W&T Offshore, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased to $121.4 million from $142.4 million in the same period of 2023, marking a decline of 14.8%. This drop was primarily attributed to lower oil and natural gas revenues, with oil revenues falling to $90.9 million from $100.3 million and natural gas revenues decreasing to $23.1 million from $32.5 million. Production volumes also declined, with average daily equivalent sales dropping to 31,022 Boe/day from 35,891 Boe/day, largely due to production downtime caused by hurricanes.

Operating expenses for the third quarter increased to $140.3 million from $125.1 million, leading to an operating loss of $19.0 million, compared to an operating profit of $17.3 million in the prior year. The net loss for the quarter was $36.9 million, a stark contrast to a net income of $2.1 million in Q3 2023. This resulted in a net loss per share of $0.25, compared to earnings of $0.01 per share in the same quarter last year.

For the nine months ended September 30, 2024, total revenues slightly increased to $404.9 million from $400.3 million, driven by a rise in oil revenues to $308.8 million from $287.3 million. However, production volumes decreased by 363 Mboe, influenced by hurricanes and third-party downtime. Operating expenses rose significantly to $430.1 million from $372.6 million, resulting in a net loss of $63.8 million, compared to a net income of $16.0 million in the same period of 2023.

Strategically, W&T Offshore completed an acquisition in January 2024 for $77.3 million, enhancing its oil and natural gas properties. The company also recorded additional oil and natural gas properties valued at $3.3 million from a previous acquisition. As of September 30, 2024, total assets increased to $1.1 billion, while total current assets decreased to $226.4 million. The company’s long-term debt rose to $371.6 million, and the retained deficit increased to $(598.9 million).

In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $63.9 million, down from $79.7 million in the prior year. The company also reported a significant increase in cash used in investing activities, primarily due to higher acquisition costs.

Overall, W&T Offshore's financial performance reflects challenges in production and profitability, alongside strategic acquisitions aimed at bolstering its asset base in the Gulf of Mexico.