This press release includes non-GAAP financial measures, including Adjusted Net Loss, Adjusted EBITDA, Free Cash Flow and Net Debt, which are described and reconciled to the most comparable GAAP measures in the accompanying tables to this press release under “Non-GAAP Information.”
Key highlights for the first quarter of 2026 and through the date of this press release include:
- Produced 36.2 thousand barrels of oil equivalent per day (“MBoe/d”) (53% liquids), towards the high end of guidance;
- Grew production 19% compared to the first quarter of 2025, and kept production flat with fourth quarter of 2025, despite adverse weather conditions in the first quarter of 2026;
- Reduced lease operating expenses (“LOE”) to
$66.1 million , below the midpoint of guidance, and reduced LOE per Boe by 22% from$25.88 in the first quarter of 2025 to$20.29 in the first quarter of 2026; - Reported net loss of
$22.5 million , or$(0.15) per diluted share, compared with a net loss of$27.1 million , or$(0.18) per diluted share, in the fourth quarter of 2025;- Adjusted Net Loss, which primarily excludes net unrealized loss on outstanding derivative contracts and other costs and the related tax effect, totaled
$0.7 million , or$(0.00) per diluted share, compared with Adjusted Net Loss of$20.5 million , or$(0.14) per diluted share, in the fourth quarter of 2025;
- Adjusted Net Loss, which primarily excludes net unrealized loss on outstanding derivative contracts and other costs and the related tax effect, totaled
- Increased Adjusted EBITDA by 137% to
$54.5 million compared to the fourth quarter of 2025; - Generated
$21.0 million in Free Cash Flow, a significant improvement from$(11.2) million of Free Cash Flow in the fourth quarter of 2025; - Reported unrestricted cash and cash equivalents of
$130.9 million and Net Debt of$220.3 million atMarch 31, 2026 ; - Paid tenth consecutive quarterly dividend of
$0.01 per common share inMarch 2026 ; and- Declared second quarter 2026 dividend of
$0.01 per share, which will be payable onMay 28, 2026 to stockholders of record onMay 21, 2026 .
- Declared second quarter 2026 dividend of
Production, Prices and Revenue: Production for the first quarter of 2026 was 36.2 MBoe/d, towards the high end of the Company’s first quarter guidance, flat compared with 36.2 MBoe/d for the fourth quarter of 2025 and up 19% compared with 30.5 MBoe/d for the corresponding period in 2025. Despite the inclement weather impact, production was flat compared to fourth quarter 2025. First quarter 2026 production was impacted by freezing conditions in
W&T’s average realized price per Boe before realized derivative settlements was
Revenues for the first quarter of 2026 were
Lease Operating Expenses: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance expenses, was
Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled
Depreciation, Depletion and Amortization (“DD&A”): DD&A was
Asset Retirement Obligations Accretion: Asset retirement obligations accretion was
General & Administrative Expenses (“G&A”): G&A was
Derivative Loss (Gain), net: In the first quarter of 2026, W&T recorded a net loss of
In
A summary of the Company’s outstanding derivative positions is provided in the investor presentation posted on W&T’s website.
Interest Expense: Net interest expense in the first quarter of 2026 was
Income Tax Expense (Benefit): W&T recognized an income tax expense of
Balance Sheet and Liquidity: As of
Capital Expenditures and Asset Retirement Obligation Settlements: Capital expenditures on an accrual basis in the three months ended
Regulatory Update
In
Cash Dividend Policy
The Company paid its first quarter 2026 dividend of
The Board of Directors declared a second quarter 2026 dividend of
OPERATIONS UPDATE
Well Recompletions and Workovers
During the first quarter of 2026, W&T performed one workover and one recompletion that positively impacted production in the first quarter of 2026. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue.
