HOUSTON, Aug. 3, 2017 /PRNewswire/ -- W&T
Offshore, Inc. (NYSE: WTI) today reported its second quarter 2017
operational and financial results. Some of the key items for
the quarter and subsequent period include:
- On June 28, 2017, the Bureau of
Ocean Energy Management ("BOEM") filed a Motion for Remand with the
Department of the Interior to rescind its four orders issued in
2016 that instructed us to provide additional supplemental bonding
of $260.8 million. We
anticipate that within the next few weeks the necessary steps will
be completed to allow the BOEM to rescind the orders.
- Mid-Year 2017 SEC proved reserves were 74.4 million Boe, of
which 56% was liquids, up slightly from year-end 2016 SEC proved
reserves. The increase in proved reserves was more than
sufficient to replace production. Proved developed producing
reserves increased almost 6 million Boe or 13% compared to year-end
2016.
- The present value of our reported SEC proved reserves,
discounted at 10% ("PV-10"), was $955.0
million, a 27% increase from $754.9
million at year-end 2016, due to upward revisions of
previous estimates and higher average prices. The SEC PV-10 is
based on an average crude oil price of $48.95 per barrel and average natural gas price
of $3.01 per Mcf, both before
adjustment for quality, transportation fees, energy content, and
regional price differentials.
- Production averaged 43,084 barrels of oil equivalent ("Boe")
per day for the second quarter of 2017 (or 3.9 million Boe for the
quarter), 58% of which was oil and natural gas liquids ("NGLs"),
compared to 42,864 Boe per day in the second quarter of
2016.
- Revenues were $123.3 million, up
$23.7 million, or 24% compared to the
second quarter of 2016. Oil and NGLs sales made up 75% of
revenues in the second quarter of 2017 compared to 79% in the
second quarter of 2016.
- Lease operating expenses (LOE) declined $5.1 million to $31.5
million compared to the second quarter of 2016 representing
a 14% decline.
- Operating income was $32.9
million compared to an operating loss in the second quarter
of 2016 of $127.0 million, which
included a non-cash ceiling test write-down of $104.6 million. Compared to the first
quarter of 2017, operating income increased $4.7 million or 17%.
- Interest expense, net of amount capitalized, decreased 61.5% or
$18.2 million to $11.4 million compared to the second quarter of
2016.
- Net income was $33.3 million and
earnings per share were $0.23.
Excluding special items, our adjusted net income was $31.1 million and earnings were $0.22 per share. (See definitions and
reconciliations of non-GAAP measures to GAAP measures at the end of
this news release.)
- Cash flow from operating activities increased to $65.6 million for the first six months of 2017
from a negative $11.3 million for the
same period in 2016. Adjusted EBITDA for the second quarter
of 2017 was $72.6 million, up
$31.8 million compared to the second
quarter of 2016. Adjusted EBITDA margin was 59% versus 41% in
the second quarter of 2016 and 52% in the first quarter of 2017.
(See definitions and reconciliations of non-GAAP measures to GAAP
measures at the end of this news release.)
- As expected, we received $11.9
million in income tax refunds in July
2017 and we expect to receive an additional $69.0 million in income tax refunds in the latter
half of 2018 related to net operating loss carryback claims.
Tracy W. Krohn, W&T
Offshore's Chairman and Chief Executive Officer, stated, "We are
very pleased to be in the final stages of resolving the matter with
the BOEM, which has been a significant distraction for W&T and
our investors for over a year. We are generating strong cash
flow, solid earnings and very attractive EBITDA margins, driven by
the performance of our high-quality asset base.
"We have continued to maintain steady production volumes with
modest capital outlays as we successfully executed lower-risk,
high-return projects in our existing fields. We have also
continued to drive down our operating expenses to the lowest levels
in many years and generated an EBITDA margin of 59%, which is
in-line with the 60-62% EBITDA margins we achieved in 2012-2014 in
a much higher commodity price environment. Compared to the
first quarter, LOE declined 22% or $8.6
million resulting in higher adjusted EBITDA margins in the
second quarter despite the slightly lower commodity prices.
While we are hopeful that oil prices will improve from current
levels, we have clearly demonstrated that we can be profitable in
current market conditions.
"So far in the first half of 2017, our operations have primarily
focused on exploiting our Mahogany Field, which continues to
perform exceptionally well and offers substantial upside
potential. As we have continued drilling, the T-sand
reservoir continues to get bigger just like we experienced with the
prolific P-sand. In the second half of the year, we will
progress our work plan at Mahogany which includes the A-17 well
that is also targeting the T-sand, followed by the A-5 ST.
Workovers and recompletions will also be performed on wells at
Mahogany as time permits. We also have an exploratory well
that will spud shortly to drill a low risk undrilled fault block in
our SS300 field and exploratory wells planned at Main Pass 286 and
South Timbalier 224 both of which are open water locations.
New wells are also planned for Ewing
Banks 910 field and Viosca Knoll 823 Virgo field towards the
end of this year and that will carry over into what should be a
busy 2018," concluded Mr. Krohn.
Production, Revenues and Price: Total production was 3.9
million barrels of oil equivalent ("MMBoe") in the second quarter
of 2017, up slightly from the second quarter of 2016.
Production increases were achieved at various fields including Ship
Shoal 349 ("Mahogany"), Garden Banks 302 and Viosca Knoll 783
fields, partially offset by natural production declines from
existing wells between the periods. Second quarter 2017
includes revenues of $4.1 million
representing royalty relief for oil produced at our Mississippi
Canyon 698 ("Big Bend") field in 2016. Oil volumes associated
with the royalty relief were 114,867 barrels and are reflected in
2017 production volumes. The Big Bend realized oil price in
2016 was below the average price posted by the government and hence
we received royalty relief.
