HOUSTON, Nov. 5 /PRNewswire-FirstCall/ -- W&T Offshore, Inc.
(NYSE:WTI) today provides financial and operational results for the
third quarter 2009. Some of the highlights for the third quarter
2009 include: -- Commenced production at GC 646 "Daniel Boone",
which started up on September 28, 2009 and is currently producing
at a gross daily rate of approximately 6,000 barrels of oil and
5,700 thousand cubic feet of natural gas per day, or 6,950 barrels
of oil equivalent per day. We have a 60% working interest --
Adjusted EBITDA increased 22% sequentially to $97.5 million from
$79.8 million in the second quarter of 2009 -- Through September
30, 2009, we have had a 73% success rate in our drilling program,
successfully drilling eight out of eleven wells, including six of
eight exploration wells and two of three development wells --
Production increased to 25.7 Bcfe, or a 29% increase over third
quarter 2008 and revised the mid-point of full year guidance upward
-- Oil and natural gas liquids production increased to 1.9 MMbbls
and represented 45% of third quarter volumes -- Hedged
approximately 20 Bcfe of 2010 production Tracy W. Krohn, Chairman
and Chief Executive Officer, commented, "As our production volumes
have grown with increasing percentages of oil and natural gas
liquids, we have seen our cash flows from operations rise. With the
commencement of production from our Daniel Boone project in late
September, we should be able to increase our oil production and
build our cash position for redeployment in new opportunities."
"Our plan is to remain disciplined in our approach as we evaluate
drilling opportunities from our Gulf of Mexico prospect inventory
and also continue to search for the right acquisition opportunities
both offshore and onshore," added Mr. Krohn. Revenues, Net
Income/Loss and EPS: Net loss for the third quarter of 2009 was
$1.3 million, or $0.02 per common share, on revenues of $167.0
million, compared to net income for the same quarter of 2008 of
$78.2 million, or $1.02 per share, on revenues of $289.8 million.
Net loss for the third quarter of 2009 reflects the impact of a
$2.1 million unrealized derivative loss ($1.5 million after-tax).
Without the effect of the unrealized derivative loss, net income
for the third quarter of 2009 would have been $0.2 million, or
$0.00 per share. Net income for the third quarter of 2008 included
an unrealized derivative gain of $27.3 million ($18.2 million
after-tax). Without the effect of the unrealized derivative gain,
net income for the third quarter of 2008 would have been $60.0
million, or $0.79 per share. The net loss in the third quarter is
principally due to a lower average realized price of $6.30 per
thousand cubic feet equivalent ("Mcfe"), versus $14.57 per Mcfe
(unhedged) during the same period in 2008, partially offset by a
29% increase in production volumes over the third quarter of 2008.
Net loss for the nine months ended September 30, 2009 was $238.0
million, or $3.17 per common share, on revenues of $434.9 million,
compared to net income of $292.6 million, or $3.83 per share, on
revenues of $1.1 billion for the first nine months of 2008. The
nine months ended September 30, 2009 includes a $205.0 million
ceiling test impairment, which was recorded in the first quarter of
2009. Without the effect of the loss on extinguishment of debt and
the unrealized derivative loss, net loss for the nine month period
would have been $56.7 million, or $0.75 per share. The
year-over-year decreases in revenue and net income are attributable
to lower oil and natural gas prices as well as a decrease in sales
volumes. The sales volume decreases for oil and natural gas are
primarily attributable to the deferral of production caused by
Hurricanes Gustav and Ike beginning in August 2008, the sale of one
of our fields in Louisiana state waters and natural reservoir
declines. See "Non-GAAP Information" later in this press release.
