A month has gone by since the last earnings report for W&T Offshore (WTI Quick QuoteWTI - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is W&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

W&T Offshore Q2 Loss Narrower Than Expected, Revenues Miss Estimates

W&T Offshore reported a second-quarter 2025 loss of 8 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.

Total quarterly revenues of $122.4 million missed the Zacks Consensus Estimate of $137 million. The top line decreased from $143 million reported in the prior-year quarter.

The better-than-expected quarterly earnings can be primarily attributed to lower operating expenses, partially offset by lower production and realized prices for oil-equivalent output.

Production Statistics

Production for the quarter averaged 33.5 thousand barrels of oil equivalent per day (MBoe/d), down from 34.9 MBoe/d in the corresponding period of 2024. The reported figure came in lower than our estimate of 34.5 MBoe/d.

Oil production totaled 1,259 thousand barrels (MBbls), down from 1,382 MBbls in the year-ago quarter. The figure missed our estimate of 1,427 MBbls.

Natural gas liquids output totaled 245 MBbls, which decreased from the year-ago quarter’s level of 334 MBbls. Our estimate for the same was pinned at 226 MBbls.

Natural gas production of 9,285 million cubic feet (MMcf) was higher than 8,769 MMcf in the prior-year quarter. The figure beat our estimate of 8,897 MMcf.

Realized Commodity Prices

The average realized price for oil in the second quarter was $63.55 per barrel, lower than the year-ago quarter’s level of $80.29. Our estimate for the same was pegged at $65.57.

The average realized price of NGL decreased to $19.24 per barrel from $24.43 reported a year ago. The figure came in lower than our estimate of $20.07 per barrel.

The average realized price of natural gas in the June-end quarter was $3.75 per thousand cubic feet, up from $2.50 in the corresponding period of 2024 and lower than our estimate of $3.79.

The average realized price for oil-equivalent output decreased to $39.16 per barrel from $44.40 a year ago. The figure was below our estimate of $42.04 per barrel.

Operating Expenses

Lease operating expenses increased to $25.20 per Boe from $23.29 in the year-ago period. The reported figure was higher than our estimate of $22.84 per Boe.

Also, general and administrative expenses decreased to $5.79 per Boe from $6.72 a year ago. The figure was higher than our estimate of $5.37 per Boe.

Cash Flow

Net cash provided by operations totaled $27.9 million compared with $37.4 million in the prior-year quarter.

The free cash flow decreased to $3.6 million from $18.7 million in the year-earlier quarter.

Capital Spending & Balance Sheet

W&T Offshore spent $10.4 million on oil and gas resources and equipment.

As of June 30, 2025, cash and cash equivalents totaled $120.7 million, and net long-term debt amounted to $350.1 million. The current portion of the long-term debt is $0.6 million.

Guidance

For the third quarter of 2025, W&T Offshore expects production to be in the range of 3,043-3,368 Mboe. For 2025, production is anticipated to remain unchanged in the band of 11,983-13,257 Mboe.

Further, the company expects third-quarter lease operating expenses to be in the $71.5-$79.3 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -20.83% due to these changes.

VGM Scores

At this time, W&T has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise W&T has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

W&T belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Northern Oil and Gas (NOG Quick QuoteNOG - Free Report) , has gained 4.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Northern Oil and Gas reported revenues of $574.37 million in the last reported quarter, representing a year-over-year change of +2.4%. EPS of $1.37 for the same period compares with $1.46 a year ago.

Northern Oil and Gas is expected to post earnings of $0.85 per share for the current quarter, representing a year-over-year change of -39.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Northern Oil and Gas. Also, the stock has a VGM Score of B.