Commodity price volatility
Revenue is tied to realized oil, gas, and NGL prices, which can fall quickly.
- Scope
- Oil, natural gas, and NGL sales
- Materiality
- high
W&T Offshore, Inc
W&T Offshore Inc. is an independent oil and natural gas producer focused on offshore properties in the Gulf of America and Gulf of Mexico. The company acquires, develops, and operates producing fields, platforms, wells, and related infrastructure through a portfolio of conventional shelf and deepwater assets.
12,7 %
−29,9 %
−4,5 %
1.02
1.02
| % | |
|---|---|
| Oil production | 55% Crude oil produced from offshore Gulf of America and Gulf of Mexico assets. |
| Natural gas production | 25% Sales of produced natural gas from offshore wells and related facilities. |
| NGL production | 10% Natural gas liquids recovered alongside oil and gas production. |
| Property acquisitions and development | 10% Acquisition and development of producing offshore properties and reserves. |
W&T Offshore sells produced hydrocarbons into commodity markets, so its direct customers are typically purchasers of...
- Crude oil purchasersprimary
Buy offshore crude production for refining and trading; volume and pricing depend on benchmark differentials.
- Natural gas purchasersprimary
Buy produced gas for utility, industrial, or trading use; access to transport and local pricing matter.
- NGL purchaserssecondary
Buy liquids recovered with gas production for fuel blending and petrochemical uses.
- Joint interest partnerssecondary
Share in operating and development costs on jointly owned offshore assets.
The company’s operating base is offshore the U.S. Gulf Coast, with production and infrastructure concentrated in the...
- •Offshore Gulf of America and Gulf of Mexico are the core operating areas
- •Alabama state waters are part of the conventional shelf portfolio
- •Louisiana and Texas matter for production taxes and midstream access
- •Gulf Coast processing and transport infrastructure affects realized pricing
- •Offshore location increases hurricane and outage exposure
W&T Offshore’s strategy centers on operating and selectively expanding its offshore production base through...
01
Selective offshore acquisitionsmedium-term
Adds producing reserves and drilling inventory without building from scratch.
02
Flexible capital allocationshort-term
Allows the company to adjust spending to oil and gas price conditions.
03
Asset optimizationmedium-term
Improves returns from the existing offshore portfolio and infrastructure base.
W&T Offshore is exposed to commodity price volatility because its revenues depend on oil, gas, and NGL prices that can...
Offshore weather and operational disruption
Platforms, wells, and processing systems are exposed to hurricanes and outages.
- Scope
- Gulf of America / Gulf of Mexico assets
- Materiality
- high
Asset retirement obligations
Decommissioning offshore assets requires future cash outflows and estimates.
- Scope
- Platforms, wells, and related infrastructure
- Materiality
- high
Trade policy and tariff effects
Tariffs can increase input costs and weaken commodity demand and pricing.
- Scope
- Operating costs and market prices
- Materiality
- medium
Full cost method and DD&A
Reported depletion rate and earnings
Asset retirement obligations
Liability balance and operating expense
Derivative accounting
Operating cash flow and earnings volatility
Insurance proceeds and asset sales
DD&A and carrying value of oil and gas properties
: 29/04/2026