W&T Offshore’s production in 2Q17
For 2Q17, W&T Offshore (WTI) reported total production of ~3.9 MMboe (million barrels of oil equivalent), which was slightly above the mid-point of its 2Q17 production guidance range of 3.7 MMboe–4.1 MMboe. W&T Offshore’s 2Q17 production is higher by half a percentage point compared to 2Q16 production of ~3.9 MMboe. WTI’s entire 2Q17 production came from the Gulf of Mexico.
W&T Offshore’s production trend
In 2Q17, WTI reported the first year-over-year production growth since 4Q15. As you can see in the above chart, W&T Offshore’s production volumes peaked in 4Q14. Since then, its quarterly production fell until 4Q16, when it reported its lowest ever production of ~3.7 MMboe in the last five years. Sequentially, W&T Offshore’s 2Q17 production is higher by ~2.0% compared to 2Q16 production of ~3.8 MMboe.
According to WTI’s 2Q17 press release, it attributed production growth to higher production at various fields, including Mahogany (or Ship Shoal 349), Garden Banks 302, and Viosca Knoll 783.
W&T Offshore’s production guidance
For 3Q17, W&T Offshore expects total production (USO) (UNG) volume of 3.3 MMboe–3.7 MMboe, a mid-point decrease of ~8.0% compared to 3Q16 production of ~3.8 MMboe. Even on a sequential basis, WTI’s forecast 3Q17 production is ~11.0% lower than 2Q17.
On August 3, 2017, W&T Offshore updated its 2017 production guidance. For 2017, it now expects production in the range of 14.5–16.0 MMboe, a mid-point decrease of ~0.75 MMboe (or ~5.0%) from its previous guidance range of 15.2 MMboe–16.8 MMboe.
Other upstream players
WTI’s peer ConocoPhillips (COP) expects 3Q17 production in the range of 1,170 Mboepd (thousand barrels of oil equivalent per day) to 1,210 Mboepd, a mid-point decrease of ~24.0% compared to 3Q16 production. Sequentially, ConocoPhillips’s forecast 3Q17 production is ~16.0% lower than 2Q17.