W&T Offshore today reported final operational and financial results for the fourth quarter and full year 2025, including the Company’s year-end 2025 reserve report. Detailed guidance for the first quarter of 2026 and full year 2026 was also provided.

Key highlights for the fourth quarter of 2025, the full year 2025 and since year-end 2025 include:

• Grew production in full year 2025 to 34.0 thousand barrels of oil equivalent per day (“MBoe/d”) (50% liquids), or 12.4 million barrels of oil equivalent (“MMBoe”), within the Company’s guidance;
• Increased production in fourth quarter of 2025 to 36.2 MBoe/d (52% liquids), above the midpoint of guidance, with average December production of 37.7 MBoe/d;
• Completed all production enhancements and brought online all fields associated with the Cox acquisition;
• Reported year-end 2025 proved reserves at SEC pricing of 121.0 MMBoe, with a standardized measure of discounted future net cash flows of $651.3 million and a present value of estimated future oil and natural gas revenues, minus direct expenses, discounted at a 10% annual rate (“PV-10”) of $1.1 billion;
• Reported PV-10 of proved developed producing (“PDP”) reserves of $829.2 million for year-end 2025 compared with PV-10 of PDP reserves of $549.8 million for year-end 2024 PDP;
• Incurred lease operating expenses (“LOE”) of $298.8 million in full year 2025, near the midpoint of W&T’s guidance;
• Reduced LOE per barrel of oil equivalent (“Boe”) by 4% in the fourth quarter of 2025 compared with third quarter of 2025, or an absolute cost of $74.6 million for the fourth quarter, below the midpoint of guidance;
• Invested $54.8 million in capital expenditures in 2025, below the bottom end of the Company’s guidance range, with investments focused on production enhancement projects;
• Spent $19.8 million on capital expenditures to develop an alternative route for production from the West Delta 73 field. The investment is expected to generate more than $60 million of undiscounted incremental cash flow based on 1P reserve volumes by reducing pipeline transportation costs beginning in the first quarter of 2026. Had this arrangement been in place during 2025, W&T would have realized savings in excess of $5.75 per barrel;
• Continued to strengthen the Company’s balance sheet and improve financial stability;
• Increased unrestricted cash and cash equivalents by $31.6 million to $140.6 million at year-end 2025 compared with $109.0 million at year-end 2024;
• Reduced total debt and Net Debt to $350.8 million and $210.3 million, respectively, at December 31, 2025 from total debt and Net Debt of $393.2 million and $284.2 million at December 31, 2024;
• Generated net cash from operating activities of $25.9 million in the fourth quarter of 2025 and $77.2 million for the full year 2025;
• Reported net loss for full year 2025 of $150.1 million, or $(1.01) per diluted share and fourth quarter 2025 net loss of $27.1 million, or $(0.18) per diluted share;
• Reported Adjusted Net Loss for full year 2025 of $55.1 million, or $(0.37) per diluted share and fourth quarter 2025 Adjusted Net Loss of $20.5 million, or $(0.14) per diluted share;
• Generated Adjusted EBITDA of $129.6 million and $23.0 million for full year 2025 and fourth quarter 2025, respectively;
• Added oil hedges in January 2026 and February 2026 including:
• Costless collar for 2,000 Bbls/d for March 2026 through December 2026, with a floor price of $55.35 per Bbl and a ceiling price of $68.60 per Bbl;
• Costless collar for 2,000 Bbls/d for March 2026 through December 2026, with a floor price of $57.00 per Bbl and a ceiling price of $70.20 per Bbl;
• Swap for 2,000 Bbls/d for April 2026 through December 2026 with a price of $64.53 per Bbl;
• Paid ninth consecutive quarterly dividend of $0.01 per common share in November 2025; and
• Declared first quarter 2026 dividend of $0.01 per share, which will be payable on March 26, 2026 to stockholders of record on March 19, 2026.

Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer, commented,
“We continue to deliver strong results by executing on our strategic vision, which has allowed us to improve our balance sheet and enhance our financial flexibility. We increased production every quarter in 2025 and had an exit rate in December of approximately 37,000 Boe per day, despite only spending $55 million in capital expenditures and not drilling any new wells. We generated $130 million of Adjusted EBITDA in full year 2025, increased our cash on hand by over $30 million to $140 million and reduced our Net Debt by almost $74 million compared with the prior year-end. Operationally, we have completed all of the production enhancement and facility projects to bring all of the fields from the Cox acquisition online. The projects, which include a meaningful increase in net realized prices for oil production from the West Delta 73 field through $20 million in capital expenditures, help us to support continued production growth and improve operating performance. We have built a sustainable group of high performing Gulf of America assets with good production diversity that is almost evenly distributed between liquids and natural gas. Our year-end reserve report demonstrates this with 121 MMBoe of reserves with a PV-10 of over $1 billion and a PDP PV-10 increase of $279 million. We expect that our assets and operational excellence will continue to provide meaningful cash flow to our shareholders for many years.”

