Exhibit 99.1

​

​	​		​	​
​		​
		​ PRESS RELEASE ​
​ FOR IMMEDIATE RELEASE		​ ​		​ ​
​	​		​	​
​		​
​	​		Trey Hartman VP CAO and Interim CFO thartman@wtoffshore.com 713-626-8525 ​ ​

​

W&T Offshore Announces First Quarter 2023 Results

​

HOUSTON, May 9, 2023 – W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today reported operational and financial results for the first quarter of 2023.  This press release includes non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, Free Cash Flow, and Net Debt, which are described and reconciled to the most comparable GAAP measures below in the accompanying tables under “Non-GAAP Information.”

Key highlights for the first quarter of 2023 and through the date of this press release include:

​

​

Tracy W. Krohn, W&T’s Board Chair and Chief Executive Officer, stated, “We had another good quarter of positive operational and financial results. While production volumes were temporarily reduced to conduct a planned maintenance turnaround at our onshore facility in the Mobile Bay field, pipeline maintenance projects and other temporary unplanned downtime at non-operated fields, we continued to generate meaningful Adjusted EBITDA and Free Cash Flow.  We delivered Adjusted EBITDA of $43.1 million in the first quarter and generated positive Free Cash Flow for the 21^st consecutive quarter, totaling $12.4 million. We strengthened our balance sheet by issuing $275 million in new 2026 Senior Second Lien Notes and used the proceeds along with our considerable cash position to repurchase all $552.5 million principal amount of the outstanding 2023 Senior Second Lien Notes. This significantly reduces our interest payments by approximately $22 million per year, preserves our financial flexibility and improves our balance sheet moving forward. We have significant cash and cash equivalents of $177.4 million and our Net Debt to Adjusted EBITDA ratio is down to 0.4 times. We are increasingly better positioned to take advantage of potential acquisitions regardless of what the economic situation may be this year and poised to continue delivering on our strategic vision. Our commitment to enhancing shareholder value through a proven strategy focused on free cash flow generation and operational excellence has positioned us well for the future.”

Production, Prices, and Revenue:  Production for the first quarter of 2023 was 32.5 MBoe/d, which was within the Company’s guidance range provided for the quarter.  This represented a decrease of 16% from 38.6 Mboe/d for the fourth quarter of 2022 and a decrease of 14% from 37.8 MBoe/d for the corresponding period in 2022.  The decrease in production was primarily driven by temporary unplanned downtime at non-operated fields and extended planned downtime associated with a maintenance project at the Company’s Mobile Bay onshore treatment facility to properly maintain, inspect, and clean out process vessels in the plant as well as pipeline maintenance, which shut in production at the Mobile Bay field for 35 days compared to 25 estimated in the guidance range provided for the first quarter of 2023.  Shut-in production has mostly been fully restored and total Company production is currently averaging approximately 38.1 Mboe/d.  First quarter 2023 production was comprised of 15.0 MBbl/d of oil (46%), 3.3 MBbl/d of natural gas liquids (“NGLs”) (10%), and 85.3 million cubic feet per day (“MMcf/d”) of natural gas (44%).  

W&T’s average realized price per barrel of oil equivalent (“Boe”) before realized derivative settlements was $44.32 per Boe in the first quarter of 2023, a decrease of 16% from $52.82 per Boe in the fourth quarter of 2022 and a decrease of 20% from $55.29 per Boe in the first quarter of 2022.  Crude oil, NGL, and natural gas prices, before realized derivative settlements for the first quarter of 2023, were $71.85 per barrel, $26.51 per barrel, and $3.23 per Mcf, respectively.

Revenues for the first quarter of 2023 were $131.7 million, which was lower than fourth quarter 2022 revenue of $189.7 million and lower than $191.0 million in the first quarter of 2022, due to a combination of lower realized prices and lower production volumes.

Lease Operating Expense:  Lease operating expense (“LOE”), which includes base lease operating expenses, insurance premiums, workovers, facilities maintenance, and hurricane repairs, was $65.2 million in the first quarter of 2023, which was below the midpoint of the previously provided guidance range.  This compared to $69.0 million in the fourth quarter of 2022 and $43.4 million for the corresponding period in 2022.  On a component basis for the first quarter of 2023, base LOE and insurance premiums were $47.8 million, workovers were $5.0 million, and facilities maintenance and other expenses were $12.4 million.  On a unit of production basis, LOE was $22.29 per Boe in the first quarter of 2023.  This compares to $19.42 per Boe for the fourth quarter of 2022 and $12.78 per Boe for the first quarter of 2022.

