W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”)
today reported operational and financial results for the third
quarter 2021. The Company also announced it had entered into
amendments of its Sixth Amended and Restated Credit Agreement (the
“Credit Agreement”) to replace its current bank group with a new
lender under a revised revolving credit facility.
Key highlights included:
- Produced 34.8
thousand barrels of oil equivalent per day (“MBoe/d”), or 3.2
million Boe (46% liquids), in the third quarter of 2021, despite
deferred production of approximately 5.5 MBoe/d (3.4 MBbl/d of oil,
0.4 MBbl/d of NGLs, and 10.3 MMcf/d of natural gas) due to
hurricane downtime;
- Reported net
loss of $38.0 million or $0.27 per share and Adjusted Net Income1
of $0.1 million or $0.00 per share in the third quarter of
2021;
- Generated
Adjusted EBITDA1 of $45.3 million for the third quarter of 2021,
and $152.6 million for the first nine months of 2021;
- Reported net
cash provided by operating activities of $65.1 million in the third
quarter of 2021, and $111.3 million for the first nine months of
2021;
- Entered into
amendments of its Credit Agreement to replace its current
commercial bank lenders with a new lender and establish a $100
million first priority lien secured revolving facility (“RBL”) with
a borrowing base of $50 million provided by Calculus Lending, LLC,
an affiliated company of Tracy W. Krohn, Chairman and Chief
Executive Officer;
- Finalizing
completion operations on the Cota well at East Cameron 338/349
which is expected to be on-line before year-end 2021; and
- Drilling
continues on the high potential Flex Trend exploratory well at
Mississippi Canyon.
Tracy W. Krohn, W&T's Chairman and Chief
Executive Officer, stated, “Despite an active hurricane season and
deferred production caused by Hurricane Ida, we are pleased with
the strong operational and financial results that we delivered in
the third quarter. We continued to generate strong Adjusted EBITDA
with $45.3 million in the third quarter and $152.6 million in the
first nine months of 2021. The improved commodity price environment
and our commitment to expanding margins allowed us to further build
our cash position to $257.6 million. As a reminder, during the
first quarter of this year, we paid down $32 million of our RBL out
of cash flow. In the second quarter we completed a financial
transaction that meaningfully improved our financial flexibility by
more efficiently utilizing the collateral value of our Mobile Bay
assets, allowing us to pay off our then existing RBL balance of $48
million, and added significant cash to the balance sheet. This
transaction allowed us to take advantage of the long-lived nature
of our Mobile Bay assets. Importantly, our strong cash position of
over $250 million provides us the dry powder to pursue accretive
acquisition opportunities that have been a hallmark of W&T’s
success through the years. We believe that market conditions in the
Gulf of Mexico remain very favorable for accretive
acquisitions.”
Krohn continued, “The changes in the Credit
Agreement announced today enhance our financial flexibility at a
time when most traditional RBL lenders are offering less flexible
and more onerous commercial terms. Given the Company’s current cash
position, zero RBL debt, and the fact that the Company has not
utilized its RBL for some time, we concluded that now was an
appropriate time to step away from that market. The Calculus
Lending facility provides us ‘opportunistic liquidity’ beyond our
current cash balance. The terms and covenants associated with the
amended facility are consistent with or better than other
comparable facilities evaluated by W&T.”
“Operationally, we are close to having our Cota
well online and drilling is proceeding at our high potential
exploratory well at Mississippi Canyon. We are considering drilling
several more exploratory wells in our 2022 drilling program, which
we expect to announce around the end of the first quarter next
year. The combination of our strong balance sheet, inventory of
high quality drilling and workover projects, and track record of
making successful acquisitions position W&T to continue to
deliver on our strategic vision,” concluded Mr. Krohn.
Financial Summary: For the
third quarter of 2021, W&T reported a net loss of $38.0
million, or $0.27 per share. After primarily excluding a $43.1
million unrealized commodity derivative loss and $5.8 million
non-cash tax benefit, the Company’s Adjusted Net Income was $0.1
million, or $0.00 per share. In the third quarter of 2020, W&T
reported a net loss of $13.3 million, or $0.09 per share and an
Adjusted Net Loss of $19.9 million, or $0.14 per share, primarily
excluding a $21.2 million non-cash tax benefit and a $13.1 million
unrealized commodity derivative loss. In the second quarter of
2021, net loss was $51.7 million, or $0.36 per share, which
included a $66.1 million unrealized commodity derivative loss and
$12.8 million non-cash tax benefit. For that same period, Adjusted
Net Income was $2.2 million or $0.02 per share.
Adjusted EBITDA for the third quarter of 2021
totaled $45.3 million, a decrease of 9% compared to $49.8 million
in the second quarter of 2021 primarily as a result of deferred
production volumes due to Hurricane Ida and higher realized
derivative losses. Third quarter 2021 Adjusted EBITDA increased
133% from $19.5 million in the third quarter of 2020 primarily due
to higher commodity prices, partially offset by realized derivative
losses recorded during the third quarter of 2021.
Free Cash Flow2 for the third quarter of 2021
totaled $7.6 million compared to $5.9 million in the third quarter
of 2020, and $18.7 million in the second quarter of 2021. The
decrease compared to the second quarter is primarily driven by
increased drilling capital expenditures, increased interest
expense, and other factors that similarly affected Adjusted EBITDA
as previously described.
Production, Prices and
Revenues: Production for the third quarter of 2021 was
34.8 MBoe/d, or 3.2 MMBoe, and was comprised of 1.1 million barrels
(“MMBbls”) of oil, 0.4 MMBbls of natural gas liquids (“NGLs”) and
10.5 billion cubic feet (“Bcf”) of natural gas. Liquids production
comprised 46% of total production in the third quarter of 2021.