Krohn added, “As we begin 2026 with positive momentum and a strong balance sheet, we remain poised to take advantage of potential acquisitions that we believe could be accretive to our stakeholders, with over $140 million in cash on our balance sheet. Accretive acquisitions have always been 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 also remain committed to enhancing shareholder value and returning value to our shareholders through the quarterly dividend that has been in place since November 2023. We believe we are well-positioned to execute our strategy in 2026 and beyond.”

Krohn continued, “The DOI has proposed updates intended to reduce certain regulations applicable to the offshore oil and natural gas industry. The proposed changes would roll back requirements from a 2024 rule that would have required companies to set aside about $6.9 billion in supplemental financial assurance, of which about $6 billion would have applied to small businesses that make up most of the operators in the Gulf of America. The proposed rule would better align financial assurance requirements with actual decommissioning risk by recognizing joint and several liability and the financial strength of predecessor owners. If finalized as proposed, these changes could reduce industry-wide bonding by approximately $484 million annually and change how financial risk is assessed by the Bureau of Ocean Energy Management, including by allowing third-party decommissioning contacts in lieu of additional bonding and removing mandatory appeal bond requirements, potentially freeing up funds for investment to support domestic energy production.  The proposed changes have been published in the Federal Register with a 60-day public comment period that is expected to end on May 8, 2026.   W&T Offshore welcomes these changes proposed by the Trump Administration in response to Executive Order 14154, ‘Unleashing American Energy.’”

Production, Prices and Revenue: Production for the fourth quarter of 2025 was 36.2 MBoe/d, above the midpoint of the Company’s fourth quarter guidance, and an increase of 2% compared with 35.6 MBoe/d for the third quarter of 2025 and an increase of 13% compared with 32.1 MBoe/d for the corresponding period in 2024. Fourth quarter 2025 production was comprised of 14.4 thousand barrels per day (“MBbl/d”) of oil (40%), 4.5 MBbl/d of natural gas liquids (“NGLs”) (12%), and 103.9 million cubic feet per day (“MMcf/d”) of natural gas (48%).

In January and February 2026, certain offshore operations were temporarily impacted by extreme cold weather, an effect more than offset by higher realized natural gas prices. Operations have since normalized, and the production guidance below reflects these temporary shut-ins.

W&T’s average realized price per Boe before realized derivative settlements was $35.88 per Boe in the fourth quarter of 2025, a decrease of 6% from $38.33 per Boe in the third quarter of 2025 and 10% from $39.86 per Boe in the fourth quarter of 2024. Fourth quarter 2025 oil, NGL and natural gas prices before realized derivative settlements were $57.39 per barrel of oil, $16.62 per barrel of NGL and $3.83 per Mcf of natural gas.

Revenues for the fourth quarter of 2025 were $121.7 million, which was 5% lower than third quarter of 2025 revenues of $127.5 million. This was due to lower realized prices for oil, which were partially offset by increased production and higher realized prices for NGLs and natural gas. Fourth quarter 2025 revenues were higher by 1% compared to $120.3 million of revenues in the fourth quarter of 2024 due to increased production and higher realized prices for natural gas, partially offset by lower realized prices for oil and NGLs.

Full Year-End 2025 Financial Review

W&T reported a net loss for the full year 2025 of $150.1 million, or $(1.01) per diluted share, and Adjusted Net Loss of $55.1 million, or $(0.37) per diluted share. For the full year 2024, the Company reported net loss of $87.1 million, or $(0.59) per diluted share, and Adjusted Net Loss of $61.7 million, or $(0.42) per diluted share. W&T generated Adjusted EBITDA of $129.6 million for the full year 2025 compared to $153.6 million in 2024. The year-over-year decrease was primarily driven by lower realized prices for oil and NGLs offset by increased production and higher realized prices for natural gas. Revenues totaled $501.5 million for 2025 compared with $525.3 million in 2024. Net cash provided by operating activities for the year ended December 31, 2025 was $77.2 million compared with $59.5 million for the same period in 2024. Free Cash Flow totaled $1.5 million in 2025 compared with $44.9 million in 2024 driven primarily by an increase in capital expenditures on an accrual basis.

