W&T Offshore Reports $20.9 Million Net Loss in Q2 2025, Revenue Declines 14.3%

W&T Offshore, Inc. reported a net loss of $20.9 million for the second quarter of 2025, compared to a loss of $15.4 million in the same period of 2024. Total revenues for the quarter were $122.4 million, a decrease of 14.3% from $142.8 million year-over-year. The decline in revenue was primarily driven by lower oil and natural gas prices, with oil revenues falling to $80.0 million from $111.0 million, while natural gas revenues increased to $34.8 million from $21.9 million. For the first half of 2025, the company reported a net loss of $51.5 million, compared to a loss of $26.9 million in the prior year, with total revenues decreasing to $252.2 million from $283.5 million.

In terms of operational performance, W&T Offshore experienced a decrease in production volumes, with total oil equivalent production falling to 3.1 million barrels in the second quarter of 2025 from 3.2 million barrels in the same quarter of 2024. The average daily equivalent sales also declined to 33,538 barrels per day from 34,912 barrels per day. The company attributed the production decline to low gas availability in certain fields and temporary shut-ins for maintenance. Despite these challenges, natural gas production saw a notable increase, reflecting improved operational efficiency in that segment.

Strategically, W&T Offshore has made significant changes to its capital structure, including the issuance of $350 million in 10.75% Senior Second Lien Notes in January 2025. This move was part of a broader refinancing strategy that included the redemption of $269.8 million of its 11.75% Notes and the repayment of a $114.2 million Term Loan. The company also reported a loss of $15.0 million related to the extinguishment of debt during the first half of 2025. Additionally, W&T Offshore has been actively managing its asset retirement obligations, which increased to $556.8 million as of June 30, 2025, reflecting ongoing commitments to decommissioning and environmental responsibilities.

Looking ahead, W&T Offshore's management expressed cautious optimism regarding future operations, emphasizing the importance of commodity prices and production levels on financial performance. The company is closely monitoring market conditions, particularly the anticipated decline in oil prices as projected by the Energy Information Administration. With $120.7 million in cash and $50 million available under its new credit agreement, W&T Offshore believes it has sufficient liquidity to meet its operational needs and pursue strategic growth opportunities in the coming months. The company also plans to continue paying dividends, having declared a quarterly dividend of $0.01 per share for the third quarter of 2025.