Yahoo Finance W&T Offshore (WTI) Beats on Q4 Earnings, Ups 2023 Capex Outlook
W&T Offshore, Inc. WTI reported fourth-quarter 2022 adjusted earnings (excluding one-time items) of 10 cents per share, beating the Zacks Consensus Estimate of 3 cents. The bottom line is in line with the year-ago quarter’s earnings.
Total quarterly revenues of $189.7 million surpassed the Zacks Consensus Estimate of $182 million. The top line also increased from $165.6 million in the prior-year quarter.
The strong quarterly results were driven by higher production and the realization of commodity prices.
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
The total production averaged 38.6 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 37.2 MBoe/d.
Oil production was 1,375 thousand barrels (MBbls), up from the year-ago level of 1,186 MBbls. Natural gas liquids’ output totaled 371 MBbls, higher than 345 MBbls a year ago. However, natural gas production of 10,843 million cubic feet (MMcf) for the reported quarter was lower than 11,321 MMcf in the year-earlier period.
Realized Commodity Prices
The average realized price for oil in the fourth quarter was $81.27 a barrel, higher than the year-ago level of $75.14. The average realized price of NGL declined to $25.70 from $40.46 per barrel in the prior year. The average realized price of natural gas for the December-end quarter was $6.12 per thousand cubic feet, up from $5.29 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $52.82 per barrel from $47.70 a year ago.
Operating Expenses
Lease operating expenses rose to $19.42 per Boe in the fourth quarter from $13.22 a year ago. Also, general and administrative expenses increased to $6.18 per Boe from $4.19 in the year-ago period.
Overall, total costs and expenses increased to $133.7 million from the year-ago level of $97.3 million.
Cash Flow
Net cash from operations for the fourth quarter was $12.7 million, which declined from $22.4 million in the year-ago period.
Free cash flow for the reported quarter increased to $25 million from $22.5 million in the year-ago quarter.
Capital Spending & Balance Sheet
W&T Offshore spent $11.7 million in capital through the December-end quarter (excluding acquisitions) on oil and gas resources.
As of Dec 31, 2022, the company’s cash and cash equivalents were $461.4 million, up from the third-quarter 2022 level of $447.1 million. Its net long-term debt, as of the December-end quarter, was $111.2 million, down from the prior-quarter level of $666 million. The current portion of the long-term debt is $582.2 million.
Guidance
For 2023, W&T Offshore expects average daily oil-equivalent production of 37-41 MBoe/d, the mid-point of which suggests a decline from 40.1 MBoe/d reported in 2022. Oil production is expected to be 5,220-5,820 MBbls, whereas that of natural gas will likely be 41,500-45,500 MMcf.
For the first quarter, W&T Offshore expects average daily oil-equivalent production of 32.4-35.2 MBoe/d. Oil production is anticipated to be 1,230-1,340 MBbls, while that of natural gas is likely to be 8,300-9,000 MMcf.
For 2023, the upstream company gave its capital spending budget of $90-$110 million, which excludes acquisition opportunities. The metric suggests an increase from $41.6 million reported in 2022. The company expects lease operating expenses of $235-$265 million for the year.
Zacks Rank & Stocks to Consider
W&T Offshore currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP’s SUN fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s RES adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation’s VLO fourth-quarter 2022 adjusted earnings of $8.45 per share beat the Zacks Consensus Estimate of $7.45 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero can benefit from the Gulf Coast export volumes, as fuel demand recovery gets support from Asia economies. The Gulf Coast contributed 59.4% to the total throughput volume in the fourth quarter of 2022.
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