Third Quarter 2026
Filed Oct 29, 2026W&T Offshore Announces Third Quarter 2026 Results and Declares Dividend for Fourth Quarter of 2026
Third-quarter production, revenue, Adjusted EBITDA and Free Cash Flow increased year over year, while liquidity increased and Net Debt declined. GAAP net loss remained $ (13,649) (in thousands), reflecting a $ 15,800 (in thousands) derivative loss, net.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues (three months ended September 30, 2026; in thousands)GAAP | $167.1M | 3% | 31% |
| Oil revenue (three months ended September 30, 2026; in thousands)GAAP | $111.8M | – | – |
| NGLs revenue (three months ended September 30, 2026; in thousands)GAAP | $9.12M | – | – |
| Natural gas revenue (three months ended September 30, 2026; in thousands)GAAP | $41.20M | – | – |
| Other revenue (three months ended September 30, 2026; in thousands)GAAP | $4.98M | – | – |
| Total operating expenses (three months ended September 30, 2026; in thousands)GAAP | $155.3M | – | – |
| Operating income (loss) (three months ended September 30, 2026; in thousands)GAAP | $11.82M | – | – |
| Net (loss) income (three months ended September 30, 2026; in thousands)GAAP | −$13.65M | NM | (81)% |
| Net (loss) income per diluted share (three months ended September 30, 2026)GAAP | $ (0.09) | NM | (81)% |
| Adjusted Net Income (Loss) (three months ended September 30, 2026; in thousands)non-GAAP | $936K | (93)% | NM |
| Adjusted Net Income (Loss) per diluted share (three months ended September 30, 2026)non-GAAP | $ 0.01 | (93)% | NM |
| Adjusted EBITDA (three months ended September 30, 2026; in thousands)non-GAAP | $51.14M | (10)% | 30% |
| Adjusted EBITDA (first nine months of 2026)non-GAAP | $163.9M | – | 50% |
| Net cash provided by operating activities (three months ended September 30, 2026; in thousands)GAAP | $36.65M | – | – |
| Free Cash Flow (three months ended September 30, 2026; in thousands)non-GAAP | $33.17M | (1)% | NM |
| Free Cash Flow (first nine months of 2026)non-GAAP | $89.3M | – | – |
| Capital expenditures, accrual basis (three months ended September 30, 2026; in thousands)other | $3.10M | (70)% | (86)% |
| Lease operating expenses (three months ended September 30, 2026; in thousands)GAAP | $76.67M | 7% | 1% |
| Lease operating expenses per Boe (three months ended September 30, 2026)other | $ 21.82 | (4)% | (6)% |
| Gathering, transportation and production taxes (three months ended September 30, 2026; in thousands)GAAP | $9.38M | 43% | 61% |
| Depreciation, depletion, and amortization (three months ended September 30, 2026; in thousands)GAAP | $28.27M | 11% | (1)% |
| General and administrative expenses (three months ended September 30, 2026; in thousands)GAAP | $31.68M | 15% | 47% |
| Adjusted General and Administrative Expenses (three months ended September 30, 2026; in thousands)non-GAAP | $19.26M | 35% | 8% |
| Average daily equivalent sales (three months ended September 30, 2026)other | 38.2 MBoe/d | 10% | 7% |
| Total oil equivalent sales volumes (three months ended September 30, 2026)other | 3,514 MBoe | 11% | 7% |
| Average realized oil equivalent sales price (three months ended September 30, 2026; before the impact of derivative settlements)other | $ 46.13 | (8)% | 20% |
| Cash and cash equivalents (September 30, 2026; in thousands)GAAP | $191.3M | 27% | – |
| Total debt (September 30, 2026; in thousands)GAAP | $352.0M | – | – |
| Net Debt (September 30, 2026; in thousands)non-GAAP | $160.7M | 20% decrease | – |
| Total available liquidity (September 30, 2026)other | $234.7M | – | – |
| Net Debt to trailing twelve month Adjusted EBITDA (September 30, 2026)non-GAAP | 0.9 times | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| OilAverage realized sales price was $ 85.06 per Bbl before the impact of derivative settlements. | $111.8M | – | – |
| NGLsNet sales volumes were 482 MBbls. | $9.12M | – | – |
| Natural gasAverage realized sales price was $ 4.00 per Mcf before the impact of derivative settlements. | $41.20M | – | – |
| OtherNo separate driver was provided. | $4.98M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Full Year 2026 outlook
