W&T Offshore Updates Third Quarter and Full-Year 2011 Guidance
HOUSTON, Aug. 25, 2011 /PRNewswire/ -- W&T Offshore, Inc. (NYSE: WTI) today provides an update to its production and expense guidance for the third quarter and full year of 2011.
Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "With the closing of the acquisition of the Fairway field and Yellowhammer Plant from Shell Offshore Inc. on August 10, 2011, we are increasing our third quarter and full year production guidance along with an update on our outlook for operating costs. Our production guidance continues to include five days possible downtime associated with hurricanes. We are increasing our full year estimate of lease operating expenses due to the cost associated with operating the newly acquired properties along with the anticipated workover and facility expenses at these properties."
Revised Third Quarter and Full-Year 2011 Production and Cost Guidance:
|
Estimated Production |
Revised Third Quarter 2011 |
Prior |
Revised Full-Year 2011 |
Prior 2011 |
|
|
Oil and NGLs (MMBbls) |
2.0 – 2.1 |
1.8– 2.0 |
7.6 – 8.4 |
7.3 – 8.1 |
|
|
Natural gas (Bcf) |
12.9 – 13.5 |
12.1 – 13.4 |
50.7 – 56.1 |
48.7 – 53.8 |
|
|
Total (Bcfe) |
25.0 – 26.3 |
23.2 – 25.6 |
96.2 – 106.3 |
92.7 – 102.5 |
|
|
Total (MMBoe) |
4.2 – 4.4 |
3.9 – 4.3 |
16.0 – 17.2 |
15.4 – 17.1 |
|
|
Operating Expenses ($ in millions, except as noted) |
Revised Third Quarter 2011 |
Prior |
Revised Full-Year 2011 |
Prior Full-Year |
|
|
Lease operating expenses |
Unchanged |
$56– $62 |
$210 – $220 |
$190 – $220 |
|
|
Gathering, transportation & production taxes |
Unchanged |
$6 – $9 |
Unchanged |
$25– $28 |
|
|
General and administrative |
Unchanged |
$19 – $21 |
Unchanged |
$71 – $79 |
|
|
Income tax rate |
Unchanged |
35% |
Unchanged |
35% – 36% |
|
About W&T Offshore
W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater and deep shelf regions, where it has developed significant technical expertise. W&T Offshore has recently diversified its operations by expanding onshore into the Permian Basin. W&T Offshore has grown through acquisitions, exploitation and exploration, holds working interests in approximately 67 fields in federal and state waters, and has approximately 31,000 net acres under lease onshore. A majority of its daily production is derived from wells it operates. For more information on W&T Offshore, please visit its Web site at www.wtoffshore.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including guidance for third quarter and full year 2011. These forward-looking statements reflect W&T Offshore's current views with respect to future events, based on what it believes 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 W&T Offshore's 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, 2010 and subsequent Form 10-Q reports found at www.sec.gov.
Contacts:
Janet Yang, Finance Manager
investorrelations@wtoffshore.com
713-297-8024
Danny Gibbons, SVP & CFO
investorrelations@wtoffshore.com
713-624-7326
SOURCE W&T Offshore, Inc.
Released August 25, 2011