W&T Offshore Q3 Loss Narrower Than Expected, Revenues Rise Y/Y

W&T Offshore, Inc. WTI reported a third-quarter 2025 loss of 5 cents per share (excluding one item), narrower than the Zacks Consensus Estimate of a loss of 12 cents. The bottom line improved from the year-ago quarter’s reported loss of 17 cents per share.

Total quarterly revenues of $127.5 million missed the Zacks Consensus Estimate of $134 million. The top line increased from $121.4 million reported in the prior-year quarter.

The strong quarterly earnings can be primarily attributed to increased production volumes and lower operating expenses. However, lower commodity price realizations partially offset the positives.

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

Production for the quarter averaged 35.6 thousand barrels of oil equivalent per day (MBoe/d), up from 31 MBoe/d in the corresponding period of 2024. The reported figure came in higher than our estimate of 35.2 MBoe/d.

Oil production totaled 1,302 thousand barrels (MBbls), higher than 1,210 MBbls in the year-earlier quarter. The figure missed our estimate of 1,427 MBbls.

Natural gas liquids output totaled 280 MBbls, which increased from the year-ago quarter’s level of 262 MBbls. Our estimate for the same was pinned at 230 MBbls.

Natural gas production of 10,159 million cubic feet (MMcf) was higher than 8,289 MMcf in the prior-year quarter. The figure beat our estimate of 9,508 MMcf.

Realized Commodity Prices

The average realized price for oil in the third quarter was $64.62 per barrel, lower than the year-ago quarter’s level of $75.09. Our estimate for the same was pegged at $67.68.

The average realized price of NGL decreased to $14.29 per barrel from $21.51 reported a year ago. The figure came in lower than our estimate of $20.70 per barrel.

The average realized price of natural gas in the September-end quarter was $3.68 per thousand cubic feet, up from $2.79 in the corresponding period of 2024 and lower than our estimate of $3.89.

The average realized price for oil-equivalent output decreased to $38.33 per barrel from $41.92 a year ago. The figure was below our estimate of $42.68 per barrel.

Operating Expenses

Lease operating expenses declined to $23.27 per Boe from $25.37 in the year-ago period. The reported figure came in below our estimate of $24.11 per Boe.

General and administrative expenses decreased to $6.57 per Boe from $6.91 a year ago. The figure was higher than our estimate of $4.92 per Boe.

Cash Flow

Net cash provided by operations totaled $26.5 million compared with $14.8 million in the prior-year quarter.

The company reported a negative free cash flow of $1.4 million in the third quarter, from a positive $3.9 million in the corresponding period of 2024.

Capital Spending & Balance Sheet

W&T Offshore reported capital spending $22.5 million in the third quarter.

As of Sept. 30, 2025, cash and cash equivalents totaled $124.8 million, and net long-term debt amounted to $341.8 million. The current portion of the long-term debt is $8.6 million.

Guidance

For the fourth quarter of 2025, W&T Offshore expects production to be in the range of 3,145-3,483 Mboe. For 2025, production is anticipated to remain unchanged in the band of 11,983-13,257 Mboe.

Further, the company expects fourth-quarter lease operating expenses to be in the $71-$79 million range. For the full-year 2025, lease operating expenses are anticipated to be in the $280-$310 million band.

WTI revised its full-year capital expenditures projections to be in the range of $57-$63 million.

WTI’s Zacks Rank and Key Picks

WTI currently carries a Zacks Rank #2 (Buy).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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