Second Quarter and Full Year 2026 Production and Expense Guidance
The guidance for the second quarter and full year 2026 in the table below represents the Company’s current expectations. Please refer to the section entitled “Forward-Looking and Cautionary Statements” below for risk factors that could impact guidance.
| Production | Second Quarter 2026 | Full Year 2026 |
| Oil (MBbls) | 1,170 – 1,300 | 4,710 – 5,210 |
| NGLs (MBbls) | 295 – 335 | 1,620 – 1,820 |
| Natural gas (MMcf) | 9,105 – 10,105 | 35,380 – 39,180 |
| Total equivalents (MBoe) | 2,983 – 3,319 | 12,227 – 13,560 |
| Average daily equivalents (MBoe/d) | 32.8 – 36.5 | 33.5 – 37.2 |
| Expenses | Second Quarter 2026 | Full Year 2026 |
| Lease operating expense ($MM) | 72.6 – 80.6 | 264.7 – 294.7 |
| Gathering, transportation & production taxes ($MM) | 7.4 – 8.4 | 33.3 – 37.3 |
| General & administrative – cash ($MM) | 15.0 – 16.6 | 63.2 – 70.2 |
| DD&A and accretion ($ per Boe) | 10.25 – 11.35 |
| Capex and P&A | Full Year 2026 | |
| Capital expenditures ($MM) | 19.5 – 24.5 | |
| Plugging & Abandonment ($MM) | 34.0 – 42.4 | |
Second quarter 2026 production on a barrels of oil equivalent per day basis is expected to be temporarily lower compared to the prior quarter. This is mainly due to a previously planned third-party
W&T expects substantially all income taxes in 2026 to be deferred.
Conference Call Information: W&T will hold a conference call to discuss its financial and operational results on
About
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release, including those regarding the Company’s financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, projected costs, industry conditions, potential acquisitions, the outcomes and impact of ongoing litigation, the impact of potential regulatory changes, the impact of and integration of acquired assets, future production, probable reserves, capital expenditures associated with producing reserves, future expenses and indebtedness are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. Items contemplating or making assumptions about actual or potential future production and sales, prices, market size, and trends or operating results also constitute such forward-looking statements.
These forward-looking statements are based on the Company’s current expectations and assumptions about future events and speak only as of the date of this release. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, as results actually achieved may differ materially from expected results described in these statements. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, unless required by law.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ including, among other things, the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of the Company’s products; inflation levels; global economic trends, geopolitical risks and general economic and industry conditions, such as the global supply chain disruptions and the government interventions into the financial markets and economy in response to inflation levels and world health events; volatility of oil, NGL and natural gas prices; the global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; supply of and demand for oil, NGLs and natural gas, including due to the actions of foreign producers, importantly including
| Condensed Consolidated Statements of Operations | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Revenues: | ||||||||||||
| Oil | $ | 90,103 | $ | 75,984 | $ | 87,716 | ||||||
| NGLs | 6,911 | 6,884 | 4,772 | |||||||||
| Natural gas | 49,887 | 36,637 | 35,109 | |||||||||
| Other | 3,118 | 2,208 | 2,270 | |||||||||
| Total revenues | 150,019 | 121,713 | 129,867 | |||||||||
| Operating expenses: | ||||||||||||
