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Gauging Trends in W&T Offshore’s Revenues

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W&T Offshore’s 3Q17 revenues

For 3Q17, W&T Offshore (WTI) reported revenues of ~$110 million—higher than Wall Street analysts’ consensus of ~$120 million. For 3Q17, WTI reported crude oil (USO) sales of ~$78 million, natural gas liquids sales of ~$7 million, natural gas sales of ~$24 million, and other revenues of ~$1 million. These figures mean almost 77% of WTI’s 3Q17 revenues came from liquids sales. So WTI’s stock price should be more sensitive to crude oil prices than natural gas prices.

Sequentially, WTI’s 3Q17 revenues are lower compared with 2Q17 revenues of ~$124 million. However, on a year-over-year basis, WTI’s 3Q17 revenues are ~3% higher compared with 3Q16 revenues of about -$107 million.

Despite the steep year-over-year fall in W&T Offshore’s 3Q17 production, higher realized prices for crude oil (USO), natural gas liquids, and natural gas (UNG) helped WTI’s revenues. WTI reported a ~16% higher total realized price of $32.43 per boe (barrel of oil equivalent) in 3Q17 from $27.97 per boe in 3Q16. We’ll look at WTI’s production in the next part of this series.

WTI’s revenue trends

For 1Q17, W&T Offshore (WTI) reported revenues of ~$124 million, slightly higher than Wall Street analysts’ consensus for revenues of ~$123 million. Sequentially WTI’s 1Q17 revenues were ~8% higher than 4Q16 revenues of ~$115 million. On a year-over-year basis, WTI’s 1Q17 revenues were ~59% higher than its 1Q16 revenues of ~$78 million.

For 2Q17, W&T Offshore (WTI) reported revenues of ~$123 million—higher than the Wall Street analyst consensus of ~$121 million. Sequentially WTI’s 2Q17 revenues are slightly lower compared with 1Q17 revenues of ~$124 million. However, on a year-over-year basis, WTI’s 2Q17 revenues are ~23% higher compared with 2Q16 revenues of about -$100 million.

Putting WTI’s revenues in context

Compared to WTI’s $110 million in revenues in 3Q17, ConocoPhillips (COP) reported revenues of ~$7.20 billion in the quarter—higher than the Wall Street analyst consensus of ~$6.45 billion. On a year-over-year basis, COP’s 3Q17 revenues are ~10% higher compared with 3Q16 revenues of ~$6.52 billion. The Vanguard Energy ETF (VDE) invests in the broader energy market via stocks across energy sub-sectors.

Now let’s look at W&T Offshore’s 3Q17 operational performance.

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