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W&T Offshore Q1 Loss Narrower Than Expected, Revenues Decline Y/Y

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W&T Offshore Inc. (WTI - Free Report) reported a first-quarter 2025 loss of 13 cents per share (excluding one item), narrower than the Zacks Consensus Estimate of a loss of 14 cents. However, the bottom line deteriorated from the year-ago quarter’s reported loss of 5 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total quarterly revenues of $129.9 million beat the Zacks Consensus Estimate of $125 million. However, the top line decreased from $141 million reported in the prior-year quarter.

The better-than-expected quarterly results can be primarily attributed to higher realized price for oil-equivalent output. However, higher operating expenses and lower production volumes partially offset this.

W&T Offshore, Inc. Price, Consensus and EPS Surprise

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

Production for the quarter averaged 30.5 thousand barrels of oil equivalent per day (MBoe/d), down from 35.1 MBoe/d in the corresponding period of 2024. The reported figure came in line with our estimate. The production was affected due to freezing conditions that caused shutdowns during January 2025.

Oil production totaled 1,230 thousand barrels (MBbls), down from 1,400 MBbls in the year-ago quarter. The figure missed our estimate of 1,236 MBbls.

Natural gas liquids output totaled 200 MBbls, which decreased from the year-ago quarter’s level of 343 MBbls. Our estimate for the same was pinned at 224 MBbls.

Natural gas production of 7,884 million cubic feet (MMcf) was lower than 8,733 MMcf in the prior-year quarter. The figure was higher than our estimate of 7,734 MMcf.

Realized Commodity Prices

The average realized price for oil in the first quarter was $71.31 per barrel, lower than the year-ago quarter’s level of $76.44. Our estimate for the same was pegged at $69.03.

The average realized price of NGL increased to $23.86 per barrel from $21.78 reported a year ago. The figure came in higher than our estimate of $20.46 per barrel.

The average realized price of natural gas in the March-end quarter was $4.45 per thousand cubic feet, up from $2.48 in the corresponding period of 2024 and above our estimate of $4.34.

The average realized price for oil-equivalent output increased to $46.50 per barrel from $42.55 a year ago. The figure was above our estimate of $44.91 per barrel.

Operating Expenses

Lease operating expenses increased to $25.88 per Boe from $22.14 in the year-ago period. The reported figure was lower than our estimate of $26.40 per Boe.

Also, general and administrative expenses increased to $7.35 per Boe from $6.41 a year ago. The figure was higher than our estimate of $7.22 per Boe.

Cash Flow

Net cash used in operations totaled $3.2 million against $11.6 million net cash provided by operations in the prior-year quarter.

The free cash flow decreased to $10.5 million from $32.4 million in the year-earlier quarter.

Capital Spending & Balance Sheet

W&T Offshore spent $8.5 million on oil and gas resources and equipment.

As of March 31, 2025, cash and cash equivalents totaled $105.9 million, and net long-term debt amounted to $349.5 million. The current portion of the long-term debt is $0.6 million.

Guidance

For the second quarter of 2025, W&T Offshore expects production to be in the range of 2,977-3,295 Mboe. For 2025, production is anticipated to remain unchanged in the band of 11,983-13,257 Mboe.

Further, the company expects second-quarter lease operating expenses to be in the $71.3-$78.9 million range. For full-year 2025, lease operating expenses are anticipated to be in the $280-$310 million band.

Full-year capital expenditures are expected to be in the range of $34-$42 million.

WTI’s Zacks Rank and Key Picks

WTI currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks that presently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nabors Industries Ltd. (NBR - Free Report) reported a first-quarter 2025 adjusted loss of $7.5 per share, wider than the Zacks Consensus Estimate of a loss of $2.64. This underperformance was mainly due to lower adjusted operating income from its U.S. Drilling segment.

As of March 31, 2025, this company had $404.1 million in cash and short-term investments. Nabors expects an adjusted free cash flow of $80 million for 2025, excluding any impact of tariffs. NBR has a Zacks Style Score of A for Value.

RPC Inc. (RES - Free Report) reported first-quarter 2025 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 7 cents. The bottom line declined from the year-ago figure of 13 cents. The weak quarterly earnings primarily resulted from flat pressure pumping revenues and slightly declining performance across other service lines.

As of March 31, RES had cash and cash equivalents of $326.7 million and maintained a debt-free balance sheet. RPC has a Zacks Style Score of A for Value and Momentum.

EQT Corporation. (EQT - Free Report) reported first-quarter 2025 adjusted earnings per share of $1.18, which beat the Zacks Consensus Estimate of $1.02. The bottom line improved year over year. EQT’s strong quarterly results were driven by higher sales volume and increased average realized prices.

As of March 31, 2025, EQT reported $281 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $8.39 billion.


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