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W&T (WTI) Up 4.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for W&T Offshore (WTI - Free Report) . Shares have added about 4.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is W&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
W&T Offshore Q2 Earnings Lag Estimates, Revenues Fall Y/Y
W&T Offshore, Inc. reported second-quarter 2023 adjusted loss (excluding one-time items) of 8 cents per share, missing the Zacks Consensus Estimate of an adjusted loss of 6 cents. The bottom line deteriorated from the year-ago quarter’s earnings of $1.32 per share.
Total quarterly revenues of $126 million missed the Zacks Consensus Estimate of $127 million. The top line also declined from $274 million in the prior-year quarter.
Lower oil equivalent production, rising expenses, and lower commodity price realizations led to weak quarterly results.
Production Statistics
The total production averaged 37 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 42.4 MBoe/d. The reported figures came in lower than our estimate of 38.6 MBoe/d.
Oil production was 1,254 thousand barrels (MBbls), down from the year-ago level of 1,476 MBbls, lower than our estimate of 1,315 MBbls. Natural gas liquids’ output totaled 443 MBbls, higher than 384 MBbls a year ago. In the reported quarter, natural gas production of 10,023 million cubic feet (MMcf) was lower than 11,995 MMcf in the year-earlier period, also lower than our estimate of 11,175 MMcf.
Realized Commodity Prices
The average realized price for oil in the second quarter was $71.76 a barrel, lower than the year-ago level of $107.9. Our estimate for the same was pegged at $71.14. The average realized price of NGL declined to $23.44 from $43.58 per barrel in the prior year, lower than our estimate of $26.81 per barrel. The average realized price of natural gas in the June quarter was $2.34 per thousand cubic feet, down from $7.70 in the last year’s comparable period. The average realized price for oil-equivalent output decreased to $36.76 per barrel from $69.55.
Operating Expenses
Lease operating expenses rose to $19.60 per Boe in the second quarter from $13.73 a year ago. The reported figures came in higher than our estimate of $18.23 per Boe. Also, general and administrative expenses increased to $5.16 per Boe from $3.88, higher than our estimate of $4.20 per Boe.
Cash Flow
Net cash from operations in the second quarter was $26.2 million, which declined from $210.2 million in the year-ago period.
Free cash flow in the reported quarter declined to $9.7 million from $233.5 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $15.6 million in capital through the June quarter on oil and gas resources and equipment.
As of Jun 30, 2023, the company’s cash and cash equivalents were $171.6 million. Its net long-term debt in the quarter was $373 million. The current portion of the long-term debt is $30.6 million.
Guidance
For the third quarter of this year, W&T Offshore projects production in the band of 3,100 to 3,453 MBoe. For 2023, WTI expects production of 12,150 to 13,430 MBoe. Lease operating expenses for the third quarter are anticipated to be between $60-$67 million and $240-$260 million for the full year 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -64.71% due to these changes.
VGM Scores
At this time, W&T has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
W&T belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 13.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Matador reported revenues of $638.08 million in the last reported quarter, representing a year-over-year change of -32.4%. EPS of $1.42 for the same period compares with $3.47 a year ago.
Matador is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -43.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.8%.
Matador has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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W&T (WTI) Up 4.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for W&T Offshore (WTI - Free Report) . Shares have added about 4.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is W&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
W&T Offshore Q2 Earnings Lag Estimates, Revenues Fall Y/Y
W&T Offshore, Inc. reported second-quarter 2023 adjusted loss (excluding one-time items) of 8 cents per share, missing the Zacks Consensus Estimate of an adjusted loss of 6 cents. The bottom line deteriorated from the year-ago quarter’s earnings of $1.32 per share.
Total quarterly revenues of $126 million missed the Zacks Consensus Estimate of $127 million. The top line also declined from $274 million in the prior-year quarter.
Lower oil equivalent production, rising expenses, and lower commodity price realizations led to weak quarterly results.
Production Statistics
The total production averaged 37 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 42.4 MBoe/d. The reported figures came in lower than our estimate of 38.6 MBoe/d.
Oil production was 1,254 thousand barrels (MBbls), down from the year-ago level of 1,476 MBbls, lower than our estimate of 1,315 MBbls. Natural gas liquids’ output totaled 443 MBbls, higher than 384 MBbls a year ago. In the reported quarter, natural gas production of 10,023 million cubic feet (MMcf) was lower than 11,995 MMcf in the year-earlier period, also lower than our estimate of 11,175 MMcf.
Realized Commodity Prices
The average realized price for oil in the second quarter was $71.76 a barrel, lower than the year-ago level of $107.9. Our estimate for the same was pegged at $71.14. The average realized price of NGL declined to $23.44 from $43.58 per barrel in the prior year, lower than our estimate of $26.81 per barrel. The average realized price of natural gas in the June quarter was $2.34 per thousand cubic feet, down from $7.70 in the last year’s comparable period. The average realized price for oil-equivalent output decreased to $36.76 per barrel from $69.55.
Operating Expenses
Lease operating expenses rose to $19.60 per Boe in the second quarter from $13.73 a year ago. The reported figures came in higher than our estimate of $18.23 per Boe. Also, general and administrative expenses increased to $5.16 per Boe from $3.88, higher than our estimate of $4.20 per Boe.
Cash Flow
Net cash from operations in the second quarter was $26.2 million, which declined from $210.2 million in the year-ago period.
Free cash flow in the reported quarter declined to $9.7 million from $233.5 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $15.6 million in capital through the June quarter on oil and gas resources and equipment.
As of Jun 30, 2023, the company’s cash and cash equivalents were $171.6 million. Its net long-term debt in the quarter was $373 million. The current portion of the long-term debt is $30.6 million.
Guidance
For the third quarter of this year, W&T Offshore projects production in the band of 3,100 to 3,453 MBoe. For 2023, WTI expects production of 12,150 to 13,430 MBoe. Lease operating expenses for the third quarter are anticipated to be between $60-$67 million and $240-$260 million for the full year 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -64.71% due to these changes.
VGM Scores
At this time, W&T has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
W&T belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR - Free Report) , has gained 13.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Matador reported revenues of $638.08 million in the last reported quarter, representing a year-over-year change of -32.4%. EPS of $1.42 for the same period compares with $3.47 a year ago.
Matador is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -43.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.8%.
Matador has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.