WTI · W&T Offshore, Inc.

Notes & Operating Detail

Balance Sheet & Liquidity

As of September 30, 2025, W&T Offshore held cash and cash equivalents of $124.8M, restricted cash of $1.6M, and total debt of $350.4M (net of issuance costs). Shareholders' deficit stood at ($172.5M). The company's liquidity position improved slightly from year-end 2024, with cash increasing by $15.8M, driven by $58.5M in insurance proceeds and $51.3M in operating cash flow, partially offset by debt repayments.

Commitments & Contractual Obligations

Note 5 details several contingencies but no material purchase commitments. The company faces litigation with surety providers demanding $254M in collateral, though $94M of demands were withdrawn via settlements. A contingent decommissioning obligation accrual of $34.5M is recorded for potential liabilities from past divestitures. Additionally, an ONRR dispute involves $5.0M accrued for disallowed transportation cost reductions.

Capital Allocation

During the nine months ended September 30, 2025, W&T allocated capital as follows:

• Buybacks: None
• Dividends: $4.7M paid ($0.01 per share quarterly)
• Debt: Issued $350M 10.75% Senior Second Lien Notes due 2029, using proceeds to repay $269.8M of 11.75% Notes, $114.2M Term Loan, and $0.8M TVPX Loan, resulting in a net debt reduction of $42.8M.
• Capex: $39.6M invested in oil and gas properties and equipment (10.4% of sales), plus $0.7M in acquisitions. Non-cash additions of $5.9M accrued.

Segment / Geographic Mix

The company operates in one reportable segment: oil and natural gas exploration and production in the Gulf of America. All revenue is generated from this segment. The CODM uses consolidated net loss to assess performance and allocate resources.