W&T Offshore Implements Hedge Positions
HOUSTON, Sept. 17 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) announced that it has established a group of commodity hedge positions as part of a risk management program to enhance its 2010 Capital Expenditure Budget and to support an increase in its borrowing base under its revolving credit facility in connection with the semi-annual redetermination in October 2009. The Company has hedged 10.2 Bcf of its 2010 natural gas production and 1.1 MMBbls of its 2010 oil production.
Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "We have entered into various oil and natural gas hedges to provide us with additional capacity as we establish our 2010 Capital Expenditure Budget and pursue acquisition opportunities."
The Company has implemented the following commodity price hedges:
Zero Cost Collars - Oil
-----------------------
Weighted Average
Notional NYMEX Contract Price
Effective Termination Quantity --------------------
Date Date (Bbls) Floor Ceiling
---- ---- ---------- ----- -------
1/1/2010 3/31/2010 337,500 $69.81 $82.31
4/1/2010 6/30/2010 341,250 69.81 84.11
7/1/2010 9/30/2010 208,000 69.84 85.51
10/1/2010 12/31/2010 243,350 69.74 86.22
------- ----- -----
1,130,100 $69.80 $84.28
========= ====== ======
Zero Cost Collars - Natural Gas
-------------------------------
Weighted Average
Notional NYMEX Contract Price
Effective Termination Quantity --------------------
Date Date (MMBtu) Floor Ceiling
---- ---- ------ ----- -------
1/1/2010 3/31/2010 3,105,000 $5.00 $5.92
4/1/2010 6/30/2010 3,003,000 5.00 6.10
7/1/2010 9/30/2010 1,545,500 5.00 6.60
10/1/2010 12/31/2010 1,777,800 5.00 8.33
--------- ---- ----
9,431,300 $5.00 $6.54
========= ===== =====
Swap - Natural Gas
------------------
Notional
Effective Termination Quantity
Date Date (MMBtu) Swap Price
---- ---- ------ ----------
1/1/2010 12/31/2010 730,000 $5.71
The Company may obtain additional hedges in the future as part of its overall risk management objectives. A hedging schedule will be maintained on our Web site at www.wtoffshore.com in the Investor Relations section under "Other Financial Data."
About W&T Offshore
W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 147 fields in federal and state waters and a majority of its daily production is derived from wells it operates. For more information on W&T Offshore, please visit its Web site at www.wtoffshore.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2008 (www.sec.gov).
Contacts:
Manuel Mondragon / Janet Yang
investorrelations@wtoffshore.com
713-297-8024
Ken Dennard / ksdennard@drg-e.com
Lisa Elliott / lelliott@drg-e.com
DRG&E / 713-529-6600
SOURCE W&T Offshore, Inc.
Released September 17, 2009