- NoteFourth Quarter 2026 oil: 1,170 – 1,290 MBbls
- NoteFull Year 2026 oil: 4,710 – 5,210 MBbls
- NoteFourth Quarter 2026 NGLs: 400 – 440 MBbls
- NoteFull Year 2026 NGLs: 1,620 – 1,820 MBbls
- NoteFourth Quarter 2026 natural gas: 8,250 – 9,120 MMcf
- NoteFull Year 2026 natural gas: 35,380 – 39,180 MMcf
- NoteFourth Quarter 2026 total equivalents: 2,945 – 3,250 MBoe
- NoteFull Year 2026 total equivalents: 12,227 – 13,560 MBoe
- NoteFourth Quarter 2026 average daily equivalents: 32.0 – 35.3 MBoe/d
- NoteFull Year 2026 average daily equivalents: 33.5 – 37.2 MBoe/d
- NoteFourth Quarter 2026 lease operating expense: 65.4 – 72.3 ($MM)
- NoteFull Year 2026 lease operating expense: 264.7 – 294.7 ($MM)
- NoteFourth Quarter 2026 gathering, transportation and production taxes: 8.4 – 9.3 ($MM)
- NoteFull Year 2026 gathering, transportation and production taxes: 33.3 – 37.3 ($MM)
- NoteFourth Quarter 2026 Adjusted General and Administrative Expenses: 16.9 – 18.6 ($MM)
- NoteFull Year 2026 Adjusted General and Administrative Expenses: 63.2 – 70.2 ($MM)
- NoteFourth Quarter 2026 depreciation, depletion, amortization and accretion: 10.25 – 11.35 ($ per Boe)
- NoteFull Year 2026 capital expenditures: 35.0 – 38.0 ($MM)
- NoteFull Year 2026 Plugging and Abandonment: 34.0 – 42.4 ($MM)
- NoteFourth quarter non-recurring legal costs are expected to be in the range of $2.9 million to $3.2 million and will be incremental to the range.
Capital returns
- Paid 12th consecutive quarterly dividend of $0.01 per share on August 26, 2026.
- Declared a fourth quarter 2026 dividend of $0.01 per share, payable on November 19, 2026 to shareholders of record on November 12, 2026.
- Issued 3.6 million common shares with net proceeds of $14.7 million through the ATM agreement.
- Payment of dividends was $ (1,581) (in thousands) during the three months ended September 30, 2026.
What drove it
- Average daily equivalent sales increased 10% sequentially to 38.2 MBoe/d and 7% year over year from 35.6 MBoe/d.
- NGL sales volumes increased 47% sequentially and 72% year over year to 482 MBbls.
- Natural gas realized sales price increased 21% sequentially to $ 4.00 per Mcf, while oil realized sales price declined 14% sequentially to $ 85.06 per Bbl.
- During the third quarter of 2026, W&T performed seven workover projects and one recompletion that positively impacted production.
- Third-quarter general and administrative expenses increased due to non-cash share-based compensation costs driven primarily by the Company's share price used to value certain awards marked-to-market.
Concerns
- GAAP net loss was $ (13,649) (in thousands), including a $ 15,800 (in thousands) derivative loss, net.
- Fourth-quarter production guidance includes combined short-term sales-volume reductions of approximately 2,600 Boe/d from Hurricane Isaias and the planned Mobile Bay turnaround.
- Fourth-quarter lease operating expense guidance includes an $8.5 million net royalty credit, partially offset by accelerated facility and workover projects.
- Surety litigation remains uncertain, and there can be no assurance of a successful result.
- Fourth-quarter non-recurring legal costs are expected to be in the range of $2.9 million to $3.2 million and are incremental to Adjusted General and Administrative Expenses guidance.
What to watch
- Fourth-quarter production against guidance of 32.0 – 35.3 MBoe/d.
- The production and revenue effect of Hurricane Isaias and the planned Mobile Bay turnaround.
- Full-year capital expenditures of $35.0 – 38.0 million, including projects pulled forward from 2027 whose production benefits are expected over the first half of 2027.
- The November 1, 2026 borrowing-base redetermination under the reserve-based revolving credit facility.
- Discovery, depositions and damages quantification in the surety lawsuits.
Balance sheet and cash flow
- Available liquidity was $234.7 million at September 30, 2026, including $191.3 million in unrestricted cash and cash equivalents and $43.4 million of borrowing availability.
- Total debt was $352.0 million and Net Debt was $160.7 million as of September 30, 2026.
