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W&T Offshore (WTI) Beats Q2 Earnings & Revenue Estimates

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W&T Offshore, Inc. (WTI - Free Report) reported adjusted second-quarter 2018 earnings — excluding onetime items — of 29 cents per share, beating the Zacks Consensus Estimate of 17 cents and improving from the year-ago 22 cents.

Revenues increased to $149.6 million in the quarter from $123.3 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $147 million.

Higher oil and natural gas liquids (NGLs) price realizations primarily attributed to the strong second-quarter results.

Production Falls, Prices Rise

The production of oil and natural gas was recorded at 3,419 thousand barrels of oil equivalent (MBoe) (60.1% liquids), down 12.8% from 3,921 Mboe a year ago. The maintenance activities for wells, outages of pipelines, unfavorable weather and natural declines of wells attributed to the lower output.

W&T Offshore’s production for oil and NGLs was 2,055 thousand barrels (MBbls), down 9.6% from the prior-year quarter, while natural gas output came in at 8,186 million cubic feet (MMcf), down 17.2%.

The average realized crude oil price during the second quarter was $67.09 a barrel, representing an increase of 50.6% from the year-ago $44.54. The average realized price of NGL jumped 37% to $27.61 per barrel from $20.15 in second-quarter 2017. However, the average realized natural gas price during the June quarter of 2018 was $2.81 per thousand cubic feet (Mcf), down 5.1% from the year-ago period.   

Expenses Jump

Through second-quarter 2018, W&T Offshore witnessed an 11.8% rise in total cost and expenses to $101.2 million. The jump in total cost was primarily supported by almost 13% rise in lease operating expenses to $35.6 million.

Balance Sheet & Capital Spending

As of Jun 30, 2018, the company had approximately $129.4 million in cash and cash equivalents. The company had long-term debt of $985.7 million — including the current maturities of debt.

For the oil and natural gas resources, W&T Offshore spent $10.7 million capital, on an accrual basis, through the April-to-June quarter of 2018.

Proved Reserves Rise

As of Jun 30, 2018, the oil-equivalent proved reserves of W&T Offshore was reported at 78 million Boe, up 5% from the reserves at the end of 2017.

Guidance

The company expects production for third-quarter 2018 between 3.1 million barrels of oil equivalent (MMBoe) and 3.4 MMBoe. For 2018, W&T Offshore expects production in the range of 13.2-14.6 MMBoe.

Through the January-to-December quarter of 2018, the offshore oil and gas explorer expects lease operating expenses between $159 million and $176 million. 

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

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

Zacks Rank & Other Stocks to Consider

W&T Offshore sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space are Northern Oil and Gas, Inc. (NOG - Free Report) , McDermott International, Inc. (MDR - Free Report) and Murphy Oil Corp. (MUR - Free Report) . While Murphy Oil carries a Zacks Rank #2 (Buy), McDermott and Northern Oil sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here

Northern Oil beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 160.4%.

McDermott’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.

Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive surprise being 102.5%.

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