Gathering, Transportation Costs, and Production Taxes:  Gathering, transportation costs, and production taxes totaled $6.1 million ($2.10 per Boe) in the first quarter of 2023, compared to $8.5 million ($2.39 per Boe) in the fourth quarter of 2022 and $5.3 million ($1.55 per Boe) in the first quarter of 2022.  Production taxes decreased due to lower realized natural gas prices during the first quarter of 2023.  

Depreciation, Depletion, Amortization, and Accretion (“DD&A”):  DD&A, including accretion expense related to asset retirement obligations (“ARO”), was $10.31 per Boe in the first quarter of 2023.  This compares to $9.64 per Boe and $9.10 per Boe for the fourth quarter of 2022 and the first quarter of 2022, respectively.  

General & Administrative Expenses (“G&A”):  G&A was $19.9 million for the first quarter of 2023, which decreased compared to the fourth quarter of 2022 due to the $2.2 million employee retention credit received by the Company. This compares to $22.0 million in the fourth quarter of 2022 and $13.8 million in the first quarter of 2022.  On a unit of production basis, G&A was $6.81 per Boe in the first quarter of 2023 compared to $6.18 per Boe in the fourth quarter of 2022 and $4.05 per Boe in the corresponding period of 2022.  

​

​

Derivative (Gain) Loss:  In the first quarter of 2023, W&T recorded a net gain of $39.2 million related to commodity derivative contracts comprised of a $39.5 million unrealized gain related primarily to the increase in fair value of open contracts, partially offset by $0.2 million of realized losses.  The Company recognized a net gain of $24.4 million in the fourth quarter of 2022 and a net loss of $80 million in the first quarter of 2022 related to commodity derivative activities.

For the remainder of 2023, W&T is approximately 57% hedged for natural gas and currently has no hedges for oil.  A significant portion of the W&T’s natural gas hedges, in the form of sold swaps and purchased calls and puts, were entered into in conjunction with the non-recourse Mobile Bay term loan entered into by borrowers owned by the Company’s wholly-owned subsidiary Aquasition Energy LLC and will continue through the life of that loan.

A summary of the Company’s outstanding derivative positions is provided on W&T’s website in the “Investors” section under the “Financial Information” tab.

Interest Expense:  Net interest expense in the first quarter of 2023 was $14.7 million compared to $14.5 million in the fourth quarter of 2022 and $19.9 million in the first quarter of 2022.  

Income Tax:  W&T recognized income tax expense of $8.6 million in the first quarter of 2023.  This compares to the recognition of income tax expense of $6.9 million and an income tax benefit of $0.7 million for the quarters ended December 31, 2022 and March 31, 2022, respectively.

Balance Sheet and Liquidity:  As of March 31, 2023, W&T had available liquidity of $227.4 million comprised of $177.4 million in cash and cash equivalents and $50.0 million of borrowing availability under W&T’s first priority secured revolving facility provided by Calculus Lending LLC (“Calculus”).  At quarter-end, the Company had total debt of $403.3 million (or Net Debt of $225.9 million, net of cash and cash equivalents), consisting of the balance of the non-recourse Mobile Bay term loan of $138.3 million and $275 million of 11.25% Senior Second Lien Notes, net of unamortized debt issuance costs for both instruments.  Total debt decreased by $290.2 million during the first quarter of 2023.  Net Debt decreased by $6.2 million in the first quarter of 2023.  As of March 31, 2023, Net Debt to TTM Adjusted EBITDA was 0.4 times.  

On January 27, 2023, W&T closed an offering of $275 million in aggregate principal amount of 2026 Senior Second Lien Notes at par in a private offering that was exempt from registration under the Securities Act of 1933, as amended. The Company used the net proceeds of the offering, along with cash on hand, to fund the redemption of all of the Company’s outstanding 2023 Senior Second Lien Notes. On the closing date of the offering of the 2026 Senior Second Lien Notes, the Company satisfied and discharged the indenture governing the existing 2023 Senior Second Lien Notes.

Capital Expenditures and Acquisitions:  Capital expenditures (excluding changes in working capital associated with investing activities) in the first quarter of 2023 were $7.4 million, and asset retirement costs totaled $8.6 million.

OPERATIONS UPDATE

Front-end Engineering and Design and permitting processes are underway on the Holy Grail well at Garden Banks 783 in the Magnolia Field.  

Well Recompletions and Workovers

During the first quarter of 2023, the Company performed one recompletion and four workovers that positively impacted production for the quarter.  W&T plans to continue performing these low cost, short payout operations that impact both production and revenue.

