W&T Offshore’s production in 3Q16
For 3Q16, W&T Offshore (WTI) reported total production of ~3.8 MMboe (million barrels of oil equivalent), which was above WTI’s 3Q16 production guidance range of 3.4–3.7 MMboe. Even though W&T Offshore’s 3Q16 production beat the guidance, it was still lower by ~11% when compared with 3Q15 production of ~4.3 MMboe. All of W&T Offshore’s 3Q16 production came from the Gulf of Mexico.
As seen in the above chart, W&T Offshore’s quarter-over-quarter production volumes peaked in 4Q14, and since then, WTI’s quarterly production is on the decline. In 3Q16, WTI reported its lowest production volume since 2012. Sequentially, W&T Offshore’s 3Q16 production is lower by ~2% when compared with 2Q16.
Reasons for lower production
W&T Offshore’s year-over-year decline in 3Q16 production resulted from natural production declines, pipeline outages, field and platform maintenance, and loss of production as a result of the sale of its Yellow Rose field in 4Q15. These factors were partially offset by new oil production from the development of certain deepwater fields like Big Bend, Dantzler, and EW 910 within the last year.
In 3Q16, W&T Offshore experienced production deferrals due to third-party pipeline outages, operational issues, and maintenance, which occurred at Mahogany, East Cameron 321 A, and various other locations. Production deferrals reduced WTI’s quarterly production by ~0.2 MMboe in 3Q16.
For 4Q16, W&T Offshore expects total production volume in a range of 3.5–3.9 MMboe, a midpoint decrease of ~10% when compared with 4Q15.
On November 2, 2016, W&T Offshore updated its full-year 2016 production guidance. For 2016, W&T Offshore now expects full-year production in a range of 14.6–16.1 MMboe, a midpoint decrease of ~0.15 MMboe from its previous guidance of ~15.5 MMboe.