W&T Offshore Provides Operational Update and Announces Timing of Third Quarter Earnings Reporting
October 18 2021 - 4:45PM
W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today provided an operational update and announced the timing of
its third quarter 2021 earnings release and conference call.
Operations Update
Relative to previously reported production for the second
quarter of 2021, approximately 80% of the Company’s production was
shut-in at one point as a result of Hurricane Ida. The majority of
the impacted production was brought back online throughout
September. As a result of this downtime, based on preliminary
estimates, net production for the third quarter is expected to
average between 34,200 and 35,100 barrels of oil equivalent per day
(“Boe/d”) (34% oil, 11% natural gas liquids, and 55% natural gas).
Production for the fourth quarter is expected to average between
34,800 and 38,500 Boe/d (33% oil, 11% natural gas liquids, and 56%
natural gas), which assumes the Big Bend and Dantzler wells are
returned to production by the end of October as expected. The
remaining hurricane-impacted production is expected to be online by
the end of 2021. Through October 16, 2021, W&T estimates that
it has averaged approximately 35,900 Boe/d net for the month of
October. Unplanned costs for minor repairs and restoring
production, as well as evacuating employees and contractors, were
incurred as a result of the hurricane. Due to these costs, less
than anticipated Office of Natural Resources Revenue (“ONRR”)
credits, and slight increases to components of base lease operating
expense (“LOE”), guidance for LOE is now expected to be between
$174 and $180 million for 2021.
Hurricane season in the Gulf of Mexico typically lasts until the
end of November and the commentary above does not contemplate any
potential impact for further storm activity in the fourth quarter
of 2021.
Tracy W. Krohn, W&T's Chairman and Chief Executive Officer,
commented, “Regarding Hurricane Ida, our assets and infrastructure
did not suffer significant damage during the hurricane. However,
this storm required a meaningful amount of production to be shut-in
and thus deferred by ourselves and our non-operated working
interest owners due to third party issues associated with
platforms, pipelines, refineries, and other onshore infrastructure.
Accordingly, we are adjusting our third quarter production guidance
today to reflect the impact of Hurricane Ida. It’s important to
remember that shutting in production in advance of storms is a
critical safety practice offshore operators undertake to keep
employees and contractors safe and to minimize the potential for
environmental incidents. While most of the Company’s impacted
production has been restored, we estimate that the storm resulted
in a temporary reduction of approximately 5,500 Boe/d net
production to W&T for the third quarter. Our expectation is
that the vast majority of the remaining shut-in production will be
returned online by year end. We have proven for nearly 40 years
that we know how to operate safely and profitably in the Gulf of
Mexico despite these severe weather events. We will continue to
focus on generating strong cash flow, operating efficiently, and
creating value for W&T shareholders.”
Third Quarter Earnings Release and Conference
Call
The Company is scheduled to issue its third quarter of 2021
earnings release on Tuesday, November 2, 2021, after the close of
trading. A conference call to discuss financial and operational
results is scheduled for Wednesday, November 3, 2021 at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time).
Interested parties may listen to the call via webcast at the
Company’s website at www.wtoffshore.com under “Investors.”
Alternatively, the call may be accessed by dialing 844-739-3797 for
domestic parties and 1-412-317-5713 for international parties;
phone participants are advised to call in 10 minutes in advance of
the call start time and request to be joined to the “W&T
Offshore, Inc. Conference Call.” An audio replay will be available
on the Company’s website following the call.
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 41 producing fields
in federal and state waters and has under lease approximately
622,000 gross acres, including approximately 435,000 gross acres on
the Gulf of Mexico Shelf and approximately 187,000 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.
Forward-Looking and Cautionary StatementsThis
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, estimates of the timing and impact of repairing and
restoring infrastructure hurricane damage, 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, the
continued impact of responses to COVID-19, uncertainties and other
factors discussed in W&T Offshore’s Annual Report on Form 10-K
for the year ended December 31, 2020 and subsequent Form 10-Q and
Form 8-K 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.
CONTACT: |
|
Al PetrieInvestor Relations
Coordinatorapetrie@wtoffshore.com713-297-8024 |
|
Brent CollinsDirector, Investor
Relationsinvestorrelations@wtoffshore.com713-624-7364 |
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