Share price of W&T Offshore, Inc. (WTI) fell 1.2% on its announcement of total estimated proved oil and natural gas reserves as of Feb 14, 2014.
W&T Offshore expects production for the fourth quarter to increase 16% to 5.2 million barrels of oil equivalent (MMBOE) from the fourth quarter of 2012. The quarter’s production comprised 1.8 million barrels of oil, 0.6 million barrels of natural gas liquids (NGLs) and 16.8 billion cubic feet (Bcf) of natural gas at an average realized sales price of $47.33 per oil-equivalent barrels (Boe) or $7.89 per thousand cubic feet equivalent (Mcfe). The company expects realized oil sales price for the fourth quarter to average approximately $94.11 per barrel.
The company’s focus on oil and NGL weighted projects resulted in a year-over-year increase of 11.6% in total liquids production. Crude oil production in 2013 increased 16.3% to 7.0 million barrels from 6.0 million barrels in 2012.
For the year 2013, production is estimated to have increased 5% to 18.0 MMBoe (or 107.9 Bcfe), over 2012 production levels. Total 2013 production was split into 7.0 million barrels of oil, 2.1 million barrels of NGLs and 53.3 Bcf, at an average realized sales price of $54.58 per Boe or $9.10 per Mcfe.
W&T Offshore is an independent oil and natural gas producer with offshore operations in the GoM and onshore activities in the Permian Basin of West Texas and in East Texas. The company has grown through acquisitions, exploration and development, and currently holds working interest in approximately 71 offshore fields in federal and state waters (65 producing and six fields capable of producing).
W&T Offshore currently has under lease over 1.4 million gross acres, including over 710,000 gross acres on the Gulf of Mexico shelf, over 480,000 gross acres in the deepwater and over 220,000 gross acres onshore Texas. The majority of daily production is derived from wells it operates offshore.
The company currently carries a Zacks Rank #3, which translates into a Hold rating. Meanwhile one can consider better-ranked energy sector stocks such as Athlon Energy Inc. (ATHL), Cabot Oil & Gas Corporation (COG), and Clayton Williams Energy, Inc. (CWEI). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
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