of $69.03 [5]. - The average realized price of natural gas increased to $4.45 per thousand cubic feet from $2.48 in the prior year, exceeding the estimate of $4.34 [6]. - The average realized price for oil-equivalent output rose to $46.50 per barrel from $42.55 a year ago, surpassing the estimate of $44.91 [6]. Operating Expenses - Lease operating expenses increased to $25.88 per Boe from $22.14 in the prior year, lower than the estimate of $26.40 per Boe [7]. - General and administrative expenses rose to $7.35 per Boe from $6.41 year-over-year, higher than the estimate of $7.22 per Boe [7]. Cash Flow - Net cash used in operations was $3.2 million, compared to $11.6 million net cash provided in the prior year [8]. - Free cash flow decreased to $10.5 million from $32.4 million in the same quarter last year [8]. Capital Spending & Balance Sheet - W&T Offshore spent $8.5 million on oil and gas resources and equipment [10]. - As of March 31, 2025, cash and cash equivalents totaled $105.9 million, with net long-term debt at $349.5 million [10]. Guidance - For Q2 2025, production is expected to be between 2,977-3,295 Mboe, with full-year production anticipated to remain in the range of 11,983-13,257 Mboe [11]. - Lease operating expenses for Q2 are projected to be between $71.3-$78.9 million, with full-year expenses expected in the range of $280-$310 million [11]. - Full-year capital expenditures are anticipated to be between $34-$42 million [11].