WTI - W&T Offshore Announces Accretive Acquisition of Producing Properties in the Gulf of Mexico | Benzinga
HOUSTON, Sept. 21, 2023 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE:WTI) (the "Company" or "W&T") today announced that it has completed the acquisition of working interests in eight shallow water oil and gas producing assets (the "Assets") in the central and eastern shelf region of the Gulf of Mexico ("GOM") from an undisclosed private seller. The acquisition has a closing date of September 20, 2023, and an effective date of June 1, 2023. The Assets were acquired for a gross consideration of $32 million, subject to normal and customary post-effective date purchase price adjustments. W&T used its cash on the balance sheet to pay the net purchase price. Key highlights of the transaction are as follows:
- Provides additional producing properties located within W&T's existing area of operations in water depths ranging from 25 to 265 feet;
- High average working interest of around 72%;
- Includes estimated production as of September 12, 2023, of approximately 2,400 barrels of oil equivalent per day (42% oil) – around two thirds of the production is operated;
- Adds proved reserves of 3.2 million barrels of oil equivalent (49% oil) – 100% of the reserves are proved developed; and
- Accretive gross purchase price multiple of approximately 1.0x last twelve months cash flows as of effective date and production multiple of approximately $13,500 per barrel of oil equivalent per day (based on production as of September 12, 2023).
Tracy W. Krohn, Chairman, President and CEO, commented, "All of the producing properties included in the acquisition announced today meet the time-tested investment criteria we have used for our prior successful acquisitions. These Assets have strong production rates, are generating positive free cash flow, and have ...