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W&T Offshore, Inc. (WTI - Free Report) reported fourth-quarter 2021 adjusted earnings (excluding one-time items) of 10 cents per share, beating the Zacks Consensus Estimate of earnings of 9 cents. The bottom line significantly improved from the year-ago loss of 5 cents per share.
Total quarterly revenues of $165.6 million surpassed the Zacks Consensus Estimate of $145 million. Also, the top line increased from $94.7 million in the prior-year quarter.
The strong quarterly results were supported by increased natural gas production volumes and higher realization of commodity prices.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
Total production averaged 37.2 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 38.3 MBoe/d.
Oil production was recorded at 1,186 thousand barrels (MBbls), down from the year-ago level of 1,273 MBbls. Also, natural gas liquids’ output totaled 345 MBbls, lower than 385 MBbls a year ago. Yet, natural gas production of 11,321 million cubic feet (MMcf) for the reported quarter was higher than 11,174 MMcf in the year-earlier period. Of the total production for the reported quarter, about 44.8% comprised liquids.
Realized Commodity Prices
The average realized price for oil for the fourth quarter was $75.14 a barrel, higher than the year-ago level of $42.84. The average realized price of NGL increased to $40.46 from $16.30 per barrel in the prior year. The average realized price of natural gas for the December-end quarter was $5.29 per thousand cubic feet, up from $2.63 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $47.70 per barrel from $25.63 a year ago.
Operating Expenses
Lease operating expenses rose to $13.22 per Boe in the fourth quarter from $12.31 a year ago. Also, general and administrative expenses increased to $4.19 per Boe from $2.18 in the year-ago period.
Overall, total costs and expenses increased to $97.3 million from the year-ago level of $82.9 million.
Cash Flow
Net cash from operations for the fourth quarter was $22.4 million against the $6.3 million used in operating activities in the year-ago period.
Free cash flow for the reported quarter increased to $22.5 million from $15 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $16 million in capital through the December-end quarter (excluding acquisitions) on oil and gas resources.
As of Dec 31, 2021, the company’s cash and cash equivalents were $245.8 million, down from the third-quarter 2021 level of $257.6 million. Its net long-term debt as of the December-end quarter was recorded at $688 million, down from the prior-quarter level of $696.2 million. The current portion of the long-term debt was $43 million.
Reserves
As of Dec 31, 2021, the company reported proved reserves of 157.6 MMBoe, up from the 2020-end level of 144.4 MMBoe. Total proved reserves of the firm comprise 35.7% liquid.
Guidance
For 2022, W&T Offshore expects total production of 37.5-41.5 MBoe/d, the mid-point of which suggests an increase from 38.1 MBoe/d reported in 2021. Oil production is expected to be 5.2-5.8 MMBbls, while that of natural gas will likely be 42.3-46.8 Bcf.
The upstream company’s capital spending budget for 2022 is planned to be $70-$90 million, which excludes acquisition opportunities. It expects lease operating expenses of $200-$220 million for the year.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the energy space could look at better-ranked options like Occidental Petroleum Corporation (OXY - Free Report) , Centennial Resource Development, Inc. and Exxon Mobil Corporation (XOM - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental reported fourth-quarter 2021 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.08 by 37%. OXY’s 2021-end proved reserves were 3.51 billion barrels of oil equivalent (Bboe), up 2.9 Bboe at 2020-end.
Occidental is expected to see earnings growth of 74.1% in 2022. As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.
Centennial Resource reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. CDEV announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial Resource is expected to see earnings growth of 94.2% in 2022. CDEV announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
ExxonMobil reported fourth-quarter 2021 earnings per share of $2.05, excluding identified items, beating the Zacks Consensus Estimate of $1.96 per share. At the end of the fourth quarter, XOM’s total cash and cash equivalents were $6.8 billion.
ExxonMobil is expected to see an earnings growth of 39.6% in 2022. XOM initiated share repurchases at the beginning of the March-end quarter of this year. The buybacks are associated with the previously mentioned repurchase plan of up to $10 billion over the next 12-24 months.
