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W&T Offshore (WTI) Beats Earnings & Revenue Estimates in Q3

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W&T Offshore, Inc. (WTI - Free Report) reported adjusted third-quarter 2018 earnings — excluding onetime items — of 30 cents per share, beating the Zacks Consensus Estimate of 24 cents and improving from the year-ago 4 cents.

Revenues increased to $153.5 million in the quarter from $110.3 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $147 million.

Commencement of projects and surge in oil and natural gas liquids (NGLs) price realizations primarily attributed to the strong third-quarter results.

Production Falls, Prices Rise

The production of oil and natural gas was recorded at 3,359 thousand barrels of oil equivalent (MBoe) (60.6% liquids), almost remains flat with the year-ago level. Success in drilling businesses along with commencement of projects drove production levels.

W&T Offshore’s production for oil and NGLs was 2,036 thousand barrels (MBbls), up almost 2% from the prior-year quarter, but natural gas output came in at 7,939 million cubic feet (MMcf), down 2.3%.

The average realized crude oil price during the third quarter was $69.57 a barrel, representing an increase of 52% from the year-ago $45.92. The average realized price of NGL jumped 43.6% to $31.70 per barrel from $22.07 in third-quarter 2017. However, the average realized natural gas price during the September quarter of 2018 was $2.85 per thousand cubic feet (Mcf), down 4% from the year-ago quarter.   

Balance Sheet & Capital Spending

As of Sep 30, 2018, the company had approximately $339.1 million in cash and cash equivalents. The company had long-term debt of $983.9 million — including the current maturities of debt.   

For the oil and natural gas resources, W&T Offshore spent $27.4 million capital, on an accrual basis, through the September quarter of 2018.

Guidance

The company expects production for fourth-quarter 2018 between 3.1 million barrels of oil equivalent (MMBoe) and 3.5 MMBoe. For 2018, W&T Offshore expects production in the range of 13.2-13.6 MMBoe.

Through 2018, the offshore oil and gas explorer expects lease operating expenses between $143 million and $158 million. 

W&T Offshore, Inc. Price, Consensus and EPS Surprise

 

W&T Offshore, Inc. Price, Consensus and EPS Surprise | W&T Offshore, Inc. Quote

Zacks Rank & Stocks to Consider

W&T Offshore carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space areMurphy Oil Corporation (MUR - Free Report) , Enbridge Inc (ENB - Free Report) and Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) . While Murphy and Enbridge sport a Zacks Rank #1 (Strong Buy), Petrobras carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Murphy has an average positive surprise of 96.5% for the last four quarters.

Enbridge will likely see earnings growth of 42.2% in 2018. 

Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.4%.

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