Why Is W&T (WTI) Up 7.5% Since Last Earnings Report?

Core Viewpoint - W&T Offshore's recent earnings report indicates a narrower loss than expected, but revenues fell short of estimates, raising questions about future performance and investor sentiment [2][3][15]. Financial Performance - The company reported a second-quarter 2025 loss of 8 cents per share, which was better than the Zacks Consensus Estimate of a loss of 14 cents, but worse than the previous year's loss of 5 cents per share [2]. - Total quarterly revenues were $122.4 million, missing the Zacks Consensus Estimate of $137 million and down from $143 million in the prior-year quarter [2]. Production Statistics - Average production for the quarter was 33.5 thousand barrels of oil equivalent per day (MBoe/d), a decrease from 34.9 MBoe/d in the same period of 2024 [4]. - Oil production totaled 1,259 thousand barrels (MBbls), down from 1,382 MBbls in the year-ago quarter, missing the estimate of 1,427 MBbls [4]. - Natural gas liquids output was 245 MBbls, down from 334 MBbls year-over-year, while natural gas production increased to 9,285 million cubic feet (MMcf) from 8,769 MMcf [5]. Commodity Prices - The average realized price for oil was $63.55 per barrel, down from $80.29 a year ago, and lower than the estimate of $65.57 [6]. - The average realized price for natural gas was $3.75 per thousand cubic feet, up from $2.50 in the prior year, but below the estimate of $3.79 [7]. Operating Expenses - Lease operating expenses increased to $25.20 per Boe from $23.29 in the year-ago period, exceeding the estimate of $22.84 per Boe [8]. - General and administrative expenses decreased to $5.79 per Boe from $6.72 a year ago, but were higher than the estimate of $5.37 per Boe [8]. Cash Flow and Capital Spending - Net cash provided by operations was $27.9 million, down from $37.4 million in the prior-year quarter, while free cash flow decreased to $3.6 million from $18.7 million [10]. - Capital expenditures for oil and gas resources and equipment were $10.4 million, with cash and cash equivalents totaling $120.7 million and net long-term debt at $350.1 million as of June 30, 2025 [11]. Guidance - For Q3 2025, production is expected to be between 3,043-3,368 Mboe, with full-year production anticipated to remain in the range of 11,983-13,257 Mboe [12]. - Lease operating expenses for Q3 are projected to be between $71.5-$79.3 million, with full-year estimates between $280-$310 million [12]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 20.83% [13]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [15]. Industry Comparison - W&T Offshore operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where another player, Northern Oil and Gas, has seen a 4.1% gain over the past month [16].