Oil and gas producer W&T Offshore's Q2 revenue rises more than expected on higher prices
WTI•Outlook and result drivers
W&T Offshore expects third-quarter production of 3.06 million to 3.39 million Boe, or a daily average of 33.3 MBoe/d to 36.8 MBoe/d. The company sees third-quarter lease operating expenses at $73 million to $81 million.
Full-year 2026 capital expenditures are expected at $19.5 million to $24.5 million, with plugging and abandonment at $34 million to $42.4 million.
Higher realized prices helped drive the results, with the average realized price per BOE rising 11% from the first quarter. Lease operating expenses were below the low end of guidance due to timing of facility and workover expense projects, with some costs deferred to the third quarter. Production volumes increased 3% year over year and were at the midpoint of guidance, aided by workover and recompletion projects.
Key figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $162.62 million | $157.46 million (5 analysts) |
| Q2 Net Income | $12.56 million |
The current average analyst rating on the shares is "buy," with 4 "strong buy" or "buy" ratings, no "hold" and no "sell" or "strong sell". The median 12-month price target for W&T Offshore, Inc. is $4.83, about 41.1% above its August 4 closing price of $3.42.
Q2 results beat expectations
Oil and gas producer W&T Offshore's second-quarter revenue rose 33% year over year, beating analyst expectations.
Net income turned positive from a loss a year earlier, and the company declared a quarterly dividend of $0.01 per share.
