W&T Offshore's Q2 2025 results show increased production, reduced net loss amid oil price spike
W&T Offshore has reported its operational and financial results for the second quarter of 2025 and declared a third quarter 2025 dividend of US$0.01 per share.
Key highlights for the second quarter of 2025 include: increased production by 10 per cent over the first quarter of 2025 to 33.5 thousand barrels of oil equivalent per day, within guidance; performed nine low-cost, low-risk workovers that exceeded the company's expectations and positively impacted production and revenue for the quarter; and reported net loss of US$20.9 million, an improvement from a net loss of US$30.6 million in the first quarter of 2025.
W&T also reported unrestricted cash and cash equivalents of US$120.7 million and lowered total debt to US$350.1 million and net debt to US$229.4 million at June 30, 2025. Adjusted gross operating profit grew by nine per cent over the Q1 2025 total of US$35.2 million.
The company generated net cash flow from operating activities of US$28.0 million and produced free cash flow of US$3.6 million during Q2 2025.
"We are delivering strong results including production growth of 10 per cent and adjusted [gross operating profit] growth of nine per cent quarter-over-quarter, all while growing our cash position to over US$120 million and reducing our net debt by about US$15 million," said Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer.
"We took advantage of a temporary spike in oil prices by adding to our crude hedging position to provide some additional downside protection."
W&T remains focused on free cash flow and adjusted gross operating profit generation through, "operational excellence, maximising production and managing our operating costs," according to Krohn.
"Our balance sheet has continued to strengthen in 2025 with the successful issuance of new 10.75 per cent notes, a new revolving credit facility and material cash additions through a non-core disposition and an insurance settlement. We have over US$120 million in cash on our balance sheet and remain prepared to take advantage of potential acquisitions."
W&T's 2025 mid-year reserve report generated by NSAI showed net positive revisions of 1.8 million barrels of oil equivalent (mmboe) per day, which Krohn said continues to demonstrate the strength of the company's asset base and its ability to maximise value from its fields.
"Additionally, we have reached a favourable agreement with our two largest surety providers and preliminary injunction motions against W&T from two additional sureties were recommended denied.
"These positive surety outcomes, coupled with the promising developments in the regulatory environment driven by the White House’s directives, alleviates some of the uncertainty that has unnecessarily and artificially suppressed our stock price and we expect that this will allow us to deliver more value to our shareholders."
Production for Q2 2025 was within W&T's second quarter guidance at 33.5 mmboe per day, an increase of 10 per cent compared with 30.5 mmboe per day for Q1 2025 and a decrease compared with 34.9 mmboe per day for the corresponding period in 2024.
W&T said Q2 2025 production increase was driven by restoring production from fields associated with the 2024 Cox acquisition as well as returning to normal levels the shut-in production caused by freezing in the first quarter of 2025.
Revenues for Q2 2025 were US$122.4 million, which was six per cent lower than Q1 2025 revenues of US$129.9 million due to lower realised prices, which was partially offset by higher production volumes. Q2 2025 revenues were lower by 14 per cent compared to US$142.8 million of revenues in Q2 2024 due to lower production volumes and lower realised prices.
