We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W&T Offshore (WTI) Stock Declines 2.4% on Q1 Earnings Miss
Read MoreHide Full Article
W&T Offshore, Inc. (WTI - Free Report) declined 2.4% since it reported weak first-quarter results on May 9. The underperformance was owing to lower oil equivalent production and prices.
WTI reported a first-quarter 2023 adjusted loss (excluding one-time items) of 2 cents per share, missing the Zacks Consensus Estimate of earnings of 16 cents. The bottom line deteriorated from the year-ago quarter’s earnings of 21 cents per share.
Total quarterly revenues of $132 million missed the Zacks Consensus Estimate of $151 million. The top line also decreased from $191 million in the prior-year quarter.
Production Statistics
The total production averaged 32.5 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 37.8 MBoe/d.
Oil production was 1,350 thousand barrels (MBbls), up from the year-ago level of 1,304 MBbls. Natural gas liquids’ output totaled 294 MBbls, lower than 349 MBbls a year ago. Natural gas production of 7,677 million cubic feet (MMcf) in the reported quarter was lower than 10,471 MMcf in the year-earlier period.
Realized Commodity Prices
The average realized price for oil in the first quarter was $71.85 a barrel, lower than the year-ago level of $94.10. The average realized price of NGL declined to $26.51 from $39.60 per barrel in the prior year. The average realized price of natural gas in the March quarter was $3.23 per thousand cubic feet, down from $4.91 in the last year’s comparable period. The average realized price for oil-equivalent output decreased to $44.32 per barrel from $55.29.
Operating Expenses
Lease operating expenses rose to $22.29 per Boe in the first quarter from $12.78 a year ago. Also, general and administrative expenses increased to $6.81 per Boe from $4.05.
Cash Flow
Net cash from operations in the first quarter was $23.4 million, which declined from $27.5 million in the year-ago period.
Free cash flow in the reported quarter decreased to $12.4 million from $46.9 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $7.4 million in capital through the March quarter on oil and gas resources and equipment.
As of Mar 31, 2023, the company’s cash and cash equivalents were $177.4 million. Its net long-term debt in the quarter was $372.5 million. The current portion of the long-term debt is $30.8 million.
Guidance
For the second quarter of this year, W&T Offshore projects production in the band of 3,177 to 3,557 MBoe. For 2023, WTI expects production of 13,510 to 14,955 MBoe.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
W&T Offshore (WTI) Stock Declines 2.4% on Q1 Earnings Miss
W&T Offshore, Inc. (WTI - Free Report) declined 2.4% since it reported weak first-quarter results on May 9. The underperformance was owing to lower oil equivalent production and prices.
WTI reported a first-quarter 2023 adjusted loss (excluding one-time items) of 2 cents per share, missing the Zacks Consensus Estimate of earnings of 16 cents. The bottom line deteriorated from the year-ago quarter’s earnings of 21 cents per share.
Total quarterly revenues of $132 million missed the Zacks Consensus Estimate of $151 million. The top line also decreased from $191 million in the prior-year quarter.
Production Statistics
The total production averaged 32.5 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 37.8 MBoe/d.
Oil production was 1,350 thousand barrels (MBbls), up from the year-ago level of 1,304 MBbls. Natural gas liquids’ output totaled 294 MBbls, lower than 349 MBbls a year ago. Natural gas production of 7,677 million cubic feet (MMcf) in the reported quarter was lower than 10,471 MMcf in the year-earlier period.
Realized Commodity Prices
The average realized price for oil in the first quarter was $71.85 a barrel, lower than the year-ago level of $94.10. The average realized price of NGL declined to $26.51 from $39.60 per barrel in the prior year. The average realized price of natural gas in the March quarter was $3.23 per thousand cubic feet, down from $4.91 in the last year’s comparable period. The average realized price for oil-equivalent output decreased to $44.32 per barrel from $55.29.
Operating Expenses
Lease operating expenses rose to $22.29 per Boe in the first quarter from $12.78 a year ago. Also, general and administrative expenses increased to $6.81 per Boe from $4.05.
Cash Flow
Net cash from operations in the first quarter was $23.4 million, which declined from $27.5 million in the year-ago period.
Free cash flow in the reported quarter decreased to $12.4 million from $46.9 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $7.4 million in capital through the March quarter on oil and gas resources and equipment.
As of Mar 31, 2023, the company’s cash and cash equivalents were $177.4 million. Its net long-term debt in the quarter was $372.5 million. The current portion of the long-term debt is $30.8 million.
Guidance
For the second quarter of this year, W&T Offshore projects production in the band of 3,177 to 3,557 MBoe. For 2023, WTI expects production of 13,510 to 14,955 MBoe.
Zacks Rank & Stocks to Consider
Currently, W&T Offshore carries a Zacks Rank #4 (Sell). Better-ranked players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Cactus, Inc. (WHD - Free Report) . While Murphy USA carries a Zacks Rank #2 (Buy), Sunoco and Cactus sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.