W&T Offshore Full Year 2023 Earnings: EPS Beats Expectations
W&T Offshore (NYSE:WTI) Full Year 2023 Results
Key Financial Results
Revenue: US$532.7m (down 42% from FY 2022).
Net income: US$15.6m (down 93% from FY 2022).
Profit margin: 2.9% (down from 25% in FY 2022). The decrease in margin was driven by lower revenue.
EPS: US$0.11 (down from US$1.62 in FY 2022).
WTI Production and Reserves
Oil reserves
Proven reserves: 37 MMbbls.
Gas reserves
Proven reserves: 434 Bcf.
LNG reserves
Proven reserves: 13.7 MMbbls.
Combined production
Oil equivalent production: 12.73 MMboe (14.624 MMboe in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
W&T Offshore EPS Beats Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 38%.
In the last 12 months, the only revenue segment was Oil & Gas - Exploration & Production contributing US$532.7m. Notably, cost of sales worth US$283.9m amounted to 53% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to US$114.7m (49% of total expenses). Explore how WTI's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 1.8% growth forecast for the Oil and Gas industry in the US.
Performance of the American Oil and Gas industry.
The company's shares are down 14% from a week ago.
Risk Analysis
It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with W&T Offshore (at least 1 which is a bit concerning), and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
