Ahead Of W&T Offshore's Q4 Results

(RTTNews) - Independent oil and natural gas producer W&T Offshore Inc. (WTI) "has a strong liquidity position and continues to deliver solid operational results," said Tracy Krohn, Chairman and Chief Executive Officer. The company continues to reduce costs and claims that its exploration success for nearly three years has been 100%.

For fiscal 2015, the company now expects Oil and NGLs production to be 8.9 MMBbls - 9.9 MMBbls versus its prior guidance range of 9.3 MMBbls - 10.3 MMBbls. Natural gas production is now expected to be in the range of 44.0 billion cubic feet or Bcf - 48.6 Bcf versus previous estimate of 44.5 - 49.2 Bcf. Fiscal 2015 total production is seen at 98.1 - 108.4 Bcfe compared to the previously communicated guidance range of 100.0 - 110.2 Bcfe. Combined total production is currently projected to range between 16.3 - 18.1 MMBoe.

Lease operating expense is now expected to be in the range of $187 million - $207 million versus prior outlook range of $219 million - $242 million.

Lower full-year production guidance is due primarily to the sale of the company's Yellow Rose field, while the lower guidance for operating expenses is due to reduced activity, lower cost of goods and services and the sale of Yellow Rose.

Fourth-quarter total production is expected to be in the range of 24.4 Bcfe - 26.9 Bcfe. Rio Grande Loop project is expected to boost the company's 2015 production rates significantly.

The company is set to release its fourth-quarter results after the bell on Tuesday, March 8, with analysts polled by Thomson Reuters estimating a loss of $0.83 per share on revenue of $122.53 million. Analysts' estimate typically exclude certain special items.

In the previous quarter, the company reported a net loss of $477.6 million or $6.29 per share, compared to a profit of $0.7 million or $0.01 per share during the same period in 2014.

Excluding special items, the company's net loss was $62.1 million or $0.82 per share compared to a loss of $5.3 million or $0.07 per share last year.

Operating results for the third quarter of 2015, excluding special items, were down primarily due to a $108.3 million decrease in revenues driven by a 46.6% decline in realized prices, partially offset by a $26.7 million decrease in LOE and a $31.3 million decrease in DD&A.

Revenues for the third quarter of 2015 were $126.2 million compared to $234.5 million in the third quarter of 2014. Revenues decreased due to the steep decline in commodity prices.

For the third quarter of 2015, oil production was 2.0 million barrels, up 12.2% over the third quarter of 2014. NGL production was 389,000 barrels, down 23.1% from the third quarter of 2014. Natural gas production was 11.6 Bcf for the third quarter of 2015, down 4.5% from the third quarter of 2014. Combined total production was 4.3 million Boe in the third quarter of 2015, flat with the third quarter of 2014.