| Lease operating expenses | 66,114 | 74,630 | 71,012 | |||||||||
| Gathering, transportation and production taxes | 8,654 | 8,767 | 5,659 | |||||||||
| Depreciation, depletion, and amortization | 27,265 | 28,488 | 32,891 | |||||||||
| Asset retirement obligations accretion | 8,517 | 8,306 | 8,392 | |||||||||
| General and administrative expenses | 24,833 | 20,618 | 20,157 | |||||||||
| Total operating expenses | 135,383 | 140,809 | 138,111 | |||||||||
| Operating income (loss) | 14,636 | (19,096 | ) | (8,244 | ) | |||||||
| Interest expense, net | 9,186 | 9,000 | 9,492 | |||||||||
| Loss on extinguishment of debt | — | — | 15,015 | |||||||||
| Derivative loss (gain), net | 24,513 | (195 | ) | 2,757 | ||||||||
| Other expense (income), net | 831 | (2,707 | ) | (316 | ) | |||||||
| Loss before income taxes | (19,894 | ) | (25,194 | ) | (35,192 | ) | ||||||
| Income tax expense (benefit) | 2,636 | 1,933 | (4,615 | ) | ||||||||
| Net loss | $ | (22,530 | ) | $ | (27,127 | ) | $ | (30,577 | ) | |||
| Net loss per common share (basic and diluted) | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.21 | ) | |||
| Weighted average common shares outstanding (basic and diluted) | 148,778 | 148,777 | 147,598 | |||||||||
| Condensed Operating Data | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| 2026 | 2025 | 2025 | |||||||
| Net sales volumes: | |||||||||
| Oil (MBbls) | 1,296 | 1,324 | 1,230 | ||||||
| NGLs (MBbls) | 425 | 414 | 200 | ||||||
| Natural gas (MMcf) | 9,223 | 9,562 | 7,884 | ||||||
| Total oil and natural gas (MBoe)(1) | 3,259 | 3,331 | 2,744 | ||||||
| Average daily equivalent sales (MBoe/d) | 36.2 | 36.2 | 30.5 | ||||||
| Average realized sales prices (before the impact of derivative settlements): | |||||||||
| Oil ($/Bbl) | $ | 69.52 | $ | 57.39 | $ | 71.31 | |||
| NGLs ($/Bbl) | 16.26 | 16.62 | 23.86 | ||||||
| Natural gas ($/Mcf) | 5.41 | 3.83 | 4.45 | ||||||
| Barrel of oil equivalent ($/Boe) | 45.08 | 35.88 | 46.50 | ||||||
| Average operating expenses per Boe ($/Boe): | |||||||||
| Lease operating expenses | $ | 20.29 | $ | 22.40 | $ | 25.88 | |||
| Gathering, transportation and production taxes | 2.66 | 2.63 | 2.06 | ||||||
| Depreciation, depletion, and amortization | 8.37 | 8.55 | 11.99 | ||||||
| Asset retirement obligations accretion | 2.61 | 2.49 | 3.06 | ||||||
| General and administrative expenses | 7.62 | 6.19 | 7.35 | ||||||
| (1) | MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly. The realized prices presented above are volume-weighted for production in the respective period. |
| Consolidated Balance Sheets | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
| 2026 | 2025 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 130,919 | $ | 140,558 | |||||
| Restricted cash | — | 62 | |||||||
| Accounts receivable: | |||||||||
| Oil, natural gas liquids and natural gas sales | 72,400 | 59,633 | |||||||
| Joint interest, net | 27,592 | 24,473 | |||||||
| Prepaid expenses and other current assets | 18,449 | 14,543 | |||||||
| Total current assets | 249,360 | 239,269 | |||||||
| Oil and natural gas properties and other, net | 655,086 | 662,082 | |||||||
| Restricted deposits for asset retirement obligations | 24,351 | 24,026 | |||||||
| Deferred income taxes | 63 | 35 | |||||||
| Other assets | 30,292 | 30,395 | |||||||
| Total assets | $ | 959,152 | $ | 955,807 | |||||
| Liabilities and Shareholders’ Deficit | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 90,637 | $ | 98,406 | |||||
| Accrued liabilities | 62,362 | 39,809 | |||||||
| Undistributed oil and natural gas proceeds | 61,590 | 59,065 | |||||||
| Advances from joint interest partners | 2,275 | 2,394 | |||||||
| Current portion of asset retirement obligations | 25,471 | 26,147 | |||||||
