W&T Offshore, Inc. Provides Production and Drilling Update
May 28 15
W&T Offshore Inc. announced a new discovery at Ewing Banks 910 and first production from the SS #6 well at Mississippi Canyon 538 field (Medusa), both in the deepwater of the Gulf of Mexico. The company also provided an update on the status of the Big Bend and Dantzler deepwater development projects. W&T made a new discovery at Ewing Banks 910 with the successful drilling and evaluation of the Ewing Banks 910 A-5 ST well. The company logged 160 feet of gross hydrocarbon interval and is currently completing the well. The company expects recovery from the well to exceed pre-drill estimates and anticipates that the well could be online and flowing by the end of the second quarter. The next well to be drilled at Ewing Banks 910 will be the A-8 exploration well, which based on seismic data, is estimated to be a significantly larger reserve target than the recently successful A-5 ST well. The company has an additional drilling locations in the area as a result of ongoing geological and geophysical review of new WAZ seismic data. The company announced that the recently drilled Medusa SS #6 well has been completed and achieved first production flowing at a gross rate of approximately 8,000 barrels of oil and 6 MMcf of natural gas for a combined total rate of 9,000 barrels of oil equivalent per day. A second extension well at Medusa, the SS #7 well, is currently being completed.
W&T Offshore Inc. Ratifies the Appointment of Ernst & Young LLP as Independent Registered Public Accountants
May 7 15
W&T Offshore Inc. ratified the appointment of Ernst & Young LLP as the Company's independent registered public accountants for the year ended 2015.
W&T Offshore Inc. Announces Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2015; Provides Earnings and Capital Expenditure Guidance for the Second Quarter of 2015
May 7 15
W&T Offshore Inc. announced unaudited consolidated earnings and production results for the first quarter ended March 31, 2015. The company reported a net loss for the first quarter of 2015 of $255.1 million or $3.36 per basic and diluted common share compared to net income of $11.2 million or $0.15 per basic and diluted common share, during the same period in 2014. Revenues for the first quarter of 2015 were $127.9 million compared to $254.5 million in the first quarter of 2014. Revenues decreased due to a steep decline in crude oil prices, which were down $55.52 per barrel or 56.3% between the two quarters. Operating loss was $337.5 million against operating income of $37.2 million reported last year. Loss before income tax of $358.7 million against income before income tax of $17.8 million reported last year. Net cash provided by operating activities for the first quarter of 2015 was $0.7 million compared to $118.5 million for the same period in 2014. Capital expenditures in the first quarter of 2015 were $82.8 million compared to $95.1 million in the first quarter of 2014. EBITDA was $48.3 million against $160.5 million reported last year. Adjusted EBITDA for the first quarter of 2015 was $48.3 million compared to $168.0 million reported for the first quarter of 2014. Excluding special items (including the tax adjusted ceiling test write-down on properties in 2015 and tax adjusted derivative loss in 2014), net loss for the first quarter of 2015 was $85.8 million, or a loss of $1.13 per common share compared to first quarter 2014 net income of $16.1 million, or $0.21 per common share.
For the first quarter of 2015, oil production was 1.9 million barrels, up 9.4% over 1.7 million barrels reported the first quarter of 2014. NGL production was 443,000 barrels, down 15.3% from 523,000 barrels reported in the first quarter of 2014. Natural gas production was 12.3 billion cubic feet ("Bcf") for the first quarter of 2015, down slightly from 12.6 Bcf in the first quarter of 2014 as the company continue to focus efforts on increasing oil production. Combined total production was 0.8% higher in the first quarter of 2015 than the first quarter of 2014. Total oil and natural gas production was 4,395 MBoe against 4,358 MBoe reported last year. Total oil and natural gas production was 26,372 MMcfe against 26,150 MMcfe reported last year.
For the second quarter, the company expects oil and NGLs production in the range of 2.1– 2.3 MMBbls, natural gas production in the range of 10.5– 11.7 Bcf, total production in the range of 23.1– 25.5 Bcfe.
For the year, the company expects oil and NGLs production in the range of 9.3–10.3 MMBbls, natural gas production in the range of 44.0 – 48.6 Bcf, total production in the range of 100.0 – 110.2 Bcfe.
The Company's capital expenditure budget for 2015 is currently set at $200 million. Capital expenditures for the second quarter are expected to be in a similar range to the first quarter and all dedicated to the deepwater with approximately 80% of total expenditures for the year spent in the first half of 2015.