Production for the third quarter of 2021 was reduced by
approximately 5.5 MBoe/d as a result of deferred production related
to Hurricane Ida, with approximately 80% of the Company’s
production shut-in at one point due to the storm. The majority of
the impacted production was brought back online during September.
The remaining hurricane-impacted production is expected to be
online by the end of 2021. Production in the third quarter of 2021
was down compared to 40.9 MBoe/d in the second quarter of 2021 and
up slightly versus 34.5 Boe/d in the third quarter of 2020, which
was adversely impacted by storm activity and price-related
production curtailments.
For the third quarter of 2021, W&T’s average
realized crude oil sales price was $68.57 per barrel, average
realized NGLs sales price was $32.46 per barrel and average
realized natural gas sales price was $4.31 per Mcf. The Company’s
combined average realized sales price for the third quarter of 2021
was $41.05 per Boe, which was an increase of 18% compared with
$34.75 per Boe that was realized in the second quarter of 2021 and
an increase of 85% compared to $22.16 per Boe in the third quarter
of 2020.
Revenues for the third quarter of 2021 of $133.9
million were up slightly compared to $132.8 million in the second
quarter of 2021, and increased by 85% compared to $72.5 million in
the third quarter of 2020. The quarter-over-quarter increase was
driven primarily by increased realized commodity prices and offset
by lower production. The year-over-year increase was
driven by significantly improved commodity prices, despite nearly
flat production.
Lease Operating Expenses
(“LOE”): LOE, which includes base lease operating expenses
and insurance premiums, plus workovers and facilities maintenance,
was $39.5 million in the third quarter of 2021. This amount
reflects the delay of certain facility-related expenses that were
postponed until the fourth quarter of 2021 due to Hurricane Ida.
LOE was $47.6 million in the second quarter of 2021 and $36.4
million in the third quarter of 2020. On a component basis for the
third quarter of 2021, base lease operating expenses plus insurance
premiums were $35.0 million, workovers were $0.3 million and
facilities maintenance and repairs expenses were $4.2 million. On a
unit of production basis, LOE was $12.32 per Boe in the third
quarter of 2021, down 4% from $12.78 per Boe in the second quarter
of 2021, and up 7% from $11.49 per Boe in the third quarter of
2020.
Gathering, Transportation Costs and
Production Taxes: Gathering, transportation costs and
production taxes totaled $6.6 million, or $2.06 per Boe in the
third quarter of 2021, compared to $6.8 million, or $1.82 per Boe
in the second quarter of 2021, and $4.8 million, or $1.52 per Boe
in the third quarter of 2020. Production taxes increased primarily
due to higher realized natural gas prices.
Depreciation, Depletion, Amortization
and Accretion (“DD&A”): DD&A, including accretion
for asset retirement obligations, was $8.20 per Boe of production
for the third quarter of 2021 compared to $8.32 per Boe for the
second quarter of 2021 and $7.93 per Boe for the third quarter of
2020.
General and Administrative Expenses
(“G&A”): G&A was $13.4 million for the
third quarter of 2021, compared to $14.0 million in the second
quarter of 2021 and $14.5 million for the third quarter of 2020.
G&A cost was down slightly quarter-over-quarter due to higher
COPAS credits and year-over-year due to lower office rent and lower
legal expenses, partially offset by higher compensation costs in
2021. On a unit of production basis, G&A was $4.18 per Boe in
the third quarter of 2021, $3.76 per Boe in the second quarter of
2021, and $4.57 per Boe in the third quarter of 2020.
Derivative (Gain) Loss: In the
third quarter of 2021, W&T recorded a net derivative loss of
$73.1 million, of which $43.1 million was an unrealized commodity
derivative loss. This compared to a net derivative loss of $81.4
million in the second quarter of 2021, of which $66.1 million was
an unrealized commodity derivative loss, and a net derivative loss
of $11.2 million in the third quarter of 2020, of which $13.1
million was an unrealized commodity derivative loss. During the
second and third quarters of 2021, the Company paid $32.4 million
in cash premiums to purchase put and collar options related to the
Mobile Bay transaction. “Synthetic long puts” were structured using
purchased calls and sold swaps through the first quarter of 2025
and put options were purchased thereafter through May 2028 to
establish floor prices and cover scheduled debt service payments
while retaining the potential upside of higher natural gas prices
longer term. The cost of the premiums will be amortized over the
life of the options. Subsequent to quarter end, the Company
unwound certain natural gas collar contracts covering 30,000 MMBTU
per day in November and December of 2021 with weighted-average
floor and ceiling prices of $2.18 and $3.00 per MMBTU,
respectively, for a cost of $5.2 million.
A summary of the Company’s current outstanding
derivative positions is provided on W&T’s web site in the
“Investors” section under the “Financial Info” tab.
Interest Expense: Interest
expense, net as reported in the income statement, in the third
quarter of 2021 was $18.9 million compared with $16.5 million in
the second quarter of 2021 and $14.1 million in the third quarter
of 2020. The increase in interest expense in the third quarter of
2021 was related to interest on the $215 million Mobile Bay first
lien secured term loan that closed in May 2021.
