The following is a summary of the W&T Offshore, Inc. (WTI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• W&T Offshore reported strong operational and financial performance in Q2 2024, with a focus on generating free cash flow and maintaining a robust balance sheet.

• Generated adjusted EBITDA of $45.9 million and free cash flow of $18.7 million, allowing increased cash and equivalents by 30% to $123 million, and decreased net debt by 9% to $268.5 million.

• Continued returning cash to shareholders, paying the third consecutive quarterly dividend.

Business Progress:

• Reported production was stable at 34,900 barrels of oil equivalent per day, aligned with Q1 figures and mid-point guidance.

• Acquisitions integration optimized, particularly handling the Cox asset acquisition and securing new beneficial agreements, notably at Mobile Bay 916, thus enhancing production capacities.

• Achieved significant midyear SEC proved reserves increase by 15% to 141.9 million barrels oil equivalent with PV-10 valuation climbing 28% to $1.4 billion.

Opportunities:

• Planned spending on lease operating expenses and capital expenditures are projected to foster operational improvements and maximize existing and newly acquired asset production throughout 2024.

• Pursuit of strategic acquisitions to bolster portfolio scale and ongoing proposition of drilling joint ventures to potential investors indicate a proactive expansion and operational strategy.

Risks:

• Some production adjustments due to third-party pipeline issues and delays in restoring production for acquired Cox fields reflect dependencies and potential vulnerabilities in operational continuity.

• Projected higher operational expenditures in the upcoming quarter could impact financial flexibility if not counterbalanced by corresponding revenue increases.

More details: W&T Offshore IR

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