Revenues for the second quarter of 2017 increased 24% to
$123.3 million compared to
$99.7 million in the second quarter
of 2016. The increase in revenues was due to a 23% increase
in our realized commodity price. We sold 43,084 Boe per day
at an average realized sales price of $31.10 per Boe compared to 42,864 Boe per day
sold at an average realized sales price of $25.28 per Boe in the second quarter of
2016. In the first quarter of 2017, we sold 42,712 Boe per
day at an average realized sales price of $32.12 per Boe after royalties, transportation
and quality bank adjustments.
Lease Operating Expenses: Lease operating expense
("LOE"), which includes base lease operating expenses, insurance
premiums, workovers and facilities maintenance, decreased
$5.1 million to $31.5 million in the second quarter of 2017
compared to the second quarter of 2016. On a per-Boe basis,
LOE decreased to $8.04 per Boe in the
second quarter of 2017, a 14.4% reduction compared to $9.39 per Boe in the second quarter of 2016.
LOE decreased primarily due to lower costs from service
providers along with optimization efforts to reduce our lease
operating costs and lower insurance premiums. These
reductions were partially offset by higher workover costs of
$0.9 million due to an increase in
activities.
Depreciation, depletion, amortization and accretion
("DD&A"): DD&A, including accretion for asset
retirement obligations ("ARO"), decreased to $10.29 per Boe for the second quarter of 2017
from $14.74 per Boe for the second
quarter of 2016. On a nominal basis, DD&A decreased
$17.1 million to $40.4 million for the second quarter of 2017 from
$57.5 million for the second quarter
of 2016 primarily due to a decrease in the DD&A rate per Boe,
which declined due to prior-period ceiling test
write-downs.
General and Administrative Expenses ("G&A"):
G&A increased slightly to $16.5
million for the second quarter of 2017 compared to the
second quarter of 2016. The increase was primarily due to
increases in incentive compensation programs and accrued civil
penalties received from BSEE that are being appealed to IBLA,
partially offset by lower salary costs, legal expenses,
professional fees and surety bond costs.
Derivative (gain) loss: For the second quarter
of 2017, there was a $3.7 million
derivative gain recorded for both crude oil and natural gas
derivative contracts, which includes both open and settled
contracts as of June 30, 2017.
We entered into derivative contracts for crude oil and natural gas
during the first quarter of 2017, relating to a portion of our 2017
estimated production. For the second quarter of 2016, there
was a $4.9 million derivative loss
recorded for derivative contracts for crude oil and natural
gas.
Interest expense: Interest expense, net of amount
capitalized, decreased $18.2 million
to $11.4 million in the second
quarter of 2017, compared to $29.7
million in the second quarter of 2016. The decrease
was primarily due to an exchange transaction that was completed on
September 7, 2016, when we exchanged
$710.2 million of our unsecured
senior notes for $301.8 million of
new secured notes and 60 million shares of our common stock.
Also, there were no borrowings outstanding under our revolving bank
credit facility during the second quarter of 2017.
Interest paid in cash on the $301.8 million of new secured debt is reported as
a reduction of the carrying value of the new secured debt.
Gain on Exchange of Debt: During the second quarter
of 2017, an additional net gain of $8.1
million was recognized primarily as a result of paying
interest in cash on the Second Lien PIK Toggles Notes and the Third
Lien PIK Toggle Notes versus paying the interest through the
pay-in-kind ("PIK") option. Under ASC 470-60 accounting
guidance that is applicable to us due to our 2016 debt
restructuring, the carrying value for the Second and Third Lien PIK
Toggle Notes was reduced due to the cash payment. The cash payment
has a lower interest rate compared to the PIK option and this also
reduces future interest and principal payments. Partially
offsetting were additional expenses related to the Exchange
Transaction for differences between estimated and actual
costs. We anticipate the remaining eligible interest payments
will be made in kind versus in cash.
Other (income) expense: For the second quarter of
2017, other (income) expense, net, was $5.2
million consisting primarily of $6.3
million for items related to the Apache litigation matter
(described below), partially offset by $1.1
million in loss-of-use reimbursements from a third-party for
damages incurred at one of our platforms. In June 2017 we received a final trial court
judgment directing us to pay Apache Corp. $43.2 million plus court costs, attorney's fees
and pre and post judgment interest of $6.3
million. The judgment stems from a previously disclosed
lawsuit that Apache filed in December
2014 regarding a dispute about Apache's use of much more
expensive drilling rigs instead of a previously contracted
intervention vessel for the plugging and abandonment of three
deepwater wells in the Mississippi Canyon area of the Gulf of Mexico. W&T contends that
the excess costs of using the drilling rigs were unnecessary
and unreasonable but that Apache chose to use the rigs without
W&T's consent because they otherwise would have been idle at
Apache's expense. W&T believes the use of the rigs was in bad
faith, as found by the jury, and that such conduct caused W&T
not to comply with the applicable joint operating agreement,
particularly since another vessel had been contracted by Apache for
the abandonment a year in advance. W&T had previously paid
$24.9 million as an undisputed amount
for the plug and abandonment work. We intend to appeal the
trial court judgment in this lawsuit. In June 2017, in order to stay execution of the
judgment, and pending the disposition of post judgment motions, we
deposited with the court $49.5
million and have accounted for this as a long-term asset
with a corresponding offset recorded as a long-term
liability. We have also increased the amount of our asset
retirement obligation by an additional $19.9
million (we had previously accrued $23.3 million) and expensed the $6.3 million as indicated above.
Income Tax: Our income tax benefit for the three
months ended June 30, 2017 and 2016
was $9.0 million and $35.7 million, respectively. Our annualized
effective tax rate for both periods was not meaningful. The
income tax benefit for both periods relates to NOL carryback claims
made pursuant to IRC Section 172(f) (related to rules for
"specified liability losses"), which permit certain platform
dismantlement, well abandonment and site clearance costs to be
carried back 10 years.
As of June 30, 2017, the balance
sheet reflects a current income tax receivable of $12.0 million and non-current income tax
receivables of $69.0 million.
