WTI

Interested in W&T Offshore, Inc.? Here are five stocks we like better. W&T Offshore reported solid second-quarter results, including $12.6 million in net income, more than $54 million in adjusted EBITDA and $31 million in free cash flow. Cash rose above $150 million, while net debt fell to $200 million and leverage stood at 1.2 times adjusted EBITDA. Production averaged 34,700 barrels of oil equivalent per day, with realized prices up 11% sequentially to $50.23 per barrel of oil equivalent. W&T expects third-quarter production to exceed 35,000 barrels per day and maintained its full-year production and cost outlook. The company continues to prioritize acquisitions of profitable producing assets and could favor dividends over share repurchases, depending on acquisition and drilling needs. W&T is also pursuing surety litigation that management says could involve claims worth hundreds of millions of dollars, though outcomes remain uncertain. W&T Offshore (NYSE:WTI) reported second-quarter 2026 net income of $12.6 million, or $0.08 per share, alongside adjusted EBITDA of more than $54 million, Chairman and CEO Tracy Krohn said during the company’s earnings call. The adjusted EBITDA result was in line with the first quarter, bringing the first-half total to nearly $110 million. The offshore producer generated $31 million of free cash flow during the second quarter, a 50% increase from the first quarter, and more than $52 million for the first half of 2026. Krohn said the cash generation increased the company’s cash balance to more than $150 million and reduced net debt to $200 million. → No Hangover: Revisiting Microsoft One Week After Earnings At quarter-end, W&T reported total debt of $351 million, liquidity of $194 million and net debt-to-adjusted EBITDA of 1.2 times on a trailing 12-month basis. Krohn said that, assuming margins remain at current levels through the second half, the leverage ratio could fall below 1.0 times by year-end. Second-quarter production averaged 34,700 barrels of oil equivalent per day at the midpoint of the company’s guidance range, up 3% from the same period in 2025. Krohn said the result was achieved without new drilling or acquisitions, citing well optimization work, low-decline Gulf of America fields and the company’s existing infrastructure. → MarketBeat Week in Review – 08/03 - 08/07 W&T’s strategy emphasizes workovers, recompletions and facility upgrades rather than higher-risk new drilling, according to Krohn. He said the company seeks to use operational cash flow for lower-risk projects and acquisitions of producing properties that can be integrated into its infrastructure. Realized prices reached $50.23 per barrel of oil equivalent during the second quarter, up 11% from the first quarter and approximately 40% from year-end 2025, Krohn said. He said higher commodity prices can improve the economic viability and life of oil fields while increasing reserve valuations. → Why the Landlord of the AI Boom Could Outlast the Chipmakers For the third quarter, W&T forecast production above 35,000 barrels of oil equivalent per day at the midpoint of its guidance. The company reiterated its full-year production and cost outlook. Lease operating expense, or LOE, totaled $72 million in the second quarter, below the low end of guidance. Krohn said the lower expense was partly due to the timing of facility and workover projects, as well as cost-saving initiatives implemented in late 2025 that began to materialize in the first half of 2026. Gathering, transportation and production taxes also came in below the low end of the company’s guidance range. Second-quarter capital expenditures were $10.4 million, while asset retirement obligation settlement costs totaled $3.4 million. W&T maintained full-year 2026 capital guidance of $20 million to $25 million, excluding possible acquisitions, and projected annual asset retirement spending of $34 million to $42 million. Krohn said stronger pricing has prompted the company to accelerate certain projects, which could move capital spending toward the high end of its annual range. Third-quarter LOE is expected to range from $73 million to $81 million as W&T performs workover and facility maintenance projects deferred from the second quarter. The company expects those projects to support production in the second half. It forecast third-quarter transportation and production taxes of $8.8 million to $9.7 million and cash general and administrative expense of $17.2 million to $19 million. Krohn said W&T continues to prioritize acquisitions, although it also has wells it could drill. In response to questions about potential targets, he said the company evaluates properties based on whether they can generate profits, rather than whether assets are in shallow or deep water. The company considers reserve volumes, cash flow and plugging and abandonment obligations when valuing acquisition opportunities, he said. Krohn added that W&T is reviewing multiple potential opportunities and that the bid-ask spread for offshore assets has not changed significantly. Regarding funding, Krohn said W&T first evaluates the value of an asset and how it could be structured within the company. He said more capital providers have become interested in the Gulf basin as they recognize its cash-flow potential. When asked whether W&T could repurchase shares given its cash flow and Krohn’s view that the stock is undervalued, Krohn said the company has conducted buybacks in the past. However, he said dividends currently appear more likely, subject to acquisitions, drilling activity and other considerations. Krohn also discussed ongoing litigation involving surety providers. He noted that W&T reached a settlement agreement in June 2025 with two of its largest surety providers, resulting in the dismissal of a previously filed lawsuit and locking in historical premium rates through the end of 2026. For the remaining litigation, Krohn said W&T is working with damages experts and pursuing additional information from sureties. Management believes that if W&T prevails, claims against the sureties could potentially reach hundreds of millions of dollars, based partly on a preliminary damages-expert report. Krohn said that any damages from successful antitrust claims would be statutorily trebled. He cautioned that litigation outcomes remain uncertain and estimates may change as the analysis and cases proceed. In response to an analyst question, Krohn said he expects the process could play out within the next two years. W&T also addressed asset retirement obligations and decommissioning. Krohn said the company generally expects annual decommissioning spending of roughly $35 million to $45 million and seeks to manage those costs by coordinating personnel, equipment and supply routes. He said the company has performed more than $1 billion of abandonment work in the Gulf and still has additional work planned at its Matterhorn facility. W&T Offshore, Inc is an independent oil and gas exploration and production company focused primarily on offshore operations in the Gulf of Mexico. The company acquires, develops and produces crude oil and natural gas reserves, operating a portfolio of producing properties that encompasses both shallow-water and deepwater assets. W&T Offshore leverages its technical expertise and asset management capabilities to optimize field development and production efficiency across its portfolio. Founded in 1983 and headquartered in Covington, Louisiana, W&T Offshore has built a track record of disciplined growth through strategic acquisitions and targeted exploration activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "W&T Offshore Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

