W&T Offshore has reported operational and financial results for the third quarter of 2025 and declared a fourth quarter 2025 dividend of $0.01 per share.

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

• Increased production to 35.6 thousand barrels of oil equivalent per day (“MBoe/d”) (49% liquids), near the high end of guidance;
• Reduced lease operating expenses (“LOE”) per barrel of oil equivalent (“Boe”) by 8% compared with second quarter of 2025 to $23.27 per Boe, or an absolute cost of $76.2 million, near the midpoint of guidance;
• Reported net loss of $71.5 million, or $(0.48) per diluted share which was significantly impacted by a non-cash valuation allowance of $59.9 million against the Company’s deferred tax assets;
  • Adjusted Net Loss totaled $7.3 million, or $(0.05) per diluted share which excludes the valuation allowance and the unrealized loss on commodity derivatives and related tax effect;
• Grew Adjusted EBITDA by 11% over the second quarter of 2025 to $39.0 million;
• Generated net cash flow from operating activities of $26.5 million;
• Increased unrestricted cash and cash equivalents to $124.8 million and reported total debt of $350.4 million and Net Debt of $225.6 million at September 30, 2025;
• Paid eighth consecutive quarterly dividend of $0.01 per common share in August 2025; and
  • Declared fourth quarter 2025 dividend of $0.01 per share, which will be payable on November 26, 2025 to stockholders of record on November 19, 2025.

Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer, commented,
“We remain committed to executing our strategic vision and are delivering strong results, including production growth of 6% and Adjusted EBITDA growth of 11% quarter-over-quarter. In addition, we continue to grow our cash position and reduce our Net Debt, which is down almost $60 million from year-end 2024. Operationally, we have seen strong production since bringing on the remaining two fields from the Cox acquisition, which has allowed us to increase production each quarter thus far in 2025. 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. 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 approximately $125 million in cash on our balance sheet and remain prepared to take advantage of potential acquisitions.”

Production, Prices and Revenue: Production for the third quarter of 2025 was 35.6 MBoe/d, near the high end of the Company’s third quarter guidance, and an increase of 6% compared with 33.5 MBoe/d for the second quarter of 2025 and an increase of 15% compared with 31.0 MBoe/d for the corresponding period in 2024. Third quarter 2025 production was comprised of 14.3 thousand barrels per day (“MBbl/d”) of oil (40%), 3.1 MBbl/d of natural gas liquids (“NGLs”) (9%), and 111.6 million cubic feet per day (“MMcf/d”) of natural gas (51%). Production has increased 17% from first quarter of 2025 to third quarter of 2025. This highlights the impact of the Cox fields coming online and W&T’s inventory of high return workover projects on its existing assets.

W&T’s average realized price per Boe before realized derivative settlements was $38.33 per Boe in the third quarter of 2025, a decrease of 2% from $39.16 per Boe in the second quarter of 2025 and 9% from $41.92 per Boe in the third quarter of 2024. Third quarter 2025 oil, NGL and natural gas prices before realized derivative settlements were $64.62 per barrel of oil, $14.29 per barrel of NGL and $3.68 per Mcf of natural gas.

Revenues for the third quarter of 2025 were $127.5 million, which was 4% higher than second quarter of 2025 revenues of $122.4 million due to higher production volumes, which were partially offset by lower realized prices. Third quarter 2025 revenues were higher by 5% compared to $121.4 million of revenues in the third quarter of 2024 due to higher production volumes offset by lower realized prices.

Lease Operating Expenses: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance expenses, was $76.2 million in the third quarter of 2025, which was near the midpoint of the Company’s guidance range. While LOE for the third quarter of 2025 was essentially flat with $76.9 million in the second quarter of 2025, on a per barrel basis, LOE was lower by 8%. LOE for the third quarter of 2025 was higher than the $72.4 million for the corresponding period in 2024 primarily due to higher base operating expenses, insurance premiums and workover expenses associated with increased production. On a component basis for the third quarter of 2025, base LOE and insurance premiums were $62.4 million, workovers were $2.6 million, and facilities maintenance and other expenses were $11.2 million. On a unit of production basis, LOE was $23.27 per Boe in the third quarter of 2025. This was lower than $25.20 per Boe for the second quarter of 2025 and $25.37 per Boe for the corresponding period in 2024.

Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled $5.8 million ($1.78 per Boe) in the third quarter of 2025, compared to $5.5 million ($1.80 per Boe) in the second quarter of 2025 and $6.1 million ($2.15 per Boe) in the third quarter of 2024.

