W&T Offshore Provides Operational and Financial Update
January 11 2021 - 4:45PM
W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today provided an operational and financial update regarding
several matters including the consolidation of its two Alabama
natural gas treatment facilities, the awarding of two blocks from
the November 2020 federal Gulf of Mexico (“GOM”) lease sale, the
semi-annual redetermination of the borrowing base under its
revolving credit facility, and new crude oil hedges added.
Consolidation of Alabama Natural Gas
Treatment FacilitiesW&T has substantially completed
the consolidation of its two onshore natural gas treatment
facilities that service the Mobile Bay area into the Onshore
Treating Facility (“OTF”) which was acquired in 2019 from
ExxonMobil. W&T is in the final stages of closing its
Yellowhammer Plant and expects all natural gas produced from its
Mobile Bay area assets will be treated in the OTF in late January.
The OTF has more than sufficient capacity to meet W&T’s current
and expected needs as it further develops its Mobile Bay and
regional natural gas assets in the future. The consolidation of the
facilities is expected to result in savings of approximately $5
million per year beginning in 2021.
GOM Lease Sale 256W&T was
the high bidder in the GOM Lease Sale 256 held by the Bureau of
Ocean Energy Management ("BOEM") on November 18, 2020 on two
shallow water blocks, Eugene Island South Addition block 389 and
Ewing Banks block 979. These two blocks cover a total of
approximately 8,800 acres. The Company was awarded the two blocks
in late 2020 and paid approximately $500,000 for the awarded leases
combined, which reflects a 100% working interest in the acreage.
The two shallow water blocks have a five-year lease term and 12.5%
royalty.
Borrowing Base
RedeterminationW&T’s bank group recently completed its
regularly scheduled semi-annual borrowing base
redetermination. The borrowing base was set by the bank group
at $190 million. Additional details on the amended credit
agreement will be included in a Form 8-K that will be filed
tomorrow with the SEC. The next regularly scheduled redetermination
is in the spring of 2021. At December 31, 2020, the Company had
$80.0 million in borrowings on its revolving credit facility and
$4.4 million of letters of credit outstanding, the same positions
as of September 30, 2020.
Hedging Update
W&T recently added WTI NYMEX crude oil
costless collars on 200 barrels of oil per day of production for
the period February 1, 2021 through December 31, 2021 with a floor
of $40.00 per barrel and a ceiling of $54.90 per barrel. A listing
of the Company’s current outstanding derivative positions is
included in the table below as well as in the Investor Relations
section of W&T’s web site under the “Financial Info” tab.
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W&T
OFFSHORE, INC. AND SUBSIDIARIES |
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Financial
Commodity Derivative Positions |
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As of
January 11, 2021 |
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Production Period |
|
Instrument |
|
Avg. Daily Volumes |
Weighted Avg Swap Price |
Weighted Avg Put Price |
Weighted Avg Call Price |
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Crude Oil - WTI NYMEX: |
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|
(bbls) |
(per Bbl) |
(per Bbl) |
(per Bbl) |
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Jan 2021 - Dec 2021 |
|
Swaps |
|
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1,000 |
$41.00 |
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Jan 2021 - Dec 2021 |
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Swaps |
|
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1,000 |
$42.05 |
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Jan 2021 - Dec 2021 |
|
Swaps |
|
|
1,000 |
$42.18 |
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|
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Jan 2021 - Dec 2021 |
|
Swaps |
|
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1,000 |
$43.00 |
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Jan 2022 - Feb 2022 |
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Swaps |
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1,000 |
$42.75 |
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Jan 2022 - Feb 2022 |
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Swaps |
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1,000 |
$42.80 |
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Jan 2022 - Feb 2022 |
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Swaps |
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1,000 |
$43.40 |
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Mar 2022 - May 2022 |
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Swaps |
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1,000 |
$41.90 |
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Mar 2022 - Mar 2022 |
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Swaps |
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1,076 |
$42.75 |
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Apr 2022 - Apr 2022 |
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Swaps |
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1,055 |
$42.75 |
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May 2022 - May 2022 |
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Swaps |
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1,000 |
$42.75 |
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Jan 2021 - Jan 2021 |
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Costless Collars |
2,895 |
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$35.00 |
$50.00 |
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Feb 2021 - Feb 2021 |
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Costless Collars |
3,340 |
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$35.00 |
$50.00 |
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Feb 2021 - Dec 2021 |
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Costless Collars |
200 |
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$40.00 |
$54.90 |
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Mar 2021 - Mar 2021 |
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Costless Collars |
2,382 |
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$35.00 |
$50.00 |
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Apr 2021 - Apr 2021 |