W&T Offshore, Inc. WTI reported second-quarter 2026 adjusted earnings of 2 cents per share, improving from an adjusted loss of 8 cents per share a year ago. The bottom line beat the Zacks Consensus Estimate of break-even earnings by 2 cents. Revenues of $162.62 million beat the consensus mark of $151.55 million by 7.3%. The top line rose 32.9% from $122.37 million a year earlier. The strong quarterly results were driven by higher realized prices and disciplined operating costs. Average production was 34.7 thousand barrels of oil equivalent per day (MBoe/d), up 3% at the midpoint of guidance. MPLX LP price-consensus-eps-surprise-chart | MPLX LP Quote Before derivative settlements, W&T Offshore's average realized sales price rose 28% to $50.23 per barrel of oil equivalent (Boe) from $39.16 per Boe recorded in the prior-year quarter. Oil pricing was the standout, increasing 56% to $99.30 per barrel from $63.55 per barrel in the year-ago quarter. Natural gas realized prices were $3.31 per thousand cubic feet (Mcf), down 12% from $3.75 per Mcf in the year-ago quarter, while natural gas liquids (NGL) pricing declined 5% to $18.35 per barrel from $19.24 per barrel in the second quarter of 2025. Oil revenues increased to $120.45 million from $80.01 million a year earlier, while natural gas revenues declined to $32.09 million from $34.80 million. Total sales volumes were 3,157 thousand barrels of oil equivalent (Mboe), up 3% from 3,052 MBoe in the prior-year period. Oil volumes declined 4% to 1,213 thousand barrels (MBbls), while NGL volumes increased 34% to 329 MBbls and natural gas volumes rose 4% to 9,689 million cubic feet (MMcf). Liquids accounted for 49% of second-quarter production. W&T Offshore completed three workovers and one recompletion during the quarter, and management plans to continue using these low-cost, short-payout projects to support production and revenues. Lease operating expenses (LOE) were $71.56 million, down 7% and below the low end of guidance. On a unit basis, LOE decreased 10% to $22.67 per Boe. Some facility and workover spending was deferred into the third quarter. Gathering, transportation and production taxes were $6.57 million, up 19% but below the low end of guidance. The company attributed the favorable guidance comparison to the Williams Mobile Bay Gas Processing Facility being offline for planned maintenance during April while natural gas volumes bypassed the plant. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 54% to $54.41 million from $35.24 million a year ago. Adjusted net income was $3.53 million against an adjusted net loss of $11.80 million in the prior-year quarter. Adjusted general and administrative expenses were $16.45 million, up 11%. Reported G&A rose to $27.51 million, reflecting higher non-cash share-based compensation tied to the quarter-end valuation of certain awards. Free cash flow increased to $31.38 million from $3.58 million a year earlier. Capital expenditures totaled $10.36 million. As of June 30, 2026, WTI had $150.68 million of unrestricted cash and cash equivalents and $194.10 million of total available liquidity. Net debt totaled $200.90 million and net debt to trailing 12-month Adjusted EBITDA was 1.2X. The company declared a third-quarter dividend of 1 cent per share. For the third quarter of 2026, W&T Offshore expects average daily production to be in the range of 33.3-36.8 MBoe/d. Full-year production guidance remains in the range of 33.5-37.2 MBoe/d. Third-quarter LOE is projected to be between $73 million and $81 million. The increase reflects about $3 million of facility and workover projects deferred from the second quarter and roughly $2 million of workover projects moved forward from the fourth quarter. Full-year capital expenditures are projected to be in the range of $19.5-$24.5 million, with plugging and abandonment spending forecast at $34-$42.4 million. W&T Offshore currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, Valero Energy Corporation VLO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while VLO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here. PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share. As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million. Valero reported second-quarter 2026 adjusted earnings of $12.54 per share, which beat the Zacks Consensus Estimate of $9.87 per share. As of June 30, 2026, VLO had total debt of $9.10 billion, and cash and cash equivalents of $7.87 billion. Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share. As of June 30, 2026, WHD had cash and cash equivalents of $365 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HOUSTON, Aug. 05, 2026 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T,” the “Company,” “we” or “us”) today reported operational and financial results for the second quarter of 2026 and declared a third quarter 2026 dividend of $0.01 per share. This press release includes non-GAAP financial measures, including Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow, Adjusted General and Administrative Expenses and Net Debt, which are reconciled to the most comparable GAAP measures in the accompanying tables to this press release under “Non-GAAP Information.” Second Quarter 2026 Highlights Produced 34.7 thousand barrels of oil equivalent per day (“MBoe/d”) (49% liquids), at the midpoint of the Company’s guidance and up 3% from the same period in 2025; Incurred $71.6 million in lease operating expenses, below the lower end of guidance; Reported net income of $12.6 million, or $0.08 per diluted share, up significantly from a net loss of $22.5 million, or $(0.15) per diluted share, in the first quarter of 2026; Increased Free Cash Flow by 50% to $31.4 million compared with $21.0 million in the first quarter of 2026; Generated Adjusted EBITDA of $54.4 million, with $108.9 million of Adjusted EBITDA generated in the first half of 2026; Adjusted General and Administrative Expenses decreased 5% to $16.4 million compared with $17.4 million in the first quarter of 2026; Grew unrestricted cash and cash equivalents 15% to $150.7 million from $130.9 million at March 31, 2026, which resulted in a 9% decrease in Net Debt to $200.9 million from $220.3 million at March 31, 2026; Ended the second quarter of 2026 with total available liquidity of $194.1 million, which positions the Company well to pursue organic growth initiatives and acquisition opportunities; As the previously disclosed surety lawsuits continue to progress, W&T is working with damages experts to quantify our claims. While the results of the surety lawsuits remain uncertain, and there can be no assurance of a successful result, management believes, based in part on the preliminary report of the damages experts, that the Company, assuming we prevail in the litigation (including on our antitrust claims), would possibly have claims against the sureties that could reach hundreds of millions of dollars, and these damages would be statutorily trebled. This estimate reflects management's current assessment and may change as the damages analysis and litigation proceed; Paid 11th consecutive quarterly dividend of $0.01 per share on May 18, 2026 and declared a quarterly dividend of $0.01 per share for the third quarter of 2026, payable on August 26, 2026 to shareholders of record on August 19, 2026. Management Commentary Tracy W. Krohn, W&T’s Chairman of the Board and Chief Executive Officer, commented, “The second quarter of 2026 was another successful quarter of operational and financial results, with Adjusted EBITDA of $54.4 million, and Free Cash Flow of $31.4 million. In the first half of 2026, we generated almost $110 million of Adjusted EBITDA, and over $50 million in Free Cash Flow, all while decreasing our Net Debt position. We continue to strengthen our balance sheet, while adding financial flexibility that should allow us to continue to evaluate accretive acquisition opportunities. Acquisitions remain a key component of our success, and it is our ability to integrate and enhance the assets that we acquire that has allowed us to grow reserves and production over the past 40 years. Operationally, we reported production at the midpoint of our guidance range and benefited from strong realized pricing in the second quarter. Our average realized price per BOE was up 11% compared to the first quarter of 2026. Additionally, our LOE costs were below the low end of our guidance range, which demonstrates our commitment to cost efficient operations. With consistent production, increasing realized pricing and continued cost control, we believe that we are well positioned operationally and financially to deliver robust results in the second half of 2026. I believe the market is beginning to reflect our strong results in our increased share price, but with the Free Cash Flow generation and our continued commitment to dividends, I believe that we are still significantly undervalued. We remain committed to operational excellence, enhancing shareholder value and believe that W&T is on the right path for success well into the future.” Second Quarter 2026 Results (1)   MBbls — thousands of barrels of oil, condensate or NGLs(2)   MMcf — million cubic feet(3)   MBoe — thousand barrels of oil equivalent(4)   Bbl — barrels of oil, condensate or NGLs(5)   Mcf — thousand cubic feet(6)   Boe — barrels of oil equivalent Lease operating expenses for the second quarter of 2026 were below the low end of guidance due to timing of facility and workover expense projects, which resulted in some of these expenses getting deferred to third quarter 2026. Gathering, transportation and production taxes for the second quarter were below the low end of guidance due to the Williams Mobile Bay Gas Processing Facility being down the entire month of April for planned maintenance. W&T’s natural gas volumes stayed online during this period but bypassed the plant. General and administrative expenses for the second quarter were up compared with the first quarter of 2026 as a result of an increase in non-cash share-based compensation costs driven by a higher share price used to value certain of the Company’s share-based compensation awards that are marked-to-market at the end of each