Exhibit 99.1

W&T Offshore Announces First Quarter and Full Year 2021 Results 

HOUSTON, May 4, 2021 – W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today reported operational and financial results for the first quarter 2021.

Key highlights included:

Tracy W. Krohn, W&T's Chairman and Chief Executive Officer, stated, “We had a good first quarter with our operational and financial results and believe that the improved commodity price environment and our commitment to expanding margins will lead to a very good year for us in 2021. Operationally we exceeded guidance in several areas. We were above the midpoint in production, below the midpoint in LOE and below the low end of guidance for G&A. Our strong operational performance coupled with higher commodity pricing led to a 182% increase in Free Cash Flow and a 63% increase in Adjusted EBITDA compared to the fourth quarter of 2020. The efforts we made in 2020 to reduce costs, maintain production and pay down debt are paying off. Additionally, in the first quarter of 2021 we continued to pay down our debt and increase our liquidity position. We have remained true to our strategic vision that has guided us for nearly 40 years to maximize the value of our premier assets that have strong, stable production and generate solid free cash flow.”

“While I am pleased with our results, I am equally proud of our inaugural ESG report that we released in March. We founded W&T with core values centered around safely and sustainably operating our assets and this has guided our success and provided the foundation for W&T to grow into a trusted operator. We have empowered our management to allocate resources and tools necessary to create a working environment focused on accomplishing our ESG objectives and believe that it is every employee’s responsibility to ensure that we operate with the highest regards toward ESG.”

“As we look to the remainder of 2021, we will continue to prioritize operational excellence and free cash flow generation. We have grown W&T through the right combination of attractive property acquisitions, methodical integration and exploitation of those acquisitions, and successful development and exploratory drilling on our legacy fields.  We believe that market conditions in the Gulf remain very favorable for accretive acquisitions.  Our improved balance sheet and strong cash flow generation have positioned W&T to actively pursue these opportunities. We also have favorable drilling opportunities within our legacy fields that we plan to drill or complete in the second half of 2021. With our 34% equity stake in W&T, our management team’s interests are highly aligned with those of our shareholders, which ensures that we are doing what is best for the near-term and long-term profitability of W&T,” concluded Mr. Krohn. 

For the first quarter of 2021, W&T reported a net loss of $0.7 million, or $0.01 per share.  Primarily excluding a $16.3 million unrealized commodity derivative loss, the Company’s Adjusted Net Income was $15.9 million, or $0.11 per share. In the first quarter of 2020, W&T reported net income of $66.0 million, or $0.46 per share, which included a $52.5 million unrealized commodity derivative gain, an $18.5 million non-cash gain on debt transaction, and $6.5 million in non-cash deferred tax expense. Adjusted Net Income for the first quarter of 2020 was $5.8 million, or $0.04 per share. In the fourth quarter of 2020, net loss was $8.9 million, or $0.06 per share, which included an $11.5 million unrealized commodity derivative loss, a $6.9 million non-cash tax benefit, and a $2.7 million credit related to a settlement with the U.S. Bureau of Safety and Environmental Enforcement (“BSEE”). For that same period, Adjusted Net Loss was $6.7 million or $0.05 per share.

Adjusted EBITDA for the first quarter of 2021 totaled $57.6 million, an increase of 63% compared to $35.3 million in the fourth quarter of 2020 primarily due to higher commodity prices and increased production volumes.  First quarter 2021 Adjusted EBITDA declined 7% from $62.1 million in the first quarter of 2020 primarily due to lower production volumes partially offset by higher prices and lower operating expenses, as well as the impact from derivatives that went from a realized gain in the first quarter of 2020 to a realized loss in the first quarter of 2021.

Free Cash Flow for the first quarter of 2021 totaled $40.0 million, an increase of 182% compared with $14.2 million in the fourth quarter of 2020, and an increase of 14% compared with $35.1 million in the first quarter of 2020.

Adjusted Net (Loss) Income, Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures in the attached tables below under “Non-GAAP Information.”

