W&T Offshore, Inc. WTI reported a fourth-quarter 2023 loss of 6 cents per share (excluding one item), which lagged the Zacks Consensus Estimate of earnings of 2 cents per share. The bottom line also deteriorated from the year-ago quarter’s reported profit of 10 cents.

Total quarterly revenues of $132.3 million missed the Zacks Consensus Estimate of $142 million. The top line also declined from $189.7 million reported in the prior-year quarter.

Weak quarterly results were due to significantly reduced realized prices and lower production volumes.

Production Statistics

Total production for the quarter averaged 34.1 thousand barrels of oil equivalent per day (MBoe/d), down from 38.6 MBoe/d in the corresponding period of 2022. Our estimate for the same was pinned at 37.5 MBoe/d.

Oil production totaled 1,219 thousand barrels (MBbls), down from 1,375 MBbls in the year-ago quarter. The figure missed our estimate of 1,308 MBbls.

Natural gas liquids output totaled 329 MBbls, lower than 371 MBbls a year ago. The figure also missed our estimate of 363 MBbls.

Natural gas production of 9,533 million cubic feet (MMcf) was lower than 10,843 MMcf recorded in the prior-year quarter. The figure also missed our estimate of 10,688 MMcf.

Realized Commodity Prices

The average realized price for oil in the fourth quarter was $77.17 per barrel, lower than the year-ago level of $81.27. Our estimate for the same was pegged at $82.40.

The average realized price of NGL declined to $20.82 per barrel from $25.70 in the fourth quarter of 2022. Our estimate for the same was pinned at $24.33 per barrel.

The average realized price of natural gas in the December quarter was $3.08 per thousand cubic feet, down from $6.12 in the corresponding period of 2022. The average realized price for oil-equivalent output decreased to $41.55 per barrel from $52.82.

Operating Expenses

Lease operating expenses increased to $20.61 per Boe in the fourth quarter from $19.42 in the year-ago period. The reported figure came in higher than our estimate of $18.52 per Boe. Also, general and administrative expenses declined to $5.82 per Boe in the fourth quarter from $6.18 a year ago. The figure came in lower than our estimate of $5.95.

Cash Flow

Net cash from operations in the fourth quarter totaled $35.7 million, up from $12.7 million recorded in the year-ago quarter.

Free cash flow in the reported quarter declined to $15.8 million from approximately $25 million in the year-earlier quarter.

Capital Spending & Balance Sheet

For the reported quarter, W&T Offshore spent $10.3 million on oil and gas resources and equipment.