| Current portion of long-term debt, net | 8,309 | 8,458 | |||||||
| Total current liabilities | 250,644 | 234,279 | |||||||
| Asset retirement obligations | 540,568 | 535,704 | |||||||
| Long-term debt, net | 342,879 | 342,355 | |||||||
| Other liabilities | 21,070 | 15,781 | |||||||
| Commitments and contingencies | 25,745 | 27,440 | |||||||
| Shareholders’ deficit: | |||||||||
| Preferred stock | — | — | |||||||
| Common stock | 2 | 2 | |||||||
| Additional paid-in capital | 606,888 | 604,732 | |||||||
| Retained deficit | (804,477 | ) | (780,319 | ) | |||||
| (24,167 | ) | (24,167 | ) | ||||||
| Total shareholders’ deficit | (221,754 | ) | (199,752 | ) | |||||
| Total liabilities and shareholders’ deficit | $ | 959,152 | $ | 955,807 | |||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Operating activities: | ||||||||||||
| Net loss | $ | (22,530 | ) | $ | (27,127 | ) | $ | (30,577 | ) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation, depletion, amortization and accretion | 35,782 | 36,794 | 41,283 | |||||||||
| Share-based compensation | 7,443 | 3,729 | 2,087 | |||||||||
| Amortization of debt issuance costs | 779 | 766 | 1,099 | |||||||||
| Loss on extinguishment of debt | — | — | 15,015 | |||||||||
| Derivative loss (gain), net | 24,513 | (195 | ) | 2,757 | ||||||||
| Derivative cash receipts (settlements), net | 318 | 392 | (5,326 | ) | ||||||||
| Deferred income tax (benefit) expense | (27 | ) | 1,866 | (5,517 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (15,887 | ) | 1,293 | (1,935 | ) | |||||||
| Prepaid expenses and other current assets | (2,914 | ) | 2,737 | 547 | ||||||||
| Accounts payable, accrued liabilities and other | (7,760 | ) | 17,577 | (18,858 | ) | |||||||
| Asset retirement obligation settlements | (17,166 | ) | (11,892 | ) | (3,771 | ) | ||||||
| Net cash provided by (used in) operating activities | 2,551 | 25,940 | (3,196 | ) | ||||||||
| Investing activities: | ||||||||||||
| Investment in oil and natural gas properties and equipment | (10,127 | ) | (9,769 | ) | (6,665 | ) | ||||||
| Acquisition of property interests | — | — | (400 | ) | ||||||||
| Proceeds from sale of oil and natural gas properties | — | — | 11,935 | |||||||||
| Insurance proceeds | — | — | 58,500 | |||||||||
| Purchases of furniture, fixtures and other | (203 | ) | — | (103 | ) | |||||||
| Net cash (used in) provided by investing activities | (10,330 | ) | (9,769 | ) | 63,267 | |||||||
| Financing activities: | ||||||||||||
| Proceeds from issuance of long-term debt | — | — | 350,000 | |||||||||
| Repayments of long-term debt | (275 | ) | (275 | ) | (384,264 | ) | ||||||
| Purchase of government securities in connection with legal defeasance of 11.75% Senior Second Lien Notes | — | — | (5,889 | ) | ||||||||
| Premium payments and debt extinguishment costs | — | — | (10,230 | ) | ||||||||
| Debt issuance costs | (159 | ) | (121 | ) | (11,042 | ) | ||||||
| Payment of dividends | (1,488 | ) | (1,499 | ) | (1,493 | ) | ||||||
| Other | — | (3 | ) | (223 | ) | |||||||
| Net cash used in financing activities | (1,922 | ) | (1,898 | ) | (63,141 | ) | ||||||
| Change in cash, cash equivalents and restricted cash | (9,701 | ) | 14,273 | (3,070 | ) | |||||||
| Cash, cash equivalents and restricted cash, beginning of period | 140,620 | 126,347 | 110,555 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 130,919 | $ | 140,620 | $ | 107,485 | ||||||
Non-GAAP Information
Certain financial information included in W&T’s financial results are not measures of financial performance recognized by accounting principles generally accepted in
We calculate Net Debt as total debt (current and long-term portions), less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to service its debt obligations.
