W&T Offshore this week announced operational and financial results for the second quarter of 2025, declared a third quarter 2025 dividend of $0.01 per share and celebrated 20 years as a public company on the NYSE by ringing the closing bell.

Key highlights for the second quarter of 2025 and through the date of this press release include:

• Increased production by 10% over the first quarter of 2025 to 33.5 thousand barrels of oil equivalent per day (“MBoe/d”) (49% liquids), within guidance;
• The potential revenue benefit from higher volumes in the second quarter of 2025 versus the first quarter of 2025 was offset by lower prices, which reduced quarter-over-quarter revenues from the sale of oil, natural gas liquids (“NGLs”) and natural gas by $8.1 million;
• Performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter;
• Five of the nine workovers were performed in Mobile Bay, W&T’s largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset;
• Incurred lease operating expenses (“LOE”) of $76.9 million, within guidance;
• Reported net loss of $20.9 million, or $(0.14) per diluted share, an improvement from a net loss of $30.6 million, or $(0.21) per diluted share, in the first quarter of 2025;
• Adjusted Net Loss totaled $11.8 million, or $(0.08) per diluted share (compared to $19.1 million, or $(0.13) per diluted share in the first quarter of 2025), which primarily excludes the net unrealized gain on outstanding derivative contracts and non-ARO plugging and abandonment costs and the related tax effects;
• Non-ARO plugging and abandonment costs relate to the Company’s assumption of the decommissioning obligations of certain counterparties in past divestiture transactions or third parties in existing leases that have filed for bankruptcy protection or undergone associated reorganizations and may not be able to perform required abandonment obligations;
• Grew Adjusted EBITDA by 9% over the first quarter of 2025 to $35.2 million;
• Generated net cash flow from operating activities of $28.0 million and produced Free Cash Flow of $3.6 million;
• Reported unrestricted cash and cash equivalents of $120.7 million and lowered total debt to $350.1 million and Net Debt to $229.4 million at June 30, 2025;

Added the following costless collar oil hedge:

• 2,000 barrels per day (“Bbl/d”) for July through December 2025, with a floor price of $63.00 per Bbl and ceiling price of $77.25 per Bbl;
• Paid seventh consecutive quarterly dividend of $0.01 per common share in May 2025;
• Declared third quarter 2025 dividend of $0.01 per share, which will be payable on August 25, 2025 to stockholders of record on August 18, 2025;
• Reported mid-year SEC proved reserves of 123.0 million barrels of oil equivalent (“MMBoe”), using SEC prices and based on a reserve report prepared by Netherland, Sewell and Associates, Inc. (“NSAI”), and a present value of those SEC proved reserves discounted at 10% (“PV-10”) of $1.2 billion; and
• Announced two positive surety outcomes in June 2025: 1) a settlement agreement with two surety providers representing nearly 70% of W&T’s surety bond portfolio (inclusive of surety providers that were not party to the Company’s litigation) where all claims against W&T were dismissed, without prejudice; and 2) a federal court recommended denial of a preliminary injunction against W&T by two other surety companies.

Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer, commented, 
“We are delivering strong results including production growth of 10% and Adjusted EBITDA growth of 9% quarter-over-quarter, all while growing our cash position to over $120 million and reducing our net debt by about $15 million. We took advantage of a temporary spike in oil prices by adding to our crude hedging position to provide some additional downside protection. Operationally, we have brought online the remaining two fields from the Cox acquisition, which we expect will continue to ramp up production into the second half of 2025, as you can see from our third quarter and full year guidance. Acquisitions remain a key component of our success, and it is our ability to integrate and enhance the assets that we acquire that has allowed us to successfully operate for over 40 years. We remain focused on Free Cash Flow and Adjusted EBITDA generation through operational excellence, maximizing production and managing our operating costs. Our balance sheet has continued to strengthen in 2025 with the successful issuance of new 10.75% Notes, a new revolving credit facility and material cash additions through a non-core disposition and an insurance settlement. We have over $120 million in cash on our balance sheet and remain prepared to take advantage of potential acquisitions.”