Cash Flow from Operating Activities and Adjusted EBITDA: EBITDA and
Adjusted EBITDA are non-GAAP measures and are hereinafter defined
in "Non-GAAP Information" later in this press release. Net cash
provided by operating activities for the three months ended
September 30, 2009 decreased 91% to $45.5 million from $492.3
million for the three months ended September 30, 2008. The decrease
was mainly a result of lower realized prices and changes in working
capital. For the nine months ended September 30, 2009, net cash
provided by operating activities decreased 91% to $91.9 million
from $1.0 billion for the comparable period in 2008. The decrease
was mainly a result of lower realized prices, lower production
volumes and increased working capital. Third quarter 2009 Adjusted
EBITDA was $97.5 million compared to $208.4 million during third
quarter 2008. Adjusted EBITDA was $228.4 million for the nine
months ended September 30, 2009, compared to $861.7 million for the
comparable period in 2008. Production and Prices: We sold 14.0
billion cubic feet ("Bcf") of natural gas at an average realized
price of $3.08 per thousand cubic feet ("Mcf") in the third quarter
of 2009. We also sold 1.9 million barrels ("MMBbls") of oil and
natural gas liquids at an average realized price of $61.09 per
barrel ("Bbl") during the same period. For the third quarter of
2008, we sold 10.9 Bcf of natural gas at an average realized price
of $10.60 per Mcf and 1.5 MMBbls of oil and natural gas liquids at
an average realized price of $116.54 per Bbl. On a natural gas
equivalent ("Bcfe") basis, we sold 25.7 Bcfe at an average realized
price of $6.30 per Mcfe in the third quarter of 2009 compared to
19.9 Bcfe sold at an average realized price of $14.57 per Mcfe in
the third quarter of 2008. The third quarter 2008 volumes were
adversely affected by Hurricanes Gustav and Ike. For the nine
months ended September 30, 2009, our natural gas production totaled
39.9 Bcf and was sold at an average realized price of $3.98 per
Mcf, while our oil and natural gas liquids production totaled 5.3
MMBbls, which was sold at an average realized price of $50.82 per
Bbl. On a combined basis, our production was 71.9 Bcfe sold at an
average realized price of $5.98 per Mcfe. For the comparable 2008
period, we produced 45.6 Bcf of natural gas that was sold at an
average realized price of $10.21 per Mcf and 6.0 MMBbls of oil and
natural gas liquids production sold at an average realized price of
$106.71 per Bbl. On a combined basis, our production was 81.7 Bcfe
sold at an average realized price of $13.56 per Mcfe. Lease
Operating Expenses: On a nominal basis, LOE for the third quarter
of 2009 increased to $53.8 million, or $2.10 per Mcfe, from $52.4
million, or $2.64 per Mcfe, in the third quarter of 2008. The
increase of $1.4 million is attributable to increases in insurance
costs of $3.1 million and workovers of $3.5 million, offset by a
decrease in base lease operating expenses of $3.0 million and
facility expenditures of $4.4 million. Also included in lease
operating expenses for the third quarter of 2009 are $4.0 million
of hurricane remediation costs related to Hurricanes Ike and Gustav
that were either not yet approved by our insurance underwriters for
reimbursement or were not covered by insurance. Included in lease
operating expenses for the 2008 period are $1.8 million of
hurricane remediation costs related to Hurricanes Ike and Gustav
that were not covered by insurance. Lease operating expenses will
be offset in future periods to the extent these costs are recovered
under our insurance policies. Due to higher production volumes in
the third quarter of 2009, LOE per Mcfe was lower compared to the
same period of 2008. Production in the third quarter of 2008 was
adversely affected by Hurricanes Ike and Gustav. On a nominal
basis, LOE for the nine months ended September 30, 2009 increased
to $158.1 million, or $2.20 per Mcfe, compared to $156.6 million,
or $1.92 per Mcfe for the same period in 2008. LOE for the first
nine months of 2009 included $19.3 million in hurricane remediation
costs versus $1.8 million in hurricane remediation costs during the
same time frame in 2008. Excluding this, LOE was lower in the 2009
period by 10% due to a decrease in base lease operating expenses
and lower facilities expenses. The decrease in base lease operating
expenses primarily reflects modifications in operations, lower
