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W&T Offshore, Inc. (WTI - Free Report) reported second-quarter 2022 adjusted earnings (excluding one-time items) of $1.32 per share, beating the Zacks Consensus Estimate of 37 cents. The bottom line significantly improved from the year-ago quarter’s 1 cent per share.
Total quarterly revenues of $273.8 million surpassed the Zacks Consensus Estimate of $228 million. Also, the top line increased from $132.8 million in the prior-year quarter.
The strong quarterly results were supported by higher production and the realization of commodity prices.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
The total production averaged 42.4 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 40.9 MBoe/d.
Oil production was 1,476 thousand barrels (MBbls), up from the year-ago level of 1,352 MBbls. Also, natural gas liquids’ output totaled 384 MBbls, higher than 337 MBbls a year ago. However, natural gas production of 11,995 million cubic feet (MMcf) for the reported quarter was lower than 12,189 MMcf in the year-earlier period. Of the total production for the reported quarter, 48.2% comprised liquids.
Realized Commodity Prices
The average realized price for oil in the second quarter was $107.90 a barrel, higher than the year-ago level of $65.11. The average realized price of NGL increased to $43.58 from $26.18 per barrel in the prior year. The average realized price of natural gas for the June-end quarter was $7.70 per thousand cubic feet, up from $2.66 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $69.55 per barrel from $34.75 a year ago.
Operating Expenses
Lease operating expenses rose to $13.73 per Boe in the second quarter from $12.78 a year ago. Also, general and administrative expenses increased to $3.88 per Boe from $3.76 in the year-ago period.
Overall, total costs and expenses increased to $111.5 million from the year-ago level of $99.3 million.
Cash Flow
Net cash from operations for the second quarter was $210.2 million, which significantly increased from $1.2 million in the year-ago period.
Free cash flow for the reported quarter increased to $233.5 million from $19.2 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $8.1 million in capital through the June-end quarter (excluding acquisitions) on oil and gas resources.
As of Jun 30, 2022, the company’s cash and cash equivalents were $377.7 million, up from the first-quarter 2021 level of $215.5 million. Its net long-term debt as of the June-end quarter was $672 million, down from the prior-quarter level of $680 million. The current portion of the long-term debt is $37.2 million.
Guidance
For 2022, W&T Offshore revised its average daily oil-equivalent production upward to 39.5-42 MBoe/d from 38.2-42.2 MBoe/d mentioned earlier. The metric suggests an improvement from 38.1 MBoe/d reported last year. Oil production is expected to be 5,450-5,800 MBbls, while that of natural gas will likely be 45,300-48,200 MMcf.
For the third quarter, the company expects average daily oil-equivalent production of 39-44 MBoe/d. Oil production is anticipated to be 1,350-1,550 MBbls, while that of natural gas will likely be 11,300-12,800 MMcf.
The upstream company reiterated its capital spending budget for 2022 at $70-$90 million, which excludes acquisition opportunities. It expects lease operating expenses of $200-$210 million for the year.
Competitive Scenario
The rising commodity prices have been a tailwind for exploration and production companies. Benefitting from a surge in commodity prices, upstream companies like Marathon Oil Corporation (MRO - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and ConocoPhillips (COP - Free Report) reported bumper profits in the second quarter of 2022.
Marathon Oil reported second-quarter 2022 adjusted net income per share of $1.32, beating the Zacks Consensus Estimate of $1.23. MRO’s bottom line was favorably impacted by stronger liquid realizations and solid domestic production.
In good news for investors, Marathon Oil is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO executed $2.3 billion of share repurchases since October and hiked its dividend five times in the past six quarters.
Pioneer Natural reported second-quarter 2022 earnings of $9.36 per share (excluding one-time items), beating the Zacks Consensus Estimate of $8.81. Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Pioneer Natural announced a dividend payment of $8.57 per share of common stock, which includes a variable dividend of $7.47 per share and a base dividend of $1.10. This suggests a 16.1% increase from the prior dividend of $7.38 per share.
ConocoPhillips reported second-quarter 2022 adjusted earnings per share of $3.91, beating the Zacks Consensus Estimate of $3.78. The strong quarterly results were driven by higher oil-equivalent production volumes and realized commodity prices.
ConocoPhillips raised its expected 2022 return of capital to shareholders. The new guidance is $15 billion versus the prior mentioned $10 billion. COP’s incremental returns to stockholders will get distributed through share repurchases and variable returns of cash tiers. Additionally, COP reported a fourth-quarter variable return of cash (VROC) payment of $1.40 per share, which reflects an increment of 100% from the third-quarter VROC.
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W&T Offshore (WTI) Tops Q2 Earnings Estimates, Ups Output View
W&T Offshore, Inc. (WTI - Free Report) reported second-quarter 2022 adjusted earnings (excluding one-time items) of $1.32 per share, beating the Zacks Consensus Estimate of 37 cents. The bottom line significantly improved from the year-ago quarter’s 1 cent per share.