“Our 2025 mid-year reserve report generated by NSAI showed net positive revisions of 1.8 MMBoe, which continues to demonstrate the strength of our asset base and our ability to maximize value from our fields. Additionally, we have reached a favorable agreement with our two largest surety providers and preliminary injunction motions against W&T from two additional sureties were recommended denied. These positive surety outcomes, coupled with the promising developments in the regulatory environment driven by the White House’s directives, alleviates some of the uncertainty that has unnecessarily and artificially suppressed our stock price and we expect that this will allow us to deliver more value to our shareholders. We are well positioned to continue to enhance our portfolio through additional accretive acquisition opportunities and are committed to enhancing shareholder value while returning value to our shareholders through the quarterly dividend program.”

Production, Prices and Revenue

Production for the second quarter of 2025 was within the Company’s second quarter guidance at 33.5 MBoe/d, an increase of 10% compared with 30.5 MBoe/d for the first quarter of 2025 and a decrease compared with 34.9 MBoe/d for the corresponding period in 2024. The second quarter 2025 production increase was driven by restoring production from fields associated with the 2024 Cox acquisition as well as returning to normal levels the shut-in production caused by freezing in the first quarter of 2025. There was a temporary shut-in of production in Mobile Bay during the second quarter due to a pipeline issue that was resolved by June 30 that reduced second quarter production by about 1,000 barrels of oil equivalent per day (“Boe/d”). Second quarter 2025 production was comprised of 13.8 thousand barrels per day (“MBbl/d”) of oil (41%), 2.7 MBbl/d of natural gas liquids (“NGLs”) (8%), and 102.0 million cubic feet per day (“MMcf/d”) of natural gas (51%).

W&T’s average realized price per Boe before realized derivative settlements was $39.16 per Boe in the second quarter of 2025, a decrease of 16% from $46.50 per Boe in the first quarter of 2025 and 12% from $44.40 per Boe in the second quarter of 2024. Second quarter 2025 oil, NGL and natural gas prices before realized derivative settlements were $63.55 per barrel of oil, $19.24 per barrel of NGL and $3.75 per Mcf of natural gas.

Revenues for the second quarter of 2025 were $122.4 million, which was 6% lower than first quarter of 2025 revenues of $129.9 million due to lower realized prices, which was partially offset by higher production volumes. Second quarter 2025 revenues were lower by 14% compared to $142.8 million of revenues in the second quarter of 2024 due to lower production volumes and lower realized prices.

OPERATIONS UPDATE

Well Recompletions and Workovers

During the second quarter of 2025, W&T performed nine low cost, low risk workovers that exceeded expectations and positively impacted production and revenue for the quarter. Five of the nine workovers were performed in Mobile Bay, W&T’s largest natural gas field, and increased production without drilling any additional wells in this low decline, long life asset. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue.

Mid-Year 2025 Proved Reserves

As calculated by NSAI, W&T’s independent reserve engineering consultants, proved reserves using SEC pricing methodology totaled 123.0 MMBoe at June 30, 2025, compared with 127.0 MMBoe at year-end 2024. The decrease in proved reserves was primarily driven by 5.8 MMBoe of production in the first half of 2025, partially offset by net positive revisions of 1.8 MMBoe. The mid-year proved reserves, which were 67% proved developed producing, 27% proved developed non-producing and 6% proved undeveloped, were 44% liquids (34% oil and 10% NGLs) and 56% natural gas.  W&T operates approximately 94% of its mid-year 2025 proved reserves.

The pre-tax PV-10 of the mid-year 2025 proved reserves using SEC pricing was $1.2 billion (before consideration of expenditures for asset retirement obligations). This compares to the pre-tax PV-10 of $1.2 billion at year-end 2024, as W&T was able to preserve its reserve value despite six months of production. Mid-year 2025 SEC proved reserves and PV-10 were based on an average 12-month oil and natural gas prices of $71.20 per barrel and $2.86 per MMBtu, respectively. Prices used to determine proved reserves and PV-10 for year-end 2024 were $76.32 per barrel of oil and $2.13 per MMBtu of natural gas.

KeyFacts Energy: W&T Offshore US Gulf of Mexico country profile