overall service and supply costs and the sale of one of our fields
in Louisiana state waters in 2009. Depreciation, depletion,
amortization and accretion: DD&A decreased to $88.1 million, or
$3.43 per Mcfe, in the third quarter of 2009 from $113.9 million,
or $5.73 per Mcfe, in the third quarter of 2008. DD&A decreased
primarily as a result of a lower depreciable base (due to
impairment charges at December 31, 2008 and March 31, 2009 of $1.2
billion and $205 million, respectively) and a reduction of our
asset retirement obligations, partially offset by higher production
volumes. DD&A for the nine months ended September 30, 2009 was
$264.2 million, or $3.68 per Mcfe, compared to DD&A of $413.2
million, or $5.06 per Mcfe, for the same period in 2008. Liquidity
and Capital Expenditures: Our cash balance at September 30, 2009
was $107.3 million and we had $262.3 million of undrawn capacity
under our revolving credit facility. We just completed the
semi-annual redetermination of our borrowing base, and it has been
reaffirmed at $405.5 million. For the three months ended September
30, 2009, our capital expenditures for oil and natural gas
properties were $36.3 million consisting of $9.5 million for
exploration activities, $22.9 million for development activities
and $3.9 million for seismic, capitalized interest and other
leasehold costs. Our exploration and development capital
expenditures consisted of $22.9 million on the conventional shelf
and other projects, $8.2 million in the deepwater and $1.3 million
on the deep shelf. For the first nine months of 2009, our capital
expenditures for oil and natural gas properties were $276.0
million, including $89.7 million for exploration activities, $167.1
million for development activities and $19.2 million for seismic,
capitalized interest and other leasehold costs. Our development and
exploration capital expenditures consisted of $216.2 million on the
conventional shelf and other projects, $39.0 million in the
deepwater and $1.6 million on the deep shelf. Our capital
expenditures have been funded from cash on hand and cash provided
by operations. On October 29, 2009, we closed on the sale of 36
non-core oil and natural gas fields to a third party producer,
subject to the terms of the purchase and sale agreement. The sale
was effective August 1, 2009. Production from these fields
represented approximately 9% of our total October production.
Drilling Highlights: In the third quarter of 2009, the Company
drilled one successful development well on the conventional shelf.
Commercial Wells Lease Name/Well Category Working Interest % South
Timbalier 316 A-6 Development/Shelf 67% After the close of the
third quarter, the Company drilled one successful exploration well
in the marshlands of South Louisiana, in which we have a 50%
working interest. Outlook: Guidance for the fourth quarter and full
year 2009 is shown in the table below, which represents the
Company's best estimate of likely future results, and is affected
by the factors described below in "Forward-Looking Statements."
Fourth Quarter and Full-Year 2009 Production and Revised Cost
Guidance: Estimated Production Fourth Prior Revised Quarter
Full-Year Full-Year 2009 2009 2009 Crude oil (MMBbls) 1.7 - 2.1 6.5
- 8.4 7.0 - 7.4 Natural gas (Bcf) 11.8 - 14.5 43.6 - 56.1 51.8 -
54.4 Total (Bcfe) 21.9 - 26.8 82.8 - 106.4 93.8 - 98.7 Operating
Expenses ($in millions, except as noted) Fourth Prior Revised
Quarter Full-Year Full-Year 2009 2009 2009 Lease operating expenses
$45 - $56 $205 - $235 $185 - $195 Gathering, transportation &
production taxes $4 - $5 $20 - $24 $16 - $17 General and
administrative $10 - $12 $45 - $48 $42 - $45 Income tax rate 0% 14%
No change Conference Call Information: W&T will hold a
conference call to discuss financial and operational results on
Thursday, November 5, 2009 at 10:00 a.m. Eastern Time / 9:00 a.m.
Central Time. To participate, dial (480) 629-9786 at least ten
minutes before the call begins. The call will also be broadcast
live over the Internet from the Company's website at
http://www.wtoffshore.com/. A replay of the conference call will be
available approximately two hours after the end of the call until
Thursday, November 12, 2009, and may be accessed by calling (303)
590-3030 and using the pass code 4173824. About W&T Offshore
W&T Offshore is an independent oil and natural gas company
