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W&T Offshore’s Production Fell to Two-Year Low in 4Q16

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4Q16 production update

On February 3, 2017, W&T Offshore (WTI) issued an update on its 4Q16 and 2016 production. According to the company’s press release, its 4Q16 production was 3.7 MMboe (million barrels of oil equivalent), which matched the midpoint of its production guidance range of 3.5 MMboe–3.9 MMboe. W&T Offshore’s 4Q16 production is ~10% lower than it was in 4Q15. Its 4Q16 production is ~3% lower than its 3Q16 production.

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4Q16 production mix and realized price

In 4Q16, W&T Offshore reported crude oil (USO) production of 1.7 MMbbls (million barrels), natural gas liquid production of 0.4 MMbbls, and natural gas (UNG) production of 10 Bcf (billion cubic feet), meaning that W&T Offshore’s 4Q16 production comprised ~55% liquids. In 4Q15, W&T Offshore’s production comprised ~57% liquids. In 4Q16, W&T Offshore reported an average realized price of $30.83 per boe (barrel of oil equivalent).

2016 production update

In fiscal 2016, W&T Offshore reported production of 15.4 MMboe, ~9% lower than the 17 MMboe it reported in 2015. W&T Offshore’s lower production can be attributed to its reduced capital expenditure in 2016.

In 4Q16, W&T Offshore reported crude oil production of 7.2 MMbbls, natural gas liquid production of 1.5 MMbbls, and natural gas production of 39.7 Bcf. Its 2016 production comprised ~56% liquids. In 2016, W&T Offshore reported an average realized price of $25.76 per boe.

Peer Murphy Oil (MUR), which also operates in the Gulf of Mexico, reported production of ~64.4 MMboe in 2016. In the next part, we’ll take a look at W&T Offshore’s capital expenditure.

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