Production, Prices and Revenues: Production for the first quarter of 2021 was 39,657 Boe/d or 3.6 MMBoe, an increase of 4% compared to 38,261 Boe/d in the fourth quarter of 2020 and down 26% versus 53,553 Boe/d in the first quarter of 2020.  Production for the first quarter of 2021 was above the midpoint of guidance due to better runtime efficiency despite downtime in February associated with the winter storms.  First quarter 2021 production was comprised of 1.4 million barrels (“MMBbls”) of oil, 0.4 MMBbls of natural gas liquids (“NGLs”) and 10.8 billion cubic feet (“Bcf”) of natural gas.  Liquids production comprised 50% of total production in the first quarter of 2021. 

For the first quarter of 2021, W&T’s average realized crude oil sales price was $56.73 per barrel. The Company’s realized NGL sales price was $23.88 per barrel and its realized natural gas sales price was $3.35 per Mcf.  The Company’s combined average realized sales price for the quarter was $34.66 per Boe, which represents a 35% increase from $25.63 per Boe that was realized in the fourth quarter of 2020 and an increase of 40% compared to $24.71 per Boe in the first quarter of 2020. 

Revenues for the first quarter of 2021 increased 33% to $125.6 million compared to $94.7 million in the fourth quarter of 2020, and increased slightly compared to $124.1 million in the first quarter of 2020.  The quarter-over-quarter increase was driven primarily by increased realized commodity prices.  The year-over-year increase was driven by improved commodity prices, but was significantly offset by lower production.

Lease Operating Expenses: LOE, which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance was $42.4 million in the first quarter of 2021 compared to $43.3 million in the fourth quarter of 2020 and $54.8 million in the first quarter of 2020.  On a component basis for the first quarter of 2021, base lease operating expenses plus insurance premiums were $37.1 million, workovers were $0.3 million and facilities maintenance and repairs expenses were $5.0 million. The large year-over-year decline was primarily related to successful proactive cost reduction measures, reduced expenses from certain fields no longer on production, the deferral of some facility projects, and a smaller number of workovers undertaken.  On a unit of production basis, LOE was $11.87 per Boe in the first quarter of 2021, down 4% from $12.31 per Boe in the fourth quarter of 2020, and up 6% from $11.24 per Boe in the first quarter of 2020. Despite lower year-over-year expenses, LOE per Boe increased due to the decrease in production volumes.

Gathering, Transportation Costs and Production Taxes: Gathering, transportation costs and production taxes totaled $6.3 million, or $1.77 per Boe in the first quarter of 2021, compared to $5.3 million, or $1.51 per Boe in the fourth quarter of 2020, and $6.4 million, or $1.31 per Boe in the first quarter of 2020. Gathering and transportation costs declined from the year ago period due to lower production volumes, however first quarter 2021 production taxes increased compared to the fourth quarter and first quarter of 2020 due to higher realized natural gas prices.

Depreciation, Depletion, Amortization and Accretion (“DD&A”):  DD&A, including accretion for asset retirement obligations, was $7.46 per Boe of production for the first quarter of 2021 compared to $7.54 per Boe for the fourth quarter of 2020 and $8.03 per Boe for the first quarter of 2020. DD&A per Boe in the first quarter of 2021 declined slightly from the fourth quarter of 2020 due to a modest reduction in net capital spending.  The DD&A rate in the first quarter of 2021 declined $0.57 per Boe from the first quarter of 2020 primarily due to a decline in the depreciable base as a result of reduced capital spending over the past year compared to a relatively small change in proved reserves over the same period.

General and Administrative Expenses (“G&A”):  G&A was $10.7 million for the first quarter of 2021, compared to $7.7 million in the fourth quarter of 2020 and $14.0 million for the first quarter of 2020. The fourth quarter of 2020 benefitted from a $2.7 million credit related to a settlement with BSEE that resolved certain pending civil penalties issued by BSEE.  The decline in year-over-year G&A cost was driven primarily by lower incentive compensation and payroll expenses, and an employee retention credit.  On a unit of production basis, G&A was $3.00 per Boe in the first quarter of 2021, $2.18 per Boe in the fourth quarter of 2020, and $2.87 per Boe in the first quarter of 2020.

Derivative (Gain) Loss:  In the first quarter of 2021, W&T recorded a net loss of $24.6 million on its outstanding commodity derivative contracts, of which $16.3 million was an unrealized commodity derivative loss.  This compared to a net loss of $11.5 million in the fourth quarter of 2020 substantially all of which was an unrealized commodity derivative loss and a net gain of $61.9 million in the first quarter of 2020 of which $52.5 million was an unrealized commodity derivative gain. 