Income Tax: W&T recorded an
income tax benefit of $5.9 million in the third quarter of 2021
compared to an income tax benefit of $12.7 million in the second
quarter of 2021 and an income tax benefit of $21.1 million in the
third quarter of 2020. For the three months ended September 30,
2021, W&T’s income tax benefit primarily differed from the
statutory Federal tax rate as a result of adjustments to the
valuation allowance on certain deferred tax assets. For the three
months ended September 30, 2020, the Company’s effective tax rate
primarily differed from the statutory Federal tax rate for
adjustments recorded related to the enactment of the Coronavirus
Aid, Relief and Economic Security Act (“CARES Act”) on March 27,
2020. W&T’s effective tax rate was 13.5% for the three
months ended September 30, 2021 and was not meaningful for the
three months ended September 30, 2020.
As of September 30, 2021, W&T’s deferred tax
valuation allowance was $24.1 million. The Company continually
evaluates the need to maintain a valuation allowance on its
deferred tax assets. Any future reduction of a portion or all of
the valuation allowance would result in a non-cash income tax
benefit in the period the decision occurs. W&T is not currently
forecasting any cash income tax expense for the near-term.
Balance Sheet, Cash Flow and
Liquidity: Net cash provided by operating activities for
the three months ended September 30, 2021 was $65.1 million and
$111.3 million for the first nine months of 2021.
At quarter end, cash and cash equivalents
totaled $257.6 million and total debt is $742.4 million (or $484.8
million, net of cash and cash equivalents), consisting of the
balance of the non-recourse Mobile Bay term loan of $195.4 million
and $547.0 million of 9.75% Senior Second Lien Notes Due 2023, net
of amortized debt issuance costs for both instruments. W&T is
currently in compliance with all applicable covenants of the Credit
Agreement and the Senior Secured Second Lien Notes indenture. There
were no outstanding borrowings under the RBL facility at quarter
end and subsequent to quarter end the existing RBL facility was
amended as discussed in more detail below.
The amendments to the Credit Agreement announced
today result in a termination of the Company’s current RBL
relationship with commercial bank lenders who have traditionally
provided the credit facility and establishes a $100 million first
priority lien secured revolving facility with borrowing base of $50
million with a term that expires on April 30, 2022 provided by
Calculus Lending, LLC, an affiliated company of Mr. Krohn. Any
outstanding borrowings will accrue interest at LIBOR plus 6.0%. The
amendments include revised financial covenants, including tests for
net first lien debt to EBITDA, asset coverage, and current ratio.
Certain fees commensurate with bank lending fees will be payable to
the new lender. A committee of the independent members of the Board
of Directors reviewed and approved the amendments given Mr. Krohn’s
affiliation with Calculus Lending, LLC. Certain existing commodity
derivative contracts not associated with the secured debt
transaction have also been novated to a new counterparty at the
same terms as a result of the amendments to the Credit
Agreement.
More detailed information about these amendments
and our revised secured revolving credit facility will be included
in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021 expected to be filed with the Securities and
Exchange Commission on November 3, 2021.
Capital Expenditures: Per the
Statement of Cash Flows, capital expenditures, excluding changes in
working capital associated with investing activities, were $10.2
million in the third quarter of 2021, and $16.0 million for the
nine months ended September 30, 2021. As previously disclosed,
W&T’s 2021 estimated capital budget of $30 million to $60
million (excluding potential acquisitions) is weighted toward the
second half of 2021. The Company also expended $8.5 million in ARO
settlement costs during the third quarter of 2021, and $19.7
million for the nine months ended September 30, 2021.
Environmental, Social and Governance
(“ESG”) Commentary
W&T issued its 2020 initial corporate ESG
report in March 2021 and has since engaged in outreach with its
large shareholders and ESG rating agencies to discuss its 2020
report for feedback and to begin data gathering for next year’s
report. The 2020 report has an in-depth review of W&T’s ESG
initiatives as well as related key performance indicators. In the
creation of its inaugural report, the Company consulted the
Sustainability Accounting Standards Board’s (“SASB”) Oil and Gas
Exploration and Production Sustainability Accounting Standard, the
recommendations of the Task Force on Climate-related Financial
Disclosures (“TCFD”), and other reporting guidance from industry
frameworks and standards.
Several recent ESG initiatives undertaken by
W&T include:
- Reduced GHG emissions through the
consolidation of its two Mobile Bay treating facilities into one
plant in early 2021;
- Increased diversity of its officers
and board members such that 50% are now women/minorities; and
- Implemented changes in employee and
executive compensation via its annual bonus program that now ties
ESG performance to stated goals.
The result of W&T’s ongoing commitment and
focus on ESG has been recognition from a key rating agency that
upgraded its ESG rating for W&T to the top third when compared
to oil and gas producers.
Operations Update
The platform and pipeline for the Cota well at
East Cameron 338/349 have been installed and completion operations
are continuing. The well is expected to be completed in the fourth
quarter of 2021 with initial production expected late in the fourth
quarter once the well is tied-in to supporting infrastructure. The
well, which was drilled in 2020, is in over 290 feet of water and
was drilled to a total depth of over 6,000 feet and encountered
approximately 100 feet of net oil pay. The Company has an initial
30% working interest in the Cota well, but the interest will
increase to 38.4% once the well is brought online and certain
performance thresholds are met.
Drilling continues on a high potential but
relatively lower risk exploratory well that was spud in early
August 2021 located in the “Flex Trend” area on Mississippi Canyon,
where W&T has had significant experience and success.
Furthermore, assuming success, it could de-risk additional drilling
opportunities that W&T has in the area. This prospect was
identified using high-quality 3D seismic and reprocessing and has
multiple objectives located beneath a salt overhang. This high
potential oil play ties directly to analogous fields in the area
and has significant upside. W&T has a 25% working interest in
the well.
Well Recompletions and
Workovers: During the third quarter of 2021, the Company
performed two workovers that had initial production rates totaling
approximately 1,075 net Boe/d. In addition, W&T performed one
recompletion that had an initial production rate of approximately
400 net Boe/d. W&T currently plans to continue to perform
recompletions and workovers that meet economic thresholds.
