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W&T Offshore Q1 2025 Earnings Report
W&T Offshore reported operational and financial results for the first quarter of 2025, including a net loss of $30.6 million and adjusted EBITDA of $32.2 million.
Key Takeaways
W&T Offshore, Inc. reported first quarter 2025 results with production at the high end of guidance, generating $10.5 million in Free Cash Flow and $32.2 million in Adjusted EBITDA. The company successfully refinanced debt, reducing gross debt by approximately $39.0 million and enhancing liquidity, while also bringing new fields into production.
Produced 30.5 thousand barrels of oil equivalent per day (MBoe/d), towards the high end of guidance.
Successfully refinanced debt in January 2025, reducing gross debt by approximately $39.0 million and lowering interest rates on Senior Second Lien Notes by 100 basis points.
Generated Adjusted EBITDA of $32.2 million, an increase of 2% over the fourth quarter of 2024.
Reported a net loss of $30.6 million, or $(0.21) per diluted share, with an Adjusted Net Loss of $19.1 million.
W&T Offshore
W&T Offshore
Forward Guidance
W&T Offshore's guidance for the second quarter and full year 2025 anticipates continued strong production and managed expenses, with a focus on increasing oil production and controlling operating costs.
Positive Outlook
- Expected daily production for Q2 2025 is between 32.7 and 36.2 MBoe/d, indicating continued strong output.
- Full year 2025 production is projected to be between 32.8 and 36.3 MBoe/d, maintaining a high production level.
- Cash G&A expenses are expected to be between $14.5 million and $16.1 million for Q2 2025, indicating continued cost management.
- DD&A per Boe is projected to be between $13.40 and $14.90 for the full year 2025, reflecting stable depreciation costs.
- The company expects substantially all income taxes in 2025 to be deferred, which could positively impact cash flow.
Challenges Ahead
- Lease operating expenses are projected to be between $71.3 million and $78.9 million for Q2 2025, which is a significant operating cost.
- Gathering, transportation, and production taxes are estimated to be between $6.6 million and $7.4 million for Q2 2025.
- Non-cash G&A expenses are projected to be between $2.4 million and $2.8 million for Q2 2025.
- The guidance is subject to various risk factors, including regulatory environment, commodity price volatility, and operational challenges.
- The company's ability to meet planned drilling schedules and obtain permits on a timely basis could impact production targets.