The current income tax receivable primarily relates to our NOL
claim for 2016 carried back to 2006. The non-current income
tax receivables relate to our NOL claims that were carried back to
earlier years that are expected to be received in 2018. In
July 2017, we received income tax
refunds of $11.9 million primarily
related to our 2016 refund claim.
Net Income (Loss) & Earnings (Loss) Per Share:
We reported net income for the second quarter of 2017 of
$33.3 million or $0.23 per common share. Excluding special items,
our adjusted net income was $31.1
million and our earnings were $0.22 per share. This compares to a second
quarter 2016 reported net loss of ($120.9)
million, or ($1.58) per common
share; excluding special items (including a non-cash ceiling test
write-down of oil and natural gas properties) adjusted net loss
would have been ($35.8) million, or
($0.47) per share. Compared to
the first quarter of 2017, net income, excluding special items,
increased $8.3 million or
$0.06 per share. (See the
"Reconciliation of Net Income (Loss) to Net Income (Loss) Excluding
Special Items" and related earnings per share, excluding special
items in the table under "Non-GAAP Information" at the end of this
news release for a description of the special items.)
Cash Flow and Adjusted EBITDA: Net cash provided by
operating activities in the first six months of 2017 was
$65.6 million compared to net cash
used by operating activities of $11.3
million for the same period in 2016. Cash flows from
operating activities before changes in working capital, insurance
reimbursements, escrow deposits and ARO settlements were
$112.3 million in the first half of
2017, compared to $6.5 million over
the same period in 2016. The increase in cash flows was primarily
due to higher realized prices for all our commodities - oil, NGLs
and natural gas, lower operating costs and lower interest
payments. Our combined average realized sales price per Boe
increased 41.8%, which caused total revenues to increase
$70.3 million. LOE decreased
$9.4 million, G&A decreased
$2.9 million and interest expense
(the portion of interest that is a part of operating activities and
not financing activities) decreased $34.4
million. Other items affecting operating cash flows
for the six months ended June 30,
2017 included insurance reimbursements of $30.1 million, changes in receivables, accounts
payable and accrued liabilities of $12.3
million, partially offset by ARO expenditures of
$36.0 million and a deposit with the
court related to the Apache matter of $49.5
million.
Adjusted EBITDA for the second quarter of 2017 was $72.6 million, up $31.8
million over the same period in 2016. Our Adjusted
EBITDA margin was 59% in the second quarter of 2017, compared to
41% in the second quarter of 2016 and 52% in the first quarter of
2017. Adjusted EBITDA for the first six months of 2017 was
$138.3 million representing an
increase of $81.0 million over the
first six months of 2016.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures
and are defined in the "Non-GAAP Information" section at the end of
this news release.
Liquidity: At June 30,
2017, our total liquidity was $222.0
million, consisting of an unrestricted cash balance of
$72.3 million and $149.7 million of availability under our
$150 million revolving bank credit
facility. Our total liquidity as of July 26, 2017 was $254.9
million with a cash balance of over $105 million.
Capital Expenditures: Our capital expenditures for
oil and gas properties on an accrual basis for the first six months
of 2017 were $43.8 million
($44.6 million on a cash basis)
compared to $17.7 million
($51.8 million on a cash basis) for
the same period in 2016. In the first half of 2017 our
capital expenditures were primarily directed at three different
wells at Mahogany including the completion operations for the A-18
well, drilling and completion operations of the A-16BP1 and the
drilling and completion of the A-8. We also conducted well
activity at High Island 22. The
remainder of the expenditures was associated with recompletions,
development activities and seismic.
For 2017, our capital expenditure budget remains at $125.0 million. Our plug and abandonment
activities for 2017 are currently estimated at approximately
$82.8 million. Capital
expenditures and abandonment activities are expected to be funded
with cash on hand and cash flow from operating activities.
BOEM FINANCIAL ASSURANCE
We are in final stages of resolving our current issues with the
BOEM that began over a year ago with its demand that W&T
provide financial assurances (such as supplemental bonding)
totaling $260.8 million.
- On June 20, 2017, we notified the
BOEM that we had satisfied our financial assurance obligations for
our sole liability properties (as opposed to joint ownership
properties) as designated by BOEM.
- Based on our satisfaction of the BOEM demand for our sole
liability properties, on June 28,
2017, the BOEM commenced the process necessary to rescind
the four orders issued in 2016 instructing us to provide
$260.8 million in financial assurance
obligations. That process was concluded formally on
July 31, 2017 and we anticipate that
the BOEM will subsequently rescind the orders in the ordinary
course over the next few weeks.
- We are currently in compliance with our financial assurance
obligations to the BOEM and, upon rescission of the 2016 orders, we
will be under no outstanding BOEM orders related to financial
assurance obligations.
OPERATIONS UPDATE
We currently have two rigs operating in the Gulf of Mexico, one of which is at Mahogany
drilling the A-17 well, and the other is at Ship Shoal 300 rigging
up to drill the B-5 well. For the first half of 2017 we have
completed three wells all of which are in the Mahogany field.
Ship Shoal 349 "Mahogany" (100% WI, operated, shelf):
In mid-April we placed on production the A-16 BP1 well
targeting the 'P' Sand. The A-16 well achieved a peak net
rate of approximately 1,625 Boe per day and is currently producing
almost 1,100 Boe per day and is 83% oil. We then
drilled the A-8 well to total depth and completed the well right
before the end of the quarter. The well is currently in
flow-back and is stabilizing. The rig is now drilling the
A-17 well, which should test and extend the western limits of the
large T-sand reservoir. Following that well we plan to drill
a sidetrack well at the A-5 location targeting the 'Q' and 'P'
sands. This well will likely be a 2018 completion.
Workover and recomplete opportunities also exist at Mahogany and
will be done as time and operating conditions permit.
Mahogany production averaged over 8,000 Boe per day in June 2017.
