WTI · W&T Offshore, Inc.

W&T Offshore’s Q1 2026 performance reflects a marked operational and financial inflection: production held flat sequentially at 36.2 MBoe/d despite freezing conditions in January, while Adjusted EBITDA more than doubled to $54.5 million—driven by a 26% sequential increase in average realized price per Boe ($45.08) and a 22% year-over-year reduction in LOE per Boe to $20.29. The $21.0 million of Free Cash Flow represents the first positive quarterly FCF since at least Q4 2025, reversing a $11.2 million outflow and underscoring improved cash conversion. Management attributes cost discipline to fourth-quarter 2025 initiatives materializing in Q1, including base LOE optimization and favorable input cost dynamics tied to commodity prices. Notably, oil realizations strengthened further in March 2026 to $88.61 per barrel, suggesting upside potential as higher-priced barrels roll into future quarters. While Q2 guidance anticipates a temporary dip in production (32.8–36.5 MBoe/d) due to the Mobile Bay processing facility turnaround, the company plans to accelerate well enhancement and workover activity during favorable Gulf weather—projects explicitly intended to boost second-half EBITDA and reaffirm full-year guidance. The continued $0.01 quarterly dividend—now ten consecutive payouts—and stable balance sheet (Net Debt/Trailing Twelve Months Adjusted EBITDA of 1.5x) reinforce capital discipline and financial flexibility. With no acquisitions included in the $19.5–24.5 million full-year capex budget, management retains optionality to pursue accretive deals, consistent with its 40-year integration-focused growth strategy.