W&T Offshore, Inc. Announces Preliminary 2025 Financial Results: Key Highlights for Investors

Overview

W&T Offshore, Inc. (NYSE: WTI) has released its preliminary, unaudited financial results for the fiscal year ended December 31, 2025. The company cautions that these figures are subject to revision pending completion of its annual financial closing and audit. The official 10-K is expected to be filed by March 16, 2026.

Key Financial Results

• Net Loss: The company expects to report a net loss of \$150.1 million, or \$(1.01) per diluted share. Adjusted Net Loss is anticipated at \$55.1 million, or \$(0.37) per diluted share. This compares to a net loss of \$87.1 million, or \$(0.59) per diluted share, and an Adjusted Net Loss of \$61.7 million, or \$(0.42) per diluted share in 2024.
• Adjusted EBITDA: Estimated at \$129.6 million for 2025, down from \$153.6 million in 2024.
• Revenue: Expected revenue is \$501.5 million for 2025, a decrease from \$525.3 million in 2024.
• Free Cash Flow: Only \$1.5 million in 2025, sharply down from \$44.9 million in 2024. This is a significant drop and could be considered price sensitive given the company’s lower cash generation.
• Net Cash Provided by Operating Activities: \$77.2 million, up from \$59.5 million in 2024.

Production and Pricing

• Production: Average production for 2025 is expected at 34.0 MBoe/d (12.4 MMBoe total), consisting of 5.1 MMBbl oil, 1.1 MMBbl NGLs, and 36.9 Bcf natural gas. This is slightly higher than 2024’s 33.3 MBoe/d (12.2 MMBoe).
• Realized Sales Prices:
  • Crude Oil: \$64.09 per barrel (down from \$75.28 in 2024)
  • NGLs: \$17.88 per barrel (down from \$23.08)
  • Natural Gas: \$3.90 per Mcf (up from \$2.65)

Liquidity and Debt Position

• Available Liquidity: \$184.5 million, consisting of \$140.6 million in unrestricted cash and \$43.9 million borrowing availability on its revolving credit facility.
• Total Debt: \$350.8 million; Net Debt is \$210.3 million, a reduction of \$73.9 million from 2024. Net Debt to trailing twelve months Adjusted EBITDA is 1.6x.
• ATM Equity Offering Program: Up to \$83.0 million in additional capital available via at-the-market equity sales.

Reserves and Asset Valuation

• Year-end 2025 SEC Proved Reserves: Expected at 121.0 MMBoe, down from 127.0 MMBoe in 2024.
• PV-10 for PDP Reserves: Increased by \$279.4 million to \$829.2 million.
• PV-10 of Total Proved Reserves: \$1.1 billion, down from \$1.2 billion in 2024.
• Standardized Measure of Discounted Future Net Cash Flows: Decreased 12% to \$651.3 million.
• Reserves Composition: 42% liquids (32% oil, 10% NGLs), 58% natural gas; 71% proved developed producing, 24% proved developed non-producing, 5% proved undeveloped. Reserve life ratio is 9.8 years.

Regulatory Developments

• Bureau of Ocean Energy Management (BOEM) Rulemaking: On March 5, 2026, the U.S. Department of Interior announced a Notice of Proposed Rulemaking to potentially revise the 2024 BOEM rule requiring companies to set aside ~\$6.9 billion in supplemental financial assurance. This could reduce regulatory burden and impact future cash flows, a potentially price-sensitive development.

Dividend & Capital Returns

• Fourth quarter 2025 dividend of \$0.01 per share was paid November 26, 2025.
• First quarter 2026 dividend of \$0.01 per share declared, payable March 26, 2026.

Hedging Activities

• 2025 Hedging Results:
  • Oil: Average realized price including derivatives was \$64.23 per Bbl.
  • Natural Gas: Average realized price including derivatives was \$4.32 per Mcf.
• 2026 Hedging Agreements:
  • Oil costless collars covering 2,000 Bbls/d from March to December 2026 with floors at \$55.35 and \$57.00 per Bbl, ceilings at \$68.60 and \$70.20 per Bbl.
  • Oil swap for 2,000 Bbls/d from April to December 2026 at \$64.53 per Bbl.

Detailed Financial Statements

Condensed Consolidated Statements of Operations (Selected)

• 2025 Full-Year Revenues: \$501.5 million (Oil \$327.8m, NGLs \$20.4m, Nat Gas \$143.9m, Other \$9.3m)
• Operating Expenses: \$554.3 million, up from \$567.5 million in 2024
• Operating Loss: \$(52.8) million, deeper than \$(42.2) million in 2024
• Interest Expense: \$36.5 million, down from \$40.5 million
• Net Loss: \$(150.1) million for 2025

Condensed Operating Data

• Oil sales volumes: 5.1 MMBbls (vs 5.3 MMBbls in 2024)
• NGL sales volumes: 1.1 MMBbls (vs 1.2 MMBbls)
• Natural gas sales volumes: 36.9 Bcf (vs 34.3 Bcf)
• Average daily equivalent sales: 34.0 MBoe/d (vs 33.3 MBoe/d)
• Average realized oil price: \$64.09/Bbl (down from \$75.28/Bbl)
• Average operating expenses per Boe: Lease operating expenses \$24.09/Boe

Balance Sheet Overview

• Total Assets: \$955.8 million (down from \$1,098.9 million in 2024)
• Cash and Cash Equivalents: \$140.6 million (up from \$109.0 million)
• Restricted Cash: \$62k (down from \$1.6 million)
• Receivables: Oil and gas sales \$59.6 million
• Oil and Gas Properties and Other, Net: \$662.1 million (down from \$777.7 million)
• Asset Retirement Obligations: \$535.7 million (up from \$502.5 million)
• Shareholders’ Deficit: \$(199.8) million (worsening from \$(52.6) million)

Non-GAAP Financial Measures

• Net Debt: \$210.3 million
• Adjusted Net Loss: \$55.1 million, or \$(0.37) per share
• Adjusted EBITDA: \$129.6 million
• Free Cash Flow: \$1.5 million (down sharply from \$44.9 million in 2024)
• PV-10: \$1.1 billion (down from \$1.2 billion)

Risk Factors and Forward-Looking Statements

The company notes that forward-looking statements are subject to risks including regulatory changes, commodity price volatility, global economic trends, operational risks, environmental liabilities, and uncertainties regarding reserves and future cash flows. Regulatory developments, particularly the BOEM rulemaking, may materially affect financial positions, cash flows, and share value.

Potential Share Price Impact and Investor Considerations

• Negative: The significant drop in net profit, free cash flow, and PV-10 of reserves could negatively impact share price.
• Positive: Reduction in net debt, increased liquidity, and regulatory changes that may reduce financial assurance requirements could support valuation.
• Dividend: Continued dividend, albeit modest, may attract income-focused investors.
• Hedging: Proactive hedging strategies may stabilize future cash flows.
• Regulatory Uncertainty: BOEM rule revisions could materially affect capital requirements and cash flow.
• Reserves and Asset Value: Despite declines, reserve life and asset values remain substantial.

Disclaimer

This article is based on preliminary unaudited results and forward-looking statements from W&T Offshore, Inc. Actual results may differ materially once the final audited financials and regulatory developments are disclosed. Investors should not place undue reliance on these estimates and are advised to consult official filings and professional advisors before making investment decisions. The article does not constitute investment advice.

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