W&T Offshore’s lease operating expense guidance
In November 2016, W&T Offshore (WTI) reduced its fiscal 2016 guidance for LOE (lease operating expenses) to $9.94–$10.97 per boe (barrel of oil equivalent), a midpoint decrease of ~8% from its previous guidance of $10.78–$11.95 per boe. In 4Q16, W&T Offshore expects LOE of $10.81–$12.16 per boe.
In 3Q16, W&T Offshore’s LOE were $9.82 per boe, ~6% lower than in 3Q15. LOE, which are also referred to as production expenses, are the costs to operate wells after drilling is complete.
Other upstream players
In 3Q16, upstream companies Denbury Resources (DNR) and Diamondback Energy (FANG) reported LOE of $18.82 per boe and $5.37 per boe, respectively. The Energy Select Sector SPDR ETF (XLE) invests at least 95% of its total assets in oil and gas companies. Next, we’ll look at Wall Street’s ratings for W&T Offshore.