Fourth Quarter 2021 Production and
Expense Guidance
The guidance for the fourth quarter of 2021 in
the table below represents the Company's current best estimate of
the range of likely future results. Guidance could be affected by
the factors described below in "Forward-Looking Statements".
Production |
Fourth Quarter 2021 |
|
|
|
Oil (MMBbls) |
1.06 - 1.17 |
|
|
|
NGLs (MMBbls) |
.35 - .39 |
|
|
|
Natural Gas (Bcf) |
10.76 - 11.90 |
|
|
|
Total (MMBoe) |
3.20 - 3.54 |
|
|
|
Total (MBoe/d) |
34.8 - 38.5 |
|
|
|
Operating Expenses |
|
Fourth Quarter 2021 |
($ in millions) |
|
|
|
|
Lease operating expenses |
|
$44.6 - $50.6 |
|
|
|
Gathering, transportation & production taxes |
|
$6.8 - $7.6 |
|
|
|
General and administrative |
|
$13.6 - $15.0 |
|
|
|
Current income tax expense rate |
|
0% |
|
|
|
CONFERENCE CALL INFORMATION
W&T will hold a conference call to discuss
its financial and operational results on Wednesday November 3,
2021, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).
Interested parties may participate by dialing (844) 739-3797.
International parties may dial (412) 317-5713. Participants should
request to connect to the “W&T Offshore Conference Call.” This
call will also be webcast and available on W&T’s website at
www.wtoffshore.com under “Investors”. 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
611,000 gross acres, including approximately 424,000 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
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, uncertainties of the
timing and impact of bringing new wells online and repairing and
restoring infrastructure hurricane damage, 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, 2020 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. We refer to feet of “pay” in our discussions
concerning the evaluation of our recently drilled wells. This
refers to geological indications, typically obtained from well
logging, of the estimated thickness of sands which we believe are
capable of producing hydrocarbons in commercial quantities. These
indications of “pay” may not necessarily forecast the amount of
future production or reserve quantities from the well, which can be
dependent upon numerous other factors.
_________________________________
1 Adjusted Net Income (Loss) and Adjusted EBITDA
are non-GAAP financial measures, which are described in more detail
and reconciled to the most comparable GAAP measures in the tables
below under “Non-GAAP Information.”
2 Free Cash Flow is a non-GAAP financial
measure, which is described in more detail and reconciled to the
most comparable GAAP measures in the tables below under “Non-GAAP
Information.”
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Consolidated Statements of Operations |
(In
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil |
|
$ |
74,265 |
|
|
88,013 |
|
|
46,589 |
|
|
$ |
240,418 |
|
|
$ |
161,884 |
|
NGLs |
|
|
12,205 |
|
|
8,833 |
|
|
4,464 |
|
|
|
30,397 |
|
|
|
12,833 |
|
Natural gas |
|
|
45,137 |
|
|
32,470 |
|
|
19,213 |
|
|
|
113,816 |
|
|
|
69,877 |
|
Other |
|
|
2,339 |
|
|
3,512 |
|
|
2,251 |
|
|
|
7,790 |
|
|
|
7,292 |
|
Total revenues |
|
|
133,946 |
|
|
132,828 |
|
|
72,517 |
|
|
|
392,421 |
|
|
|
251,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
39,490 |
|
|
47,552 |
|
|
36,437 |
|
|
|
129,399 |
|
|
|
119,525 |
|
Gathering, transportation costs and production taxes |
|
|
6,593 |
|
|
6,780 |
|
|
4,826 |
|
|
|
19,687 |
|
|
|
15,635 |
|
Depreciation, depletion, amortization and accretion |
|
|
26,291 |
|
|
30,952 |
|
|
25,127 |
|
|
|
83,879 |
|
|
|
93,736 |
|
General and administrative expenses |
|
|
13,391 |
|
|
13,986 |
|
|
14,476 |
|
|
|
38,090 |
|
|
|
34,067 |
|
Derivative loss (gain) |
|
|
73,137 |
|
|
81,440 |
|
|
11,161 |
|
|
|
179,156 |
|
|
|
(35,337 |
) |
Total costs and expenses |
|
|
158,902 |
|
|
180,710 |
|
|
92,027 |
|
|
|
450,211 |
|
|
|
227,626 |
|
Operating (loss) income |
|
|
(24,956 |
) |
|
(47,882 |
) |
|
(19,510 |
) |
|
|
(57,790 |
) |
|
|
24,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
18,910 |
|
|
16,530 |
|
|
14,135 |
|
|
|
50,474 |
|
|
|
46,061 |
|
Gain on debt
transactions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(47,469 |
) |
Other
expense, net |
|
|
- |
|
|
- |
|
|
751 |
|
|
|
964 |
|
|
|
2,225 |
|
(Loss) income before income taxes |
|
|
(43,866 |
) |
|
(64,412 |
) |
|
(34,396 |
) |
|
|
(109,228 |
) |
|
|
23,443 |
|
Income tax
benefit |
|
|
(5,902 |
) |
|
(12,740 |
) |
|
(21,057 |
) |
|
|
(18,846 |
) |
|
|
(23,294 |
) |