Ship Shoal 300 B-5 (80% WI, operated, shelf): We
have mobilized a platform rig to our Ship Shoal 300 field to
commence drilling the B-5 well. This well will target
multiple stacked pay intervals in an undrilled fault block, which
are indicated by strong amplitude features in our new
seismic. Assuming the well is successful, we may add a second
well to further increase reserves and value. The SS 300 B-5
well is expected to cost approximately $8.4
million to drill and complete and to pay out in less than a
year and half.
South Timbalier 224 (39% WI, operated, shelf):
This is an exploratory open water location opportunity in 170 feet
of water that is near existing infrastructure. Seismic
indicates a large, amplitude supported prospect. This well
should spud in the fourth quarter of 2017.
Ewing Bank 910 (36% - 50% WI,
operated, deepwater): Two wells are planned in our
Ewing Bank 910 field, including the
South Timbalier 311 A-2 and A-3 sidetrack wells. The first
well is expected to spud towards the end of 2017, with the next
well to follow shortly thereafter in 2018. We view both of
these wells to be low-risk exploration opportunities with multiple
stacked pay sands. If successful, these wells can be brought
on line quickly via existing infrastructure and pipelines.
Main Pass 286 (100% WI, operated, shelf):
This is an exploratory well to be drilled in an open water location
in 300 feet of water that is near existing infrastructure owned by
W&T. Target is a strong amplitude variation with offset
(AVO) supported Middle Miocene oil prospect in the Cris I sand at a
target depth of 14,100'. Drilling will likely begin in the
fourth quarter of 2017.
Viosca Knoll 823 "Virgo": Two to three wells are
planned in our Virgo field later this year and into next
year. The first well is the A-10 ST followed by the A-12 and
then the A-2 ST. These wells can be drilled from the existing
platform and assuming success can be brought on line relatively
quickly.
Well Recompletions and Workovers: So far this year,
we have completed seven recompletions that added approximately
1,700 Boe per day of production and eight workovers that have added
approximately 5,400 Boe per day of production. Cost per
flowing Boe for the recompletions was about $9,400 and about $1,050 per Boe for the workovers.
Third Quarter and Full Year 2017 Outlook:
Our guidance for the third quarter and full year 2017 in the
table below represents the Company's best estimate of the range of
likely future results. Third quarter guidance reflects an estimate
of almost 3,000 Boe per day for storm downtime that may or may not
occur. To be updated before issuing. Guidance could be affected by
the factors described below in "Forward-Looking
Statements."
|
Third
Quarter
|
|
Prior Full
Year
|
|
Revised Full
Year
|
Production
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
Oil and NGL's
(MMBbls)
|
1.9 - 2.2
|
|
8.7 - 9.7
|
|
8.4 - 9.3
|
|
|
|
|
|
|
Natural Gas
(Bcf)
|
8.2 - 9.0
|
|
38.9 -
42.9
|
|
36.1 -
40.0
|
|
|
|
|
|
|
Total
(Bcfe)
|
19.8 -
21.9
|
|
91.2 -
100.8
|
|
86.9 -
96.0
|
|
|
|
|
|
|
Total
(MMBoe)
|
3.3 - 3.7
|
|
15.2 -
16.8
|
|
14.5 -
16.0
|
|
|
|
|
|
|
Operating
Expenses
|
Third
Quarter
|
|
Prior Full
Year
|
|
Revised Full
Year
|
($ in
millions)
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
Lease operating
expenses
|
$39 - $43
|
|
$161 -
$177
|
|
$149 -
$165
|
|
|
|
|
|
|
Gathering,
transportation &
|
|
|
|
|
|
production
taxes
|
$6 - $7
|
|
$26 - $29
|
|
$25 - $28
|
|
|
|
|
|
|
General and
administrative
|
$14 - $15
|
|
$58 - $64
|
|
$56 - $62
|
|
|
|
|
|
|
Income tax rate
benefit
|
|
|
46%
|
|
32%
|
Conference Call Information: W&T will hold a
conference call to discuss our financial and operational results on
Friday, August 4, 2017, at
10:00 a.m. Eastern Time. To
participate, dial 412-902-0030 a few minutes before the call
begins. The call will also be broadcast live over the
Internet from the Company's website at www.wtoffshore.com. An
updated investor presentation can be accessed from the Company's
website. A replay of the conference call will be available
after the call until August 11, 2017,
and may be accessed by calling 201-612-7415 and using the passcode
13666117#.
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas
producer with operations offshore in the Gulf of Mexico and has grown through
acquisitions, exploration and development. The Company
currently has working interests in approximately 50 producing
fields in federal and state waters and has under lease
approximately 730,000 gross acres, including approximately 480,000
gross acres on the Gulf of Mexico Shelf and approximately 250,000
gross acres in the deepwater. A majority of the Company's
daily production is derived from wells it operates. For more
information on W&T Offshore, please visit the Company's website
at www.wtoffshore.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements reflect our current views
with respect to future events, based on what we believe are
reasonable assumptions. No assurance can be given, however, that
these events will occur. These statements are subject to risks and
uncertainties that could cause actual results to differ materially
including, among other things, market conditions, oil and gas price
volatility, uncertainties inherent in oil and gas production
operations and estimating reserves, unexpected future capital
expenditures, competition, the success of our risk management
activities, governmental regulations, uncertainties and other
factors discussed in W&T Offshore's Annual Report on Form 10-K
for the year ended December 31, 2016
and subsequent Form 10-Q reports found at www.sec.gov or at our
website at www.wtoffshore.com under the Investor Relations section.
Investors are urged to consider closely the disclosures and risk
factors in these reports.