reporting period. (1)   Settlement of decommissioning obligations as a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency. Balance Sheet and Liquidity As of June 30, 2026, W&T had available liquidity of $194.1 million comprised of $150.7 million in unrestricted cash and cash equivalents and $43.4 million of borrowing availability under W&T’s revolving credit facility, based on a borrowing base of $50.0 million and $6.6 million of letters of credit outstanding. As of June 30, 2026, the Company had total debt of $351.6 million, Net Debt of $200.9 million and Net Debt to trailing twelve month Adjusted EBITDA was 1.2 times. Derivatives A summary of the Company’s outstanding derivative positions is provided in the investor presentation posted on W&T’s website. Well Recompletions and Workovers During the second quarter of 2026, W&T performed three workover projects and one recompletion that positively impacted production. W&T plans to continue performing these low cost and low risk short payout operations that impact both production and revenue. Quarterly Dividend Policy The Board of Directors declared a third quarter 2026 dividend of $0.01 per share which is to be paid on August 26, 2026 to shareholders of record on August 19, 2026. Third Quarter and Full Year 2026 Production and Expense Guidance The guidance for the third quarter and full year 2026 in the table below represents the Company’s current expectations. Please refer to the section entitled “Forward-Looking and Cautionary Statements” below for risk factors that could impact guidance. Third quarter 2026 production is expected to be slightly higher than second quarter. Third quarter lease operating expenses will be higher than second quarter due to approximately $3 million of facility and workover expense projects being deferred from second quarter to third quarter and approximately $2 million of workover projects moving forward from fourth quarter to third quarter. Full year 2026 capital expenditures and plugging and abandonment are expected to be towards the higher end of guidance based on acceleration of certain projects in the current supportive commodity price environment. Conference Call Information W&T will hold a conference call to discuss its financial and operational results on Thursday, August 6, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Interested parties may dial 1-844-739-3797. International parties may dial 1-412-317-5713. Participants should request to connect to the “W&T Offshore Conference Call.” This call will also be webcast and available on W&T’s website at www.wtoffshore.com under “Investors.” An audio replay will be available on the Company’s website following the call. About W&T Offshore W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of America and has grown through acquisitions, exploration and development. As of June 30, 2026, the Company had working interests in 48 fields in federal and state waters (which include 41 fields in federal waters and seven in state waters). The Company has under lease approximately 591,000 gross acres (457,100 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 449,200 gross acres on the conventional shelf, approximately 136,200 gross acres in the deepwater and 5,600 gross acres in Alabama state waters. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com. Forward-Looking and Cautionary Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release, including those regarding the Company’s financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, projected costs, industry conditions, potential acquisitions, the outcomes and impact of ongoing litigation, the impact of potential regulatory changes, the impact of and integration of acquired assets, future production, probable reserves, capital expenditures associated with producing reserves, future expenses and indebtedness are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. Items contemplating or making assumptions about actual or potential future production and sales, prices, market size, and trends or operating results also constitute such forward-looking statements. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and speak only as of the date of this release. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, as results actually achieved may differ materially from expected results described in these statements. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, unless required by law. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ including, among other things, the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of the Company’s products; inflation levels; global economic trends, geopolitical risks and general economic and industry conditions, such as the global supply chain disruptions and the government interventions into the financial markets and economy in response to inflation levels and world health events; volatility of oil, NGL and natural gas prices; the global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; supply of and demand for oil, NGLs and natural gas, including due to the actions of foreign producers, importantly including OPEC and other major oil producing companies (“OPEC+”) and change in OPEC+’s production levels; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver the Company’s oil and natural gas and other processing and transportation considerations; inability to generate sufficient cash flow from operations or to obtain adequate financing to fund capital expenditures, meet the Company’s working capital requirements or fund planned investments; price fluctuations and availability of natural gas and electricity; the Company’s ability to use derivative instruments to manage commodity price risk; the Company’s ability to meet the Company’s planned drilling schedule, including due to the Company’s ability to obtain permits on a timely basis or at all, and to successfully drill wells that produce oil and natural gas in commercially viable quantities; uncertainties associated with estimating proved reserves and related future cash flows; the Company’s ability to replace the Company’s reserves through exploration and development activities; drilling and production results, lower–than–expected production, reserves or resources from development projects or higher–than–expected decline rates; the Company’s ability to obtain timely and available drilling and completion equipment and crew availability and access to necessary resources for drilling, completing and operating wells; changes in tax laws; effects of competition; uncertainties and liabilities associated with acquired and divested assets; the Company’s ability to make acquisitions and successfully integrate any acquired businesses; asset impairments from commodity price declines; large or multiple customer defaults on contractual obligations, including defaults resulting from actual or potential insolvencies; geographical concentration of the Company’s operations; the creditworthiness and performance of the Company’s counterparties with respect to its hedges; impact of derivatives legislation affecting the Company’s ability to hedge; failure of risk management and ineffectiveness of internal controls; catastrophic events, including tropical storms, hurricanes, earthquakes, pandemics and other world health events; environmental risks and liabilities under U.S. federal, state, tribal and local laws and regulations (including remedial actions); potential liability resulting from pending or future litigation; the Company’s ability to recruit and/or retain key members of the Company’s senior management and key technical employees; information technology failures or cyberattacks; and governmental actions and political conditions, as well as the actions by other third parties that are beyond the Company’s control, and other factors discussed in W&T Offshore’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q found at www.sec.gov or at the Company’s website at www.wtoffshore.com under the Investor Relations section. NON-GAAP INFORMATION This release may include the use of various measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) such as, but not limited to, Adjusted General and Administrative Expenses, Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow and Net Debt. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations for non-GAAP measures to GAAP measures are included at the end of this release. Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including Adjusted General and Administrative Expenses, Adjusted Net Income (Loss) and Adjusted EBITDA) and liquidity (Free Cash Flow and Net Debt) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables it to evaluate its operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that Free Cash Flow is an important supplemental measure of its cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP. (1)   Selected items were tax effected with the Federal Statutory Rate of 21% for each respective period.