Net (loss) income |
|
$ |
(37,964 |
) |
|
(51,672 |
) |
|
(13,339 |
) |
|
$ |
(90,382 |
) |
|
$ |
46,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted (loss) earnings per common share |
|
$ |
(0.27 |
) |
|
(0.36 |
) |
|
(0.09 |
) |
|
$ |
(0.64 |
) |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
142,297 |
|
|
142,244 |
|
|
141,624 |
|
|
|
142,231 |
|
|
|
141,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Operating Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
Net sales
volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
|
1,083 |
|
|
1,352 |
|
|
1,115 |
|
|
|
3,812 |
|
|
4,356 |
NGL (MBbls) |
|
|
376 |
|
|
337 |
|
|
407 |
|
|
|
1,105 |
|
|
1,312 |
Oil and NGLs (MBbls) |
|
|
1,459 |
|
|
1,689 |
|
|
1,521 |
|
|
|
4,917 |
|
|
5,667 |
Natural gas (MMcf) |
|
|
10,481 |
|
|
12,189 |
|
|
9,897 |
|
|
|
33,469 |
|
|
37,210 |
Total oil and natural gas (MBoe) (1) |
|
|
3,206 |
|
|
3,721 |
|
|
3,170 |
|
|
|
10,495 |
|
|
11,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
daily equivalent sales (MBoe/d) |
|
|
34.8 |
|
|
40.9 |
|
|
34.5 |
|
|
|
38.4 |
|
|
43.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
realized sales prices: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
|
$ |
68.57 |
|
$ |
65.11 |
|
$ |
41.81 |
|
|
$ |
63.07 |
|
$ |
37.17 |
NGLs ($/Bbl) |
|
|
32.46 |
|
|
26.18 |
|
|
10.99 |
|
|
|
27.51 |
|
|
9.78 |
Oil and NGLs ($/Bbl) |
|
|
59.27 |
|
|
57.33 |
|
|
33.57 |
|
|
|
55.08 |
|
|
30.83 |
Natural gas ($/Mcf) |
|
|
4.31 |
|
|
2.66 |
|
|
1.94 |
|
|
|
3.40 |
|
|
1.88 |
Barrel of oil equivalent ($/Boe) |
|
|
41.05 |
|
|
34.75 |
|
|
22.16 |
|
|
|
36.65 |
|
|
20.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
costs and expenses per Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
$ |
12.32 |
|
$ |
12.78 |
|
$ |
11.49 |
|
|
$ |
12.33 |
|
$ |
10.07 |
Gathering, transportation costs and production taxes |
|
|
2.06 |
|
|
1.82 |
|
|
1.52 |
|
|
|
1.87 |
|
|
1.32 |
Depreciation, depletion, amortization and accretion |
|
|
8.20 |
|
|
8.32 |
|
|
7.93 |
|
|
|
7.99 |
|
|
7.90 |
General and administrative expenses |
|
|
4.18 |
|
|
3.76 |
|
|
4.57 |
|
|
|
3.63 |
|
|
2.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) MBoe is 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.
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Consolidated Balance Sheets |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
September
30, |
|
|
December
31, |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
257,584 |
|
|
|
$ |
43,726 |
|
Receivables: |
|
|
|
|
|
|
|
Oil and natural gas sales |
|
|
38,326 |
|
|
|
|
38,830 |
|
Joint interest, net |
|
|
13,012 |
|
|
|
|
10,840 |
|
Income taxes |
|
|
20 |
|
|
|
|
- |
|
Total receivables |
|
|
51,358 |
|
|
|
|
49,670 |
|
Prepaid expenses and other assets |
|
|
73,642 |
|
|
|
|
13,832 |
|
Total current assets |
|
|
382,584 |
|
|
|
|
107,228 |
|
|
|
|
|
|
|
|
|
Oil and natural gas properties and other, net - at cost |
|
|
8,621,925 |
|
|
|
|
8,588,356 |
|
Less accumulated depreciation, depletion, amortization and
impairment |
|
|
7,967,989 |
|
|
|
|
7,901,478 |
|
Oil and natural gas properties and other, net |
|
|
653,936 |
|
|
|
|
686,878 |
|
Restricted deposits for asset retirement obligations |
|
|
29,873 |
|
|
|
|
29,675 |
|
Deferred income taxes |
|
|
113,177 |
|
|
|
|
94,331 |
|
Other assets |
|
|
63,776 |
|
|
|
|
22,470 |
|
Total assets |
|
$ |
1,243,346 |
|
|
|
$ |
940,582 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Deficit |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
61,476 |
|
|
|
$ |
41,304 |
|
Undistributed oil and natural gas proceeds |
|
|
30,759 |
|
|
|
|
19,167 |
|
Advances from joint interest partners |
|
|
17,306 |
|
|
|
|
7,308 |
|
Asset retirement obligations |
|
|
27,545 |
|
|
|
|
17,188 |
|
Accrued liabilities |
|
|
196,486 |
|
|
|
|
30,033 |
|
Current portion of long-term debt |
|
|
46,201 |
|
|
|
|
- |
|
Total current liabilities |
|
|
379,773 |
|
|
|
|
115,000 |
|
|
|
|
|
|
|
|
|
Long-term
debt, net |
|
|
696,171 |
|
|
|
|
625,286 |
|
Asset
retirement obligations, less current portion |
|
|
380,329 |
|
|
|
|
375,516 |
|
Other
liabilities |
|
|
83,962 |
|
|
|
|
33,066 |
|
Shareholders’ deficit: |
|
|
|
|
|
|
|
Common stock, $0.00001 par value; 200,000 shares authorized;
145,236 issued and 142,367 |
|
|
|
|
|
|
|
outstanding at September 30, 2021; 145,174 issued and 142,305
outstanding at December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
|
1 |
|
Additional paid-in capital |
|
|
552,118 |
|
|
|
|
550,339 |
|
