W&T Offshore Releases Transcript of Q2 2025 Earnings
W&T Offshore, Inc. Reports Strong Q2 2025 Results and Q3 Production Forecast
W&T Offshore, Inc. (NYSE: WTI) has announced its financial results for Q2 2025, showcasing operational improvements and financial progress. The company reported a 10% increase in production to 33,500 barrels of oil equivalent per day (boe/d), an adjusted EBITDA of $35.2 million, and a reduction in net debt to $229.4 million.
The company's focus on "accretive low-risk acquisitions of producing properties" has been reaffirmed, signalling no plans for capital allocation to drilling under current commodity price conditions. This strategy has contributed to the successful integration of assets into the portfolio, with the assets acquired last year adding meaningful reserves at an attractive price.
The Q3 2025 production midpoint forecast stands at 35,000 boe/d, driven by new fields and a successful workover program. The ramp-up of the West Delta 73 and Main Pass 108/98 fields, which restarted in late March and early April, is expected to further boost production in the second half of 2025.
The company's liquidity position is strong, with unrestricted cash of over $120 million and a net debt reduction. This, combined with a positive net cash flow from operating activities of $28.0 million and free cash flow of $3.6 million in Q2, provides a solid foundation for the company to continue evaluating growth opportunities both organically and inorganically.
W&T Offshore, Inc. has also made significant strides in reducing costs. Nine low-cost, low-risk workovers performed in Q2 2025 have exceeded expectations, positively impacting production and revenue. With absolute costs remaining flat and production expected to increase, the company believes that on a per BOE basis, costs will decrease.
The company has also hedged 2,000 barrels per day of oil at $63 per barrel with a $77.25 per barrel ceiling in 2025, and secured gas costless collars on over 7 million cubic feet per day for July-December 2025.
The settlement with the largest surety providers has resulted in a lawsuit dismissal and the locking in of prior premium rates through 2026. This, along with the court's denial of two other sureties' motions for over $100 million in preliminary cash collateral, has benefited the company's liquidity and operational certainty.
Despite these positive results, the company's stock price has been negatively impacted by uncertainty. However, these results should alleviate some of this uncertainty, providing a more positive outlook for W&T Offshore, Inc. and the offshore energy industry.
The management team remains optimistic about the future of W&T Offshore, Inc. and its ability to create value for shareholders. The company will continue to maintain its focus on operational excellence and maximizing the cash flow potential for its asset base.
[1] Production data source [2] Financial data source [3] Operational data source [4] Financial guidance source [5] Company press release
- The strong Q2 2025 results of W&T Offshore, Inc. demonstrate a 10% increase in production, showing an adjusted EBITDA of $35.2 million and a reduction in net debt to $229.4 million.
- W&T Offshore, Inc. has adopted a strategy of acquiring "accretive low-risk assets", avoiding capital allocation to drilling under current commodity price conditions.
- The company forecasts a Q3 2025 production midpoint of 35,000 barrels of oil equivalent per day, driven by new fields and a successful workover program.
- The company has hedged 2,000 barrels per day of oil at $63 per barrel and secured gas costless collars for over 7 million cubic feet per day for July-December 2025, providing financial protection against commodity price fluctuations.
