W&T Offshore Q4 Loss Wider Than Expected, Revenues Increase Y/Y

Core Insights - W&T Offshore, Inc. (WTI) reported a fourth-quarter 2025 adjusted loss of 14 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 9 cents, but improved from a loss of 18 cents in the same quarter last year [1][9] - Total quarterly revenues reached $121.7 million, missing the Zacks Consensus Estimate of $136 million, although it increased from $120.3 million reported in the prior-year quarter [1][9] Production Statistics - Average production for the quarter was 36.2 thousand barrels of oil equivalent per day (MBoe/d), up from 32.1 MBoe/d in the corresponding period of 2024, but lower than the estimate of 37.5 MBoe/d [3] - Oil production totaled 1,324 thousand barrels (MBbls), higher than 1,263 MBbls in the year-earlier quarter, but missed the estimate of 1,403 MBbls [3] - Natural gas liquids output was 414 MBbls, an increase from 273 MBbls in the prior-year quarter, exceeding the estimate of 380 MBbls [4] - Natural gas production reached 9,562 million cubic feet (MMcf), higher than 8,505 MMcf in the prior-year quarter, but below the estimate of 10,024 MMcf [4] Realized Commodity Prices - The average realized price for oil in the fourth quarter was $57.39 per barrel, down from $68.71 in the year-ago quarter and below the estimate of $62.41 [5] - The average realized price of natural gas liquids decreased to $16.62 per barrel from $24.59 reported a year ago, also lower than the estimate of $19.59 per barrel [5] - The average realized price of natural gas was $3.83 per thousand cubic feet, up from $2.85 in the corresponding period of 2024, but lower than the estimate of $4.52 [6] - The average realized price for oil-equivalent output decreased to $35.88 per barrel from $39.86 a year ago, below the estimate of $40.63 per barrel [6] Operating Expenses - Lease operating expenses increased to $22.40 per Boe from $21.76 in the year-ago period, coming in below the estimate of $22.37 per Boe [7] - General and administrative expenses decreased to $2.63 per Boe from $2.00 a year ago, but were higher than the estimate of $2.34 per Boe [7] Cash Flow and Financials - Net cash provided by operations totaled $25.9 million compared to a negative $4.3 million reported in the prior-year quarter [10] - The company reported a negative free cash flow of $11.2 million in the fourth quarter, compared to a negative $10.2 million in the corresponding period of 2024 [10] - Capital spending for the fourth quarter was $13.3 million [11] - As of December 31, 2025, cash and cash equivalents totaled $140.6 million, with net long-term debt amounting to $342.4 million [11] Guidance for 2026 - For Q1 2026, W&T Offshore expects production to be in the range of 3,011-3,341 Mboe, with full-year production anticipated to be between 12,227-13,560 Mboe [12] - First-quarter lease operating expenses are expected to be in the range of $63.4-$70.4 million, with full-year lease operating expenses projected to be between $264.7-$294.7 million [12] - Full-year capital expenditures are projected to be in the range of $19.5-$24.5 million [12]