Retained deficit |
|
|
(824,841 |
) |
|
|
|
(734,459 |
) |
Treasury stock, at cost; 2,869 shares for both dates presented |
|
|
(24,167 |
) |
|
|
|
(24,167 |
) |
Total shareholders’ deficit |
|
|
(296,889 |
) |
|
|
|
(208,286 |
) |
Total liabilities and shareholders’ deficit |
|
$ |
1,243,346 |
|
|
|
$ |
940,582 |
|
|
|
|
|
|
|
|
|
W&T
OFFSHORE, INC. AND SUBSIDIARIES |
Condensed
Consolidated Statements of Cash Flows |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
September 30, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
|
$ |
(37,964 |
) |
|
$ |
(51,672 |
) |
|
$ |
(13,339 |
) |
|
$ |
(90,382 |
) |
$ |
46,737 |
|
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
26,292 |
|
|
|
30,952 |
|
|
|
25,127 |
|
|
|
83,879 |
|
|
93,736 |
|
Amortization of debt items and other items |
|
|
1,128 |
|
|
|
948 |
|
|
|
1,569 |
|
|
|
4,095 |
|
|
5,251 |
|
Share-based compensation |
|
|
859 |
|
|
|
466 |
|
|
|
1,075 |
|
|
|
1,779 |
|
|
3,142 |
|
Derivative loss (gain) |
|
|
73,137 |
|
|
|
81,440 |
|
|
|
11,161 |
|
|
|
179,156 |
|
|
(35,337 |
) |
Derivative cash settlements receipts (payments), net |
|
|
(24,000 |
) |
|
|
(10,950 |
) |
|
|
4,462 |
|
|
|
(39,554 |
) |
|
42,028 |
|
Derivative cash premium (payments) |
|
|
(6,793 |
) |
|
|
(25,575 |
) |
|
|
- |
|
|
|
(32,368 |
) |
|
- |
|
Gain on debt transactions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(47,469 |
) |
Deferred income taxes |
|
|
(5,820 |
) |
|
|
(12,802 |
) |
|
|
(21,200 |
) |
|
|
(18,826 |
) |
|
(23,407 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas receivables |
|
|
11,894 |
|
|
|
(289 |
) |
|
|
975 |
|
|
|
504 |
|
|
35,959 |
|
Joint interest receivables |
|
|
(1,262 |
) |
|
|
3,484 |
|
|
|
4,296 |
|
|
|
(2,172 |
) |
|
9,039 |
|
Prepaid expenses and other assets |
|
|
(12,868 |
) |
|
|
(10,030 |
) |
|
|
4,446 |
|
|
|
(30,473 |
) |
|
7,951 |
|
Income tax |
|
|
(61 |
) |
|
|
(92 |
) |
|
|
(15 |
) |
|
|
(153 |
) |
|
1,993 |
|
Asset retirement obligation settlements |
|
|
(8,531 |
) |
|
|
(10,251 |
) |
|
|
(624 |
) |
|
|
(19,744 |
) |
|
(2,788 |
) |
Cash advances from JV partners |
|
|
13,924 |
|
|
|
(2,902 |
) |
|
|
(3,408 |
) |
|
|
9,999 |
|
|
2,442 |
|
Accounts payable, accrued liabilities and other |
|
|
35,162 |
|
|
|
8,503 |
|
|
|
6,735 |
|
|
|
65,551 |
|
|
(24,539 |
) |
Net cash provided by operating activities |
|
|
65,097 |
|
|
|
1,230 |
|
|
|
21,260 |
|
|
|
111,291 |
|
|
114,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in oil and natural gas properties and equipment |
|
|
(10,169 |
) |
|
|
(4,281 |
) |
|
|
1,184 |
|
|
|
(16,025 |
) |
|
(12,954 |
) |
Changes in operating assets and liabilities associated with
investing activities |
|
6,695 |
|
|
|
(1,320 |
) |
|
|
(2,418 |
) |
|
|
3,617 |
|
|
(28,229 |
) |
Acquisition
of property interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(456 |
) |
Purchases of
furniture, fixtures and other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
(70 |
) |
Net cash used in investing activities |
|
|
(3,474 |
) |
|
|
(5,601 |
) |
|
|
(1,234 |
) |
|
|
(12,406 |
) |
|
(41,709 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
on credit facility |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
25,000 |
|
Repayments
on credit facility |
|
|
- |
|
|
|
(48,000 |
) |
|
|
- |
|
|
|
(80,000 |
) |
|
(50,000 |
) |
Purchase of
Senior Second Lien Notes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(23,930 |
) |
Proceeds
from Term Loan |
|
|
- |
|
|
|
215,000 |
|
|
|
- |
|
|
|
215,000 |
|
|
- |
|
Repayments
on Term Loan |
|
|
(11,778 |
) |
|
|
- |
|
|
|
- |
|
|
|
(11,778 |
) |
|
- |
|
Debt
issuance costs and other |
|
|
(1,409 |
) |
|
|
(6,840 |
) |
|
|
- |
|
|
|
(8,249 |
) |
|
- |
|
Net cash (used in) provided by financing activities |
|
|
(13,187 |
) |
|
|
160,160 |
|
|
|
- |
|
|
|
114,973 |
|
|
(48,930 |
) |
Increase in cash and cash equivalents |
|
|
48,436 |
|
|
|
155,789 |
|
|
|
20,026 |
|
|
|
213,858 |
|
|
24,099 |
|
Cash and
cash equivalents, beginning of period |
|
|
209,148 |
|
|
|
53,359 |
|
|
|
36,506 |
|
|
|
43,726 |
|
|
32,433 |
|
Cash and
cash equivalents, end of period |
|
$ |
257,584 |
|
|
$ |
209,148 |
|
|
$ |
56,532 |
|
|
$ |
257,584 |
|
$ |
56,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND
SUBSIDIARIESNon-GAAP Information
Certain financial information included in
W&T’s 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 “Adjusted Net (Loss) Income”, “Adjusted EBITDA” and “Free Cash
Flow”. Management uses these non-GAAP financial measures in its