A listing of the Company’s current outstanding derivative positions is included in the tables below as well as in the Investor Relations section of W&T’s web site under the “Financial Info” tab.

Interest Expense: Interest expense, as reported in the income statement, in the first quarter of 2021 was $15.0 million compared with $15.4 million in the fourth quarter of 2020 and $17.1 million in the first quarter of 2020. The reduction in expense from the prior year relates primarily to reduced interest costs following the reduction of $72.5 million in principal of W&T’s 9.75% Senior Secured Second Lien Notes in early 2020.

Income Tax:  W&T recorded an income tax benefit of $0.2 million in the first quarter of 2021 compared to an income tax benefit of $6.9 million in the fourth quarter of 2020 and an income tax expense of $6.5 million in the first quarter of 2020. For the three months ended March 31, 2021, W&T’s income tax benefit differed from the statutory Federal tax rate primarily by the impact of state income taxes. For the three months ended March 31, 2020, the Company’s effective tax rate primarily differed from the statutory Federal tax rate for adjustments recorded related to the enactment of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) on March 27, 2020.  W&T’s effective tax rate was 21.4% for the three months ended March 31, 2021 and 9.0% for the three months ended March 31, 2020.

As of March 31, 2021, W&T’s deferred tax valuation allowance was $22.0 million. The Company continually evaluates the need to maintain a valuation allowance on its deferred tax assets. Any future reduction of a portion or all of the valuation allowance would result in a non-cash income tax benefit in the period the decision occurs. W&T is not currently forecasting any cash income tax expense for the near-term.

Balance Sheet, Cash Flow and Liquidity: Net cash provided by operating activities for the three months ended March 31, 2021 was $45.0 million. Total liquidity on March 31, 2021 was $191.0 million, consisting of cash and cash equivalents of $53.4 million and $137.6 million of availability under W&T’s revolving bank credit facility. In the first quarter 2021, W&T paid down its revolving credit facility by $32.0 million from $80 million with a portion of its free cash flow. Currently, total long-term debt, including $48.0 million in revolving credit facility borrowings, is $593.8 million net of unamortized debt issuance costs. 

In January 2021, W&T’s bank group completed its regularly scheduled semi-annual borrowing base redetermination and the borrowing base was set at $190 million. The next regularly scheduled redetermination is in late spring of 2021.  W&T is currently in compliance with all applicable covenants of the Credit Agreement and the Senior Secured Second Lien Notes indenture.

Capital Expenditures:  Per the Statement of Cash Flows, capital expenditures in the first quarter of 2021, excluding changes in working capital associated with investing activities, were $1.6 million. As previously disclosed, W&T’s 2021 estimated capital budget of $30 million to $60 million (excluding potential acquisitions) is weighted toward the second half of 2021.

Environmental, Social and Governance (“ESG”) Commentary and COVID-19 Response

W&T issued its 2020 initial corporate ESG report in March 2021. The report has an in-depth review of W&T’s ESG initiatives as well as related key performance indicators. In the creation of its inaugural report, the Company consulted the Sustainability Accounting Standards Board’s (“SASB”) Oil and Gas Exploration and Production Sustainability Accounting Standard, the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”), and other reporting guidance from industry frameworks and standards.

W&T is committed to the health and safety of all its employees and contractors and has taken steps to ensure their continued safety in its response to the COVID-19 pandemic. At its corporate office, W&T instituted 100% remote work on March 23, 2020, and subsequently reopened its offices and implemented actions to protect employees including temperature checks, mask wearing, and social distancing. 

For its field operations, the Company instituted screening, which includes a questionnaire and temperature check, of all personnel prior to entry into heliports and shorebases as well as its Alabama gas treatment plant. The Company conducts daily temperature screenings at all offshore facilities, implemented procedures for distancing and hygiene at its field locations, and provides COVID-19 testing for field project crews. 

W&T will continue to monitor the COVID-19 situation and follow the advice of government and health advisors.

OPERATIONS UPDATE 

W&T successfully drilled one well at East Cameron 338/349 in the first quarter of 2020, the Cota well, which is in over 290 feet of water and was drilled to a total depth of over 6,000 feet and encountered approximately 100 feet of net oil pay. The well remains in the development phase of the project, with initial production expected in the latter part of 2021. The Company has an initial 30% working interest in the Cota well but the interest will increase to 38.4% once the well is brought online and certain performance thresholds are met.  W&T did not initiate new drilling activity in the first quarter of 2021 as it plans for its capital investment program to be weighted toward the second half of 2021.