Reconciliation of Net Loss to Adjusted Net Loss
Adjusted Net Loss adjusts for certain items that the Company believes affect comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include loss on extinguishment of debt, unrealized commodity derivative loss (gain), net, allowance for credit losses, non-recurring legal and IT-related costs, non-ARO P&A costs, and other which are then tax effected using the Federal Statutory Rate. Company management believes that this presentation is relevant and useful because it helps investors to understand the net loss of the Company without the effects of certain non-recurring or unusual expenses and certain income or loss that is not realized by the Company.
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Net loss | $ | (22,530 | ) | $ | (27,127 | ) | $ | (30,577 | ) | |||
| Selected items: | ||||||||||||
| Loss on extinguishment of debt | — | — | 15,015 | |||||||||
| Unrealized commodity derivative loss (gain), net | 21,835 | 516 | (882 | ) | ||||||||
| Allowance for credit losses | 170 | 70 | 155 | |||||||||
| Non-recurring legal and IT-related costs | (66 | ) | 613 | 528 | ||||||||
| Non-ARO P&A costs | — | 3,927 | (197 | ) | ||||||||
| Other | 84 | (6,406 | ) | (71 | ) | |||||||
| Total selected items before tax | 22,023 | (1,280 | ) | 14,548 | ||||||||
| Tax effect of selected items(1) | (4,625 | ) | 269 | (3,055 | ) | |||||||
| Total selected items, net of tax | 17,398 | (1,011 | ) | 11,493 | ||||||||
| Impact of valuation adjustments | 4,480 | 7,678 | 1,880 | |||||||||
| Adjusted net loss | $ | (652 | ) | $ | (20,460 | ) | $ | (17,204 | ) | |||
| Adjusted net loss per common share (basic and diluted) | $ | (0.00 | ) | $ | (0.14 | ) | $ | (0.13 | ) | |||
| Weighted average shares outstanding (basic and diluted) | 148,778 | 148,777 | 147,598 | |||||||||
| (1) | Selected items were tax effected with the Federal Statutory Rate of 21% for each respective period. |
Non-GAAP Information
Adjusted EBITDA/ Free Cash Flow Reconciliations
The Company also presents non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net loss plus net interest expense, loss on extinguishment of debt, income tax expense (benefit), depreciation, depletion and amortization, ARO accretion, excluding the unrealized commodity derivative loss (gain), allowance for credit losses, non-cash incentive compensation, non-recurring legal and IT-related costs, non-ARO P&A costs, and other. Company management believes this presentation is relevant and useful because it helps investors understand W&T’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net loss, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as W&T calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.
The Company defines Free Cash Flow as Adjusted EBITDA (defined above), less capital expenditures, ARO settlements and net interest expense (all on an accrual basis). For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and the lease maintenance costs) and equipment but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company’s capital expenditures guidance provided to investors. Company management believes that Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of its current operating activities after the impact of accrued capital expenditures, P&A costs and net interest expense and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. There is no commonly accepted definition of Free Cash Flow within the industry. Accordingly, Free Cash Flow, as defined and calculated by the Company, may not be comparable to Free Cash Flow or other similarly named non-GAAP measures reported by other companies. While the Company includes net interest expense in the calculation of Free Cash Flow, other mandatory debt service requirements of future payments of principal at maturity (if such debt is not refinanced) are excluded from the calculation of Free Cash Flow. These and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses.
