W&T Offshore (WTI) Q3 2024 earnings summary

Executive summary

• Generated $54.9 million in free cash flow year-to-date, marking the 27th consecutive quarter and seven years of positive free cash flow.

• Reported a Q3 2024 net loss of $36.9 million ($0.25 per share), with revenues down 14.8% year-over-year due to hurricane-related downtime and lower prices.

• Continued integration of 2024 asset acquisitions, with four of six new fields online and the remainder expected to boost 2025 production.

• Maintained a strong safety record with zero recordable incidents in 2024 and received recognition for corporate governance.

• Paid fourth consecutive quarterly dividend in August and declared Q4 2024 dividend of $0.01 per share.

Financial highlights

• Adjusted EBITDA totaled $122 million year-to-date; Q3 2024 Adjusted EBITDA was $26.7 million.

• Q3 2024 revenue was $121.4 million, down 15% year-over-year; nine months 2024 revenue was $404.9 million, up 1.1%.

• Cash on hand at quarter-end was $126.5 million; net debt reduced to $266 million.

• Lease operating expenses for Q3 were $72.4 million, 6% below guidance and down 2% sequentially, but up 17% year-over-year.

• CapEx (excluding acquisitions) was $9.5 million for Q3 and $23.3 million for the first nine months; $80.6 million invested in acquisitions year-to-date.

Outlook and guidance

• Q4 2024 production guidance midpoint is 33,600 BOE/d, with full-year guidance of 32.5–36.2 MBoe/d.

• Full-year 2024 CapEx (excluding acquisitions) expected at $25–$35 million, down from prior estimate.

• Management expects sufficient liquidity for at least the next 12 months, with $126.5 million cash and $50 million undrawn revolver.

• Plans to refinance $275 million of 11.75% Notes due 2026, with ongoing lender discussions.

• Anticipates increased production in 2025 as remaining acquired fields return online.