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Costless Collars |
2,362 |
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$35.00 |
$50.00 |
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May 2021 - May 2021 |
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Costless Collars |
1,944 |
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$35.00 |
$50.00 |
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Jun 2021 - Jun 2021 |
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Costless Collars |
1,924 |
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$35.00 |
$50.00 |
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Jul 2021 - Jul 2021 |
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Costless Collars |
1,525 |
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$35.00 |
$50.00 |
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Aug 2021 - Aug 2021 |
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Costless Collars |
1,346 |
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$35.00 |
$50.00 |
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Sep 2021 - Sep 2021 |
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Costless Collars |
1,350 |
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$35.00 |
$50.00 |
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Oct 2021 - Oct 2021 |
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Costless Collars |
1,012 |
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$35.00 |
$50.00 |
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Nov 2021 - Nov 2021 |
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Costless Collars |
948 |
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$35.00 |
$50.00 |
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Dec 2021 - Dec 2021 |
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Costless Collars |
625 |
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$35.00 |
$50.00 |
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Jan 2022 - Jan 2022 |
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Costless Collars |
1,473 |
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$35.00 |
$50.00 |
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Feb 2022 - Feb 2022 |
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Costless Collars |
1,790 |
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$35.00 |
$50.00 |
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Mar 2022 - May 2022 |
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Costless Collars |
1,000 |
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$35.00 |
$47.50 |
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Mar 2022 - May 2022 |
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Costless Collars |
1,000 |
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$35.00 |
$49.50 |
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Production Period |
|
Instrument |
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Avg. Daily Volumes |
Weighted Avg Swap Price |
Weighted Avg Put Price |
Weighted Avg Call Price |
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Natural Gas - Henry Hub NYMEX: |
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(MMBTU) |
(per MMBTU) |
(per MMBTU) |
(per MMBTU) |
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Jan 2021 - Dec 2022 |
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Calls (long) |
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40,000 |
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$3.00 |
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Jan 2021 - Dec 2022 |
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Costless Collars |
40,000 |
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$1.83 |
$3.00 |
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Jan 2021 - Dec 2021 |
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Costless Collars |
20,000 |
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$2.17 |
$3.00 |
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Jan 2021 - Dec 2021 |
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Swaps |
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10,000 |
$2.62 |
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Jan 2021 - Dec 2021 |
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Costless Collars |
10,000 |
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$2.20 |
$3.00 |
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Jan 2022 - Feb 2022 |
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Costless Collars |
30,000 |
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$2.20 |
$4.50 |
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Mar 2022 - May 2022 |
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Costless Collars |
10,000 |
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$2.25 |
$3.40 |
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Jan 2022 - Jan 2022 |
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Swaps |
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20,000 |
$2.79 |
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Feb 2022 - Feb 2022 |
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Swaps |
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30,000 |
$2.79 |
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Mar 2022 - Mar 2022 |
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Swaps |
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10,095 |
$2.69 |
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Apr 2022 - Apr 2022 |
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Swaps |
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11,571 |
$2.69 |
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May 2022 - May 2022 |
|
Swaps |
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|
10,000 |
$2.69 |
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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 50 producing fields
in federal and state waters and has under lease approximately
772,000 gross acres, including approximately 557,000 gross acres on
the Gulf of Mexico Shelf and approximately 215,000 gross acres in
the Gulf of Mexico deepwater. A majority of the Company’s daily
production is derived from wells it operates. For more information
on W&T, please visit the Company’s website at
www.wtoffshore.com.
CONTACT: Al
PetrieInvestor Relations
Coordinatorapetrie@wtoffshore.com713-297-8024
Janet YangEVP &
CFOinvestorrelations@wtoffshore.com713-624-7326
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