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W&T Offshore (WTI) Beats on Q3 Earnings, Lowers Capex Guidance
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W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. The bottom line significantly improved from the year-ago quarter’s break-even adjusted earnings.
Total quarterly revenues of $266.5 million surpassed the Zacks Consensus Estimate of $230 million. Also, the top line jumped from $133.9 million in the prior-year quarter.
The strong quarterly results were driven by higher production and the realization of commodity prices.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
The total production averaged 41.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 34.8 MBoe/d.
Oil production was 1,447 thousand barrels (MBbls), up from the year-ago level of 1,083 MBbls. Natural gas liquids’ output totaled 454 MBbls, higher than 376 MBbls a year ago. Also, natural gas production of 11,499 million cubic feet (MMcf) for the reported quarter was higher than 10,481 MMcf in the year-earlier period. Of the total production for the reported quarter, 49.8% comprised liquids.
Realized Commodity Prices
The average realized price for oil in the third quarter was $90.23 a barrel, higher than the year-ago level of $68.57. The average realized price of NGL increased to $37.17 from $32.46 per barrel in the prior year. The average realized price of natural gas for the September-end quarter was $9.89 per thousand cubic feet, up from $4.31 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $68.39 per barrel from $41.05 a year ago.
Operating Expenses
Lease operating expenses rose to $15.46 per Boe in the third quarter from $12.32 a year ago. Also, general and administrative expenses increased to $6.04 per Boe from $4.18 in the year-ago period.
Overall, total costs and expenses increased to $128.4 million from the year-ago level of $85.8 million.
Cash Flow
Net cash from operations for the third quarter was $89.1 million, which significantly increased from $65.1 million in the year-ago period.
Free cash flow for the reported quarter increased to $71.1 million from $8.5 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $4.5 million in capital through the September-end quarter (excluding acquisitions) on oil and gas resources.
As of Sept 30, 2022, the company’s cash and cash equivalents were $447.1 million, up from the second-quarter 2022 level of $377.7 million. Its net long-term debt as of the September-end quarter was $666 million, down from the prior-quarter level of $672 million. The current portion of the long-term debt is $35.5 million.
Guidance
For the fourth quarter, W&T Offshore expects average daily oil-equivalent production of 38-42 MBoe/d. Oil production is anticipated to be 1,332-1,472 MBbls, while that of natural gas will likely be 10,676-11,800 MMcf.
The company expects lease operating expenses of $67-$73 million for the fourth quarter.
For 2022, the upstream company reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.
Zacks Rank & Other Stocks to Consider
W&T Offshore currently flaunts a Zacks Rank #1 (Strong Buy).
Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. The outperformance was largely due to robust results in certain segments.
For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
MPLX LP (MPLX - Free Report) reported third-quarter earnings of 96 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents. The distribution will be paid out on Nov 22, 2022, to common unitholders of record as of Nov 15, 2022.
The Williams Companies, Inc. (WMB - Free Report) reported third-quarter 2022 adjusted earnings per share of 48 cents, beating the Zacks Consensus Estimate of 44 cents. The outperformance resulted from higher-than-expected contributions from a couple of segments.
WMB maintained its 2022 adjusted EBITDA guidance of $6.1-$6.4 billion, with growth capital spending of $1.25-$1.35 billion. Further, Williams expects a leverage ratio mid-point of 3.6, lower than the original guidance of 3.8.
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W&T Offshore (WTI) Beats on Q3 Earnings, Lowers Capex Guidance
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2022 adjusted earnings (excluding one-time items) of 33 cents per share, beating the Zacks Consensus Estimate of 28 cents. The bottom line significantly improved from the year-ago quarter’s break-even adjusted earnings.
Total quarterly revenues of $266.5 million surpassed the Zacks Consensus Estimate of $230 million. Also, the top line jumped from $133.9 million in the prior-year quarter.
The strong quarterly results were driven 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 41.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 34.8 MBoe/d.
Oil production was 1,447 thousand barrels (MBbls), up from the year-ago level of 1,083 MBbls. Natural gas liquids’ output totaled 454 MBbls, higher than 376 MBbls a year ago. Also, natural gas production of 11,499 million cubic feet (MMcf) for the reported quarter was higher than 10,481 MMcf in the year-earlier period. Of the total production for the reported quarter, 49.8% comprised liquids.
Realized Commodity Prices
The average realized price for oil in the third quarter was $90.23 a barrel, higher than the year-ago level of $68.57. The average realized price of NGL increased to $37.17 from $32.46 per barrel in the prior year. The average realized price of natural gas for the September-end quarter was $9.89 per thousand cubic feet, up from $4.31 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $68.39 per barrel from $41.05 a year ago.
Operating Expenses
Lease operating expenses rose to $15.46 per Boe in the third quarter from $12.32 a year ago. Also, general and administrative expenses increased to $6.04 per Boe from $4.18 in the year-ago period.
Overall, total costs and expenses increased to $128.4 million from the year-ago level of $85.8 million.
Cash Flow
Net cash from operations for the third quarter was $89.1 million, which significantly increased from $65.1 million in the year-ago period.
Free cash flow for the reported quarter increased to $71.1 million from $8.5 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $4.5 million in capital through the September-end quarter (excluding acquisitions) on oil and gas resources.
As of Sept 30, 2022, the company’s cash and cash equivalents were $447.1 million, up from the second-quarter 2022 level of $377.7 million. Its net long-term debt as of the September-end quarter was $666 million, down from the prior-quarter level of $672 million. The current portion of the long-term debt is $35.5 million.
Guidance
For the fourth quarter, W&T Offshore expects average daily oil-equivalent production of 38-42 MBoe/d. Oil production is anticipated to be 1,332-1,472 MBbls, while that of natural gas will likely be 10,676-11,800 MMcf.
The company expects lease operating expenses of $67-$73 million for the fourth quarter.
For 2022, the upstream company reduced its capital spending budget to $65-$75 million from the prior stated $70-$90 million.
Zacks Rank & Other Stocks to Consider
W&T Offshore currently flaunts a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might also look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. The outperformance was largely due to robust results in certain segments.
For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
MPLX LP (MPLX - Free Report) reported third-quarter earnings of 96 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents. The distribution will be paid out on Nov 22, 2022, to common unitholders of record as of Nov 15, 2022.
The Williams Companies, Inc. (WMB - Free Report) reported third-quarter 2022 adjusted earnings per share of 48 cents, beating the Zacks Consensus Estimate of 44 cents. The outperformance resulted from higher-than-expected contributions from a couple of segments.
WMB maintained its 2022 adjusted EBITDA guidance of $6.1-$6.4 billion, with growth capital spending of $1.25-$1.35 billion. Further, Williams expects a leverage ratio mid-point of 3.6, lower than the original guidance of 3.8.