Depreciation, Depletion and Amortization (“DD&A”): DD&A was $8.73 per Boe in the third quarter of 2025. This compares to $8.67 per Boe and $11.99 per Boe for the second quarter of 2025 and the third quarter of 2024, respectively. The decrease in the DD&A rate per Boe for the third quarter of 2025 compared to the same period in 2024 was driven by the revaluation of W&T’s underlying asset base associated with the mid-year 2025 reserve report.

Asset Retirement Obligations Accretion: Asset retirement obligations accretion was $2.44 per Boe in the third quarter of 2025. This compares to $2.84 per Boe and $2.75 per Boe for the second quarter of 2025 and the third quarter of 2024, respectively.

General & Administrative Expenses (“G&A”): G&A was $21.5 million ($18.0 million related to cash G&A) for the third quarter of 2025, which increased from $17.7 million in the second quarter of 2025 and $19.7 million in the third quarter of 2024. These increases between periods was primarily due to an increase in non-cash stock-based compensation expense after the grant in the second quarter of 2025 was fully realized in the third quarter of 2025. Cash G&A was relatively consistent on a quarter-over-quarter basis. On a unit of production basis, G&A was $6.57 per Boe in the third quarter of 2025 compared to $5.79 per Boe in the second quarter of 2025 and $6.91 per Boe in the corresponding period of 2024.

Derivative Gain, net: In the third quarter of 2025, W&T recorded a net gain of $4.1 million related to commodity derivative contracts comprised of $9.7 million of realized gains, which includes $7.6 million of proceeds from the monetization of the Company’s natural gas costless collar, and $5.6 million of unrealized loss related to the decrease in fair value of open contracts. W&T recognized a net gain of $12.0 million in the second quarter of 2025 and a net gain of $3.2 million in the third quarter of 2024 related to commodity derivative activities.

A summary of the Company’s outstanding derivative positions is provided in the investor presentation posted on W&T’s website.

Interest Expense: Net interest expense in the third quarter of 2025 was $9.0 million, flat with $9.0 million in the second quarter of 2025 and lower than $10.0 million in the third quarter of 2024. The decrease from the same period in 2024 reflects the impact of the Company’s debt refinancing in January 2025.

Income Tax Expense (Benefit): W&T recognized an income tax expense of $56.0 million in the third quarter of 2025 related to a $59.9 million valuation allowance against the Company’s deferred tax assets. This compares to the recognition of an income tax benefit of $2.4 million in the second quarter of 2025 and $4.5 million in the third quarter of 2024.

Balance Sheet and Liquidity: As of September 30, 2025, W&T had available liquidity of $174.8 million comprised of $124.8 million in unrestricted cash and cash equivalents and $50.0 million of borrowing availability under W&T’s new revolving credit facility. As of September 30, 2025, the Company had total debt of $350.4 million and Net Debt of $225.6 million, which has decreased $58.6 million from $284.2 million at December 31, 2024. As of September 30, 2025, Net Debt to trailing twelve months Adjusted EBITDA was 1.6x.

Capital Expenditures and Asset Retirement Obligation Settlements: Capital expenditures on an accrual basis in the third quarter of 2025 were $22.5 million, and asset retirement obligation settlement costs totaled $8.9 million. The increase in capital expenditures in the third quarter of 2025 was driven by recompletion and facility capital work to bring online and increase production at multiple fields related to the 2024 Cox acquisition. These capital expenditures contributed positively to W&T’s production and aided in the quarter over quarter increase to production. For the nine months ended September 30, 2025, capital expenditures on an accrual basis totaled $41.5 million and asset retirement obligation settlement costs totaled $24.9 million.

The Company’s revised expectation for full year capital expenditures guidance is between $57 million and $63 million, which excludes potential acquisition opportunities. The forecasted increase in capital expenditures is mainly due to final investment decisions in the third quarter to lay new pipelines which are expected to lower future transportation costs and enhance production and value.  

Cash Dividend Policy

The Company paid its third quarter 2025 dividend of $0.01 per share on August 25, 2025 to stockholders of record on August 18, 2025.

The Board of Directors declared a fourth quarter 2025 dividend of $0.01 per share which is to be paid on November 26, 2025 to stockholders of record on November 19, 2025.

OPERATIONS UPDATE

Well Recompletions and Workovers

During the third quarter of 2025, W&T performed five low cost, low risk workovers and three recompletions that exceeded expectations and positively impacted production and revenue for the quarter. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue.

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