W&T Offshore Produces 38.2K Barrels per Day, Exceeding Guidance Ceiling by 4%
Key Facts
W&T Offshore said its average production was 38.2 thousand barrels of oil equivalent per day in the third quarter of 2026, about 4% above the upper end of its guidance, according to a company statement. Production was about 9% above the midpoint of the range set by the company and increased 10% from the second quarter. That was up from an average of 34.7 thousand barrels of oil equivalent per day in the prior quarter, when production was at the midpoint of guidance. The company said third-quarter production was expected to be slightly higher than in the second quarter. The results showed a contrast between growth in production and revenue and a net loss during the period.
The company posted revenue of $167.08 million, up 3% from the second quarter and 31% from the third quarter of 2025. But it recorded a net loss of $13.6 million, or $0.09 per diluted share. On an adjusted basis, it reported net income of $0.9 million, or $0.01 per diluted share. Revenue increased on both a quarterly and annual basis even as the company reported a net loss. The statement did not link the cash dividend decision to any particular operating result.
Lease operating expenses were $76.7 million, slightly below the midpoint of the company’s guidance, according to the statement. W&T Offshore said this was achieved despite oil prices rising from their year-earlier level and production exceeding guidance. Adjusted EBITDA was $51.1 million for the quarter, up 30% from the same period in 2025. For the first nine months of 2026, the metric was $163.9 million, 50% higher than in the year-earlier period. The company also recorded free cash flow of $33.2 million for the quarter and $89.3 million for the first nine months.
Available liquidity rose to $234.7 million on September 30, 2026, from $194.1 million on June 30, the company said. This followed the conversion of its credit facility to a reserve-based lending structure. CEO Tracy Krohn said the new structure gives the company greater flexibility in managing liquidity. He added that the arrangement allows for potential borrowing capacity to expand by up to $100 million as the reserve base grows, without changes to pricing or financial covenants. The change provides financial context for the quarterly results, while the company kept its declared dividend at one cent per share.
The company declared a quarterly dividend of $0.01 per share for the fourth quarter of 2026, payable on November 19 to shareholders of record on November 12. This was the eleventh consecutive dividend at the same amount, according to the company’s announcement in August, when it said it had paid the previous dividend on May 18. In its second-quarter results, the company said its average realized sales price per barrel of oil equivalent rose 11% from the first quarter of 2026. This comparison places the consecutive dividends within the company’s announced record, without attributing the current dividend decision to free cash flow or operating efficiency. The new dividend is for the fourth quarter, not the third quarter, whose results were accompanied by the announcement.
W&T Offshore scheduled a call to discuss its third-quarter results for October 30, 2026, at 10 a.m. Eastern time, according to its statement. The call follows the results and dividend announcement and gives the company an opportunity to present performance details and its outlook. The company had indicated that third-quarter production was expected to be slightly higher than the second-quarter level, before it recorded an actual quarterly increase of 10%. The outlook included expectations for lower daily production in the fourth quarter, affected by Hurricane Isaias and planned maintenance in Mobile Bay. The results statement gave no date beyond the scheduled call to discuss the figures.