W&T Offshore returns to profit as realized prices climb
The offshore energy company reported a net income of $12.6 million for the second quarter of 2026.
W&T Offshore (WTI), the offshore energy company, returned to profitability in the second quarter of 2026. The shift follows a period of net losses in both the prior quarter and the same period last year, marking a trajectory inflection driven by higher realized pricing.
Total revenues rose 8% sequentially to $162.6 million from $150.0 million in the first quarter, and increased 33% year-over-year from $122.4 million. Net income was $12.6 million, or $0.08 a share, compared to a net loss of $22.5 million, or $(0.15) a share, in the first quarter and a net loss of $20.9 million, or $(0.14) a share, in the second quarter of 2025. Adjusted net income was $3.5 million, compared to an adjusted net loss of $5.1 million in the prior quarter.
Financial gains were supported by a rise in the average realized price per BOE, which increased 11% sequentially to $50.23 from $45.08, and rose 28% year-over-year from $39.16. This pricing growth offset a slight decline in average daily equivalent sales production, which fell 4% sequentially to 34.7 MBoe/d from 36.2 MBoe/d.
Operating costs showed mixed trends. Lease operating expenses per Boe increased 12% sequentially to $22.67 from $20.29, although they decreased 10% year-over-year from $25.20. Adjusted general and administrative expenses fell 5% sequentially to $16.4 million from $17.4 million.
Free cash flow increased 50% sequentially to $31.4 million from $21.0 million, and rose 776% year-over-year from $3.6 million. The company used this liquidity to reduce net debt by 9% sequentially to $200.9 million as of June 30, 2026.
Capital expenditures on an accrual basis rose 43% sequentially to $10.4 million from $7.2 million. Full year 2026 capital expenditures and plugging and abandonment guidance are expected to be toward the higher end of the range due to project acceleration.
W&T Offshore is engaged in ongoing surety lawsuits. If it prevails in these claims, the recovery could reach hundreds of millions of dollars, which would be statutorily trebled.