Production for 2025 averaged 34.0 MBoe/d for a total of 12.4 MMBoe, comprised of 5.1 MMBbls of oil, 1.1 MMBbls of NGLs and 36.9 Bcf of natural gas. Full year 2024 production averaged 33.3 MBoe/d or 12.2 MMBoe in total and was comprised of 5.3 MMBbls of oil, 1.2 MMBbls of NGLs and 34.3 Bcf of natural gas.  

For the full year 2025, W&T’s average realized sales price per barrel of crude oil was $64.09, $17.88 per barrel of NGLs and $3.90 per Mcf of natural gas. For 2024, the Company’s realized oil sales price was $75.28 per barrel, NGL sales price was $23.08 per barrel, and natural gas price was $2.65 per Mcf.

For the full year 2025, LOE was $298.8 million compared to $281.5 million in 2024. LOE increased year-over-year due to increased workover and facility investments and higher production volumes.

Gathering, transportation, and production taxes totaled $25.7 million in 2025, a decrease from the $28.2 million in 2024.

For the full year 2025, G&A was $80.0 million ($67.7 million related to cash G&A), which was a 3% decrease over the $82.4 million reported in 2024. The decrease year-over-year is primarily due to decreased non-recurring legal fees that were somewhat offset by increased share-based compensation costs. On a per unit basis, G&A per Boe was $6.45 in 2025,down from $6.76 per Boe in 2024.  G&A decreased on a per Boe basis primarily due to higher production.  

OPERATIONS UPDATE

Well Recompletions and Workovers

During the fourth quarter of 2025, W&T performed 15 low cost, low risk workovers and one recompletion 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.

Year-End 2025 Proved Reserves

The Company’s year-end 2025 SEC proved reserves were 121.0 MMBoe, compared with 127.0 MMBoe at year-end 2024. In 2025, W&T recorded positive price revisions of 13.3 MMBoe, which were offset by 6.8 MMBoe of negative performance revisions. Notably, PV-10 for PDP reserves increased by $279.4 million from $549.8 million at year-end 2024 to $829.2 million at year-end 2025. Additionally, W&T’s year-end 2025 probable reserves(1) were 121.2 MMBoe, resulting in total proved plus probable reserves of 242.2 MMBoe. A large portion of these probable reserves are expected to be produced without significant additional capital expenditures because of the attractive geological properties of W&T’s Gulf of America assets.

The SEC twelve-month first day of the month average spot prices used in the preparation of the report for year-end 2025 were $66.01 per barrel of oil and $3.387 per MMBtu of natural gas. Comparable prices used for the prior year report were $76.32 per barrel of oil and $2.13 per MMBtu of natural gas. The standardized measure of discounted future net cash flows at year-end 2025 decreased 12% to $651.3 million from $740.1 million at year-end 2024. The PV-10 of W&T’s proved reserves at year-end 2025 decreased 9% to $1.1 billion from $1.2 billion at year-end 2024, driven primarily by a decrease in reserves reflecting production and downward reserve performance revisions which were somewhat offset by higher SEC pricing for natural gas.

Approximately 42% of year-end 2025 proved reserves were liquids (32% oil and 10% NGLs) and 58% natural gas. The reserves were classified as 71% proved developed producing, 24% proved developed non-producing, and 5% proved undeveloped. W&T’s reserve life ratio at year-end 2025, based on year-end 2025 proved reserves and 2025 production, was 9.8 years.

Regulatory Update

In March 2026, the Bureau of Ocean Energy Management (“BOEM”) published a proposed rule setting forth amendments to the existing financial assurance regulatory framework. The proposed rule would, among other things, (i) permit BOEM to consider the financial strength of predecessors with joint and several liability when determining whether supplemental financial assurance is required, (ii) revise the level of BSEE probabilistic estimates of decommissioning cost used for determining the amount of supplemental financial assurance required from P70 to P50, (iii) provide BOEM with discretion, in circumstances where decommissioning is scheduled to occur within one year of a supplemental financial assurance demand, to accept third-party decommissioning contracts or decommissioning schedules in lieu of requiring new supplemental financial assurance, (iv) eliminate the requirement that a lessee challenging a supplemental financial assurance demand post an appeal bond equal to the amount of the demand in order to obtain a stay pending appeal, and (v) explicitly recognize dual-obligee bonds (which identify multiple obligees) as an acceptable form of financial assurance. The proposed rule is subject to a 60-day public comment period, which is expected to end on May 8, 2026.

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