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W&T Offshore’s Lease Operating Expense Guidance

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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.

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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.

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