focused primarily in the Gulf of Mexico, including exploration in
the deepwater and deep shelf regions, where it has developed
significant technical expertise. W&T has grown through
acquisition, exploitation and exploration and held working
interests in over 147 fields, at June 30, 2009, in federal and
state waters and a majority of its daily production is derived from
wells it operates. For more information on W&T Offshore, please
visit its Web site at http://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 and
Section 21E of the Securities Exchange Act of 1934. 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 our Annual Report on 10-K for the year ended
December 31, 2008 (http://www.sec.gov/). Contacts: Manuel
Mondragon, Vice President of Finance Janet Yang, Finance Manager
713-297-8024 Ken Dennard / Lisa Elliott / DRG&E / 713-529-6600
W&T OFFSHORE, INC. AND SUBSIDIARIES Condensed Consolidated
Statements of Income (Loss) (Unaudited) Three Months Ended Nine
Months Ended September 30, September 30, --------------
---------------- 2009 2008 2009 2008 ---- ---- ---- ---- (In
thousands, except per share data) Revenues $167,042 $289,793
$434,896 $1,107,303 -------- -------- -------- ---------- Operating
costs and expenses: Lease operating expenses 53,820 52,403 158,131
156,554 Gathering, transportation costs and production taxes 4,224
6,207 11,864 22,953 Depreciation, depletion and amortization 80,139
104,201 235,442 384,078 Asset retirement obligation accretion 7,934
9,671 28,761 29,117 Impairment of oil and natural gas properties -
- 205,030 - General and administrative expenses 9,758 10,657 31,925
34,294 Derivative loss (gain) 3,845 (15,174) 4,697 20,897 -----
------- ----- ------ Total costs and expenses 159,720 167,965
675,850 647,893 ------- ------- ------- ------- Operating income
(loss) 7,322 121,828 (240,954) 459,410 Interest expense: Incurred
11,096 13,371 35,345 40,210 Capitalized (1,874) (4,605) (5,378)
(15,040) Loss on extinguishment of debt - - 2,926 - Other income 39
4,140 762 9,271 -- ----- --- ----- Income (loss) before income tax
expense (benefit) (1,861) 117,202 (273,085) 443,511 Income tax
expense (benefit) (539) 39,021 (35,052) 150,914 ---- ------ -------
------- Net income (loss) $(1,322) $78,181 $(238,033) $292,597
======= ======= ========= ======== Basic and diluted earnings
(loss) per common share (1) $(0.02) $1.02 $(3.17) $3.83 Weighted
average common shares outstanding 74,659 75,913 75,089 75,909
Consolidated Cash Flow Information Net cash provided by operating
activities $45,458 $492,297 $91,871 $1,040,259 Capital
expenditures-oil and natural gas properties 36,281 222,468 275,965
621,624 Other Financial Information EBITDA $95,395 $235,700
$225,353 $872,605 Adjusted EBITDA 97,508 208,372 228,373 861,672
(1) Earnings per share data for the three and nine months ended
September 30, 2008 has been calculated and restated retrospectively
for comparability to the 2009 presentation, which resulted in a
decrease of $0.01 from the amount previously reported as basic and
diluted earnings per common share for the three months ended
September 30, 2008 and a decrease of $0.02 from the amount
previously reported as basic and diluted earnings per common share
for the nine months ended September 30, 2008. W&T OFFSHORE,
INC. AND SUBSIDIARIES Condensed Operating Data (Unaudited) Three
Months Nine Months Ended Ended September 30, September 30,
------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ----
Net sales: Natural gas (MMcf) 14,019 10,923 39,924 45,587 Oil
(MBbls) 1,941 1,493 5,326 6,012 Total natural gas and oil (MBoe)
(1) 4,277 3,313 11,981 13,610 Total natural gas and oil (MMcfe) (2)
25,663 19,880 71,883 81,659 Average daily equivalent sales (MBoe/d)
46.5 36.0 43.9 49.7 Average daily equivalent sales (MMcfe/d) 278.9
216.1 263.3 298.0 Average realized sales prices (Unhedged): Natural
gas ($/Mcf) $3.08 $10.60 $3.98 $10.21 Oil ($/Bbl) 61.09 116.54
50.82 106.71 Barrel of oil equivalent ($/Boe) 37.82 87.44 35.86
81.34 Natural gas equivalent ($/Mcfe) 6.30 14.57 5.98 13.56 Average
realized sales prices (Hedged): (3) Natural gas ($/Mcf) $3.08
$10.60 $3.98 $10.21 Oil ($/Bbl) 61.09 109.01 50.82 101.75 Barrel of
oil equivalent ($/Boe) 37.82 84.05 35.86 79.15 Natural gas
equivalent ($/Mcfe) 6.30 14.01 5.98 13.19 Average per Boe ($/Boe):
Lease operating expenses $12.58 $15.82 $13.20 $11.50 Gathering and