analysis of 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 (Loss) Income to
Adjusted Net (Loss) Income
Adjusted Net (Loss) Income does not include the
unrealized commodity derivative loss (gain), amortization of
derivative premium, bad debt reserve, deferred tax benefit, gain on
debt transactions, and litigation and other. Adjusted Net Income 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 |
|
Nine Months
Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
(In
thousands, except per share amounts) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(37,964 |
) |
|
(51,672 |
) |
|
(13,339 |
) |
|
$ |
(90,382 |
) |
|
|
$ |
46,737 |
|
Unrealized
commodity derivative loss (gain) |
|
|
43,111 |
|
|
66,083 |
|
|
13,112 |
|
|
|
125,529 |
|
|
|
|
(1,416 |
) |
Amortization
of derivative premium |
|
|
805 |
|
|
583 |
|
|
1,483 |
|
|
|
1,845 |
|
|
|
|
9,239 |
|
Bad debt
reserve |
|
|
1 |
|
|
8 |
|
|
(1 |
) |
|
|
9 |
|
|
|
|
82 |
|
Deferred tax
(benefit) expense |
|
|
(5,820 |
) |
|
(12,802 |
) |
|
(21,170 |
) |
|
|
(18,826 |
) |
|
|
|
(23,407 |
) |
Gain on debt
transactions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
(47,469 |
) |
Litigation
and other |
|
|
- |
|
|
40 |
|
|
- |
|
|
|
80 |
|
|
|
|
- |
|
Adjusted Net
Income (Loss) |
|
$ |
133 |
|
|
2,240 |
|
|
(19,915 |
) |
|
$ |
18,255 |
|
|
|
$ |
(16,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted adjusted (loss) earnings per common share |
|
$ |
- |
|
|
0.02 |
|
|
(0.14 |
) |
|
$ |
0.13 |
|
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding |
|
|
142,297 |
|
|
142,244 |
|
|
141,624 |
|
|
|
142,231 |
|
|
|
|
141,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W&T OFFSHORE, INC. AND
SUBSIDIARIESNon-GAAP Information
Adjusted EBITDA/ Free Cash Flow
Reconciliations
The Company also presents the non-GAAP financial
measures Adjusted EBITDA and Free Cash Flow. The Company defines
Adjusted EBITDA as net (loss) income plus income tax (benefit)
expense, net interest expense, and depreciation, depletion,
amortization and accretion, excluding the unrealized commodity
derivative gain or loss, amortization of derivative premium, bad
debt reserve, gain on debt transactions, and litigation and other.
Company management believes this presentation is relevant and
useful because it helps investors understand W&T’s operating
performance and makes it easier to compare its results with those
of other companies that have different financing, capital and tax
structures. Adjusted EBITDA should not be considered in isolation
from or as a substitute for net income, as an indication of
operating performance or cash flows from operating activities or as
a measure of liquidity. Adjusted EBITDA, as W&T calculates it,
may not be comparable to Adjusted EBITDA measures reported by other
companies. In addition, Adjusted EBITDA does not represent funds
available for discretionary use.
The Company defines Free Cash Flow as Adjusted
EBITDA (defined above), less capital expenditures, plugging and
abandonment costs and interest expense (all on an accrual basis).
For this purpose, the Company’s definition of capital expenditures
includes costs incurred related to oil and natural gas properties
(such as drilling and infrastructure costs and the lease
maintenance costs) and equipment, furniture and fixtures, but
excludes acquisition costs of oil and gas properties from third
parties that are not included in the Company’s capital expenditures
guidance provided to investors. Company management believes that
Free Cash Flow is an important financial performance measure for
use in evaluating the performance and efficiency of its current
operating activities after the impact of accrued capital
expenditures, plugging and abandonment costs and interest expense
and without being impacted by items such as changes associated with
working capital, which can vary substantially from one period to
another. There is no commonly accepted definition of Free Cash Flow
within the industry. Accordingly, Free Cash Flow, as defined and
calculated by the Company, may not be comparable to Free Cash Flow
or other similarly named non-GAAP measures reported by other
companies. While the Company includes interest expense in the
calculation of Free Cash Flow, other mandatory debt service
requirements of future payments of principal at maturity (if such
debt is not refinanced) are excluded from the calculation of Free
Cash Flow. These and other non-discretionary expenditures that are
not deducted from Free Cash Flow would reduce cash available for
other uses.
