W&T Offshore — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $167.1 million for the three months ended September 30, 2026, a 31% increase from $127.5 million in the same period in 2025.
• Net loss was $13.6 million ($0.09 per diluted share) for Q3 2026, compared to a net loss of $71.5 million ($0.48 per diluted share) in Q3 2025.
• Adjusted Net Income was $0.9 million ($0.01 per diluted share) for Q3 2026, compared to an Adjusted Net Loss of $4.3 million ($0.03 per diluted share) in Q3 2025.
• Adjusted EBITDA was $51.1 million for Q3 2026, a 30% increase from $39.3 million in Q3 2025; Adjusted EBITDA for the first nine months of 2026 was $163.9 million, a 50% increase compared to the first nine months of 2025.
• Free Cash Flow was $33.2 million for Q3 2026, compared to a negative $1.2 million in Q3 2025; Free Cash Flow for the first nine months of 2026 was $89.3 million.
• Lease operating expenses were $76.7 million for Q3 2026, with costs per Boe at $21.82, down 6% from $23.27 in Q3 2025.
• General and administrative expenses were $31.7 million for Q3 2026, with Adjusted General and Administrative Expenses at $19.3 million, up 8% from $17.8 million in Q3 2025.
• Capital expenditures on an accrual basis were $3.1 million for Q3 2026, down 86% from $22.5 million in Q3 2025.
• Total debt was $352.0 million as of September 30, 2026, with Net Debt at $160.7 million.
• Net Debt to trailing twelve-month Adjusted EBITDA was 0.9x as of September 30, 2026, down from 1.1x at June 30, 2026 and 1.6x at September 30, 2025.
• Unrestricted cash and cash equivalents increased 27% to $191.3 million from $150.7 million at June 30, 2026.
• Total available liquidity was $234.7 million as of September 30, 2026, up from $194.1 million at June 30, 2026 and $174.8 million at September 30, 2025.

Guidance and Future Outlook:

• Fourth Quarter 2026 production guidance is 2,945–3,250 MBoe (32.0–35.3 MBoe/d).
• Full Year 2026 production guidance is 12,227–13,560 MBoe (33.5–37.2 MBoe/d).
• Fourth Quarter 2026 lease operating expense guidance is $65.4–$72.3 million.
• Full Year 2026 lease operating expense guidance is $264.7–$294.7 million.
• Full Year 2026 capital expenditures guidance is $35.0–$38.0 million.
• Full Year 2026 plugging and abandonment guidance is $34.0–$42.4 million.
• Full Year 2026 Adjusted General and Administrative Expenses guidance is $63.2–$70.2 million.
• Full Year 2026 Depreciation, depletion, amortization, and accretion guidance is $10.25–$11.35 per Boe.
• Q4 2026 production guidance includes a reduction of approximately 2,600 Boe/d due to Hurricane Isaias and a planned Mobile Bay turnaround.
• Full Year 2026 capital expenditures reflect pulling forward 2027 projects to Q4 2026 to capitalize on higher commodity prices, with benefits expected in the first half of 2027.

Business Segments and Product Lines:

• Produced 38.2 MBoe/d in Q3 2026, which was 50% liquids, up 10% from Q2 2026 and 4% above the high end of guidance.
• Oil production was 1,314 MBbls in Q3 2026, up 1% from 1,302 MBbls in Q3 2025.
• NGL production was 482 MBbls in Q3 2026, up 72% from 280 MBbls in Q3 2025.
• Natural gas production was 10,305 MMcf in Q3 2026, up 1% from 10,159 MMcf in Q3 2025.
• Average realized oil price was $85.06 per Bbl in Q3 2026, up 32% from $64.62 in Q3 2025.
• Average realized NGL price was $18.92 per Bbl in Q3 2026, up 32% from $14.29 in Q3 2025.
• Average realized natural gas price was $4.00 per Mcf in Q3 2026, up 9% from $3.68 in Q3 2025.
• Performed seven workover projects and one recompletion in Q3 2026.
• As of September 30, 2026, the Company held working interests in 48 fields (41 in federal waters, 7 in state waters).

Market and Competitive Landscape:

• The Company operates in the Gulf of America with approximately 588,500 gross acres under lease.
• Management believes the Company is meaningfully undervalued despite the market rewarding strong results with an increased share price.
• The Company continues to evaluate and integrate accretive acquisitions.

Risks and Challenges:

• Surety lawsuits are ongoing; while management believes damages could be substantial if they prevail (including antitrust claims subject to trebling), results remain uncertain.
• Forward-looking statements are subject to risks including regulatory changes, commodity price volatility, geopolitical risks, supply chain disruptions, and environmental liabilities.
• Production guidance includes reductions from Hurricane Isaias and planned turnarounds.
• Non-recurring legal costs for Q4 2026 are expected to be $2.9–$3.2 million, incremental to the Adjusted G&A guidance range.

Management Commentary and Tone:

• Tracy W. Krohn, Chairman and CEO, stated the Company delivered strong operational results enhancing financial results, with Q1–Q3 2026 Adjusted EBITDA exceeding full-year 2025 and 2024 totals.
• Management highlighted the conversion of the credit facility to a reserve-based lending structure as strengthening the capital structure and improving liquidity.
• Krohn noted a unique culture and differentiating strategy, citing a proven ability to reliably execute and add value over 40 years.
• Management expressed confidence in the strategy of operational excellence, production enhancement, and cost control to continue adding value.

Other Key Points:

• Declared a Q4 2026 dividend of $0.01 per share, payable November 19, 2026, to shareholders of record on November 12, 2026.
• Paid the 12th consecutive quarterly dividend of $0.01 per share on August 26, 2026.
• Converted the credit facility to a reserve-based lending structure on October 1, 2026, with an initial borrowing base of $50.0 million and potential to expand commitments to $100.0 million.
• The amended credit facility eliminates the 75% excess cash flow sweep, the three-month repayment requirement, and the $100.0 million minimum PDP PV-10 asset coverage covenant.
• The annual restricted payments basket for shareholder returns was increased by 50% to $15.0 million.
• Utilized the At-the-Market (ATM) agreement to issue 3.6 million common shares for net proceeds of $14.7 million to enhance liquidity.
• Lease operating expenses included an $8.5 million net royalty credit related to historical refund claims.
• Adjusted General and Administrative Expenses guidance for Q4 2026 excludes non-recurring legal costs, which are expected to be incremental.