transportation costs and production taxes 0.99 1.87 0.99 1.69
Depreciation, depletion, amortization and accretion 20.59 34.37
22.05 30.36 General and administrative expenses 2.28 3.22 2.66 2.52
Net cash provided by operating activities 10.63 148.58 7.67 76.43
Adjusted EBITDA 22.80 62.89 19.06 63.31 Average per Mcfe ($/Mcfe):
Lease operating expenses $2.10 $2.64 $2.20 $1.92 Gathering and
transportation costs and production taxes 0.16 0.31 0.17 0.28
Depreciation, depletion, amortization and accretion 3.43 5.73 3.68
5.06 General and administrative expenses 0.38 0.54 0.44 0.42 Net
cash provided by operating activities 1.77 24.76 1.28 12.74
Adjusted EBITDA 3.80 10.48 3.18 10.55 (1) One million barrels of
oil equivalent (MMBoe), one thousand barrels of oil equivalent
(Mboe) and one barrel of oil equivalent (Boe) are determined using
the ratio of one Bbl of crude oil, condensate or natural gas
liquids to six Mcf of natural gas (totals may not add due to
rounding). (2) One billion cubic feet equivalent (Bcfe), one
million cubic feet equivalent (MMcfe) and one thousand cubic feet
equivalent (Mcfe) are determined using the ratio of six Mcf of
natural gas to one Bbl of crude oil, condensate or natural gas
liquids (totals may not add due to rounding). (3) Data for 2008
includes the effects of our commodity derivative contracts that did
not qualify for hedge accounting. W&T OFFSHORE, INC. AND
SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)
September 30, December 31, ------------- ------------ 2009 2008
---- ---- (In thousands, except share data) Assets Current assets:
Cash and cash equivalents $107,346 $357,552 Receivables: Oil and
natural gas sales 55,454 36,550 Joint interest and other 54,689
83,178 Insurance 43,478 2,040 Income taxes 51,432 34,077 ------
------ Total receivables 205,053 155,845 Prepaid expenses and other
assets 41,632 30,417 ------ ------ Total current assets 354,031
543,814 Property and equipment - at cost: Oil and natural gas
properties and equipment (full cost method, of which $99,818 at
September 30, 2009 and $99,139 at December 31, 2008 were excluded
from amortization) 4,822,128 4,684,730 Furniture, fixtures and
other 15,019 14,370 ------ ------ Total property and equipment
4,837,147 4,699,100 Less accumulated depreciation, depletion and
amortization 3,666,506 3,217,759 --------- --------- Net property
and equipment 1,170,641 1,481,341 Restricted deposits for asset
retirement obligations 24,138 24,138 Deferred income taxes 8,362 -
Other assets 7,598 6,893 ----- ----- Total assets $1,564,770
$2,056,186 ========== ========== Liabilities and Shareholders'
Equity Current liabilities: Current maturities of long-term debt $-
$3,000 Accounts payable 159,084 228,899 Undistributed oil and
natural gas proceeds 29,299 29,716 Asset retirement obligations
98,393 67,007 Accrued liabilities 23,884 18,254 Deferred income
taxes 8,430 - ----- --- Total current liabilities 319,090 346,876
Long-term debt, less current maturities - net of discount 592,500
650,172 Asset retirement obligations, less current portion 323,744
480,890 Other liabilities 3,214 6,021 Commitments and contingencies
Shareholders' equity: Common stock, $0.00001 par value; 118,330,000
shares authorized; 77,798,637 issued and 76,369,151 outstanding at
September 30, 2009; 76,291,408 issued and outstanding at December
31, 2008 1 1 Additional paid-in capital 375,766 372,595 Retained
earnings (accumulated deficit) (40,048) 200,274 Treasury stock, at
cost (9,247) - Accumulated other comprehensive loss (250) (643)
---- ---- Total shareholders' equity 326,222 572,227 -------
------- Total liabilities and shareholders' equity $1,564,770
$2,056,186 ========== ========== W&T OFFSHORE, INC. AND
SUBSIDIARIES Condensed Consolidated Statements of Cash Flows
(Unaudited) Nine Months Ended September 30, --------------- 2009
2008 ---- ---- (In thousands) Operating activities: Net income
(loss) $(238,033) $292,597 Adjustments to reconcile net income
(loss) to net cash provided by operating activities: Depreciation,
depletion, amortization and accretion 267,303 413,195 Impairment of
oil and natural gas properties 205,030 - Amortization of debt
issuance costs and discount on indebtedness 1,503 2,032 Loss on
extinguishment of debt 2,817 - Share-based compensation related to
restricted stock issuances 4,835 4,563 Unrealized derivative loss