W&T OFFSHORE,
INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Income (Loss)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
|
2016
|
|
2017
|
|
|
2016
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
123,323
|
|
|
$
|
99,655
|
|
$
|
247,716
|
|
|
$
|
177,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
31,519
|
|
|
|
36,622
|
|
|
71,683
|
|
|
|
81,091
|
Gathering,
transportation costs and production taxes
|
|
5,767
|
|
|
|
6,768
|
|
|
12,491
|
|
|
|
12,386
|
Depreciation,
depletion, amortization and accretion
|
|
40,364
|
|
|
|
57,493
|
|
|
80,354
|
|
|
|
121,226
|
Ceiling test
write-down of oil and natural gas properties
|
|
-
|
|
|
|
104,592
|
|
|
-
|
|
|
|
221,151
|
General and
administrative expenses
|
|
16,474
|
|
|
|
16,235
|
|
|
29,748
|
|
|
|
32,678
|
Derivative (gain)
loss
|
|
(3,689)
|
|
|
|
4,942
|
|
|
(7,644)
|
|
|
|
2,449
|
Total costs and
expenses
|
|
90,435
|
|
|
|
226,652
|
|
|
186,632
|
|
|
|
470,981
|
Operating income
(loss)
|
|
32,888
|
|
|
|
(126,997)
|
|
|
61,084
|
|
|
|
(293,611)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
|
11,436
|
|
|
|
29,671
|
|
|
22,730
|
|
|
|
57,142
|
Gain on exchange of
debt
|
|
8,056
|
|
|
|
-
|
|
|
7,811
|
|
|
|
-
|
Other (income)
expense, net
|
|
5,168
|
|
|
|
(24)
|
|
|
5,114
|
|
|
|
1,282
|
Income (loss) before
income tax benefit
|
|
24,340
|
|
|
|
(156,644)
|
|
|
41,051
|
|
|
|
(352,035)
|
Income tax
benefit
|
|
(8,975)
|
|
|
|
(35,722)
|
|
|
(16,563)
|
|
|
|
(40,604)
|
Net income
(loss)
|
$
|
33,315
|
|
|
$
|
(120,922)
|
|
$
|
57,614
|
|
|
$
|
(311,431)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
0.23
|
|
|
$
|
(1.58)
|
|
$
|
0.40
|
|
|
$
|
(4.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
137,552
|
|
|
|
76,457
|
|
|
137,533
|
|
|
|
76,443
|
W&T OFFSHORE,
INC. AND SUBSIDIARIES
|
Condensed
Operating Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
Variance
|
|
2017
|
|
|
2016
|
|
Variance
|
|
Percentage(2)
|
Net sales
volumes:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
|
1,923
|
|
|
|
1,835
|
|
|
88
|
|
4.8%
|
NGL
(MBbls)
|
|
351
|
|
|
|
451
|
|
|
(100)
|
|
-22.2%
|
Oil and NGLs
(MBbls)
|
|
2,272
|
|
|
|
2,286
|
|
|
(14)
|
|
-0.6%
|
Natural gas
(MMcf)
|
|
9,890
|
|
|
|
9,690
|
|
|
200
|
|
2.1%
|
Total oil and natural
gas (MBoe) (1)
|
|
3,921
|
|
|
|
3,901
|
|
|
20
|
|
0.5%
|
Total oil and natural
gas (MMcfe) (1)
|
|
23,524
|
|
|
|
23,404
|
|
|
120
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily
equivalent sales (MBoe/d)
|
|
43.1
|
|
|
|
42.9
|
|
|
0.2
|
|
0.5%
|
Average daily
equivalent sales (MMcfe/d)
|
|
258.5
|
|
|
|
257.2
|
|
|
1.3
|
|
0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales prices:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
($/Bbl)
|
$
|
44.54
|
|
|
$
|
39.11
|
|
$
|
5.43
|
|
13.9%
|
NGLs
($/Bbl)
|
|
20.15
|
|
|
|
15.56
|
|
|
4.59
|
|
29.5%
|
Oil and NGLs
($/Bbl)
|
|
40.78
|
|
|
|
34.46
|
|
|
6.32
|
|
18.3%
|
Natural gas
($/Mcf)
|
|
2.96
|
|
|
|
2.05
|
|
|
0.91
|
|
44.4%
|
Barrel of oil
equivalent ($/Boe)
|
|
31.10
|
|
|
|
25.28
|
|
|
5.82
|
|
23.0%
|
Natural gas
equivalent ($/Mcfe)
|
|
5.18
|
|
|
|
4.21
|
|
|
0.97
|
|
23.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per Boe
($/Boe):
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
8.04
|
|
|
$
|
9.39
|
|
$
|
(1.35)
|
|
-14.4%
|
Gathering and
transportation costs and production taxes
|
|
1.47
|
|
|
|
1.74
|
|
|
(0.27)
|
|
-15.5%
|
Depreciation,
depletion, amortization and accretion
|
|
10.29
|
|
|
|
14.74
|
|
|
(4.45)
|
|
-30.2%
|
General and
administrative expenses
|
|
4.20
|
|
|
|
4.16
|
|
|
0.04
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per Mcfe
($/Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
1.34
|
|
|
$
|
1.56
|
|
$
|
(0.22)
|
|
-14.1%
|
Gathering and
transportation costs and production taxes
|
|
0.25
|
|
|
|
0.29
|
|
|
(0.04)
|
|
-13.8%
|
Depreciation,
depletion, amortization and accretion
|
|
1.72
|
|
|
|
2.46
|
|
|
(0.74)
|
|
-30.1%
|
General and
administrative expenses
|
|
0.70
|
|
|
|
0.69
|
|
|
0.01
|
|
1.4%
|
|
|
(1)
MMcfe and MBoe are determined using the
ratio of six Mcf of natural gas to one Bbl of crude oil, condensate
or NGLs (totals may not compute due to rounding). The
conversion ratio does not assume price equivalency and the price on
an equivalent basis for oil, NGLs and natural gas may differ
significantly.
|
|
|
(2)
Variance percentages are calculated using
rounded figures and may result in slightly different figures for
comparable data.
