A month has gone by since the last earnings report for W&T Offshore (WTI). Shares have added about 16.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is W&T due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for W&T Offshore, Inc. before we dive into how investors and analysts have reacted as of late.
W&T Offshore Q2 Earnings Beat Estimates
W&T Offshore reported second-quarter 2026 adjusted earnings of 2 cents per share, improving from an adjusted loss of 8 cents per share a year ago. The bottom line beat the Zacks Consensus Estimate of break-even earnings by 2 cents.
Revenues of $162.62 million beat the consensus mark of $151.55 million by 7.3%. The top line rose 32.9% from $122.37 million a year earlier.
The strong quarterly results were driven by higher realized prices and disciplined operating costs.
Average production was 34.7 thousand barrels of oil equivalent per day (MBoe/d), up 3% at the midpoint of guidance.
WTI's Realized Oil Pricing Increases
Before derivative settlements, W&T Offshore's average realized sales price rose 28% to $50.23 per barrel of oil equivalent (Boe) from $39.16 per Boe recorded in the prior-year quarter. Oil pricing was the standout, increasing 56% to $99.30 per barrel from $63.55 per barrel in the year-ago quarter.
Natural gas realized prices were $3.31 per thousand cubic feet (Mcf), down 12% from $3.75 per Mcf in the year-ago quarter, while natural gas liquids (NGL) pricing declined 5% to $18.35 per barrel from $19.24 per barrel in the second quarter of 2025.
Oil revenues increased to $120.45 million from $80.01 million a year earlier, while natural gas revenues declined to $32.09 million from $34.80 million.
W&T Offshore Keeps Production Steady
Total sales volumes were 3,157 thousand barrels of oil equivalent (Mboe), up 3% from 3,052 MBoe in the prior-year period. Oil volumes declined 4% to 1,213 thousand barrels (MBbls), while NGL volumes increased 34% to 329 MBbls and natural gas volumes rose 4% to 9,689 million cubic feet (MMcf).
Liquids accounted for 49% of second-quarter production. W&T Offshore completed three workovers and one recompletion during the quarter, and management plans to continue using these low-cost, short-payout projects to support production and revenues.
WTI Holds Lease Operating Costs in Check
Lease operating expenses (LOE) were $71.56 million, down 7% and below the low end of guidance. On a unit basis, LOE decreased 10% to $22.67 per Boe. Some facility and workover spending was deferred into the third quarter.
Gathering, transportation and production taxes were $6.57 million, up 19% but below the low end of guidance. The company attributed the favorable guidance comparison to the Williams Mobile Bay Gas Processing Facility being offline for planned maintenance during April while natural gas volumes bypassed the plant.
W&T Offshore Posts Higher Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 54% to $54.41 million from $35.24 million a year ago. Adjusted net income was $3.53 million against an adjusted net loss of $11.80 million in the prior-year quarter.
Adjusted general and administrative expenses were $16.45 million, up 11%. Reported G&A rose to $27.51 million, reflecting higher non-cash share-based compensation tied to the quarter-end valuation of certain awards.
WTI Strengthens Cash & Liquidity
Free cash flow increased to $31.38 million from $3.58 million a year earlier. Capital expenditures totaled $10.36 million.
As of June 30, 2026, WTI had $150.68 million of unrestricted cash and cash equivalents and $194.10 million of total available liquidity. Net debt totaled $200.90 million and net debt to trailing 12-month Adjusted EBITDA was 1.2X.
The company declared a third-quarter dividend of 1 cent per share.
W&T Offshore Sees Slight Production Uptick in Q3
For the third quarter of 2026, W&T Offshore expects average daily production to be in the range of 33.3-36.8 MBoe/d. Full-year production guidance remains in the range of 33.5-37.2 MBoe/d.
Third-quarter LOE is projected to be between $73 million and $81 million. The increase reflects about $3 million of facility and workover projects deferred from the second quarter and roughly $2 million of workover projects moved forward from the fourth quarter. Full-year capital expenditures are projected to be in the range of $19.5-$24.5 million, with plugging and abandonment spending forecast at $34-$42.4 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 14.81% due to these changes.
VGM Scores
At this time, W&T has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, W&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
W&T is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Antero Resources (AR), a stock from the same industry, has gained 13.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Antero Resources reported revenues of $1.56 billion in the last reported quarter, representing a year-over-year change of +20.2%. EPS of $0.76 for the same period compares with $0.35 a year ago.
For the current quarter, Antero Resources is expected to post earnings of $1.06 per share, indicating a change of +606.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +15% over the last 30 days.
Antero Resources has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