Addition to W&T’s Board of Directors

W&T appointed Dr. Nancy Chang as a new independent director to the Company’s Board of Directors. Dr. Chang will serve as a member of the Audit Committee and the Nominating and Corporate Governance Committee and as the chair of the Environmental, Safety and Governance Committee. Dr. Chang is a widely respected and internationally recognized scientist as well as a highly successful senior executive in both the private and public sectors. Dr. Chang’s impressive prior experience as a member of a number of boards of directors and having served on the Board of the

​

​

Federal Reserve Bank in Houston will make her a valuable member of W&T’s Board. In particular, her experiences as founder and chief executive officer of a successful, publicly-traded company and one of the largest healthcare-focused investment management firms in the world will bring unique perspectives, talents and insights to the Board. She will stand for election at the Company’s upcoming annual meeting of shareholders.

Lease Sale 259

W&T was the apparent high bidder in the most recent GOM lease sale on two shallow water blocks, Eugene Island South Addition block 371 and Eugene Island South Addition block 387. These two blocks cover a total of approximately 10,000 gross acres. If awarded, the Company will pay approximately $340,000 in total for the awarded leases combined, which reflects a 100% working interest in the acreage. The blocks have a lease term of five years and an 18.75% royalty. Despite submitting the apparent high bid on these leases, the Bureau of Ocean Energy Management reserves the right not to award the blocks based on their minimum bidding criteria. W&T expects to receive the final award results over the next 90 days.

Second Quarter and Full Year 2023 Production and Expense Guidance

The guidance for the second quarter and full year 2023 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.

The effective income tax rate for the full year 2023 is expected to be approximately 25%, of which approximately half is expected to be deferred, non-cash tax expense.

​

​

Conference Call Information:  W&T will hold a conference call to discuss its financial and operational results on Wednesday, May 10, 2023 at 9:00 a.m. Central Time (10:00 Eastern Time).  Interested parties may dial 1-844-739-3797.  International parties may dial 1-412-317-5713.  Participants should request to connect to the “W&T Offshore Conference Call”.  This call will also be webcast and available on W&T’s website at www.wtoffshore.com under “Investors”.  An audio replay will be available on the Company’s website following the call.  

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration, and development. As of March 31, 2023, the Company had working interests in 47 fields in federal and state waters (46 fields producing and one field capable of producing, which include 39 fields in federal waters and eight in state waters). The Company has under lease approximately 625,000 gross acres (457,000 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 8,000 gross acres in Alabama State waters, 457,500 gross acres on the conventional shelf and approximately 159,000 gross acres in the deepwater. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com.

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. These forward-looking statements, including but not limited to, any forward-looking guidance provided herein, reflect our current views with respect to future events, based on what we believe are reasonable estimates and assumptions. No assurance can be given, however, that these events will occur or that our estimates will be correct. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, commodity price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, uncertainties of the timing and impact of bringing new wells online and repairing and restoring infrastructure due to hurricane damage, the ability to achieve leverage targets, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors described or referenced in W&T’s Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent Quarterly Reports on Form 10-Q reports found at www.sec.gov or on our website at www.wtoffshore.com under the Investor Relations section.  Our forward-looking statements in this press release are based upon assumptions made, and information known, by the Company as of the date of this release; it should not be assumed that the Company will undertake to revise or update any such forward-looking statements as such assumptions and information changes, except as required under applicable law.  Investors are urged to consider closely the disclosures and risk factors in these reports.  

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

​

​

​

​

​

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

Condensed Operating Data

(Unaudited)

​

​

​

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

​

​

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

​

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

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 the United States, or GAAP. These non-GAAP financial measures are “Net Debt”, “Adjusted Net (Loss) Income”, “Adjusted EBITDA” and “Free Cash Flow”, or are derivable from a combination of these measures. Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.  Prior period amounts have been conformed to the methodology and presentation of the current period.

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 Income (Loss) to Adjusted Net (Loss) Income

​

Adjusted Net (Loss) Income 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 unrealized commodity derivative (gain) loss net of derivative premiums, allowance for credit losses, write-off of debt issuance costs, non-recurring IT-transition costs, non-ARO plugging and abandonment costs, and other which are then tax effected using the Federal Statutory Rate.

​

​

​

⁽¹⁾ Selected items were effected with the Federal Statutory Rate of 21% for each respective period.

​

​

​

​

​

​

W&T OFFSHORE, INC. AND SUBSIDIARIES

Non-GAAP Information

Adjusted EBITDA/ Free Cash Flow Reconciliations

The Company also presents the non-GAAP financial measures Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit), depreciation, depletion, amortization and accretion, excluding the unrealized commodity derivative gain (loss) net of derivative premiums,  allowance for credit losses, share-based compensation, non-recurring IT-transition costs, non-ARO plugging and abandonment 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 income, 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, plugging and abandonment costs and 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, furniture and fixtures, 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, plugging and abandonment costs and 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 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 tables present (i) a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company and (ii) a reconciliation of the Company’s net (loss) income, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company.

​

​

​

​

​

​

​

​

​

​

​

​

​

⁽¹⁾ A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below:

​

​

​

​

​

​

​