- Net cash provided by operating activities was $ 36,647 (in thousands).
- Net cash used in investing activities was $ (8,187) (in thousands).
- Net cash provided by financing activities was $ 12,174 (in thousands).
- Cash and cash equivalents increased to $ 191,317 (in thousands) from $ 150,683 (in thousands) at June 30, 2026.
- The amended credit facility has an initial borrowing base of $50.0 million, elected commitments of $50.0 million and an aggregate maximum credit amount of $100.0 million.
Analysis
W&T reported third-quarter total revenues of $ 167,080 (in thousands), up 31% from $ 127,515 (in thousands) in the third quarter of 2025 and up 3% from $ 162,619 (in thousands) in the second quarter of 2026. Average daily equivalent sales rose to 38.2 MBoe/d, up 7% year over year and 10% sequentially. Oil revenue was $ 111,773 (in thousands), natural gas revenue was $ 41,204 (in thousands), NGLs revenue was $ 9,121 (in thousands), and other revenue was $ 4,982 (in thousands). NGL volumes increased 72% year over year to 482 MBbls, while total oil equivalent sales volumes increased 7% to 3,514 MBoe.
Operating performance supported Adjusted EBITDA of $ 51,139 (in thousands), up 30% year over year but down 10% sequentially. Free Cash Flow was $ 33,173 (in thousands), compared with $ (1,162) (in thousands) a year earlier and $ 33,557 (in thousands) in the second quarter. Lease operating expenses were $ 76,671 (in thousands), or $ 21.82 per Boe, compared with $ 23.27 per Boe in the prior-year period. Gathering, transportation and production taxes rose 61% year over year to $ 9,376 (in thousands), and general and administrative expenses rose 47% to $ 31,685 (in thousands). The company attributed the sequential increase in general and administrative expenses primarily to higher non-cash share-based compensation costs.
GAAP results remained negative, with net loss of $ (13,649) (in thousands), or $ (0.09) per diluted share, after net income of $ 12,561 (in thousands) in the second quarter. The statement of operations recorded a $ 15,800 (in thousands) derivative loss, net. Adjusted Net Income was $ 936 (in thousands), or $ 0.01 per diluted share, compared with $ 13,986 (in thousands), or $ 0.09 per diluted share, sequentially. The company reported $163.9 million of Adjusted EBITDA and $89.3 million of Free Cash Flow for the first nine months of 2026.
Liquidity strengthened during the quarter. Cash and cash equivalents were $ 191,317 (in thousands), compared with $ 150,683 (in thousands) at June 30, 2026, and total available liquidity was $234.7 million. Net Debt was $ 160,655 (in thousands), compared with $ 200,893 (in thousands) at June 30, 2026, while Net Debt to trailing twelve month Adjusted EBITDA was 0.9 times. The company also issued 3.6 million common shares for net proceeds of $14.7 million and paid $ (1,581) (in thousands) in dividends. The October 1 credit-facility amendment converted the facility to a reserve-based structure, retained a $50.0 million initial borrowing base and provided capacity to increase commitments up to $100.0 million.
Fourth-quarter guidance calls for 32.0 – 35.3 MBoe/d of average daily equivalents, below third-quarter actual production of 38.2 MBoe/d. Management said the guide incorporates approximately 2,600 Boe/d of combined production impact from Hurricane Isaias and the planned Mobile Bay turnaround. Full-year capital expenditures are expected to be $35.0 – 38.0 million after pulling forward 2027 projects into the fourth quarter. The company expects production benefits from those expenditures over the first half of 2027. Fourth-quarter lease operating expense guidance incorporates an $8.5 million net royalty credit and accelerated facility and workover activity.
Management, verbatim
We continue to deliver strong operational results that are enhancing our financial results.
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer
The change strengthens our capital structure by eliminating restrictive lending requirements thereby improving liquidity and financial flexibility while providing the potential to significantly expand our borrowing capacity to $100 million from $50 million.
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Revenue guidance was not provided.
- Tax-rate guidance was not provided.
- Prior guidance was not provided, so no comparison of actual results with prior guidance is available.
- Year-over-year and sequential percentage changes were not separately reported for oil, NGLs, natural gas and other revenue.
- A full-year 2026 depreciation, depletion, amortization and accretion guidance range was not provided.
- Operating cash flow and Free Cash Flow for the first nine months of 2026 were not presented in the financial statements beyond the reported Free Cash Flow amount of $89.3 million.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.