|
W&T OFFSHORE,
INC. AND SUBSIDIARIES
|
Condensed
Operating Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
Variance
|
|
2017
|
|
|
2016
|
|
Variance
|
|
Percentage(2)
|
Net sales
volumes:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
|
3,728
|
|
|
|
3,740
|
|
|
(12)
|
|
-0.3%
|
NGL
(MBbls)
|
|
725
|
|
|
|
809
|
|
|
(84)
|
|
-10.4%
|
Oil and NGLs
(MBbls)
|
|
4,452
|
|
|
|
4,549
|
|
|
(97)
|
|
-2.1%
|
Natural gas
(MMcf)
|
|
19,875
|
|
|
|
19,761
|
|
|
114
|
|
0.6%
|
Total oil and natural
gas (MBoe) (1)
|
|
7,765
|
|
|
|
7,843
|
|
|
(78)
|
|
-1.0%
|
Total oil and natural
gas (MMcfe) (1)
|
|
46,589
|
|
|
|
47,055
|
|
|
(466)
|
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily
equivalent sales (MBoe/d)
|
|
42.9
|
|
|
|
43.1
|
|
|
(0.2)
|
|
-0.5%
|
Average daily
equivalent sales (MMcfe/d)
|
|
257.4
|
|
|
|
258.5
|
|
|
(1.1)
|
|
-0.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized
sales prices:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
($/Bbl)
|
$
|
45.76
|
|
|
$
|
32.80
|
|
$
|
12.96
|
|
39.5%
|
NGLs
($/Bbl)
|
|
21.80
|
|
|
|
14.85
|
|
|
6.95
|
|
46.8%
|
Oil and NGLs
($/Bbl)
|
|
41.86
|
|
|
|
29.61
|
|
|
12.25
|
|
41.4%
|
Natural gas
($/Mcf)
|
|
2.97
|
|
|
|
2.03
|
|
|
0.94
|
|
46.3%
|
Barrel of oil
equivalent ($/Boe)
|
|
31.61
|
|
|
|
22.29
|
|
|
9.32
|
|
41.8%
|
Natural gas
equivalent ($/Mcfe)
|
|
5.27
|
|
|
|
3.71
|
|
|
1.56
|
|
42.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per Boe
($/Boe):
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
9.23
|
|
|
$
|
10.34
|
|
$
|
(1.11)
|
|
-10.7%
|
Gathering and
transportation costs and production taxes
|
|
1.61
|
|
|
|
1.58
|
|
|
0.03
|
|
1.9%
|
Depreciation,
depletion, amortization and accretion
|
|
10.35
|
|
|
|
15.46
|
|
|
(5.11)
|
|
-33.1%
|
General and
administrative expenses
|
|
3.83
|
|
|
|
4.17
|
|
|
(0.34)
|
|
-8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Average per Mcfe
($/Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
1.54
|
|
|
$
|
1.72
|
|
$
|
(0.18)
|
|
-10.5%
|
Gathering and
transportation costs and production taxes
|
|
0.27
|
|
|
|
0.26
|
|
|
0.01
|
|
3.8%
|
Depreciation,
depletion, amortization and accretion
|
|
1.72
|
|
|
|
2.58
|
|
|
(0.86)
|
|
-33.3%
|
General and
administrative expenses
|
|
0.64
|
|
|
|
0.69
|
|
|
(0.05)
|
|
-7.2%
|
|
|
(1)
MMcfe and MBoe are determined using the
ratio of six Mcf of natural gas to one Bbl of crude oil, condensate
or NGLs (totals may not compute due to rounding). The
conversion ratio does not assume price equivalency and the price on
an equivalent basis for oil, NGLs and natural gas may differ
significantly.
|
|
|
(2)
Variance percentages are calculated using
rounded figures and may result in slightly different figures for
comparable data.
|
W&T OFFSHORE,
INC. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
2017
|
|
|
2016
|
|
(In thousands,
except
|
|
share
data)
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
72,320
|
|
|
$
|
70,236
|
Receivables:
|
|
|
|
|
|
|
Oil and
natural gas sales
|
|
39,397
|
|
|
|
43,073
|
Joint
interest
|
|
19,920
|
|
|
|
21,885
|
Insurance reimbursement
|
|
-
|
|
|
|
30,100
|
Income
Taxes
|
|
12,027
|
|
|
|
11,943
|
Total
receivables
|
|
71,344
|
|
|
|
107,001
|
Prepaid expenses and
other assets
|
|
21,944
|
|
|
|
14,504
|
Total current
assets
|
|
165,608
|
|
|
|
191,741
|
|
|
|
|
|
|
|
Total property and
equipment
|
|
8,028,825
|
|
|
|
7,953,402
|
Less accumulated
depreciation, depletion and amortization
|
|
7,478,144
|
|
|
|
7,406,349
|
Net property and
equipment
|
|
550,681
|
|
|
|
547,053
|
Restricted deposits
for asset retirement obligations
|
|
28,712
|
|
|
|
27,371
|
Income tax
receivables
|
|
68,974
|
|
|
|
52,097
|
Escrow deposit -
Apache lawsuit
|
|
49,500
|
|
|
|
-
|
Other
assets
|
|
11,496
|
|
|
|
11,464
|
Total
assets
|
$
|
874,971
|
|
|
$
|
829,726
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
58,283
|
|
|
$
|
81,039
|
Undistributed oil and
natural gas proceeds
|
|
21,270
|
|
|
|
26,254
|
Asset retirement
obligations
|
|
52,432
|
|
|
|
78,264
|
Long-term
debt
|
|
11,147
|
|
|
|
8,272
|
Accrued
liabilities
|
|
13,122
|
|
|
|
9,200
|
Total current
liabilities
|
|
156,254
|
|
|
|
203,029
|
Long-term
debt:
|
|
|
|
|
|
|
Principal
|
|
873,733
|
|
|
|
873,733
|
Carrying value
adjustments
|
|
110,604
|
|
|
|
138,722
|
Long-term debt, less current portion - carrying value
|
|
984,337
|
|
|
|
1,012,455
|
|
|
|
|
|
|
|
Asset retirement
obligations, less current portion
|
|
265,428
|
|
|
|
256,174
|
Apache lawsuit
liability
|
|
49,500
|
|
|
|
-
|
Other
liabilities
|
|
17,409
|
|
|
|
17,105
|
Commitments and
