W&T Offshore: Increased oil production drives revenue increase in 2013

By Lisa Kerner

Charlotte, N.C., March 7 - W&T Offshore, Inc.'s revenues for the fourth quarter were up 3.3% year-over-year at $245 million, while full-year 2013 revenues were up 12.5% from the prior year, according to president Jamie L. Vazquez.

Adjusted EBITDA was up 10.3% for the year at $598 million, and cash flows from operations rose 45.8% to $561 million, said Vazquez during the company's fourth-quarter earnings conference call on Friday.

Vazquez attributed the increases primarily to increased oil production.

W&T's adjusted EBITDA margin was basically flat at 61%.

The Houston-based independent oil and natural gas producer ended the year with cash and cash equivalents of $15.8 million and long-term debt of $1.2 billion, compared to $12.3 million and $1.1 billion, respectively, at the end of 2012.

W&T reported a fourth-quarter net loss of about $12 million, or a loss of $0.16 per share. Net income for full-year 2013 was $51.3 million, or $0.68 per share.

Capital expenditures for 2013 totaled $635 million, including acquisition costs.

For 2014, W&T expects to spend $450 million on cap ex, with more than half of that figure earmarked for oil-focused development activities, according to Vazquez.

Oil production volumes were up 16.3% for the year, driving overall production volumes up 5% compared to the prior year.

W&T had more than a 90% "success rate with the drill bit in 2013," said founder and chief executive Tracy W. Krohn.

High-impact deepwater discoveries at Dantzler and Troubadour are expected to show benefit in 2015. In the meantime, Krohn said the company will continue its goal of expanding through organic growth and acquisitions.

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