W&T Offshore Hits Stride in Q1 2026, Beats Guidance with Strong Production and Financial Results
W&T Offshore has kicked off the year on a high note, reporting strong operational and financial results for its first quarter of 2026. The company's Chairman and CEO, Tracy Krohn, led the conference call to discuss the quarterly performance, which exceeded guidance in several key metrics.
In terms of production, W&T Offshore maintained a steady pace, producing 36,200 barrels oil equivalent per day (BOE/d). This figure is within the higher end of the company's guidance and remains flat compared to the fourth quarter of 2025, despite some adverse weather conditions in early 2026.
The solid quarterly results were also bolstered by a significant increase in realized prices. W&T Offshore reported an average price of $45.08 per barrel oil equivalent (BOE), a 26% jump from the fourth quarter of 2025. The company's March oil price was particularly impressive, reaching $88.61 per barrel.
Another notable highlight from the quarter was a reduction in lease operating expenses (LOE). W&T Offshore's LOE costs came in at $66 million, which is below the midpoint of guidance and represents an 11% decrease compared to the previous quarter. This improvement was largely driven by lower base LOE spend, reflecting cost-saving initiatives implemented in the fourth quarter of 2025.
The strong operational performance enabled W&T Offshore to generate $55 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). This is the company's highest quarterly number since the third quarter of 2023. Furthermore, W&T Offshore managed to produce $21 million in free cash flow, a significant improvement from the fourth quarter of last year.
The company's balance sheet also received a boost during the first quarter of 2026. At the end of the period, W&T Offshore's total debt and net debt stood at $351 million and $220 million, respectively. The company's liquidity position was healthy, with available funds totaling $175 million.
W&T Offshore's Chairman and CEO, Tracy Krohn, emphasized the company's commitment to profitability, operational execution, and returning value to its stakeholders. He also highlighted the importance of employee safety and contractor well-being in the company's operations.
The company provided guidance for its second quarter 2026 performance, which includes a planned third-party Mobile Bay natural gas processing facility turnaround that will temporarily impact NGL volumes and increase LOE costs. However, W&T Offshore maintained its unchanged full-year production and cost guidance.
Looking ahead, the company expects to maintain a strong operational pace despite some temporary headwinds in the second quarter of 2026. With a solid balance sheet and enhanced liquidity, W&T Offshore is well-positioned to continue delivering positive results throughout the year.
