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W&T Offshore (WTI) Q3 Earnings Lag Estimates, Revenues Fall Y/Y
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W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2023 adjusted earnings (excluding one-time items) of 1 cent per share, which missed the Zacks Consensus Estimate of 4 cents. The bottom line also deteriorated from the year-ago quarter’s level of 33 cents.
Total quarterly revenues of $142.4 million beat the Zacks Consensus Estimate of $136 million. However, the top line declined from $266 million reported in the prior-year quarter.
Lower oil equivalent production, rising expenses and lower commodity price realizations led to weak quarterly earnings.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
The total production averaged 35.9 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s level of 41.5 MBoe/d. Our estimate for the same was pinned at 35.7 MBoe/d.
Oil production totaled 1,227 thousand barrels (MBbls), down from the year-ago level of 1,447 MBbls. Natural gas liquids output totaled 348 MBbls, lower than 454 MBbls a year ago. The figure also missed our estimate of 357 MBbls.
Natural gas production of 10,359 million cubic feet (MMcf) was lower than 11,499 MMcf recorded in the year-earlier period. The figure also missed our estimate of 10,363 MMcf.
Realized Commodity Prices
The average realized price for oil in the third quarter was $81.77 a barrel, lower than the year-ago level of $90.23. Our estimate for the same was pegged at $76.43. The average realized price of NGL declined to $21.31 per barrel from $37.17 in the prior year quarter. The figure also missed our estimate of $28.07 per barrel.
The average realized price of natural gas in the September quarter was $3.14 per thousand cubic feet, down from $9.89 in the comparable period of 2022. The average realized price for oil-equivalent output decreased to $42.48 per barrel from $68.39.
Operating Expenses
Lease operating expenses rose to $18.72 per Boe in the third quarter from $15.46 a year ago. The reported figure came in higher than our estimate of $18.39 per Boe. Also, general and administrative expenses increased marginally to $6.05 per Boe from $6.04, higher than our estimate of $5.75.
Cash Flow
Net cash from operations in the third quarter totaled $30 million, down from $89.1 million recorded in the year-ago period.
Free cash flow in the reported quarter declined to $25.4 million from $71.1 million in the year-earlier quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $8 million in capital through the September quarter on oil and gas resources and equipment.
As of Sep 30, 2023, the company’s cash and cash equivalents were $149 million. Its net long-term debt in the quarter amounted to $367.1 million. The current portion of the long-term debt is $30 million.
Guidance
For the fourth quarter of this year, W&T Offshore projects production in the band of 3,147-3,482 MBoe. For 2023, WTI reiterated its production guidance of 12,150-13,430 MBoe. Lease operating expenses are anticipated to be in the range of $61-$68 million and $240-$260 million for the fourth quarter and full-year 2023, respectively.
Zacks Rank & Other Stocks to Consider
Currently, W&T Offshore carries a Zacks Rank #2 (Buy).
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.
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W&T Offshore (WTI) Q3 Earnings Lag Estimates, Revenues Fall Y/Y
W&T Offshore, Inc. (WTI - Free Report) reported third-quarter 2023 adjusted earnings (excluding one-time items) of 1 cent per share, which missed the Zacks Consensus Estimate of 4 cents. The bottom line also deteriorated from the year-ago quarter’s level of 33 cents.
Total quarterly revenues of $142.4 million beat the Zacks Consensus Estimate of $136 million. However, the top line declined from $266 million reported in the prior-year quarter.
Lower oil equivalent production, rising expenses and lower commodity price realizations led to weak quarterly earnings.
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 35.9 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s level of 41.5 MBoe/d. Our estimate for the same was pinned at 35.7 MBoe/d.
Oil production totaled 1,227 thousand barrels (MBbls), down from the year-ago level of 1,447 MBbls. Natural gas liquids output totaled 348 MBbls, lower than 454 MBbls a year ago. The figure also missed our estimate of 357 MBbls.
Natural gas production of 10,359 million cubic feet (MMcf) was lower than 11,499 MMcf recorded in the year-earlier period. The figure also missed our estimate of 10,363 MMcf.
Realized Commodity Prices
The average realized price for oil in the third quarter was $81.77 a barrel, lower than the year-ago level of $90.23. Our estimate for the same was pegged at $76.43. The average realized price of NGL declined to $21.31 per barrel from $37.17 in the prior year quarter. The figure also missed our estimate of $28.07 per barrel.
The average realized price of natural gas in the September quarter was $3.14 per thousand cubic feet, down from $9.89 in the comparable period of 2022. The average realized price for oil-equivalent output decreased to $42.48 per barrel from $68.39.
Operating Expenses
Lease operating expenses rose to $18.72 per Boe in the third quarter from $15.46 a year ago. The reported figure came in higher than our estimate of $18.39 per Boe. Also, general and administrative expenses increased marginally to $6.05 per Boe from $6.04, higher than our estimate of $5.75.
Cash Flow
Net cash from operations in the third quarter totaled $30 million, down from $89.1 million recorded in the year-ago period.
Free cash flow in the reported quarter declined to $25.4 million from $71.1 million in the year-earlier quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $8 million in capital through the September quarter on oil and gas resources and equipment.
As of Sep 30, 2023, the company’s cash and cash equivalents were $149 million. Its net long-term debt in the quarter amounted to $367.1 million. The current portion of the long-term debt is $30 million.
Guidance
For the fourth quarter of this year, W&T Offshore projects production in the band of 3,147-3,482 MBoe. For 2023, WTI reiterated its production guidance of 12,150-13,430 MBoe. Lease operating expenses are anticipated to be in the range of $61-$68 million and $240-$260 million for the fourth quarter and full-year 2023, respectively.
Zacks Rank & Other Stocks to Consider
Currently, W&T Offshore carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the energy sector are Liberty Energy Inc. (LBRT - Free Report) , Matador Resources Company (MTDR - Free Report) and Oceaneering International, Inc. (OII - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.