We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W&T Offshore, Inc. (WTI - Free Report) reported first-quarter 2019 adjusted earnings (excluding one-time items) of 5 cents per share, missing the Zacks Consensus Estimate of 11 cents and declining from the year-ago figure of 19 cents.
Quarterly revenues decreased to $116.1 million from $134.2 million a year ago. Moreover, the top line missed the Zacks Consensus Estimate of $121 million.
The weak first-quarter 2019 results were affected by lower price realizations, production volume decline, and surging costs and expenses. Notably, the stock tumbled 12.3%, following the earnings miss.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
Total oil equivalent production averaged 33.3 barrels of oil equivalent per day (Boe/d), down from 37 Boe/d in the year-ago quarter. Oil production was recorded at 1,478 thousand barrels (MBbls), down from 1,557 MBbls in first-quarter 2018. Natural gas liquids output totaled 309 MBbls, lower than 351 MBbls in the year-ago period. Natural gas production fell from 8,523 million cubic feet (MMcf) in the year-ago period to 7,288 MMcf in the reported quarter. Of the total production in the quarter, 60% were liquids.
Prices Decline
The average realized price for oil during the first quarter was $58.66 a barrel, representing a decline from the year-ago level of $62.52. The average realized price of NGL fell from $27.54 per barrel in the year-ago period to $20.88. The average realized price of natural gas during the March quarter of 2019 was $3 per thousand cubic feet, representing a decrease from $3.03 in the year-ago period. Average realized price for oil equivalent output declined to $38.31 per barrel from $39.92 in the year-ago quarter.
Operating Expenses Rise
Total costs and expenses rose to $147.1 million in the quarter from the year-ago period’s $95.5 million. Lease operating expenses increased to $14.58 per barrel of oil equivalent (BOE) in the first quarter from the year-ago level of $11.07. General and administrative costs rose to $4.70 per BOE from $4.52 in first-quarter 2018.
Capital Spending & Balance Sheet
W&T Offshore spent $31.6 million capital through the March quarter of 2019 for oil and gas properties.
As of Mar 31, 2019, the company had approximately $86.1 million in cash and cash equivalents. It also had $220.9 million remaining under its revolving bank credit facility. The company had a long-term debt of $634 million.
Guidance
W&T Offshore expects production for second-quarter 2019 within 34,600-38,200 Boe/d. For 2019, W&T Offshore expects production in the band of 35,400-39,100 Boe/d.
Through 2019, the offshore oil and gas explorer expects lease operating expenses between $153 million and $169 million. For the second quarter, the metric is expected in the range of $42-$46 million.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings are likely to grow 13.5% on a year-over-year basis in the second quarter of 2019.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
W&T Offshore (WTI) Q1 Earnings Miss, Stock Declines 12.3%
W&T Offshore, Inc. (WTI - Free Report) reported first-quarter 2019 adjusted earnings (excluding one-time items) of 5 cents per share, missing the Zacks Consensus Estimate of 11 cents and declining from the year-ago figure of 19 cents.
Quarterly revenues decreased to $116.1 million from $134.2 million a year ago. Moreover, the top line missed the Zacks Consensus Estimate of $121 million.
The weak first-quarter 2019 results were affected by lower price realizations, production volume decline, and surging costs and expenses. Notably, the stock tumbled 12.3%, following the earnings miss.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
W&T Offshore, Inc. Price, Consensus and EPS Surprise | W&T Offshore, Inc. Quote
Production Falls
Total oil equivalent production averaged 33.3 barrels of oil equivalent per day (Boe/d), down from 37 Boe/d in the year-ago quarter. Oil production was recorded at 1,478 thousand barrels (MBbls), down from 1,557 MBbls in first-quarter 2018. Natural gas liquids output totaled 309 MBbls, lower than 351 MBbls in the year-ago period. Natural gas production fell from 8,523 million cubic feet (MMcf) in the year-ago period to 7,288 MMcf in the reported quarter. Of the total production in the quarter, 60% were liquids.
Prices Decline
The average realized price for oil during the first quarter was $58.66 a barrel, representing a decline from the year-ago level of $62.52. The average realized price of NGL fell from $27.54 per barrel in the year-ago period to $20.88. The average realized price of natural gas during the March quarter of 2019 was $3 per thousand cubic feet, representing a decrease from $3.03 in the year-ago period. Average realized price for oil equivalent output declined to $38.31 per barrel from $39.92 in the year-ago quarter.
Operating Expenses Rise
Total costs and expenses rose to $147.1 million in the quarter from the year-ago period’s $95.5 million. Lease operating expenses increased to $14.58 per barrel of oil equivalent (BOE) in the first quarter from the year-ago level of $11.07. General and administrative costs rose to $4.70 per BOE from $4.52 in first-quarter 2018.
Capital Spending & Balance Sheet
W&T Offshore spent $31.6 million capital through the March quarter of 2019 for oil and gas properties.
As of Mar 31, 2019, the company had approximately $86.1 million in cash and cash equivalents. It also had $220.9 million remaining under its revolving bank credit facility. The company had a long-term debt of $634 million.
Guidance
W&T Offshore expects production for second-quarter 2019 within 34,600-38,200 Boe/d. For 2019, W&T Offshore expects production in the band of 35,400-39,100 Boe/d.
Through 2019, the offshore oil and gas explorer expects lease operating expenses between $153 million and $169 million. For the second quarter, the metric is expected in the range of $42-$46 million.
Zacks Rank and Other Stocks to Consider
Currently, W&T Offshore carries a Zacks Rank #2 (Buy). Other prospective players in the energy space worth considering include Cactus, Inc. (WHD - Free Report) , Hess Corporation (HES - Free Report) and Chevron Corporation (CVX - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings are likely to grow 13.5% on a year-over-year basis in the second quarter of 2019.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>