Chord Energy Corporation (CHRD) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $6.68 per share in its upcoming report, which represents a year-over-year change of +273.2%. Revenues are expected to be $1.43 billion, up 20.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 20.68% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chord Energy Corporation, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Chord Energy Corporation will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chord Energy Corporation would post earnings of $3.35 per share when it actually produced earnings of $4.56, delivering a surprise of +36.12%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chord Energy Corporation doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. W&T Offshore (WTI), another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report loss per share of $0 for the quarter ended June 2026. This estimate points to a year-over-year change of +100%. Revenues for the quarter are expected to be $151.55 million, up 23.9% from the year-ago quarter. The consensus EPS estimate for W&T has been revised 12.5% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +633.32%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that W&T will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chord Energy Corporation (CHRD) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

W&T Offshore (WTI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This independent oil and gas company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +62.5%. Revenues are expected to be $145.8 million, up 19.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 8.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For W&T, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +17.95%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that W&T will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that W&T would post earnings of $0.02 per share when it actually produced break-even earnings, delivering a surprise of -100.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. W&T appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Comstock Resources (CRK), another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $0.02 for the quarter ended June 2026. This estimate points to a year-over-year change of -84.6%. Revenues for the quarter are expected to be $415.15 million, down 11.7% from the year-ago quarter. The consensus EPS estimate for Comstock has been revised 7% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -11.11%. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Comstock will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Comstock Resources, Inc. (CRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Zacks Oil and Gas - Exploration and Production - United States industry remains closely tied to commodity prices, and firm crude prices are giving domestic producers a useful cash-flow lift. Higher oil realizations can support drilling, debt reduction and shareholder returns, especially as global supply concerns keep the value of reliable U.S. production in focus. Still, the picture is not without pressure. Rising service, labor, maintenance and decommissioning costs can limit upside, while weak natural gas prices may weigh on producers with meaningful gas exposure. Even so, the industry’s improving discipline is encouraging. Companies are focusing on better wells, controlled spending, workovers and free cash flow rather than growth at any cost. The group’s Zacks Industry Rank in the top 50% and rising 2026 earnings estimates point to a healthier near-term setup. Against this backdrop, APA Corporation APA, W&T Offshore WTI and Ring Energy REI stand out as attractive names to watch. About the Industry The Zacks Oil and Gas - US E&P industry consists of companies primarily based in the domestic market and focused on the exploration and production (E&P) of oil and natural gas. These firms find hydrocarbon reservoirs, drill oil and gas wells, and produce and sell these materials to be refined later into products such as gasoline, fuel oil, distillate, etc. The economics of oil and gas supply and demand are the fundamental drivers of this industry. In particular, a producer’s cash flow is primarily determined by the realized commodity prices. In fact, all E&P companies' results are vulnerable to historically volatile prices in the energy markets. A change in realizations affects their returns, causing them to alter their production growth rates. The E&P operators are also exposed to exploration risks where drilling results are comparatively uncertain. 4 Key Trends to Watch in the Oil and Gas - US E&P Industry Higher Oil Prices Can Quickly Lift Cash Flow: The U.S. exploration and production industry remains highly sensitive to oil prices. When crude prices rise, producers usually see a direct benefit because each barrel sold brings in more cash. That can improve margins, fund drilling, support debt reduction and leave more room for shareholder returns. Current geopolitical tensions also keep attention on energy security and a reliable domestic supply. This helps U.S. producers because local barrels become more valuable when global supply feels uncertain. For investors, the key attraction is simple: if oil stays firm, many producers can generate strong free cash flow without needing aggressive production growth. Rising Costs and Obligations Limit Upside: The industry still faces meaningful cost and liability pressures. Diesel, power, equipment, labor, maintenance, workovers and facility upgrades can become more expensive when activity improves or oil prices rise. Offshore operators also carry large decommissioning and asset-retirement obligations, which can absorb cash that might otherwise go to growth or shareholder returns. Some producers are still focused on reducing debt, so stronger cash flow may be directed toward balance-sheet repair instead of aggressive drilling. For investors, this creates a practical limit on upside. Higher commodity prices help, but they do not remove the need for spending discipline and careful liability management. Better Efficiency Supports Returns Through Cycles: A more disciplined operating model is becoming a strength for U.S. exploration and production companies. Many producers are focusing less on growth at any cost and more on lower spending, better well performance, workovers, recompletions and selective infrastructure upgrades. This can make each dollar of capital work harder. Low-decline assets are also useful because they require less spending just to keep production steady. For investors, this matters because the industry can create value even when commodity prices are choppy. Strong cost control, careful capital allocation and a focus on free cash flow can make earnings more durable over time. Weak Natural Gas Prices to Drag Results: Not every part of the commodity mix is supportive. In some U.S. basins, natural gas prices have been weak, and local pricing can sometimes fall far below benchmark levels. This can force producers to curtail gas volumes or accept poor realized prices. Even oil-focused companies can feel the pressure because many wells produce associated gas along with crude. Lower gas and NGL values can reduce total revenue per barrel of oil equivalent and hurt reported production economics. For investors, the risk is that strong oil prices may not fully offset weak gas markets, especially in areas with limited takeaway capacity. Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - US E&P industry is a 34-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #104, which places it in the top 42% of 247 Zacks industries. The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 34.6% in the past year. Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first. Industry Underperforms Sector and S&P 500 The Zacks Oil and Gas - US E&P industry has fared worse than the broader Zacks Oil - Energy Sector and the Zacks S&P 500 composite over the past year. The industry has moved down 1.2% over this period against the broader sector’s increase of 26.2%. Meanwhile, the S&P 500 has gained some 27%. One-Year Price Performance Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses. On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 11.01X, lower than the S&P 500’s 18.62X. It is, however, well above the sector’s trailing 12-month EV/EBITDA of 6.57X. Over the past five years, the industry has traded as high as 17.10X and as low as 3.42X, with a median of 6.08X. Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio (Past Five Years) 3 Stocks to Focus On W&T Offshore: W&T Offshore is a Houston-based oil and gas company focused on the Gulf of America. Founded in 1983 by Tracy Krohn, it has been listed on the NYSE since 2005 under the ticker WTI. Over four decades, the Zacks Rank #2 (Buy) company has grown from a small independent operator into a seasoned offshore player, mainly through acquisitions and selective drilling. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company operates across 48 offshore fields and holds a large acreage base in shallow and deepwater areas. Its strategy is simple: improve existing assets, control costs, add reserves, and pursue smart acquisitions. With strong technical experience, operating production, and a focus on cash flow, W&T Offshore aims to support steady long-term growth. The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 67.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for W&T Offshore’s 2026 loss has narrowed from 32 cents per share to 12. Price and Consensus: WTI Ring Energy: Ring Energy is a Texas-based oil and gas company focused on conventional assets in the Permian Basin, mainly the Central Basin Platform and Northwest Shelf. It uses modern drilling and completion methods to improve older fields, extend well life and raise recovery. The #2 Ranked company operates more than 96,000 net acres and has built a large, mostly operated asset base. Its strategy centers on steady cash flow, disciplined spending and lower operating costs. Ring has more than 500 identified drilling locations, over 10 years of inventory and a reserve life above 20 years. Recent results show production in line with guidance, cost reductions and continued positive adjusted free cash flow. The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 57.9% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for Ring Energy’s 2026 earnings has moved up from 22 cents per share to 30 cents. Price and Consensus: REI APA: APA Corporation explores for and produces oil and natural gas through subsidiaries in the United States, Egypt and the United Kingdom, while also pursuing offshore opportunities in Suriname and other areas. Its portfolio is anchored by the Permian Basin and Egypt, giving the Zacks Rank #3 (Hold) company a steady operating base and room for long-term growth. APA focuses on safe, efficient and responsible operations, backed by financial discipline. It plans to return at least 60% of free cash flow to investors through dividends and share buybacks, while reducing debt. Growth plans include first oil from Suriname’s GranMorgu project in mid-2028 and continued cost savings across operations. The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 48.5% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for APA’s 2026 earnings has moved up from $4.28 per share to $5.60. Price and Consensus: APA Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report APA Corporation (APA) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Ring Energy, Inc. (REI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in W&T Offshore, Inc.? Here are five stocks we like better. W&T Offshore said Q1 2026 results met or exceeded guidance, with production near the high end of expectations, realized prices up 26% from Q4, and lease operating expense down 11%. Adjusted EBITDA rose to $55 million, its highest quarterly level since Q3 2023, and free cash flow improved to $21 million. The company ended the quarter with total debt of $351 million, net debt of $220 million and liquidity of $175 million. Management reiterated its low-capital operating model and kept full-year capex guidance at $20 million to $25 million, excluding acquisitions. For Q2, W&T expects production to decline sequentially to about 34,300 BOE/d due to a planned Mobile Bay facility turnaround, with lease operating expense temporarily rising to $71 million to $79 million. Despite the near-term dip, management remains focused on workovers, recompletions and pursuing Gulf of Mexico acquisitions when attractive opportunities arise. W&T Offshore (NYSE:WTI) reported first-quarter 2026 results that management said met or exceeded guidance across several operational and financial measures, helped by steady production, higher realized pricing and lower operating costs. Chairman and CEO Tracy Krohn told investors the Gulf of Mexico producer “started 2026 on a positive note,” with production of 36,200 barrels of oil equivalent per day, near the high end of guidance and flat with the fourth quarter of 2025 despite adverse weather early in the year. → McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy? The company reported realized prices of $45.08 per barrel of oil equivalent, up 26% from the fourth quarter. Krohn said the company’s realized oil price in March was $88.61 per barrel. Lease operating expense declined 11% to $66 million, which management said was below the midpoint of guidance and reflected cost-saving initiatives that began in the fourth quarter of 2025. Adjusted EBITDA totaled $55 million, which Krohn said was the company’s highest quarterly figure since the third quarter of 2023. W&T also generated $21 million in free cash flow, which management described as a significant improvement from the prior quarter. → How Berkshire’s New York Times Bet Looks Today W&T ended the first quarter with total debt of $351 million, net debt of $220 million and liquidity of $175 million. Krohn said the company’s balance sheet and liquidity position support its ability to evaluate growth opportunities while continuing to generate operating cash flow. Capital expenditures in the quarter were $7 million, while asset retirement settlement costs totaled $17 million. The company maintained its full-year capital expenditure outlook of $20 million to $25 million, excluding potential acquisitions, and kept its asset retirement obligation budget at $34 million to $42 million. → Oklo Stock Could Be Ready for Another Massive Run Krohn emphasized that W&T’s operating model differs from some peers because the company spends relatively less on capital projects and more on lower-risk workovers, recompletions and facility optimization. He said management views that approach as an economic way to reinvest operating cash flow into the business while preserving flexibility for acquisitions. The company reiterated its full-year production and cost guidance, while noting that second-quarter production is expected to decline sequentially due primarily to a planned third-party Mobile Bay natural gas processing facility turnaround. W&T expects second-quarter production at the midpoint of guidance to be about 34,300 barrels of oil equivalent per day, down about 5% from the first quarter. Krohn said the turnaround will affect natural gas liquids volumes and temporarily lift lease operating expense. Second-quarter lease operating expense is expected to range from $71 million to $79 million, compared with $66 million in the first quarter. Management attributed the increase to the Mobile Bay turnaround as well as planned workover and facility maintenance activity that is expected to support production in the second half of the year. Krohn said operating costs can be seasonal, with more work performed during warmer months when offshore weather conditions are generally more favorable. Transportation and production taxes are expected to range from $7 million to $8 million in the second quarter, down from $9 million in the first quarter, with management citing benefits from a new pipeline installed for the West Delta 73 field. Cash general and administrative costs are expected to remain comparable to first-quarter levels. During the call, Krohn reiterated W&T’s long-running strategy of acquiring producing properties in the Gulf of Mexico and integrating them into the company’s infrastructure. He said the company looks for assets with existing cash flow, meaningful reserves and an affordable price, along with opportunities to increase production through workovers, recompletions or facility upgrades. In response to a question from Derrick Whitfield of Texas Capital about the M&A environment, Krohn said there has been a “dearth of significant transactions” in the Gulf in recent years but suggested activity could begin to improve. He said W&T has been in data rooms “almost continuously over the years” and intends to pursue opportunities that fit its financial criteria. “That criteria usually starts with cash flow,” Krohn said, adding that management also evaluates the reserve base and near-term actions that could improve cash flow. Krohn also told analysts that the company expects to remain active with workovers and recompletions, particularly as weather improves in late spring and summer. He said W&T has a “good inventory” of projects and has begun moving equipment in the Gulf to support that work. Analysts also asked about W&T’s reserve base and the company’s ability to convert probable reserves into proved producing reserves over time. Krohn said a portion of the company’s 2P reserves ultimately shows up first as cash flow and later as booked reserves without requiring additional capital spending. He said that dynamic has contributed to W&T’s historically low decline rates and supports production with a relatively low reinvestment rate. Krohn said the company still has drilling inventory, including exploration opportunities and proved reserve opportunities, but management currently prefers to preserve liquidity and pursue acquisitions when assets can be acquired at attractive economics. “It’s not because we don’t have inventory,” Krohn said. “It’s because management, including myself, believes that