The following table presents a reconciliation of the Company’s net loss, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company:
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Net loss | $ | (22,530 | ) | $ | (27,127 | ) | $ | (30,577 | ) | |||
| Interest expense, net | 9,186 | 9,000 | 9,492 | |||||||||
| Loss on extinguishment of debt | — | — | 15,015 | |||||||||
| Income tax expense (benefit) | 2,636 | 1,933 | (4,615 | ) | ||||||||
| Depreciation, depletion and amortization | 27,265 | 28,488 | 32,891 | |||||||||
| Asset retirement obligations accretion | 8,517 | 8,306 | 8,392 | |||||||||
| Unrealized commodity derivative loss (gain), net | 21,835 | 516 | (882 | ) | ||||||||
| Allowance for credit losses | 170 | 70 | 155 | |||||||||
| Non-cash incentive compensation | 7,443 | 3,729 | 2,087 | |||||||||
| Non-recurring legal and IT-related costs | (66 | ) | 613 | 528 | ||||||||
| Non-ARO P&A costs | — | 3,927 | (197 | ) | ||||||||
| Other | 84 | (6,406 | ) | (71 | ) | |||||||
| Adjusted EBITDA | $ | 54,540 | $ | 23,049 | $ | 32,218 | ||||||
| Capital expenditures, accrual basis(1) | $ | (7,230 | ) | $ | (13,318 | ) | $ | (8,472 | ) | |||
| Asset retirement obligation settlements | (17,166 | ) | (11,892 | ) | (3,771 | ) | ||||||
| Interest expense, net | (9,186 | ) | (9,000 | ) | (9,492 | ) | ||||||
| Free Cash Flow | $ | 20,958 | $ | (11,161 | ) | $ | 10,483 | |||||
| (1) A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below: | ||||||||||||
| Capital expenditures, accrual basis reconciliation | ||||||||||||
| Investment in oil and natural gas properties and equipment | $ | (10,127 | ) | $ | (9,769 | ) | $ | (6,665 | ) | |||
| Less: change in accrual for capital expenditures | (2,897 | ) | 3,549 | 1,807 | ||||||||
| Capital expenditures, accrual basis | $ | (7,230 | ) | $ | (13,318 | ) | $ | (8,472 | ) | |||
The following table presents a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company:
| Three Months Ended | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| (in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 2,551 | $ | 25,940 | $ | (3,196 | ) | |||||
| Allowance for credit losses | 170 | 70 | 155 | |||||||||
| Amortization of debt issuance costs | (779 | ) | (766 | ) | (1,099 | ) | ||||||
| Non-recurring legal and IT-related costs | (66 | ) | 613 | 528 | ||||||||
| Current tax (benefit) expense(1) | 2,663 | 67 | 902 | |||||||||
| Change in derivatives receivable (payable)(1) | (2,996 | ) | 318 | 1,687 | ||||||||
| Non-ARO P&A costs | — | 3,927 | (197 | ) | ||||||||
| Changes in operating assets and liabilities, excluding asset retirement obligation settlements | 26,561 | (21,606 | ) | 20,246 | ||||||||
| Capital expenditures, accrual basis | (7,230 | ) | (13,318 | ) | (8,472 | ) | ||||||
| Other | 84 | (6,406 | ) | (71 | ) | |||||||
| Free Cash Flow | $ | 20,958 | $ | (11,161 | ) | $ | 10,483 | |||||
| (1) A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below: | ||||||||||||
| Current tax expense (benefit): | ||||||||||||
| Income tax expense (benefit) | $ | 2,636 | $ | 1,933 | $ | (4,615 | ) | |||||
| Less: Deferred income tax expense (benefit) | (27 | ) | 1,866 | (5,517 | ) | |||||||
| Current tax (benefit) expense: | $ | 2,663 | $ | 67 | $ | 902 | ||||||
| Changes in derivatives receivable (payable) | ||||||||||||
| Derivatives receivable (payable), end of period | $ | (2,678 | ) | $ | 318 | $ | 310 | |||||
| Derivatives payable (receivable), beginning of period | (318 | ) | — | 1,377 | ||||||||
| Change in derivatives receivable (payable) | $ | (2,996 | ) | $ | 318 | $ | 1,687 | |||||
| CONTACT: | ||
| Investor Relations Coordinator | Executive VP and CFO | |
| investorrelations@wtoffshore.com | sparasnis@wtoffshore.com | |
| 713-297-8024 | 713-513-8654 |