Total quarterly revenues of $273.8 million surpassed the Zacks Consensus Estimate of $228 million. Also, the top line increased from $132.8 million in the prior-year quarter.
The strong quarterly results were supported by higher production and the realization of commodity prices.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
W&T Offshore, Inc. price-consensus-eps-surprise-chart | W&T Offshore, Inc. Quote
Production Statistics
The total production averaged 42.4 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 40.9 MBoe/d.
Oil production was 1,476 thousand barrels (MBbls), up from the year-ago level of 1,352 MBbls. Also, natural gas liquids’ output totaled 384 MBbls, higher than 337 MBbls a year ago. However, natural gas production of 11,995 million cubic feet (MMcf) for the reported quarter was lower than 12,189 MMcf in the year-earlier period. Of the total production for the reported quarter, 48.2% comprised liquids.
Realized Commodity Prices
The average realized price for oil in the second quarter was $107.90 a barrel, higher than the year-ago level of $65.11. The average realized price of NGL increased to $43.58 from $26.18 per barrel in the prior year. The average realized price of natural gas for the June-end quarter was $7.70 per thousand cubic feet, up from $2.66 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $69.55 per barrel from $34.75 a year ago.
Operating Expenses
Lease operating expenses rose to $13.73 per Boe in the second quarter from $12.78 a year ago. Also, general and administrative expenses increased to $3.88 per Boe from $3.76 in the year-ago period.
Overall, total costs and expenses increased to $111.5 million from the year-ago level of $99.3 million.
Cash Flow
Net cash from operations for the second quarter was $210.2 million, which significantly increased from $1.2 million in the year-ago period.
Free cash flow for the reported quarter increased to $233.5 million from $19.2 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $8.1 million in capital through the June-end quarter (excluding acquisitions) on oil and gas resources.
As of Jun 30, 2022, the company’s cash and cash equivalents were $377.7 million, up from the first-quarter 2021 level of $215.5 million. Its net long-term debt as of the June-end quarter was $672 million, down from the prior-quarter level of $680 million. The current portion of the long-term debt is $37.2 million.
Guidance
For 2022, W&T Offshore revised its average daily oil-equivalent production upward to 39.5-42 MBoe/d from 38.2-42.2 MBoe/d mentioned earlier. The metric suggests an improvement from 38.1 MBoe/d reported last year. Oil production is expected to be 5,450-5,800 MBbls, while that of natural gas will likely be 45,300-48,200 MMcf.
For the third quarter, the company expects average daily oil-equivalent production of 39-44 MBoe/d. Oil production is anticipated to be 1,350-1,550 MBbls, while that of natural gas will likely be 11,300-12,800 MMcf.
The upstream company reiterated its capital spending budget for 2022 at $70-$90 million, which excludes acquisition opportunities. It expects lease operating expenses of $200-$210 million for the year.
Competitive Scenario
The rising commodity prices have been a tailwind for exploration and production companies. Benefitting from a surge in commodity prices, upstream companies like Marathon Oil Corporation (MRO - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and ConocoPhillips (COP - Free Report) reported bumper profits in the second quarter of 2022.
Marathon Oil reported second-quarter 2022 adjusted net income per share of $1.32, beating the Zacks Consensus Estimate of $1.23. MRO’s bottom line was favorably impacted by stronger liquid realizations and solid domestic production.
In good news for investors, Marathon Oil is using the excess cash from a supportive environment to reward them with dividends and buybacks. As part of that, MRO executed $2.3 billion of share repurchases since October and hiked its dividend five times in the past six quarters.
Pioneer Natural reported second-quarter 2022 earnings of $9.36 per share (excluding one-time items), beating the Zacks Consensus Estimate of $8.81. Strong quarterly earnings were driven by higher oil-equivalent production volumes and commodity price realizations.
Pioneer Natural announced a dividend payment of $8.57 per share of common stock, which includes a variable dividend of $7.47 per share and a base dividend of $1.10. This suggests a 16.1% increase from the prior dividend of $7.38 per share.
ConocoPhillips reported second-quarter 2022 adjusted earnings per share of $3.91, beating the Zacks Consensus Estimate of $3.78. The strong quarterly results were driven by higher oil-equivalent production volumes and realized commodity prices.
ConocoPhillips raised its expected 2022 return of capital to shareholders. The new guidance is $15 billion versus the prior mentioned $10 billion. COP’s incremental returns to stockholders will get distributed through share repurchases and variable returns of cash tiers. Additionally, COP reported a fourth-quarter variable return of cash (VROC) payment of $1.40 per share, which reflects an increment of 100% from the third-quarter VROC.