W&T Offshore Inc. WTI reported a fourth-quarter 2024 loss of 18 cents per share (excluding one item), in line with the Zacks Consensus Estimate. However, the bottom line deteriorated from the year-ago quarter’s reported loss of 6 cents per share.

Total quarterly revenues of $120.3 million missed the Zacks Consensus Estimate of $129 million. The top line also decreased from $132.3 million reported in the prior-year quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The in-line quarterly earnings can be primarily attributed to increased oil production. However, this was partially offset by higher operating expenses and lower realized commodity prices.

Production Statistics

Production for the quarter averaged 32.1 thousand barrels of oil equivalent per day (MBoe/d), down from 34.1 MBoe/d in the corresponding period of 2023. The reported metric came in lower than our estimate of 34.7 Mboe/d. The production was affected by temporary disruptions due to multiple storms in the Gulf of America and third-party downtime.

Oil production totaled 1,263 thousand barrels (MBbls), up from 1,219 MBbls in the year-ago quarter. The figure missed our estimate of 1,284 MBbls.

Natural gas liquids output totaled 273 MBbls, which decreased from the year-ago quarter’s level of 329 MBbls. Our estimate for the same was pinned at 286 MBbls.

Natural gas production of 8,505 million cubic feet (MMcf) was lower than 9,533 MMcf in the prior-year quarter. The figure also missed our estimate of 9,753 MMcf.

Realized Commodity Prices

The average realized price for oil in the fourth quarter was $68.71 per barrel, lower than the year-ago quarter’s level of $77.17. Our estimate for the same was pegged at $69.41.

The average realized price of NGL increased to $24.59 per barrel from $20.82 reported a year ago. The figure came in lower than our estimate of $29.87 per barrel.

The average realized price of natural gas in the December-end quarter was $2.85 per thousand cubic feet, down from $3.08 in the corresponding period of 2023 and below our estimate of $3.26.

The average realized price for oil-equivalent output decreased to $39.86 per barrel from $41.55 a year ago. The figure missed our estimate of $40.51 per barrel.

Operating Expenses

Lease operating expenses increased to $21.76 per Boe from $20.61 in the year-ago period. The reported figure was lower than our estimate of $24.92 per Boe.

Also, general and administrative expenses increased to $7.04 per Boe from $5.82 a year ago. The figure was higher than our estimate of $6.34 per Boe.

Cash Flow

Net cash used in operations totaled $4.3 million, marking a significant deterioration from $35.7 million in net cash provided by operations in the prior-year quarter.

The free cash flow decreased to a negative $10.2 million from $15.8 million in the year-earlier quarter.

Capital Spending & Balance Sheet

W&T Offshore spent $12.2 million on oil and gas resources and equipment.

As of Dec. 31, 2024, cash and cash equivalents totaled $109 million, and net long-term debt amounted to $365.9 million. The current portion of the long-term debt is $27.3 million.

Guidance

For the first quarter of 2025, W&T Offshore expects production to be in the range of 2,538 - 2,815 Mboe. For 2025, production is anticipated to be in the band of 11,983-13,257 Mboe. Further, the company expects lease operating expenses to be in the $72.5-$80.5 million range.

For full-year 2025, lease operating expenses are anticipated to be higher than the 2024 levels. Capital expenditures are expected to be in the range of $34-$42 million.

WTI’s Zacks Rank and Key Picks

WTI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Matador Resources Corporation MTDR and Cheniere Energy LNG. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Matador Resources and Cheniere Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.

Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG, both in the United States and internationally.

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