W&T Offshore (WTI) Q2 2024 earnings summary

Executive summary

• Achieved solid operational and financial results in Q2 2024, with stable production averaging 34.9 MBoe/d, positive free cash flow for the 26th consecutive quarter, and a net loss of $15.4 million ($0.10 per share).

• Adjusted EBITDA reached $45.9 million, and free cash flow was $18.7 million in Q2 2024.

• Cash and cash equivalents increased 30% to $123.4 million, while net debt decreased 9% to $268.5 million compared to Q1 2024.

• Successfully integrated recent acquisitions, notably the Cox assets, with four of six fields now producing and production restored at Mobile Bay 916.

• Continued to return cash to shareholders through dividends, declaring a third quarter 2024 dividend of $0.01 per share.

Financial highlights

• Q2 2024 revenues were $142.8 million, up 13% year-over-year, driven by higher realized prices despite lower production volumes.

• Adjusted EBITDA was $45.9 million; free cash flow was $18.7 million; net cash from operating activities was $37.4 million.

• Lease Operating Expenses (LOE) were $74.0 million in Q2 2024, below guidance but up year-over-year due to acquisitions; LOE per Boe was $23.29.

• Capital expenditures for the first half of 2024 totaled $92.6 million, including $80.6 million for acquisitions.

• Cash and cash equivalents at June 30, 2024, were $123.4 million.

Outlook and guidance

• Q3 2024 production guidance is 30.9–34.9 MBoe/d, reflecting third-party pipeline issues; full-year 2024 LOE guidance lowered to $280–$315 million.

• 2024 capital expenditures expected to remain at $35–$45 million, excluding acquisitions.

• Expect $30–$35 million in additional capital expenditures and $25–$30 million in asset retirement payments in the next six months.

• Management believes current liquidity and cash flows are sufficient to meet requirements for at least the next 12 months.

• No changes to CapEx or asset retirement obligations despite production and LOE guidance adjustments.