opportunities to do additional acquisitions are good.” Krohn also addressed proposed regulatory changes from the Department of the Interior that would roll back portions of a 2024 rule related to supplemental financial assurance requirements. He said the prior rule would have required companies to set aside about $6.9 billion in supplemental financial assurance, with about $6 billion applying to small businesses that make up much of the Gulf operator base. According to Krohn, the proposed revisions would better align financial assurance requirements with actual decommissioning risk and reduce industry-wide bonding costs by at least $500 million annually. He said the revisions were published in the Federal Register with a 60-day public comment period expected to end May 15. On litigation involving sureties, Krohn said a district court rejected the sureties’ attempt to require W&T to immediately pay collateral demands. He said the sureties are appealing and that W&T will continue to defend its position. Krohn also said the court granted W&T’s request to file an amended lawsuit that includes antitrust and other claims against the sureties. In closing, Krohn said W&T remains focused on operational execution, cash flow generation and evaluating acquisition opportunities in the Gulf of Mexico, where the company has operated for more than 40 years. W&T Offshore, Inc is an independent oil and gas exploration and production company focused primarily on offshore operations in the Gulf of Mexico. The company acquires, develops and produces crude oil and natural gas reserves, operating a portfolio of producing properties that encompasses both shallow-water and deepwater assets. W&T Offshore leverages its technical expertise and asset management capabilities to optimize field development and production efficiency across its portfolio. Founded in 1983 and headquartered in Covington, Louisiana, W&T Offshore has built a track record of disciplined growth through strategic acquisitions and targeted exploration activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "W&T Offshore Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

California Resources Corporation CRC posted first-quarter 2026 adjusted earnings of 88 cents per share, down 17.8% year over year but ahead of the Zacks Consensus Estimate by 6%. Total operating revenues before net commodity-derivative impacts were $967 million, up 6% year over year and ahead of the consensus mark by 7.2%. Results reflected CRC’s oil-weighted production base and strong realizations. Net production averaged 154 thousand barrels of oil equivalent per day (MBoe/d), with oil representing 81% of volumes. On a GAAP basis, CRC reported a net loss of $711 million, primarily tied to a non-cash loss in the fair value of outstanding commodity derivatives. That swing in mark-to-market results dominated the income statement even as operating performance tracked well with management’s expectations. Excluding those unusual and non-cash items, CRC generated adjusted net income of $79 million. Adjusted EBITDAX came in at $304 million, underscoring the company’s ability to translate a firmer Brent backdrop into stronger core cash earnings. California Resources Corporation price-consensus-eps-surprise-chart | California Resources Corporation Quote California Resources continued to benefit from favorable oil pricing during the quarter. The company’s average realized oil price was $74.53 per barrel before the impact of hedging, closely tracking Brent crude prices. After including hedging impacts, the realized price came to $69.37 per barrel. Pricing for other products also remained healthy. The company received nearly $45 per barrel for natural gas liquids, while natural gas prices averaged $3.56 per Mcf. These results were supported by CRC’s regional market exposure and pricing strategy. California Resources reported total operating costs of $365 million for the quarter. Administrative expenses came in higher than expected at $106 million, mainly due to legal-related costs and increased employee compensation linked to the company’s rising share price. Other expenses also affected quarterly results. Taxes excluding income taxes totaled $67 million, while transportation expenses were $26 million. Other operating expenses, after adjusting for related revenues, came to $44 million. At the same time, the company benefited from some additional income sources, including $18 million from commodity marketing activities and $6 million from electricity-related operations. California Resources continued to generate healthy cash flow during the quarter, even as spending increased to prepare for higher activity later in the year. The company generated $247 million in operating cash flow before working-capital changes, while free cash flow came in at $116 million. Total capital spending was $131 million, mainly related to drilling, well maintenance and facility upgrades to support future production growth. The company also strengthened its balance sheet by refinancing part of its debt. CRC issued $350 million in new long-term notes and used the proceeds to repay higher-interest debt due earlier. It ended the quarter with solid liquidity of about $1.3 billion and maintained a relatively low debt level compared to earnings, with a net leverage of 1.1X on a last-12-month adjusted EBITDAX basis. California Resources increased its full-year forecast as it plans to ramp up drilling activity in the second half of 2026. The company expects to operate seven drilling rigs later this year, including six in California and one in Utah. CRC also expects production to gradually rise through the year, ending 2026 at around 175 MBoe/d. The Zacks Rank #1 (Strong Buy) company raised guidance for several important financial measures. CRC now expects stronger production, higher earnings and increased investment spending in 2026. It also increased its expected cost savings from the Berry merger to $90-$100 million annually. At the same time, ongoing efficiency improvements and consolidation of operations are helping reduce certain infrastructure-related spending. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Beyond its oil and gas operations, California Resources highlighted continued progress in its carbon management business. The company completed the construction of its carbon capture and storage project at the Elk Hills gas plant and is now awaiting final approval from the EPA to begin injecting and storing carbon dioxide underground. Management views this as an important milestone for the project and for carbon capture efforts in California. CRC also pointed to growing interest in its Elk Hills “powered land” strategy. A major data center developer is investing millions of dollars to help prepare the site and speed up permitting work. The company believes its combination of natural gas supply, available land and carbon capture capabilities could help meet rising electricity demand from AI-related data centers. While we have discussed CRC’s first-quarter results in detail, let’s take a look at some other upstream energy reports of this season. EOG Resources EOG posted adjusted earnings of $3.41 per share, up 18.8% from the year-ago level of $2.87. The bottom line beat the Zacks Consensus Estimate for earnings of $3.07 by 11.1%. EOG’s total revenues of $6.9 billion increased 22.1% year over year and beat the consensus mark of $6.3 billion. Strong quarterly results were supported by higher production, with total crude-oil-equivalent volumes averaging 1,383.8 MBoe/d in the quarter, reflecting strong production execution. Cost control helped keep the earnings flow-through intact even as activity remained elevated. Lease and well expenses were $462 million, and depreciation, depletion and amortization were $1.19 billion. For investors, the quarter reinforced that EOG’s earnings power is being driven by a combination of operating scale and steady expense execution. Diamondback Energy FANG reported first-quarter 2026 adjusted earnings per share of $4.23, which beat the Zacks Consensus Estimate of $3.55, driven by strong production. However, the company’s bottom line declined from the year-ago adjusted profit of $4.54. The underperformance was due to a 91.5% drop in the year-over-year realized natural gas prices. Diamondback’s production of oil and natural gas averaged 979.4 MBoe/d, comprising 53.2% oil. Diamondback Energy logged $933 million in capital expenditure — spending $784 million on operated drilling and completion additions to oil and natural gas properties, and $149 million on non-operated additions. The company booked $1.7 billion in adjusted free cash flow in the first quarter. W&T Offshore WTI posted break-even first-quarter 2026 earnings per share compared with the Zacks Consensus Estimate of 2 cents. Revenues of $150 million beat the consensus mark of $137 million by 9.5% and increased 15.5% year over year. Operationally, W&T Offshore turned in average sales volumes of 36.2 MBoe/d (53% liquids), keeping output near the top end of guidance despite adverse weather. The quarter also featured sharply lower lease operating expenses per barrel, helping support a meaningful step-up in profitability measures such as adjusted EBITDA. Production growth remained a key operational theme. W&T Offshore said first-quarter output increased 19% from the year-ago period, supported by contributions from prior acquisitions and continued execution across its Gulf of America asset base. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report W&T Offshore, Inc. (WTI) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report California Resources Corporation (CRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, May 8, 2026 at 10 a.m. ET Chairman and Chief Executive Officer — Tracy W. Krohn Executive Vice President and Chief Operating Officer — William J. Williford Executive Vice President and Chief Financial Officer — Sameer Parasnis Vice President and Chief Accounting Officer — Trey Hartman Need a quote from a Motley Fool analyst? Email [email protected] Tracy W. Krohn: Thank you, Al. Good morning, everyone, and welcome to our first quarter conference call for 2026. With me today are William J. Williford, our Executive Vice President and Chief Operating Officer; Sameer Parasnis, our Executive Vice President and Chief Financial Officer; and Trey Hartman, our Vice President and Chief Accounting Officer. They are all available to answer questions later during the call. We started 2026 on a positive note with strong operational and financial results that either met or exceeded our guidance across multiple metrics. Our production was 36 thousand 200 barrels oil equivalent per day, toward the higher end of guidance and flat with 2025 despite some adverse weather impacts in early 2026. The solid quarterly results start with our ability to maintain strong production, and we were aided by our realized prices of $45.08 per barrel oil equivalent, an increase of 26% from the fourth quarter. In March, our realized oil price was $88.61 per barrel. Additionally, our lease operating expense, LOE, was down 11% to $66 million, below the midpoint of guidance. Reductions in our LOE costs were mainly driven by lower base LOE spend, reflecting fourth quarter 2025 cost-saving initiatives that began to materialize in 2026. All these positives helped us generate $55 million in adjusted EBITDA, our highest quarterly number since 2023. We are also very pleased to have generated $21 million in free cash flow, a significant improvement from the fourth quarter of last year. Our ability to execute our strategy has delivered very strong results to start off 2026, including a healthy balance sheet and enhanced liquidity. At the end of 2026, our total debt and net debt were $351 million and $220 million, respectively. Our liquidity was $175 million. We built W&T Offshore, Inc. using a proven and successful strategy that is committed to profitability, operational execution, returning value to our stakeholders, and ensuring the safety of our employees and contractors. We have consistently delivered operationally and financially with low-decline production, meaningful EBITDA, and seamlessly integrating accretive producing property acquisitions during our nearly 45-year history. Capital expenditures in 2026 were $7 million and asset retirement settlement costs totaled $17 million. We continue to expect our full-year capital expenditures to be between $20 million and $25 million, which excludes potential acquisition opportunities. Our budget for ARO remains the same at $34 million to $42 million. Yesterday, we provided our detailed guidance for second quarter 2026 and reiterated our unchanged full-year production and cost guidance. In 2026, we have a planned third-party Mobile Bay natural gas processing facility turnaround that will impact our NGL volumes and temporarily increase our LOE. However, our full-year LOE guidance has not changed. We are forecasting the midpoint of Q2 2026 production to be around 34 thousand 300 barrels oil equivalent per day. This is a decrease of 5% compared to 2026, driven primarily by the turnaround, but the key is that we have not changed full-year guidance. Second quarter LOE is expected to be $71 million to $79 million, up from first quarter actual of $66 million, and this is due to the planned Mobile Bay turnaround as well as higher planned workover and facility maintenance work that is expected to benefit production in 2026. It is important to note that LOE expenses tend to increase and decrease seasonally, with much of the work being accomplished during warmer weather months that also produce less wind. Second quarter transportation and production taxes are expected to be between $7 million and $8 million compared with $9 million in the first quarter, which reflects some of the benefit of the new pipeline we installed for the West Delta 73 field. Second quarter cash G&A costs are expected to remain comparable to our Q1 results. I want to point out that we tend to spend significantly less than our peers in capital expenditures and choose to instead spend more dollars on low-risk, high-rate-of-return workovers and facility optimization. We believe this is a more economic way to invest our operational cash flow back into our business and it is a lower-risk option. We can then build cash flow to help us make accretive acquisitions of producing properties. Over the years, we have consistently created significant value by methodically integrating producing property acquisitions. We look for strong producing assets with meaningful reserves at an affordable price that we can integrate into our vast infrastructure. We primarily spend LOE dollars to work over, recomplete, and upgrade these assets. As a result, we often see additional production uplift from these acquisitions above the rates they were producing when purchased. This strategy makes W&T Offshore, Inc. unique, but it is our ability to execute over and over throughout the years that allows us to add value. With our low-decline production, increasing realized pricing, and continued cost control, we believe that we are well positioned operationally and financially to deliver robust results in 2026 while we examine accretive acquisition opportunities. Before closing, I would like to discuss some regulatory updates in more detail. As we mentioned in yesterday's earnings release, the Department of Interior has proposed some positive regulatory changes that would roll back obligations from a 2024 rule that would require companies to set aside about $6.9 billion in supplemental financial assurance. About $6 billion would have applied to small businesses that make up most of the operators in the Gulf. The proposed changes will better align financial assurance requirements with actual decommissioning risk and reduce industry-wide bonding costs by at least $500 million annually. These proposed revisions have been published in the Federal Register with a 60-day public comment period, which is expected to end May 15. We welcome these changes proposed by the Trump [inaudible] that can further encourage U.S. offshore production growth and increase America's energy independence. Regarding the surety litigation, I am able to report that the district court has rejected the surety's attempt to require W&T Offshore, Inc. to immediately pay their demands—I would call them ridiculous demands—for collateral. The sureties are appealing that ruling and W&T Offshore, Inc. will continue to vigorously defend our position that the surety's demands for collateral were neither appropriate nor lawful. Moreover, W&T Offshore, Inc. prevailed in virtually every respect as it relates to the surety's attempt to dismiss the claims W&T Offshore, Inc. has asserted in the lawsuit. Yesterday, the court granted W&T Offshore, Inc.'s request to file an amended lawsuit, which sets forth broader and other claims against the sureties. This case will go on. As can be reviewed in our court filings, the sureties' conduct caused W&T Offshore, Inc. to incur substantial damages and we intend to seek to remedy the conduct and obtain damages to the fullest extent of the law. In closing, I would like to thank our team at W&T Offshore, Inc. for all their efforts. We are ready and able to add significant value in 2026. W&T Offshore, Inc. has been an active, responsible, and profitable operator in the Gulf of America for over 40 years. We have a long track record of successfully integrating assets into our portfolio and we know that the Gulf of America is a world-class basin, being the second largest basin by production and the largest basin in the USA by area. We have a solid cash position and strong liquidity that enables us to continue to evaluate growth opportunities while continuing to generate strong operational cash flow and adjusted EBITDA. We will maintain our focus on operational excellence and maximizing the cash flow potential of our asset base in 2026 and beyond. Operator, we can now open the lines for questions. Operator: We will now begin the question and answer session. Your first question today comes from Derrick Whitfield with Texas Capital. Please go ahead. Derrick Whitfield: Good