W&T Offshore (WTI) Q4 2024 earnings summary

Executive summary

• Focused on generating free cash flow, optimizing conventional assets, and accretive acquisitions to build shareholder value.

• Enhanced balance sheet in early 2025, maintaining a long-term vision for profitability and operational execution.

• Management and shareholders' interests are highly aligned, with a 34% equity stake held by management.

• 2024 production averaged 33,300 BOE/d (43% oil), totaling 12.2 MMBoe, within guidance despite hurricane impacts and downtime from the Cox acquisition.

• Year-end 2024 proved reserves rose to 127 million BOE, with oil reserves up 39% and PV-10 increasing 14% to $1.2 billion, despite lower SEC pricing.

Financial highlights

• Generated $154 million in adjusted EBITDA and $45 million in free cash flow for full year 2024.

• 2024 revenues were $525.3 million, down slightly from $532.7 million in 2023 due to lower prices and production.

• Delivered production of 33,300 BOE/d in 2024, despite hurricane impacts and downtime.

• Paid five quarterly cash dividends since late 2023, with another scheduled for Q1 2025.

• At year-end 2024, total debt was $393 million, net debt $284 million, and liquidity $159 million.

Outlook and guidance

• Q1 2025 production midpoint expected at 29,000 BOE/d due to maintenance and unplanned downtime.

• Full year 2025 production midpoint guided at 34,000 BOE/d, about 6% higher than Q4 2024.

• 2025 production expected at 32,800–36,300 BOE/d, with key fields returning online in Q2.

• CapEx for 2025 projected at $34–$42 million, with growth driven by bringing Cox acquisition fields online.

• Plugging and abandonment costs expected at $27–$37 million in 2025.