(gain) 94 (10,933) Deferred income taxes (142) 64,248 Changes in
operating assets and liabilities (152,146) 274,052 Other 610 505
--- --- Net cash provided by operating activities 91,871 1,040,259
------ --------- Investing activities: Acquisition of property
interest - (116,551) Investment in oil and natural gas properties
and equipment (275,965) (505,073) Proceeds from sale of oil and
natural gas properties and equipment 8,368 - Proceeds from
insurance 5,174 - Purchases of furniture, fixtures and other (649)
(3,833) ---- ------ Net cash used in investing activities (263,072)
(625,457) -------- -------- Financing activities: Borrowings of
long-term debt 205,441 - Repayments of long-term debt (268,441)
(2,250) Dividends to shareholders (6,872) (39,159) Repurchases of
common stock (9,247) - Other 114 (2,132) --- ------ Net cash used
in financing activities (79,005) (43,541) ------- ------- Increase
(decrease) in cash and cash equivalents (250,206) 371,261 Cash and
cash equivalents, beginning of period 357,552 314,050 -------
------- Cash and cash equivalents, end of period $107,346 $685,311
======== ======== 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 "Adjusted Net Income,"
"EBITDA," and "Adjusted EBITDA." Our management uses these non-GAAP
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 to Adjusted Net Income "Adjusted Net
Income" does not include the unrealized derivative (gain) loss, the
impairment of oil and natural gas properties, loss on
extinguishment of debt, and associated tax effects. Adjusted Net
Income is presented because the timing and amount of the derivative
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,
September 30, ------------- -------------- 2009 2008 2009 2008 ----
---- ---- ---- (In thousands, except per share amounts) (Unaudited)
Net income (loss) $(1,322) $78,181 $(238,033) $292,597 Unrealized
derivative loss (gain) 2,113 (27,328) 94 (10,933) Impairment of oil
and natural gas properties - - 205,030 - Loss on extinguishment of
debt - - 2,926 - Income tax adjustment for above items (612) 9,099
(26,705) 3,720 ---- ----- ------- ----- Adjusted net income (loss)
$179 $59,952 $(56,688) $285,384 ==== ======= ======== ========
Adjusted basic and diluted earnings (loss) per common share (1)
$0.00 $0.79 $(0.75) $3.74 ===== ===== ====== ===== (1) Earnings per
share data for the three and nine months ended September 30, 2008
has been calculated and restated for comparability to the 2009
presentation. Reconciliation of Net Income to Adjusted EBITDA We
define EBITDA as net income (loss) plus income tax expense
(benefit), net interest expense, depreciation, depletion,
amortization and accretion and impairment of oil and natural gas
properties. Adjusted EBITDA excludes the loss on extinguishment of
debt and the unrealized gain or loss related to our derivative
contracts. Although not prescribed under generally accepted
accounting principles, we believe the presentation of EBITDA and
Adjusted EBITDA provide useful information regarding our ability to
service debt and to fund capital expenditures and help our
investors understand our operating performance and make 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, 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. The following
table presents a reconciliation of our consolidated net income to
consolidated EBITDA and Adjusted EBITDA. Three Months Ended Nine
Months Ended September 30, September 30, --------------
-------------- 2009 2008 2009 2008 ---- ---- ---- ---- (In
thousands) (Unaudited) Net income (loss) $(1,322) $78,181
$(238,033) $292,597 Income tax expense (benefit) (539) 39,021
(35,052) 150,914 Net interest expense 9,183 4,626 29,205 15,899
Depreciation, depletion, amortization and accretion 88,073 113,872
264,203 413,195 Impairment of oil and natural gas properties - -
205,030 - --- --- ------- --- EBITDA 95,395 235,700 225,353 872,605
Adjustments: Loss on extinguishment of debt - - 2,926 - Unrealized
derivative loss (gain) 2,113 (27,328) 94 (10,933) ----- ------- ---
------- Adjusted EBITDA $97,508 $208,372 $228,373 $861,672 =======
======== ======== ======== DATASOURCE: W&T Offshore, Inc.
CONTACT: Manuel Mondragon, Vice President of Finance, or Janet
Yang, Finance Manager, both of W&T Offshore, Inc.,
+1-713-297-8024, ; or Ken Dennard, , or Lisa Elliott, , both of
DRG&E, +1-713-529-6600, for W&T Offshore, Inc. Web Site:
http://www.wtoffshore.com/
Copyright