W&T Offshore Inc., Houston, had first-quarter 2023 production of 32,500 boe/d (2.9 MMboe), within guidance but down 16% from the 38,600 boe/d produced in fourth-quarter 2022, and a decrease of 14% from the 37,800 boe/d produced in the year-ago period.
First quarter production for the Gulf of Mexico operator was comprised of 15,000 b/d of oil (46%), 3,300 bbl of NGLs (10%), and 85.3 MMcfd of natural gas (44%).
The production decrease was driven by unplanned downtime at non-operated fields and extended planned downtime associated with maintenance at the operator’s Mobile Bay onshore treatment plant as well as pipeline maintenance, which shut in Mobile Bay field production for 35 days, 10 days longer than estimated in previous guidance, the company said in first-quarter earnings May 9.
Shut-in production has been mostly restored and total company production is currently averaging about 38,100 boe/d, the company said.
In other operations news, the company said the front-end engineering and design and permitting processes are still under way on the deep water Holy Grail well at Garden Banks 783 in Magnolia field.
Financials
For the quarter, the company generated net income of $26.0 million, which includes $39.2 million in net unrealized gain on outstanding derivative contracts. The adjusted net loss totaled $2.4 million, which excludes the net unrealized gain on outstanding derivative contracts.
Revenues for the quarter were $131.7 million, which was lower than fourth-quarter 2022 revenue of $189.7 million, and lower than $191.0 million in first-quarter 2022, due to a combination of lower realized prices and lower production volumes.
Net debt decreased to $225.9 million as of Mar. 31, 2023.
Capital expenditures (excluding changes in working capital associated with investing activities) in the first quarter were $7.4 million, and asset retirement costs totaled $8.6 million.
