Houston-based W&T Offshore recorded an increase in profit and revenues for the fourth quarter of 2017 helped by higher oil prices. The company plans to spend $130 million in 2018.
According to its quarterly report on Wednesday, the company’s reported net income for the fourth quarter of 2017 was $23.4 million compared to net income of $16.5 million for the fourth quarter of 2016.
Production for the fourth quarter of 2017 was 3.5 million Boe compared to the fourth quarter 2016 of 3.7 million Boe. Production for the fourth quarter of 2017 was primarily impacted by well maintenance, weather, pipeline outages, and platform maintenance that collectively resulted in deferred production of almost 6,100 Boe per day.
For the fourth quarter of 2017 the company’s realized crude oil sales price was $55.83 per barrel, realized NGL sales price was $27.55 per barrel and realized natural gas sales price was $2.95 per Mcf. The combined average realized sales price was $36.79 per Boe compared to $30.83 per Boe in the fourth quarter of 2016.
Revenues for the fourth quarter of 2017 increased 12.1% to $129.1 million compared to $115.2 million in the fourth quarter of 2016. The increase in revenues was due to a 19.3% increase in realized commodity price, offset by production volumes that were adversely impacted by 6,100 Boe per day of deferred production.
W&T Offshore’s capital expenditures for oil and gas properties on an accrual basis for the year 2017 were $130 million compared to $48.6 million for the 2016 period.
For 2018, the company has established a 2018 capital program of $130 million that includes 12 wells to be drilled (four of which were started in 2017, one of which has been abandoned as a dry hole), of which seven are deepwater wells and five are shelf wells.
The budget also includes 12 recompletes that are expected to cost approximately $7.5 million. Approximately $35 million of the budget is related to projects that started in 2017 with the remainder dedicated to new projects in 2018.
Additionally, the company will spend approximately $24 million on plugging and abandonment activities in 2018.
The company expects that this budget may result in a slight decrease in its 2018 production compared to 2017.
Offshore Energy Today Staff