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How Crude Oil Prices Drive W&T Offshore Stock Price

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W&T Offshore’s oil and gas revenue mix

  • In 3Q16, W&T Offshore’s (WTI) operating revenue from crude oil (USO), natural gas (UNG), and natural gas liquids sales totaled ~$107 million, a reduction of ~15% when compared with 3Q15.
  • The decrease in WTI’s revenues was primarily due to the decline in crude oil realized prices combined with an ~11% decrease in production.
  • As seen in the above chart, for 3Q16, W&T Offshore’s ~67% (or ~$71 million of operating revenues) came from crude oil sales, ~27% (or ~$29 million of operating revenues) came from natural gas sales, whereas only ~6% (or ~$7 million of operating revenues) came from natural gas liquids sales.
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Other upstream players

Other upstream companies like Energen (EGN), EOG Resources (EOG), and Diamondback Energy (FANG) also generate the majority of their operating revenues from crude oil sales.

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