W&T Offshore (WTI) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $12.6 million ($0.08 per share), reversing prior losses, with adjusted EBITDA over $54 million and revenues up 33% year-over-year to $162.6 million.

• Production averaged 34,700 BOE/d, up 3% year-over-year, driven by restored output, recompletions, and no new drilling or acquisitions.

• Free cash flow increased 50% sequentially to $31.4 million in Q2, totaling $52 million for H1 2026.

• Cash on hand exceeded $150.7 million, net debt reduced to $200.9 million, and liquidity at quarter-end was $194 million.

• Declared 11th consecutive quarterly dividend of $0.01 per share for Q2 and Q3 2026, with share buybacks considered but dividends prioritized.

Financial highlights

• Realized prices rose to $50.23/BOE in Q2, up 11% from Q1 and 40% from year-end 2025; average realized oil price was $99.30/Bbl.

• Lease operating expenses for Q2 were $71.6 million, below guidance and down 7% year-over-year; per Boe costs fell to $22.67.

• Capital expenditures were $10.4 million in Q2 and $17.6 million for H1 2026; asset retirement settlement costs were $3.4 million.

• Net cash from operating activities was $33.3 million in Q2; adjusted EBITDA margin improved to 33% of revenue.

• Debt outstanding as of June 30, 2026, was $351.6 million, with net debt to adjusted EBITDA at 1.2x.

Outlook and guidance

• Q3 2026 production is forecasted above 35,000 BOE/d, with full-year guidance reaffirmed.

• Q3 LOE expected at $73–$81 million due to deferred maintenance and workovers; transportation and production taxes projected at $8.8–$9.7 million.

• Full-year 2026 capital guidance is $20–$25 million (excluding acquisitions); ARO guidance is $34–$42 million, with expenditures expected at the high end.

• Management expects sufficient liquidity for operations and acquisitions, with $43.4 million available under the credit facility.

• EIA forecasts downward pressure on oil and gas prices for the remainder of 2026 and into 2027.