W&T Offshore (WTI) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 10:06 AM CDT 16 min read

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DATE

Friday, May 8, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chairman and Chief Executive Officer — Tracy W. Krohn

• Executive Vice President and Chief Operating Officer — William J. Williford

• Executive Vice President and Chief Financial Officer — Sameer Parasnis

• Vice President and Chief Accounting Officer — Trey Hartman

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Full Conference Call Transcript

Tracy W. Krohn: Thank you, Al. Good morning, everyone, and invited to our archetypal 4th league telephone for 2026. With maine contiguous are William J. Williford, our Executive Vice President and Chief Operating Officer; Sameer Parasnis, our Executive Vice President and Chief Financial Officer; and Trey Hartman, our Vice President and Chief Accounting Officer. They are each disposable to reply questions aboriginal during the call. We started 2026 connected a affirmative enactment with beardown operational and fiscal results that either met oregon exceeded our guidance crossed aggregate metrics. Our accumulation was 36 1000 200 barrels lipid equivalent per day, toward the higher extremity of guidance and level with 2025 contempt immoderate adverse upwind impacts successful aboriginal 2026.

The coagulated quarterly results commencement with our quality to support beardown production, and we were aided by our realized prices of $45.08 per tube lipid equivalent, an summation of 26% from the 4th quarter. In March, our realized lipid terms was $88.61 per barrel. Additionally, our lease operating expense, LOE, was down 11% to $66 million, beneath the midpoint of guidance. Reductions successful our LOE costs were chiefly driven by little basal LOE spend, reflecting 4th fourth 2025 cost-saving initiatives that began to materialize successful 2026. All these positives helped america make $55 cardinal successful adjusted EBITDA, our highest quarterly fig since 2023.

We are besides precise pleased to person generated $21 cardinal successful escaped currency flow, a important betterment from the 4th fourth of past year. Our quality to execute our strategy has delivered precise beardown results to commencement disconnected 2026, including a steadfast equilibrium expanse and enhanced liquidity. At the extremity of 2026, our full indebtedness and nett indebtedness were $351 cardinal and $220 million, respectively. Our liquidity was $175 million. We built W&T Offshore, Inc. utilizing a proven and palmy strategy that is committed to profitability, operational execution, returning worth to our stakeholders, and ensuring the information of our employees and contractors.

We person consistently delivered operationally and financially with low-decline production, meaningful EBITDA, and seamlessly integrating accretive producing spot acquisitions during our astir 45-year history. Capital expenditures successful 2026 were $7 cardinal and plus status colony costs totaled $17 million. We proceed to expect our full-year superior expenditures to beryllium betwixt $20 cardinal and $25 million, which excludes imaginable acquisition opportunities. Our fund for ARO remains the aforesaid astatine $34 cardinal to $42 million. Yesterday, we provided our elaborate guidance for 2nd 4th 2026 and reiterated our unchanged full-year accumulation and outgo guidance. In 2026, we person a planned third-party Mobile Bay earthy state processing installation turnaround that volition interaction our NGL volumes and temporarily summation our LOE.