morning, Tracy and team, and thanks for your time. Tracy W. Krohn: Good morning, Derrick. Derrick Whitfield: Starting with your guidance, while I understand you are reiterating production guidance for the full year, how would you characterize your desire to further lean into workovers in the favorable environment? Tracy W. Krohn: Yes. Well, that is always a key factor for us. We have always got a good inventory of things to do. As we have acquired assets over the years, we take the time to study them and restudy them, and that allows us to continue doing these workovers. Do expect to see some more of that. We will ramp up a little bit during the summer because the weather is better—late spring and summer, which is about now. In fact, we are moving some things around in the Gulf now to begin that process. Workovers have always been a key strong point for us, along with not only workovers but recompletions. Analyst: Great, Tracy. And then maybe shifting over to the M&A environment, I wanted to get your thoughts on the competitive landscape at present. Is it safe to assume we are in a pencils-down environment for larger packages, or are you seeing reasonable action in the market at present? Tracy W. Krohn: The company has got a very strong liquidity position right now. There has been a dearth of significant transactions for the last several years in the Gulf. We feel pretty good about where we are. We are in different data rooms almost continuously over the years. I think that there is a real good possibility that things are going to start moving around. We certainly have aspirations in that direction and intend to continue to pursue things that will fit our normal financial criteria. That criteria usually starts with cash flow, and then also what is the reserve base. What are the things that we can do to increase cash flow near term, such as workovers and recompletions and facilities upgrades, that will generate those numbers near term. Analyst: Great update. Thanks for your time. Tracy W. Krohn: Thank you, sir. Operator: And your next question comes from William Blair. Please go ahead. Analyst: Hey Tracy, this is actually Neil. Just had two quick ones for you. How are you doing? And nice to be back on the call. Tracy W. Krohn: Good, Neil. Analyst: My first question, Tracy, I know part of the upside for you all is converting a lot of the 2P to primary reserves. It seems like with the plan you have laid out, there is still a lot of that going on. Could you tell us what you think the timing of that would be? Tracy W. Krohn: The really cool part about our 2P reserves is that a lot of those reserves come to us in the form of cash and then later on booked reserves. As time moves forward, we see that first as cash flow. That is cash flow and reserves that we do not have to spend any CapEx on, and that has been a real focal point of the company over many years. It is why we have traditionally very low decline rates, and that shows up as massive amounts of cash and reserves over time. It has always seemed to have been that way for the company since we started, and I try to reiterate that to investors in just about every presentation that we do. There are additional reserves that are probables that we do have to spend some CapEx on. We look forward to doing that in the near future. We have not been doing a lot of drilling lately because we have not needed to. One of the hallmarks of the company is making sure that we try to continue the cash flow stream. If any time I can acquire reserves as opposed to drilling for them at approximately the same price, then that is what we are going to do. We are going to take the risk out of it and do that, and that is one of the reasons why we are still here after 40-something years. That is a great question, Neil. I appreciate it. Analyst: I love that upside. Secondly, as you said, not that you are going to have to go drill much, but you have a very low CapEx guide. Does that factor in the workovers that Derrick talked about? Are service costs holding in right now, or what are you seeing for service? Tracy W. Krohn: Part of that is exactly what you suggested—holding on and making judicious decisions about workovers and recompletions. Part of it is to make sure that we maintain really good liquidity. I think there will be opportunities going forward in the market for us to make additional acquisitions. Again, it is not that we do not have wells to drill. We do. We have a pretty good inventory of exploration opportunities and, in fact, even proven reserve opportunities that are substantial. It is not because we do not have inventory; it is because management, including myself, believes that opportunities to do additional acquisitions are good, and we like the way that we are positioned in this market and we have good liquidity. Analyst: Perfect. Thank you much, sir. Operator: Your next question comes from Jeff Robertson with Water Tower Research. Please go ahead. Analyst: Thank you. Tracy, just to follow up on your previous comments. W&T Offshore, Inc. has a pretty low reinvestment rate when you think about cash flow from operations in 2026, and yet production is expected to stay relatively flat for the year from where you were in the first quarter based on your midpoint guidance. To your point about the capital-light business model, is a lot of that production performance just related to, as Neil talked about, moving 2P reserves into PDP without any capital? And is that something that goes on for 2026, 2027, and beyond just based on your reserve profile and performance of your assets? Tracy W. Krohn: The short answer to that is yes. Again, with probable reserves, because of the quirks around the booking of those via the SEC, we have to wait a while before we can put them back in as proved reserves, and often those are just additions to proved producing. We get a dual effect of not only increasing the reserves, but also increasing our borrowing capacity as well. That is a double plus for us. This is normal. These are the actions of the corporation. I have done this illustration in just about every investor meeting we have ever had. I have an illustration in the deck that shows you the effects of the probable reserves and how they get to be producing reserves over time. We generally book them again as cash flow and reserves over time. It is not that we do not have inventory to drill—we do—but it is nice to have that additional bit of reserves. In Europe, they look at this as companies are valued more on the 2P basis than they are just 1P, and our regulators have been a little bit slow to do that. That has always been a complaint and I do not understand the rationale behind it. It seems ridiculous to me because we have proven it over and over again that we definitely increase reserves and cash flow over time without additional CapEx. Analyst: When you think about acquisitions, two-part question. One, are you able to buy on a 1P basis? And then secondly, you spoke about the regulatory environment and some of the things that are coming down the road. Will that have an impact on M&A activity in the Gulf of Mexico, do you think? Tracy W. Krohn: That is a pretty good two-part question, Jeff. To answer your question on 1P, it is really a bunch of different factors. It is not just necessarily 1P. We do look at the entire reserve stack, and again, we like to see acquisitions that have cash flow and a reserve base that we can forecast, but also we like to see some upside too, where we can do some work or drill some wells, that sort of thing. They are all a little bit different. In the Gulf, you have to take into consideration what are the retirement obligations. That is a very important part of what we do. We manage that very well. The company has done more plug and abandonment decommissioning on those AROs than anyone. We have spent over a billion dollars doing that decommissioning work over the years. We think that we are the expert in that market. We understand it very, very well, and that is one of the things that we always look at closely in determining value. As far as the other things that we are looking for, yes, we are in a mode where we are looking around for things that are going to fit our financial criteria, and we have been in data rooms for quite a while. Analyst: Thank you. Tracy W. Krohn: Thank you, sir. Operator: Seeing no further questions, this concludes our question and answer session. I would like to turn the conference back over to Tracy W. Krohn, Chairman and CEO, for any closing remarks. Tracy W. Krohn: Thank you, operator. We appreciate everybody listening, and I look forward to every day. I never know what is going to happen with regards to the markets, and it seems that with the war in Iran, it has been a little bit more difficult to think about it in terms of going forward. On the other hand, we are very pleased that the company is doing well and positioned to do even better. Thank you for listening, and we look forward to talking to you again soon. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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