Well Recompletions and Workovers:  During the first quarter of 2021, the Company performed one recompletion and one workover that in total added approximately 400 net Boe/d to production.  W&T currently plans to continue to perform recompletions and workovers that meet economic thresholds. 

Consolidation of Onshore Natural Gas Treatment Plants Supporting Mobile Bay Assets: In January 2021, the Company completed the consolidation of its two onshore natural gas treatment facilities that service the Mobile Bay area into the Onshore Treating Facility (“OTF”) which was acquired in 2019 from ExxonMobil, and closed its Yellowhammer treatment facility. The OTF has more than sufficient capacity to meet W&T’s current and expected needs as it further develops its Mobile Bay and regional natural gas assets in the future. The consolidation of the facilities is expected to result in savings of approximately $5 million per year beginning in 2021.

Second Quarter and Full Year 2021 Production and Expense Guidance

The guidance for the second quarter and full year 2021 in the table below represents the Company's current best estimate of the range of likely future results. Guidance could be affected by the factors described below in "Forward-Looking Statements".

Conference Call Information:  W&T will hold a conference call to discuss its financial and operational results on Wednesday May 5, 2021, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).  Interested parties may participate by dialing (844) 739-3797.  International parties may dial (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 Mexico and has grown through acquisitions, exploration and development. The Company currently has working interests in 42 producing fields in federal and state waters and has under lease approximately 709,000 gross acres, including approximately 500,000 gross acres on the Gulf of Mexico Shelf and approximately 209,000 gross acres in the Gulf of Mexico deepwater. 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. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in W&T Offshore’s Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Form 10-Q reports found at www.sec.gov or at our website at www.wtoffshore.com under the Investor Relations section. Investors are urged to consider closely the disclosures and risk factors in these reports.  We refer to feet of “pay” in our discussions concerning the evaluation of our recently drilled wells. This refers to geological indications, typically obtained from well logging, of the estimated thickness of sands which we believe are capable of producing hydrocarbons in commercial quantities. These indications of “pay” may not necessarily forecast the amount of future production or reserve quantities from the well, which can be dependent upon numerous other factors.

W&T OFFSHORE, INC. AND SUBSIDIARIES

Non-GAAP Information

Certain financial information included in W&T’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are “Adjusted Net (Loss) Income”, “Adjusted EBITDA” and “Free Cash Flow”. Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income

Adjusted Net (Loss) Income does not include the unrealized commodity derivative loss (gain), amortization of derivative premium, bad debt reserve, deferred tax benefit, gain on debt transactions, and litigation and other. Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.

W&T OFFSHORE, INC. AND SUBSIDIARIES

Non-GAAP Information

Adjusted EBITDA / Free Cash Flow Reconciliations

The Company also presents the non-GAAP financial measures Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net (loss) income plus income tax (benefit) expense, net interest expense, and depreciation, depletion, amortization and accretion, excluding the unrealized commodity derivative gain or loss, amortization of derivative premium, bad debt reserve, gain on debt transactions, and litigation and other. Company management believes this presentation is relevant and useful because it helps investors understand W&T’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as W&T calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

The Company defines Free Cash Flow as Adjusted EBITDA (defined above), less capital expenditures, plugging and abandonment costs and interest expense (all on an accrual basis). For this purpose, the Company’s definition of capital expenditures includes  costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and the lease maintenance costs) and equipment, furniture and fixtures, but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company’s capital expenditures guidance provided to investors. Company management believes that Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of its current operating activities after the impact of accrued capital expenditures, plugging and abandonment costs and interest expense and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. There is no commonly accepted definition Free Cash Flow within the industry. Accordingly, Free Cash Flow, as defined and calculated by the Company, may not be comparable to Free Cash Flow or other similarly named non-GAAP measures reported by other companies. While the Company includes interest expense in the calculation of Free Cash Flow, other mandatory debt service requirements of future payments of principal at maturity (if such debt is not refinanced) are excluded from the calculation of Free Cash Flow. These and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses.

The following tables present (i) a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company and (ii) a reconciliation of the Company’s net (loss) income, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company.