A month has gone by since the last earnings report for W&T Offshore (WTI). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is W&T due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for W&T Offshore, Inc. before we dive into how investors and analysts have reacted as of late.
W&T Offshore Q3 Loss Narrower Than Expected, Revenues Miss Estimates
W&T Offshore 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 11.77% due to these changes.
VGM Scores
At this time, W&T has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise W&T has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
W&T is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Viper Energy Partners (VNOM), a stock from the same industry, has gained 8.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Viper Energy reported revenues of $418 million in the last reported quarter, representing a year-over-year change of +99.4%. EPS of $0.40 for the same period compares with $0.49 a year ago.
For the current quarter, Viper Energy is expected to post earnings of $0.34 per share, indicating a change of -19.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viper Energy. Also, the stock has a VGM Score of F.
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W&T Offshore, Inc. (WTI): Free Stock Analysis Report Viper Energy Inc. (VNOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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