Earnings Labs

W&T Offshore, Inc. (WTI)

Q3 2016 Earnings Call· Thu, Nov 3, 2016

$3.97

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Transcript

Operator

Operator

Greetings and welcome to the W&T Offshore Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lisa Elliott. Thank you, Ms. Elliot, you may begin.

Lisa Elliott

Analyst

Thank you, operator and good morning everyone. We appreciate you joining us for W&T Offshore’s conference call to review the third quarter of 2016 financial and operational results and for an update on planned activities for the remaining of the year. Before I turn the call over to the company, I would like to remind you that information recorded on this call speaks only as of today, November 3, 2016 and therefore time-sensitive information may no longer be accurate as of the date at any replay. Also please refer to the third quarter 2016 financial and operational results announcement W&T released yesterday for a disclosure on forward-looking statements and reconciliations of non-GAAP measures. At this time, I would like to turn the call over to Mr. Tracy Krohn, W&T’s Chairman and CEO.

Tracy Krohn

Analyst

Thanks, Lisa. Good morning, everyone. Joining me this morning are Jamie Vazquez, our President; Danny Gibbons, our Chief Financial Officer; Tom Murphy, our Chief Operations Officer; and Steve Schroeder, our Chief Technical Officer. So, yesterday, we released our financial and operational results for the third quarter and we’ve provided guidance for the fourth quarter and full year 2016. We should also be filing our third quarter Form 10-Q with the SEC later today. So this morning, I will review some key items in the release and then we’ll take your questions. All right. In the third quarter, we produced approximately 3.8 million barrels of oil equivalent or 41,500 barrels of oil equivalent per day, about 57% of which was oil and liquids. Our production held relatively steady comparing 42,900 barrels of oil equivalent per day in the second quarter and 43,300 barrels of oil equivalent per day in the first quarter of 2016. Our total production volume in the third quarter exceeded our guidance by about 7% as the storm downtime that was included in our guidance didn’t occur. However, we did continue to experience some production deferrals and downtime primarily attributable to the third-party pipeline outages. We estimate that about 200,000 barrels of oil equivalent of production was deferred in the third quarter. Production has held steady despite our dramatically reduced capital expenditure program of only $24.1 million in the first nine months of this year. Most of our fields performed as expected in the third quarter. We have seen solid production contributions from recent workover recompletion activities which is great way to bring on low-cost production and that’s aided us in maintaining a relatively stable production profile. Our average realized sales price was down about 3% to $27.97 per barrel of oil equivalent in the third quarter last…

Operator

Operator

Tracy Krohn

Analyst

Okay, well here is the – I guess, we got up a little bit too early, operator. So, we are going to go ahead and shut it down now and if there is any other news comes up for in the next quarter, we will relay that to the public. So thank you very much and we appreciate.

Operator

Operator

Thank you sir. Ladies and gentlemen, thank you for your participation. This does conclude today’s teleconference. You may disconnect your lines and have a wonderful day.