W&T Offshore Q1 revenue beats estimates on pricing strength

Overview

• U.S. oil and gas producer's Q1 revenue rose 16% yr/yr, beating analyst expectations

• Company reported a net loss for Q1, but adjusted net loss narrowed sharply from prior quarter

• Q1 production volumes grew 19% yr/yr, reaching high end of guidance despite adverse weather

Outlook

• W&T Offshore sees Q2 2026 production at 32.8–36.5 MBoe/d and full-year at 33.5–37.2 MBoe/d

• Company expects Q2 2026 LOE of $72.6–$80.6 mln and full-year LOE of $264.7–$294.7 mln

• Company expects Q2 2026 production to be temporarily lower due to planned facility turnaround

Result Drivers

• HIGHER REALIZED PRICES - Revenue growth was driven by higher realized prices for oil and natural gas compared to Q4 2025

• PRODUCTION INCREASE - Production volumes rose 19% yr/yr and were at the high end of guidance, despite adverse weather

• COST REDUCTIONS - Lease operating expenses fell 11% from Q4 2025 and 7% from Q1 2025, mainly due to lower base LOE spend and cost-saving initiatives

Company press release: ID:nGNX7KwXyT

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for W&T Offshore Inc is $4.00, about 4.7% above its May 6 closing price of $3.82

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.