NOTE 17 — RELATED PARTIES

During 2022, 2021 and 2020, there were certain transactions between W&T and other companies W&T’s Chief Executive Officer, Tracy W. Krohn (“CEO”) either controlled or in which he had an ownership interest.

The Company’s CEO owns an aircraft that the Company used for business purposes and the CEO used for his personal matters pursuant to his employment contract, and these costs were paid by the Company. Airplane services transactions were approximately $1.7 million, $0.6 million and $0.3 million for the each of the years ended December 31, 2022, 2021 and 2020.

An entity owned by the Company’s CEO has legacy ownership interests in certain wells operated by W&T. Revenues are disbursed and expenses are collected in accordance with ownership interest. As of December 31, 2022, such wells have been plugged and abandoned by the operator. The entity also has ownership interests in certain wells in which the Company does not have an ownership interest in. These wells are covered under W&T’s insurance policy. The entity reimburses the Company for its proportionate share of insurance premiums related to these wells and when insurance proceeds are collected related to damage, those costs are disbursed as applicable. In addition, the entity reimburses W&T for certain administrative costs incurred during the year. These costs are less than $0.1 million per year and are included on the Company’s Consolidated Statements of Operations as a reduction to general and administrative expenses. All ownership interests noted above pre-date the Company’s initial public offering.

A company that provides marine transportation and logistics services to W&T employs the spouse of the Company’s CEO. The rates charged for these marine and transportation services were generally either equal to or below rates charged by non-related, third-party companies and/or otherwise determined to be of the best value to the Company. Payments to such company totaled $20.0 million, $12.0 million and $14.4 million in 2022, 2021 and 2020, respectively. The spouse received commissions partially based on services rendered to W&T which were approximately $0.1 million in 2022, 2021 and 2020.

During 2018, an entity controlled by the Company’s CEO participated in the 9.75% Senior Second Lien Note issuance for an $8.0 million principal commitment on the same terms as the other lenders.

During 2022 and 2021, pursuant to the Amendments to the Sixth Amended and Restated Credit Agreement, Calculus, an entity indirectly owned and controlled by W&T’s CEO, became the sole lender under the Credit Agreement. In relation to the execution of the Ninth, Tenth and Eleventh Amendments, the Company paid Calculus arrangement and extension fees of approximately $1.1 million and $0.8 million in 2022 and 2021, respectively and paid legal fees on behalf of Calculus of approximately $0.1 million and $0.2 million in 2022 and 2021, respectively. See Note 2 – Debt for information on the related party transaction concerning Calculus. In addition, during the year ended December 31, 2022 and 2021, Calculus earned commitment fees of $1.5 million and $1.0 million, respectively, equal to 3.0% of the unused borrowing base lending commitment.

See Note 5 – Joint Venture Drilling Program for information on a related party transaction concerning Monza. See Note 20 – Subsequent Events for additional information regarding related party transactions which occurred subsequent to December 31, 2022.