W&T Offshore Reports $525.3 Million Revenue and $87.1 Million Net Loss for Fiscal Year 2024

W&T Offshore, Inc. reported a total revenue of $525.3 million for the fiscal year ending December 31, 2024, a slight decrease from $532.7 million in 2023. The company's oil revenue increased by $14.2 million to $395.6 million, while natural gas revenue fell by $19.3 million to $90.9 million, and NGL revenue decreased by $4.5 million to $28.0 million. The total production volume for the year was 12.2 million barrels of oil equivalent (MMBoe), down from 12.7 MMBoe in the previous year, primarily due to deferred production from various operational challenges, including hurricanes and infrastructure issues.

In terms of profitability, W&T Offshore reported a net loss of $87.1 million, compared to a net income of $15.6 million in 2023. This significant shift was attributed to increased operating expenses, which rose to $567.5 million from $503.2 million in the prior year. Key contributors to the rise in expenses included lease operating costs, which increased by $23.8 million, and depreciation, depletion, and amortization expenses, which rose by $28.3 million. The company also faced challenges related to asset retirement obligations, which added to the financial strain.

Strategically, W&T Offshore made notable acquisitions during the year, including the purchase of certain leases and wells in the Gulf of America for $77.3 million in January 2024. This acquisition was funded with cash on hand and included the assumption of related asset retirement obligations. Additionally, the company entered into a purchase agreement to sell a non-core interest in the Garden Banks Blocks for approximately $11.9 million, which closed in January 2025. These transactions reflect the company's ongoing strategy to optimize its asset portfolio and enhance production capabilities.

Operationally, W&T Offshore maintained a workforce of approximately 400 employees as of December 31, 2024, with a focus on optimizing production and managing costs. The company operates in a highly competitive environment, primarily in the Gulf of America, where it holds interests in 52 offshore producing fields. The company’s ability to navigate market fluctuations and operational challenges is critical, especially given the volatility in oil and natural gas prices, which are expected to remain a significant factor in its financial performance moving forward.

Looking ahead, W&T Offshore anticipates continued challenges due to fluctuating commodity prices and inflationary pressures. The company expects average WTI oil prices to decline to $70.33 per barrel in 2025, while natural gas prices are projected to rise to $3.14 per MMBtu. The company plans to manage its capital expenditures prudently, with a budget set between $34 million and $42 million for 2025, excluding acquisitions. W&T Offshore remains focused on enhancing liquidity and operational efficiency to adapt to the evolving market landscape.