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W&T Offshore (WTI) Up 1.7% Since Q3 Earnings Beat Estimates
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W&T Offshore, Inc.’s (WTI - Free Report) shares have increased 1.7% since it reported strong third-quarter results on Nov 2 despite a decrease in production due to the impacts of Hurricane Ida. The company recovered the majority of the impacted production throughout September.
It reported third-quarter break-even adjusted earnings (excluding one-time items) versus the Zacks Consensus Estimate of a loss of 9 cents per share. The bottom line also improved from the year-ago loss of 14 cents per share.
Total quarterly revenues of $133.9 million surpassed the Zacks Consensus Estimate of $117 million. Also, the top line increased from $72.5 million in the prior-year quarter.
The strong quarterly results were supported by higher realization of commodity prices.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
Total production averaged 34.8 thousand barrels of oil equivalent per day (MBoe/d), marginally up from the year-ago quarter’s 34.5 MBoe/d.
Oil production was recorded at 1,083 thousand barrels (MBbls), down from the year-ago level of 1,115 MBbls. Also, natural gas liquids’ output totaled 376 MBbls, lower than 407 MBbls a year ago. Yet, natural gas production of 10,481 million cubic feet (MMcf) for the reported quarter was higher than 9,897 MMcf in the year-earlier period. Of the total production for the reported quarter, almost 45.5% comprised liquids.
Realized Commodity Prices
The average realized price for oil for the third quarter was $68.57 a barrel, higher than the year-ago level of $41.81. The average realized price of NGL increased to $32.46 from $10.99 per barrel in the prior year. The average realized price of natural gas for the September quarter was $4.31 per thousand cubic feet, up from $1.94 in the last year’s comparable period. Average realized price for oil equivalent output increased to $41.05 per barrel from $22.16 a year ago.
Operating Expenses
Lease operating expenses rose to $12.32 per Boe for the third quarter from $11.49 a year ago. Nevertheless, general and administrative expenses decreased to $4.18 per Boe from $4.57 in the year-ago period.
Overall, total costs and expenses increased to $158.9 million from the year-ago level of $92 million.
Cash Flow
Net cash from operations for the third quarter was $65.1 million compared with $21.3 million in the year-ago period.
Free cash flow for the reported quarter increased to $7.6 million from $5.9 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $10.2 million in capital through the September quarter (excluding acquisitions) on oil and gas resources.
As of Sep 30, 2021, the company’s cash and cash equivalents were $257.6 million, up from the second-quarter 2021 level of $209.1 million. Its net long-term debt as of the September-end quarter was recorded at $696.2 million, down from the previous-quarter level of $717.9 million. The current portion of the long-term debt was $46.2 million.
Guidance
For fourth-quarter 2021, W&T Offshore expects total production within 34.8-38.5 MBoe/d. Production of oil is expected within 1.06-1.17 MMBbls, while that of natural gas will likely be in the range of 10.76-11.90 Bcf. The upstream company expects fourth-quarter lease operating expenses within $44.6-$50.6 million.
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W&T Offshore (WTI) Up 1.7% Since Q3 Earnings Beat Estimates
W&T Offshore, Inc.’s (WTI - Free Report) shares have increased 1.7% since it reported strong third-quarter results on Nov 2 despite a decrease in production due to the impacts of Hurricane Ida. The company recovered the majority of the impacted production throughout September.
It reported third-quarter break-even adjusted earnings (excluding one-time items) versus the Zacks Consensus Estimate of a loss of 9 cents per share. The bottom line also improved from the year-ago loss of 14 cents per share.
Total quarterly revenues of $133.9 million surpassed the Zacks Consensus Estimate of $117 million. Also, the top line increased from $72.5 million in the prior-year quarter.
The strong quarterly results were supported by higher 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 Stats
Total production averaged 34.8 thousand barrels of oil equivalent per day (MBoe/d), marginally up from the year-ago quarter’s 34.5 MBoe/d.
Oil production was recorded at 1,083 thousand barrels (MBbls), down from the year-ago level of 1,115 MBbls. Also, natural gas liquids’ output totaled 376 MBbls, lower than 407 MBbls a year ago. Yet, natural gas production of 10,481 million cubic feet (MMcf) for the reported quarter was higher than 9,897 MMcf in the year-earlier period. Of the total production for the reported quarter, almost 45.5% comprised liquids.
Realized Commodity Prices
The average realized price for oil for the third quarter was $68.57 a barrel, higher than the year-ago level of $41.81. The average realized price of NGL increased to $32.46 from $10.99 per barrel in the prior year. The average realized price of natural gas for the September quarter was $4.31 per thousand cubic feet, up from $1.94 in the last year’s comparable period. Average realized price for oil equivalent output increased to $41.05 per barrel from $22.16 a year ago.
Operating Expenses
Lease operating expenses rose to $12.32 per Boe for the third quarter from $11.49 a year ago. Nevertheless, general and administrative expenses decreased to $4.18 per Boe from $4.57 in the year-ago period.
Overall, total costs and expenses increased to $158.9 million from the year-ago level of $92 million.
Cash Flow
Net cash from operations for the third quarter was $65.1 million compared with $21.3 million in the year-ago period.
Free cash flow for the reported quarter increased to $7.6 million from $5.9 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $10.2 million in capital through the September quarter (excluding acquisitions) on oil and gas resources.
As of Sep 30, 2021, the company’s cash and cash equivalents were $257.6 million, up from the second-quarter 2021 level of $209.1 million. Its net long-term debt as of the September-end quarter was recorded at $696.2 million, down from the previous-quarter level of $717.9 million. The current portion of the long-term debt was $46.2 million.
Guidance
For fourth-quarter 2021, W&T Offshore expects total production within 34.8-38.5 MBoe/d. Production of oil is expected within 1.06-1.17 MMBbls, while that of natural gas will likely be in the range of 10.76-11.90 Bcf. The upstream company expects fourth-quarter lease operating expenses within $44.6-$50.6 million.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include Continental Resources, Inc. , HollyFrontier Corporation and PHX Minerals Inc. (PHX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Continental Resources’ bottom line for 2021 is expected to rise to $4.52 per share from a loss of $1.17 a year ago.
HollyFrontier’s bottom line for 2021 is expected to rise 324.1% year over year.
PHX Minerals’ bottom line for the current year is expected to rise 280% year over year.