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W&T Offshore (WTI) Q4 Earnings & Revenues Beat Estimates
W&T Offshore, Inc. (WTI - Free Report) reported fourth-quarter 2021 adjusted earnings (excluding one-time items) of 10 cents per share, beating the Zacks Consensus Estimate of earnings of 9 cents. The bottom line significantly improved from the year-ago loss of 5 cents per share.
Total quarterly revenues of $165.6 million surpassed the Zacks Consensus Estimate of $145 million. Also, the top line increased from $94.7 million in the prior-year quarter.
The strong quarterly results were supported by increased natural gas production volumes and 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 37.2 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 38.3 MBoe/d.
Oil production was recorded at 1,186 thousand barrels (MBbls), down from the year-ago level of 1,273 MBbls. Also, natural gas liquids’ output totaled 345 MBbls, lower than 385 MBbls a year ago. Yet, natural gas production of 11,321 million cubic feet (MMcf) for the reported quarter was higher than 11,174 MMcf in the year-earlier period. Of the total production for the reported quarter, about 44.8% comprised liquids.
Realized Commodity Prices
The average realized price for oil for the fourth quarter was $75.14 a barrel, higher than the year-ago level of $42.84. The average realized price of NGL increased to $40.46 from $16.30 per barrel in the prior year. The average realized price of natural gas for the December-end quarter was $5.29 per thousand cubic feet, up from $2.63 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $47.70 per barrel from $25.63 a year ago.
Operating Expenses
Lease operating expenses rose to $13.22 per Boe in the fourth quarter from $12.31 a year ago. Also, general and administrative expenses increased to $4.19 per Boe from $2.18 in the year-ago period.
Overall, total costs and expenses increased to $97.3 million from the year-ago level of $82.9 million.
Cash Flow
Net cash from operations for the fourth quarter was $22.4 million against the $6.3 million used in operating activities in the year-ago period.
Free cash flow for the reported quarter increased to $22.5 million from $15 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $16 million in capital through the December-end quarter (excluding acquisitions) on oil and gas resources.
As of Dec 31, 2021, the company’s cash and cash equivalents were $245.8 million, down from the third-quarter 2021 level of $257.6 million. Its net long-term debt as of the December-end quarter was recorded at $688 million, down from the prior-quarter level of $696.2 million. The current portion of the long-term debt was $43 million.
Reserves
As of Dec 31, 2021, the company reported proved reserves of 157.6 MMBoe, up from the 2020-end level of 144.4 MMBoe. Total proved reserves of the firm comprise 35.7% liquid.
Guidance
For 2022, W&T Offshore expects total production of 37.5-41.5 MBoe/d, the mid-point of which suggests an increase from 38.1 MBoe/d reported in 2021. Oil production is expected to be 5.2-5.8 MMBbls, while that of natural gas will likely be 42.3-46.8 Bcf.
The upstream company’s capital spending budget for 2022 is planned to be $70-$90 million, which excludes acquisition opportunities. It expects lease operating expenses of $200-$220 million for the year.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Meanwhile, investors interested in the energy space could look at better-ranked options like Occidental Petroleum Corporation (OXY - Free Report) , Centennial Resource Development, Inc. and Exxon Mobil Corporation (XOM - Free Report) . All the companies sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental reported fourth-quarter 2021 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.08 by 37%. OXY’s 2021-end proved reserves were 3.51 billion barrels of oil equivalent (Bboe), up 2.9 Bboe at 2020-end.
Occidental is expected to see earnings growth of 74.1% in 2022. As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.
Centennial Resource reported fourth-quarter 2021 adjusted earnings of 39 cents per share, beating the Zacks Consensus Estimate of 30 cents. CDEV announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial Resource is expected to see earnings growth of 94.2% in 2022. CDEV announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
ExxonMobil reported fourth-quarter 2021 earnings per share of $2.05, excluding identified items, beating the Zacks Consensus Estimate of $1.96 per share. At the end of the fourth quarter, XOM’s total cash and cash equivalents were $6.8 billion.
ExxonMobil is expected to see an earnings growth of 39.6% in 2022. XOM initiated share repurchases at the beginning of the March-end quarter of this year. The buybacks are associated with the previously mentioned repurchase plan of up to $10 billion over the next 12-24 months.