We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W&T Offshore, Inc. (WTI - Free Report) reported adjusted fourth-quarter 2018 earnings (excluding onetime items) of 22 cents per share, beating the Zacks Consensus Estimate of 15 cents and improving from the year-ago 17 cents.
Revenues increased to $143.4 million in the quarter from $129.1 million a year ago. The top line surpassed the Zacks Consensus Estimate of $138 million.
Higher oil and natural gas price realizations primarily supported the strong fourth-quarter results.
Production Falls, Prices Rise
The production of oil and natural gas was recorded at 3.2 million barrels of oil equivalent (MMBoE) (62% liquids), down almost 9% from 3.5 MMBoE in the year-ago quarter. Despite hurricane and downtime for pipelines and facilities through the December quarter, W&T Offshore produced roughly at the mid-point of its guidance.
W&T Offshore’s oil and NGL production was 2 million barrels (MMBbls), in line with the prior-year quarter. Meanwhile, natural gas output came in at 7.3 billion cubic feet (Bcf), down 16.1%.
The average realized price for oil during the fourth quarter was $62.94 a barrel, representing an increase of roughly 13% from the year-ago $55.83. The average realized price of NGL, however, fell 3% from $27.55 per barrel to $26.84. Nevertheless, the average realized price of natural gas during the December quarter of 2018 was $3.83 per thousand cubic feet (Mcf), representing an increase of 30% year over year.
Balance Sheet & Capital Spending
As of Dec 31, 2018, the company had approximately $33.3 million in cash and cash equivalents. The company had long-term debt of $633.5 million.
W&T Offshore spent $20.7 million capital through the December quarter of 2018.
Proved Reserves Grow
As of Dec 31, 2018, the company reported proved reserves of 84 million barrels of oil equivalent (MMBoE), marking an improvement of 13% from 74.2 MMBoE at 2017-end.
Guidance
The company expects production for first-quarter 2019 between 2.9 million barrels of oil equivalent (MMBoe) and 3.2 MMBoe. For 2019, W&T Offshore expects production in the band of 12.9-14.3 MMBoe.
Through 2019, the offshore oil and gas explorer expects lease operating expenses between $153 million and $169 million.
Zacks Rank and Key Picks
Currently, W&T Offshore carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. (JONE - Free Report) , Golar LNG Partners LP and Sunoco LP (SUN - Free Report) . Jones Energy and Golar LNG carry a Zacks Rank #2 (Buy), while Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Sunoco LP has average positive earnings surprise of 18.39% for the trailing four quarters.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
W&T Offshore (WTI) Beats Q4 Earnings Estimates, Reserves Grow
W&T Offshore, Inc. (WTI - Free Report) reported adjusted fourth-quarter 2018 earnings (excluding onetime items) of 22 cents per share, beating the Zacks Consensus Estimate of 15 cents and improving from the year-ago 17 cents.
Revenues increased to $143.4 million in the quarter from $129.1 million a year ago. The top line surpassed the Zacks Consensus Estimate of $138 million.
Higher oil and natural gas price realizations primarily supported the strong fourth-quarter results.
Production Falls, Prices Rise
The production of oil and natural gas was recorded at 3.2 million barrels of oil equivalent (MMBoE) (62% liquids), down almost 9% from 3.5 MMBoE in the year-ago quarter. Despite hurricane and downtime for pipelines and facilities through the December quarter, W&T Offshore produced roughly at the mid-point of its guidance.
W&T Offshore’s oil and NGL production was 2 million barrels (MMBbls), in line with the prior-year quarter. Meanwhile, natural gas output came in at 7.3 billion cubic feet (Bcf), down 16.1%.
The average realized price for oil during the fourth quarter was $62.94 a barrel, representing an increase of roughly 13% from the year-ago $55.83. The average realized price of NGL, however, fell 3% from $27.55 per barrel to $26.84. Nevertheless, the average realized price of natural gas during the December quarter of 2018 was $3.83 per thousand cubic feet (Mcf), representing an increase of 30% year over year.
Balance Sheet & Capital Spending
As of Dec 31, 2018, the company had approximately $33.3 million in cash and cash equivalents. The company had long-term debt of $633.5 million.
W&T Offshore spent $20.7 million capital through the December quarter of 2018.
Proved Reserves Grow
As of Dec 31, 2018, the company reported proved reserves of 84 million barrels of oil equivalent (MMBoE), marking an improvement of 13% from 74.2 MMBoE at 2017-end.
Guidance
The company expects production for first-quarter 2019 between 2.9 million barrels of oil equivalent (MMBoe) and 3.2 MMBoe. For 2019, W&T Offshore expects production in the band of 12.9-14.3 MMBoe.
Through 2019, the offshore oil and gas explorer expects lease operating expenses between $153 million and $169 million.
Zacks Rank and Key Picks
Currently, W&T Offshore carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. (JONE - Free Report) , Golar LNG Partners LP and Sunoco LP (SUN - Free Report) . Jones Energy and Golar LNG carry a Zacks Rank #2 (Buy), while Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Sunoco LP has average positive earnings surprise of 18.39% for the trailing four quarters.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>