W&T Offshore (WTI) Beats Q2 Earnings & Revenue Estimates

Shutterstock photo

W&T Offshore, Inc. WTI reported adjusted second-quarter 2018 earnings - excluding onetime items - of 29 cents per share, beating the Zacks Consensus Estimate of 17 cents and improving from the year-ago 22 cents.

Revenues increased to $149.6 million in the quarter from $123.3 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $147 million.

Higher oil and natural gas liquids (NGLs) price realizations primarily attributed to the strong second-quarter results.

Production Falls, Prices Rise

The production of oil and natural gas was recorded at 3,419 thousand barrels of oil equivalent (MBoe) (60.1% liquids), down 12.8% from 3,921 Mboe a year ago. The maintenance activities for wells, outages of pipelines, unfavorable weather and natural declines of wells attributed to the lower output.

W&T Offshore's production for oil and NGLs was 2,055 thousand barrels (MBbls), down 9.6% from the prior-year quarter, while natural gas output came in at 8,186 million cubic feet (MMcf), down 17.2%.

The average realized crude oil price during the second quarter was $67.09 a barrel, representing an increase of 50.6% from the year-ago $44.54. The average realized price of NGL jumped 37% to $27.61 per barrel from $20.15 in second-quarter 2017. However, the average realized natural gas price during the June quarter of 2018 was $2.81 per thousand cubic feet (Mcf), down 5.1% from the year-ago period.   

Expenses Jump

Through second-quarter 2018, W&T Offshore witnessed an 11.8% rise in total cost and expenses to $101.2 million. The jump in total cost was primarily supported by almost 13% rise in lease operating expenses to $35.6 million.

Balance Sheet & Capital Spending

As of Jun 30, 2018, the company had approximately $129.4 million in cash and cash equivalents. The company had long-term debt of $985.7 million - including the current maturities of debt.

For the oil and natural gas resources, W&T Offshore spent $10.7 million capital, on an accrual basis, through the April-to-June quarter of 2018.

Proved Reserves Rise

As of Jun 30, 2018, the oil-equivalent proved reserves of W&T Offshore was reported at 78 million Boe, up 5% from the reserves at the end of 2017.


The company expects production for third-quarter 2018 between 3.1 million barrels of oil equivalent (MMBoe) and 3.4 MMBoe. For 2018, W&T Offshore expects production in the range of 13.2-14.6 MMBoe.

Through the January-to-December quarter of 2018, the offshore oil and gas explorer expects lease operating expenses between $159 million and $176 million. 

W&T Offshore, Inc. Price, Consensus and EPS Surprise

W&T Offshore, Inc. Price, Consensus and EPS Surprise | W&T Offshore, Inc. Quote

Zacks Rank & Other Stocks to Consider

W&T Offshore sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space are Northern Oil and Gas, Inc. NOG , McDermott International, Inc. MDR and Murphy Oil Corp. MUR . While Murphy Oil carries a Zacks Rank #2 (Buy), McDermott and Northern Oil sport a Zacks Rank #1. You can see  the complete list of today's Zacks #1 Rank stocks here

Northern Oil beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 160.4%.

McDermott's earnings beat the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.

Murphy Oil's bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.  

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

McDermott International, Inc. (MDR): Free Stock Analysis Report

W&T Offshore, Inc. (WTI): Free Stock Analysis Report

Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report

Murphy Oil Corporation (MUR): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: MDR , WTI , NOG , MUR

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?