contingencies
|
|
-
|
|
|
|
-
|
Shareholders'
deficit:
|
|
|
|
|
|
|
Common stock,
$0.00001 par value; 200,000,000 shares authorized;
140,690,917
|
|
|
|
|
|
|
issued and
137,821,744 outstanding at June 30, 2017; 140,543,545 issued
and
|
|
|
|
|
|
|
137,674,372
outstanding at December 31, 2016
|
|
1
|
|
|
|
1
|
Additional paid-in
capital
|
|
543,439
|
|
|
|
539,973
|
Retained earnings
(deficit)
|
|
(1,117,230)
|
|
|
|
(1,174,844)
|
Treasury stock, at
cost
|
|
(24,167)
|
|
|
|
(24,167)
|
Total shareholders'
deficit
|
|
(597,957)
|
|
|
|
(659,037)
|
Total liabilities and
shareholders' deficit
|
$
|
874,971
|
|
|
$
|
829,726
|
W&T OFFSHORE,
INC. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2017
|
|
|
2016
|
|
|
(In
thousands)
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
|
57,614
|
|
|
$
|
(311,431)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
depletion, amortization and accretion
|
|
80,354
|
|
|
|
121,226
|
|
Ceiling test
write-down of oil and natural gas properties
|
|
-
|
|
|
|
221,151
|
|
Gain on exchange of
debt
|
|
(7,811)
|
|
|
|
-
|
|
Debt issuance costs
write-down/amortization of debt items
|
|
836
|
|
|
|
1,880
|
|
Share-based
compensation
|
|
3,466
|
|
|
|
5,121
|
|
Derivative (gain)
loss
|
|
(7,644)
|
|
|
|
2,449
|
|
Cash receipts on
derivative settlements
|
|
2,208
|
|
|
|
4,746
|
|
Deferred income
taxes
|
|
212
|
|
|
|
19,285
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Oil and
natural gas receivables
|
|
3,675
|
|
|
|
1,226
|
|
Joint
interest receivables
|
|
1,965
|
|
|
|
1,763
|
|
Insurance reimbursements
|
|
30,100
|
|
|
|
-
|
|
Income
taxes
|
|
(16,960)
|
|
|
|
(57,931)
|
|
Prepaid
expenses and other assets
|
|
(3,575)
|
|
|
|
(10,365)
|
|
Escrow
deposit - Apache lawsuit
|
|
(49,500)
|
|
|
|
-
|
|
Asset
retirement obligation settlements
|
|
(36,021)
|
|
|
|
(25,156)
|
|
Accounts
payable, accrued liabilities and other
|
|
6,666
|
|
|
|
14,767
|
|
Net cash provided by
(used in) operating activities
|
|
65,585
|
|
|
|
(11,269)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Investment in oil and
natural gas properties and equipment
|
|
(43,800)
|
|
|
|
(17,712)
|
|
Changes in operating
assets and liabilities associated with investing
activities
|
|
(827)
|
|
|
|
(34,122)
|
|
Proceeds from sales
of assets
|
|
-
|
|
|
|
1,500
|
|
Purchases of
furniture, fixtures and other
|
|
(853)
|
|
|
|
(70)
|
|
Net cash used in
investing activities
|
|
(45,480)
|
|
|
|
(50,404)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Borrowings of
long-term debt - revolving bank credit facility
|
|
-
|
|
|
|
340,000
|
|
Repayments of
long-term debt - revolving bank credit facility
|
|
-
|
|
|
|
(192,000)
|
|
Payment of interest
on 1.5 Lien Term Loan
|
|
(4,113)
|
|
|
|
-
|
|
Payment of interest
on 2nd Lien PIK Toggle Notes
|
|
(7,335)
|
|
|
|
-
|
|
Payment of interest
on 3rd Lien PIK Toggle Notes
|
|
(6,201)
|
|
|
|
-
|
|
Other
|
|
(372)
|
|
|
|
83
|
|
Net cash provided by
(used in) financing activities
|
|
(18,021)
|
|
|
|
148,083
|
|
Increase in cash and
cash equivalents
|
|
2,084
|
|
|
|
86,410
|
|
Cash and cash
equivalents, beginning of period
|
|
70,236
|
|
|
|
85,414
|
|
Cash and cash
equivalents, end of period
|
$
|
72,320
|
|
|
$
|
171,824
|
|
W&T OFFSHORE, INC. AND
SUBSIDIARIES
Non-GAAP Information
Certain financial information included in our financial results
are not measures of financial performance recognized by accounting
principles generally accepted in the
United States, or GAAP. These non-GAAP financial
measures are "Net Income Excluding Special Items," "EBITDA" and
"Adjusted EBITDA." Our management uses these non-GAAP
financial measures in its analysis of our performance.
These disclosures may not be viewed as a substitute for results
determined in accordance with GAAP and are not necessarily
comparable to non-GAAP performance measures which may be reported
by other companies.
Reconciliation of Net Income (Loss) to Net
Income (Loss) Excluding Special Items
"Net Income (Loss) Excluding Special Items" does not include the
unrealized commodity derivative (gain) loss, default in payment by
joint interest partners, write-down of debt issue costs, ceiling
test write-down of oil and natural gas properties, gain on exchange
of debt, Apache lawsuit, East Cameron 321 settlement, civil
penalties, and associated income tax adjustments. Net Income
(Loss) Excluding Special Items is presented because the timing and
amount of these items cannot be reasonably estimated and affect the
comparability of operating results from period to period, and
current periods to prior periods.
