W&T Offshore Production Beats Guidance High End

The Tip Desk · November 10, 2026 · 4 min read

The Gulf of America producer posted a $13.6 million net loss, or $(0.09) a share, and a $15.8 million derivative loss alongside higher year-over-year volumes and oil prices.

W&T Offshore, Inc. (WTI) produced 38.2 thousand barrels of oil equivalent per day in the third quarter of 2026, 50% liquids, about 9% above the midpoint and 4% above the high end of its guidance, and 10% above 34.7 MBoe/d in the second quarter.

The independent oil and natural gas producer reported total revenues of $167.1 million, up 3% from $162.6 million in the prior quarter and 31% from $127.5 million a year earlier. Net loss was $13.6 million, or $(0.09) a share, versus net income of $12.6 million, or $0.08 a share, in the second quarter. A year earlier the company posted a $71.5 million net loss, or $(0.48) a share. Adjusted Net Income fell 93% to $0.9 million, or $0.01 a share, from $14.0 million, or $0.09 a share, in the second quarter.

The swing from second-quarter profit to a third-quarter loss tracked a $15.8 million net derivative loss, compared with a $1.9 million derivative loss in the second quarter, against operating income of $11.8 million. Average realized oil price before derivatives was $85.06 a barrel, down 14% from $99.30 in the second quarter and up 32% from $64.62 a year earlier. Oil-equivalent price was $46.13 a Boe.

Oil sales volumes were 1,314 MBbls, up 8% from 1,213 MBbls in the second quarter. NGLs were 482 MBbls, up 47% from 329 MBbls. Natural gas was 10,305 MMcf. Adjusted EBITDA declined 10% to $51.1 million from $56.6 million in the second quarter, while rising 30% from $39.3 million a year earlier. Free Cash Flow was $33.2 million, down 1% from $33.6 million in the second quarter, versus a $1.2 million Free Cash Flow outflow a year earlier.

Lease operating expenses were $76.7 million, slightly below the midpoint of guidance, the company said, despite higher oil prices and production above guidance. LOE per Boe fell 4% to $21.82 from $22.67 in the second quarter. Gathering, transportation and production taxes rose 43% to $9.4 million from $6.6 million in the second quarter. General and administrative expenses increased 15% to $31.7 million from $27.5 million in the second quarter; the company attributed the sequential increase primarily to higher non-cash share-based compensation as the share price used to mark awards to market rose. Adjusted G&A was $19.3 million.

Accrual-basis capital expenditures fell 70% to $3.1 million from $10.4 million in the second quarter. Asset retirement obligation settlements were $5.9 million. During the quarter W&T performed seven workover projects and one recompletion that positively impacted production.

Unrestricted cash and cash equivalents grew 27% to $191.3 million from $150.7 million at June 30, 2026. Net Debt fell 20% to $160.7 million from $200.9 million, and Net Debt to trailing-twelve-month Adjusted EBITDA declined to 0.9x from 1.1x at June 30, 2026. Total available liquidity was $234.7 million. The company used its ATM agreement to issue 3.6 million common shares for $14.7 million of net proceeds.

On October 1, 2026, W&T converted its $50 million revolving credit facility into a reserve-based lending structure with an aggregate maximum credit amount of $100 million, eliminating the 75% excess cash flow sweep, the quarterly repayment requirement and the $100 million minimum PDP PV-10 covenant, and raising the annual restricted payments basket from $10 million to $15 million. Pricing and financial covenants were unchanged. Chairman and Chief Executive Officer Tracy W. Krohn said the change strengthens the capital structure and provides the potential to expand borrowing capacity.

Fourth-quarter 2026 production guidance is 32.0–35.3 MBoe/d, including about 2,600 Boe/d of short-term sales-volume reductions from Hurricane Isaias and a planned Mobile Bay turnaround. Full-year 2026 production is guided at 33.5–37.2 MBoe/d. Full-year capital expenditures are now $35.0–38.0 million after pulling 2027 projects into the fourth quarter. The board declared a fourth-quarter 2026 dividend of $0.01 a share, payable November 19, 2026, after paying the 12th consecutive quarterly dividend of $0.01 a share on August 26, 2026.