The following tables present (i) a
reconciliation of cash flow from operating activities, a GAAP
measure, to Free Cash Flow, as defined by the Company and (ii) a
reconciliation of the Company’s net (loss) income, a GAAP measure,
to Adjusted EBITDA and Free Cash Flow, as such terms are defined by
the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
|
|
(In
thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(37,964 |
) |
|
(51,672 |
) |
|
(13,339 |
) |
|
$ |
(90,382 |
) |
|
|
$ |
46,737 |
|
Interest
expense, net |
|
|
18,910 |
|
|
16,530 |
|
|
14,135 |
|
|
|
50,474 |
|
|
|
|
46,061 |
|
Income tax
benefit |
|
|
(5,902 |
) |
|
(12,740 |
) |
|
(21,057 |
) |
|
|
(18,846 |
) |
|
|
|
(23,294 |
) |
Depreciation, depletion, amortization and accretion |
|
|
26,291 |
|
|
30,952 |
|
|
25,127 |
|
|
|
83,879 |
|
|
|
|
93,736 |
|
Unrealized
commodity derivative loss (gain) |
|
|
43,111 |
|
|
66,083 |
|
|
13,112 |
|
|
|
125,529 |
|
|
|
|
(1,416 |
) |
Amortization
of derivative premium |
|
|
805 |
|
|
583 |
|
|
1,483 |
|
|
|
1,845 |
|
|
|
|
9,239 |
|
Bad debt
reserve |
|
|
1 |
|
|
8 |
|
|
(1 |
) |
|
|
9 |
|
|
|
|
82 |
|
Gain on debt
transactions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
(47,469 |
) |
Litigation
and other |
|
|
- |
|
|
40 |
|
|
- |
|
|
|
80 |
|
|
|
|
- |
|
Adjusted
EBITDA |
|
$ |
45,252 |
|
|
49,784 |
|
|
19,460 |
|
|
$ |
152,588 |
|
|
|
$ |
123,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in oil and natural gas properties and equipment |
|
|
(10,169 |
) |
|
(4,281 |
) |
|
1,184 |
|
|
|
(16,025 |
) |
|
|
|
(12,954 |
) |
Purchases of
furniture, fixtures and other |
|
|
- |
|
|
- |
|
|
- |
|
|
|
2 |
|
|
|
|
(70 |
) |
Asset
retirement obligation settlements |
|
|
(8,531 |
) |
|
(10,251 |
) |
|
(624 |
) |
|
|
(19,744 |
) |
|
|
|
(2,788 |
) |
Interest
expense, net |
|
|
(18,910 |
) |
|
(16,530 |
) |
|
(14,135 |
) |
|
|
(50,474 |
) |
|
|
|
(46,061 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
$ |
7,642 |
|
|
18,722 |
|
|
5,885 |
|
|
$ |
66,347 |
|
|
|
$ |
61,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
September 30, |
|
September 30, |
|
|
2021 |
|
2021 |
|
2020 |
|
|
2021 |
|
2020 |
|
|
(In thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
65,097 |
|
$ |
1,230 |
|
$ |
21,260 |
|
|
$ |
111,291 |
|
$ |
114,738 |
|
Bad debt
reserve |
|
1 |
|
|
8 |
|
|
(1 |
) |
|
|
9 |
|
|
82 |
|
Litigation
and other |
|
- |
|
|
40 |
|
|
- |
|
|
|
80 |
|
|
- |
|
Amortization
of debt items and other items |
|
(1,128 |
) |
|
(948 |
) |
|
(1,569 |
) |
|
|
(4,095 |
) |
|
(5,251 |
) |
Share-based
compensation |
|
(859 |
) |
|
(466 |
) |
|
(1,075 |
) |
|
|
(1,779 |
) |
|
(3,142 |
) |
Current tax
benefit (expense) (1) |
|
(82 |
) |
|
62 |
|
|
143 |
|
|
|
(20 |
) |
|
113 |
|
Changes in
derivatives receivable (payable) (1) |
|
1,571 |
|
|
21,751 |
|
|
(1,028 |
) |
|
|
20,140 |
|
|
1,132 |
|
Changes in
operating assets and liabilities, excluding asset retirement
obligation settlements |
|
(46,789 |
) |
|
1,326 |
|
|
(13,029 |
) |
|
|
(43,256 |
) |
|
(32,845 |
) |
Investment
in oil and natural gas properties and equipment |
|
(10,169 |
) |
|
(4,281 |
) |
|
1,184 |
|
|
|
(16,025 |
) |
|
(12,954 |
) |
Purchases of
furniture, fixtures and other |
|
- |
|
|
- |
|
|
- |
|
|
|
2 |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
$ |
7,642 |
|
$ |
18,722 |
|
$ |
5,885 |
|
|
$ |
66,347 |
|
$ |
61,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) A reconciliation of the adjustment used to calculate Free Cash
Flow to the Condensed Consolidated Financial Statements is included
below: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax
benefit: |
|
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense |
$ |
(5,902 |
) |
$ |
(12,740 |
) |
$ |
(21,057 |
) |
|
$ |
(18,846 |
) |
$ |
(23,294 |
) |
Less:
Deferred income taxes |
|
(5,820 |
) |
|
(12,802 |
) |
|
(21,200 |
) |
|
|
(18,826 |
) |
|
(23,407 |
) |
Current tax
benefit (expense) |
$ |
(82 |
) |
$ |
62 |
|
$ |
143 |
|
|
$ |
(20 |
) |
$ |
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
derivatives receivable: |
|
|
|
|
|
|
|
|
|
|
|
Derivatives
receivable (payable), end of period |
$ |
(12,511 |
) |
$ |
(7,289 |
) |
$ |
1,477 |
|
|
$ |
(12,511 |
) |
$ |
1,477 |
|
Derivatives
receivable (payable), beginning of period |
|
7,289 |
|
|
3,465 |
|
|
(2,505 |
) |
|
|
282 |
|
|
(345 |
) |
Derivative
premiums paid |
|
6,793 |
|
|
25,575 |
|
|
- |
|
|
|
32,369 |
|
|
- |
|
Change in
derivatives receivable (payable) |
$ |
1,571 |
|
$ |
21,751 |
|
$ |
(1,028 |
) |
|
$ |
20,140 |
|
$ |
1,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
W and T Offshore (NYSE:WTI)
Historical Stock Chart
From Mar 2024 to Apr 2024
W and T Offshore (NYSE:WTI)
Historical Stock Chart
From Apr 2023 to Apr 2024