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
33,315
|
|
|
$
|
(120,922)
|
|
|
$
|
57,614
|
|
|
$
|
(311,431)
|
|
Unrealized commodity
derivative (gain) loss
|
|
(2,194)
|
|
|
|
5,583
|
|
|
|
(5,436)
|
|
|
|
7,195
|
|
Default in payment by
joint interest partners
|
|
270
|
|
|
|
140
|
|
|
|
475
|
|
|
|
1,402
|
|
Write-down debt issue
costs
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,368
|
|
Ceiling test
write-down of oil and natural gas properties
|
|
-
|
|
|
|
104,592
|
|
|
|
-
|
|
|
|
221,151
|
|
Gain on exchange of
debt
|
|
(8,056)
|
|
|
|
-
|
|
|
|
(7,811)
|
|
|
|
-
|
|
Apache
lawsuit
|
|
6,285
|
|
|
|
-
|
|
|
|
6,285
|
|
|
|
-
|
|
EC 321
settlement
|
|
(1,109)
|
|
|
|
-
|
|
|
|
(1,109)
|
|
|
|
-
|
|
Civil
Penalties
|
|
1,289
|
|
|
|
-
|
|
|
|
1,820
|
|
|
|
-
|
|
Income tax
adjustment
|
|
1,297
|
|
|
|
(25,152)
|
|
|
|
2,328
|
|
|
|
(26,578)
|
|
Net income (loss)
excluding special items
|
$
|
31,097
|
|
|
$
|
(35,759)
|
|
|
$
|
54,166
|
|
|
$
|
(106,893)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
income (loss) per common share, excluding special items
|
$
|
0.22
|
|
|
$
|
(0.47)
|
|
|
$
|
0.38
|
|
|
$
|
(1.40)
|
|
W&T OFFSHORE, INC. AND
SUBSIDIARIES
Non-GAAP Information
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
We define EBITDA as net income (loss) plus income tax expense
(benefit), net interest expense, depreciation, depletion,
amortization, and accretion and ceiling test write-down of oil and
natural gas properties. Adjusted EBITDA excludes the unrealized
commodity derivative (gain) loss, default in payment by joint
interest partners, gain on exchange of debt, Apache lawsuit, East
Cameron 321 settlement, civil penalties, and write-down of debt
issue costs. We believe the presentation of EBITDA and
Adjusted EBITDA provides useful information regarding our ability
to service debt and to fund capital expenditures. We believe
this presentation is relevant and useful because it helps our
investors understand our operating performance and makes it easier
to compare our results with those of other companies that have
different financing, capital and tax structures. EBITDA and
Adjusted EBITDA should not be considered in isolation from or as a
substitute for net income (loss), as an indication of operating
performance or cash flows from operating activities or as a measure
of liquidity. EBITDA and Adjusted EBITDA, as we calculate
them, may not be comparable to EBITDA and Adjusted EBITDA measures
reported by other companies. In addition, EBITDA and Adjusted
EBITDA do not represent funds available for discretionary use.
Adjusted EBITDA margin represents the ratio of Adjusted EBITDA to
total revenues.
The following table presents a reconciliation of our net income
(loss) to EBITDA and Adjusted EBITDA along with our Adjusted EBITDA
margin.
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
33,315
|
|
|
$
|
(120,922)
|
|
|
$
|
57,614
|
|
|
$
|
(311,431)
|
|
Income tax expense
(benefit)
|
|
(8,975)
|
|
|
|
(35,722)
|
|
|
|
(16,563)
|
|
|
|
(40,604)
|
|
Net interest
expense
|
|
11,429
|
|
|
|
29,647
|
|
|
|
22,718
|
|
|
|
57,056
|
|
Depreciation,
depletion, amortization and accretion
|
|
40,364
|
|
|
|
57,493
|
|
|
|
80,354
|
|
|
|
121,226
|
|
Ceiling test
write-down of oil and natural gas properties
|
|
-
|
|
|
|
104,592
|
|
|
|
-
|
|
|
|
221,151
|
|
EBITDA
|
|
76,133
|
|
|
|
35,088
|
|
|
|
144,123
|
|
|
|
47,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized commodity
derivative (gain) loss
|
|
(2,194)
|
|
|
|
5,583
|
|
|
|
(5,436)
|
|
|
|
7,195
|
|
Default in payment by
joint interest partners
|
|
270
|
|
|
|
140
|
|
|
|
475
|
|
|
|
1,402
|
|
Gain on exchange of
debt
|
|
(8,056)
|
|
|
|
-
|
|
|
|
(7,811)
|
|
|
|
-
|
|
Apache
lawsuit
|
|
6,285
|
|
|
|
-
|
|
|
|
6,285
|
|
|
|
-
|
|
EC 321
settlement
|
|
(1,109)
|
|
|
|
-
|
|
|
|
(1,109)
|
|
|
|
-
|
|
Civil
Penalties
|
|
1,289
|
|
|
|
-
|
|
|
|
1,820
|
|
|
|
-
|
|
Write-down debt issue
costs
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,368
|
|
Adjusted
EBITDA
|
$
|
72,618
|
|
|
$
|
40,811
|
|
|
$
|
138,347
|
|
|
$
|
57,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
59%
|
|
|
|
41%
|
|
|
|
56%
|
|
|
|
32%
|
|
CONTACT:
|
Lisa
Elliott
|
Danny
Gibbons
|
|
Dennard Lascar
Associates
|
SVP &
CFO
|
|
lelliott@dennardlascar.com
|
investorrelations@wtoffshore.com
|
|
713-529-6600
|
713-624-7326
|
View original
content:http://www.prnewswire.com/news-releases/wt-offshore-announces-second-quarter-2017-operational-and-financial-results-300499480.html
SOURCE W&T Offshore, Inc.