WTI - W&T Offshore soars after easy Q2 beat upward production guidance

W&T Offshore ( NYSE: WTI ) +17.8% in Monday's trading after crushing expectations for Q2 adjusted earnings , and revenues more than doubled Y/Y and surged 43% Q/Q to $273.8M, also beating Wall Street consensus.

Q2 income swung to a profit of $123.4M, or $0.85/share - the third best quarterly net income in W&T's history as a public company - from a loss of $51.7M, or a $0.36/share loss, in the year-ago quarter.

W&T Offshore ( WTI ) said Q2 production jumped 12% Q/Q and 4% Y/Y to 42.4K boe/day, exceeding the high end of guidance, benefiting from a full quarter of output from acquisitions announced earlier this year, and raised full-year its production guidance midpoint by 2% to 42.2K boe/day from 38.2K boe/day previously.

At the same time, the company maintained its previous range for full-year planned capital spending at $70M-$90M, including one deepwater well and three shelf wells.

The company's Q2 average realized price before derivative settlements was $69.55/boe, up 26% Q/Q and double the $34.75/boe reported in the year-ago quarter.

Q2 free cash flow rose to $233.5M, which the company said was higher than FY 2021 and 2020 combined.

Net debt fell 39% to $331.4M, which drove the ratio of net debt to trailing 12 months adjusted EBITDA ratio down to 0.7x, compared to a ratio of 3.3x a year ago.

W&T ( WTI ) said it is "well positioned with a solid balance sheet and stable production that will allow us to generate meaningful cash flow for years to come."

W&T Offshore ( WTI ) stock price return shows a 71% YTD gain and a 17.5% increase during the past year .

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