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W&T Offshore Q4 Loss Wider Than Expected, Revenues Increase Y/Y
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Key Takeaways
W&T Offshore reported a Q4 2025 adjusted loss of 14 cents, wider than estimates but improved Y/Y.
WTI's revenues rose slightly Y/Y, but missed estimates due to lower realized prices and higher costs.
W&T Offshore saw higher production volumes, with oil-equivalent output up to 36.2 MBoe/d.
W&T Offshore,Inc. (WTI - Free Report) reported a fourth-quarter 2025 adjusted loss of 14 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The bottom line improved from the year-ago quarter’s reported loss of 18 cents.
Total quarterly revenues of $121.7 million missed the Zacks Consensus Estimate of $136 million. The top line increased from $120.3 million reported in the prior-year quarter.
Weaker-than-expected quarterly results can be primarily attributed to lower realized oil-equivalent prices and higher operating expenses. An increase in oil-equivalent production volumes partially offset the negatives.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
Production for the quarter averaged 36.2 thousand barrels of oil equivalent per day (MBoe/d), up from 32.1 MBoe/d in the corresponding period of 2024. The reported figure came in lower than our estimate of 37.5 MBoe/d.
Oil production totaled 1,324 thousand barrels (MBbls), higher than 1,263 MBbls in the year-earlier quarter. The figure missed our estimate of 1,403 MBbls.
Natural gas liquids output totaled 414 MBbls, which increased from the year-ago quarter’s level of 273 MBbls. Our estimate for the same was pinned at 380 MBbls.
Natural gas production of 9,562 million cubic feet (MMcf) was higher than 8,505 MMcf in the prior-year quarter. The figure missed our estimate of 10,024 MMcf.
Realized Commodity Prices
The average realized price for oil in the fourth quarter was $57.39 per barrel, lower than the year-ago quarter’s level of $68.71. Our estimate for the same was pegged at $62.41.
The average realized price of NGL decreased to $16.62 per barrel from $24.59 reported a year ago. The figure came in lower than our estimate of $19.59 per barrel.
The average realized price of natural gas in the December-end quarter was $3.83 per thousand cubic feet, up from $2.85 in the corresponding period of 2024 and lower than our estimate of $4.52.
The average realized price for oil-equivalent output decreased to $35.88 per barrel from $39.86 a year ago. The figure was below our estimate of $40.63 per barrel.
Operating Expenses of WTI
Lease operating expenses increased to $22.40 per Boe from $21.76 in the year-ago period. The reported figure came in below our estimate of $22.37 per Boe.
General and administrative expenses decreased to $2.63 per Boe from $2.00 a year ago. The figure was higher than our estimate of $2.34 per Boe.
WTI's Cash Flow
Net cash provided by operations totaled $25.9 million compared with a negative $4.3 million reported in the prior-year quarter.
The company reported a negative free cash flow of $11.2 million in the fourth quarter compared with a negative $10.2 million in the corresponding period of 2024.
WTI’s Capital Spending & Balance Sheet
W&T Offshore reported capital spending of $13.3 million in the fourth quarter.
As of Dec. 31, 2025, cash and cash equivalents totaled $140.6 million, and net long-term debt amounted to $342.4 million. The current portion of the long-term debt is $8.5 million.
WTI’s Guidance for 2026
For the first quarter of 2026, W&T Offshore expects production to be in the range of 3,011-3,341 Mboe. For 2026, production is anticipated to be in the band of 12,227-13,560 Mboe.
The company expects first-quarter lease operating expenses to be in the $63.4-$70.4 million range. For full-year 2026, lease operating expenses are anticipated to be in the $264.7-$294.7 million band.
Full-year capital expenditures are projected to be in the range of $19.5- $24.5 million.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.
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W&T Offshore Q4 Loss Wider Than Expected, Revenues Increase Y/Y
Key Takeaways
W&T Offshore, Inc. (WTI - Free Report) reported a fourth-quarter 2025 adjusted loss of 14 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents. The bottom line improved from the year-ago quarter’s reported loss of 18 cents.
Total quarterly revenues of $121.7 million missed the Zacks Consensus Estimate of $136 million. The top line increased from $120.3 million reported in the prior-year quarter.
Weaker-than-expected quarterly results can be primarily attributed to lower realized oil-equivalent prices and higher operating expenses. An increase in oil-equivalent production volumes partially offset the negatives.
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 36.2 thousand barrels of oil equivalent per day (MBoe/d), up from 32.1 MBoe/d in the corresponding period of 2024. The reported figure came in lower than our estimate of 37.5 MBoe/d.
Oil production totaled 1,324 thousand barrels (MBbls), higher than 1,263 MBbls in the year-earlier quarter. The figure missed our estimate of 1,403 MBbls.
Natural gas liquids output totaled 414 MBbls, which increased from the year-ago quarter’s level of 273 MBbls. Our estimate for the same was pinned at 380 MBbls.
Natural gas production of 9,562 million cubic feet (MMcf) was higher than 8,505 MMcf in the prior-year quarter. The figure missed our estimate of 10,024 MMcf.
Realized Commodity Prices
The average realized price for oil in the fourth quarter was $57.39 per barrel, lower than the year-ago quarter’s level of $68.71. Our estimate for the same was pegged at $62.41.
The average realized price of NGL decreased to $16.62 per barrel from $24.59 reported a year ago. The figure came in lower than our estimate of $19.59 per barrel.
The average realized price of natural gas in the December-end quarter was $3.83 per thousand cubic feet, up from $2.85 in the corresponding period of 2024 and lower than our estimate of $4.52.
The average realized price for oil-equivalent output decreased to $35.88 per barrel from $39.86 a year ago. The figure was below our estimate of $40.63 per barrel.
Operating Expenses of WTI
Lease operating expenses increased to $22.40 per Boe from $21.76 in the year-ago period. The reported figure came in below our estimate of $22.37 per Boe.
General and administrative expenses decreased to $2.63 per Boe from $2.00 a year ago. The figure was higher than our estimate of $2.34 per Boe.
WTI's Cash Flow
Net cash provided by operations totaled $25.9 million compared with a negative $4.3 million reported in the prior-year quarter.
The company reported a negative free cash flow of $11.2 million in the fourth quarter compared with a negative $10.2 million in the corresponding period of 2024.
WTI’s Capital Spending & Balance Sheet
W&T Offshore reported capital spending of $13.3 million in the fourth quarter.
As of Dec. 31, 2025, cash and cash equivalents totaled $140.6 million, and net long-term debt amounted to $342.4 million. The current portion of the long-term debt is $8.5 million.
WTI’s Guidance for 2026
For the first quarter of 2026, W&T Offshore expects production to be in the range of 3,011-3,341 Mboe. For 2026, production is anticipated to be in the band of 12,227-13,560 Mboe.
The company expects first-quarter lease operating expenses to be in the $63.4-$70.4 million range. For full-year 2026, lease operating expenses are anticipated to be in the $264.7-$294.7 million band.
Full-year capital expenditures are projected to be in the range of $19.5- $24.5 million.
WTI’s Zacks Rank and Key Picks
WTI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Galp Energia (GLPEY - Free Report) . While Archrock sports a Zacks Rank #1 (Strong Buy), Subsea7 and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.