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W&T Offshore (WTI) Q1 Earnings Lag Estimates on Lower Prices
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W&T Offshore, Inc. (WTI - Free Report) reported a first-quarter 2024 loss of 5 cents per share (excluding one item), wider than the Zacks Consensus Estimate of a loss of 4 cents. The bottom line also deteriorated from the year-ago quarter’s reported loss of 2 cents.
Total quarterly revenues of $140.8 million beat the Zacks Consensus Estimate of $139 million. The top line also increased from the $131.7 million reported in the prior-year quarter.
Weak quarterly earnings were due to reduced average realized prices for oil-equivalent production.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
Total production for the quarter averaged 35.1 thousand barrels of oil equivalent per day (MBoe/d), up from 32.5 MBoe/d in the corresponding period of 2023. The reported metric is in line with our estimate. The production increase in the first quarter of 2024 was largely attributed to the integration of the Cox acquisition completed in January 2024. This boost was somewhat mitigated by natural declines in production.
Oil production totaled 1,400 thousand barrels (MBbls), up from 1,350 MBbls in the year-ago quarter. The figure also surpassed our estimate of 1,395 MBbls.
Natural gas liquids’ output totaled 343 MBbls, which increased from 294 MBbls a year ago and surpassed our estimate of 297 MBbls.
Natural gas production of 8,733 million cubic feet (MMcf) was higher than 7,677 MMcf in the prior-year quarter. The figure missed our estimate of 9,002 MMcf.
Realized Commodity Prices
The average realized price for oil in the first quarter was $76.44 per barrel, higher than the year-ago level of $71.85. Our estimate for the same was pegged at $77.11.
The average realized price of NGL declined to $21.78 per barrel from $26.51 in the first quarter of 2023. Our estimate for the same was pinned at $18.47 per barrel.
The average realized price of natural gas in the March-end quarter was $2.48 per thousand cubic feet, down from $3.23 in the corresponding period of 2022 and below our estimate of $2.52 per barrel.
The average realized price for oil-equivalent output decreased to $42.55 per barrel from $44.32. The figure is almost in line with our estimate.
Operating Expenses
Lease operating expenses declined to $22.14 per Boe in the first quarter from $22.29 in the year-ago period. The reported figure also missed our estimate of $24.30 per Boe.
Also, general and administrative expenses declined to $6.41 per Boe in the first quarter from $6.81 a year ago. The figure beat our estimate of $5.75.
Cash Flow
Net cash from operations in the first quarter totaled $11.6 million, down from $23.4 million in the year-ago quarter.
The free cash flow in the reported quarter increased to $32.4 million from $12.4 million in the year-earlier quarter.
Capital Spending & Balance Sheet
For the reported quarter, W&T Offshore spent $3.2 million on oil and gas resources and equipment.
As of Mar 31, 2024, the company’s cash and cash equivalents were $94.8 million. Its net long-term debt amounted to $384.2 million. The current portion of the long-term debt is $7 million.
Guidance
For the second quarter of 2024, W&T Offshore expects production of 2,972-3,392 Mboe. For 2024, its production is anticipated to be 12,417-14,592 Mboe.
Zacks Rank & Stocks to Consider
Currently, WTI carries a Zacks Rank #5 (Strong Sell).
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.53 and $7.43, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.55 and $2.63, respectively.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.15, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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W&T Offshore (WTI) Q1 Earnings Lag Estimates on Lower Prices
W&T Offshore, Inc. (WTI - Free Report) reported a first-quarter 2024 loss of 5 cents per share (excluding one item), wider than the Zacks Consensus Estimate of a loss of 4 cents. The bottom line also deteriorated from the year-ago quarter’s reported loss of 2 cents.
Total quarterly revenues of $140.8 million beat the Zacks Consensus Estimate of $139 million. The top line also increased from the $131.7 million reported in the prior-year quarter.
Weak quarterly earnings were due to reduced average realized prices for oil-equivalent production.
W&T Offshore, Inc. Price, Consensus and EPS Surprise
W&T Offshore, Inc. price-consensus-eps-surprise-chart | W&T Offshore, Inc. Quote
Production Statistics
Total production for the quarter averaged 35.1 thousand barrels of oil equivalent per day (MBoe/d), up from 32.5 MBoe/d in the corresponding period of 2023. The reported metric is in line with our estimate. The production increase in the first quarter of 2024 was largely attributed to the integration of the Cox acquisition completed in January 2024. This boost was somewhat mitigated by natural declines in production.
Oil production totaled 1,400 thousand barrels (MBbls), up from 1,350 MBbls in the year-ago quarter. The figure also surpassed our estimate of 1,395 MBbls.
Natural gas liquids’ output totaled 343 MBbls, which increased from 294 MBbls a year ago and surpassed our estimate of 297 MBbls.
Natural gas production of 8,733 million cubic feet (MMcf) was higher than 7,677 MMcf in the prior-year quarter. The figure missed our estimate of 9,002 MMcf.
Realized Commodity Prices
The average realized price for oil in the first quarter was $76.44 per barrel, higher than the year-ago level of $71.85. Our estimate for the same was pegged at $77.11.
The average realized price of NGL declined to $21.78 per barrel from $26.51 in the first quarter of 2023. Our estimate for the same was pinned at $18.47 per barrel.
The average realized price of natural gas in the March-end quarter was $2.48 per thousand cubic feet, down from $3.23 in the corresponding period of 2022 and below our estimate of $2.52 per barrel.
The average realized price for oil-equivalent output decreased to $42.55 per barrel from $44.32. The figure is almost in line with our estimate.
Operating Expenses
Lease operating expenses declined to $22.14 per Boe in the first quarter from $22.29 in the year-ago period. The reported figure also missed our estimate of $24.30 per Boe.
Also, general and administrative expenses declined to $6.41 per Boe in the first quarter from $6.81 a year ago. The figure beat our estimate of $5.75.
Cash Flow
Net cash from operations in the first quarter totaled $11.6 million, down from $23.4 million in the year-ago quarter.
The free cash flow in the reported quarter increased to $32.4 million from $12.4 million in the year-earlier quarter.
Capital Spending & Balance Sheet
For the reported quarter, W&T Offshore spent $3.2 million on oil and gas resources and equipment.
As of Mar 31, 2024, the company’s cash and cash equivalents were $94.8 million. Its net long-term debt amounted to $384.2 million. The current portion of the long-term debt is $7 million.
Guidance
For the second quarter of 2024, W&T Offshore expects production of 2,972-3,392 Mboe. For 2024, its production is anticipated to be 12,417-14,592 Mboe.
Zacks Rank & Stocks to Consider
Currently, WTI carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. These three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.53 and $7.43, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Ecopetrol S.A. (EC - Free Report) operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.55 and $2.63, respectively.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.15, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.