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Dec 31, 2024
W&T Offshore Q4 2024 Earnings Report
W&T Offshore reported a net loss for Q4 2024, with lower revenues due to decreased production and lower realized prices.
Key Takeaways
W&T Offshore posted a net loss of $23.4 million for Q4 2024. Revenue declined 9% YoY to $120.3 million, driven by lower realized prices and reduced production. Adjusted EBITDA was $31.6 million. Cash and cash equivalents totaled $109.0 million, and the company reported free cash flow of $44.9 million for the full year. Lease operating expenses were $64.3 million, coming in below guidance.
Revenue declined 9% YoY to $120.3 million due to lower prices and production.
Net loss for Q4 2024 was $23.4 million, with an adjusted net loss of $26.2 million.
Adjusted EBITDA totaled $31.6 million in Q4 2024.
Cash and cash equivalents stood at $109.0 million at year-end.
Forward Guidance
W&T Offshore expects a modest increase in production as shut-in fields return online. The company anticipates stable revenue, higher lease operating expenses due to maintenance, and improved free cash flow.
Positive Outlook
- Production expected to increase with fields returning online in Q2 2025.
- Projected free cash flow growth due to improved efficiency.
- Oil reserves increased by 39% YoY.
- New credit facility established to enhance liquidity.
- Refinanced debt at lower interest rates, improving financial flexibility.
Challenges Ahead
- Lease operating expenses expected to rise due to maintenance costs.
- Lower realized prices for oil and gas may impact revenue.
- Continued exposure to hurricane-related disruptions in the Gulf of Mexico.
- Potential volatility in commodity markets could impact cash flow.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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