Financial Data and Key Metrics Changes - For the full year 2024, the company generated 154millioninadjustedEBITDAand45 million in free cash flow [12] - Production delivered was 33,300 barrels of oil equivalent per day despite impacts from hurricanes and downtime related to the Cox acquisition [13] - At year-end 2024, total debt was 393millionandnetdebtwas284 million, with liquidity of 159million[25]BusinessLineDataandKeyMetricsChanges−TheacquisitionofsixshallowwaterGulfofMexicofieldsaddedapproximately3,500barrelsofoilequivalentperdaytoproductionin2024[11]−TotalprovedreservesatSECpricingincreasedby3150 million or 14% to 1.2billiondespitelowerSECpricing[20]CompanyStrategyandDevelopmentDirection−Thecompanyfocusesongeneratingfreecashflow,optimizinghigh−qualityconventionalassets,andcapitalizingonaccretiveopportunitiestobuildshareholdervalue[7]−Themanagementemphasizesastrategyofacquiringproducingpropertiestoreduceriskcomparedtodrillingnewwells[46]−Thecompanyispositionedtogrowin2025andbeyond,withasolidcashpositionandgoodliquiditytoevaluategrowthopportunities[31]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementbelievesoilpricesarestabilizingaround70 over the long term, with natural gas having potential for price increases [47] - The company is optimistic about returning fields to production in the second quarter of 2025, which will contribute to production growth [22] - Management expressed confidence in the company's ability to manage debt and position itself for growth despite market challenges [60] Other Important Information - The company has paid five quarterly cash dividends since initiating the dividend policy in late 2023 [13] - The company has implemented costless collars for 50 million per day from March to December to lock in favorable natural gas prices [16] Q&A Session Summary Question: Production guidance growth - The growth in production guidance is primarily from restarting well fields that were shut in and does not include new drilling [37][38] Question: Update on drilling partnership - The first well planned to drill is at Holy Grail, with another prospect lined up afterward, but potential acquisitions may affect drilling schedules [44][45] Question: Preference for acquisitions vs. drilling - The company prefers acquisitions that add immediate cash flow over drilling, which carries more risk [46][47] Question: Progress on refurbishment of Cox assets - Significant progress has been made on lease operating expenses, with ongoing work expected to be completed in 2025 [53] Question: Status of West Delta and Main Pass fields - Maintenance and work required for West Delta and Main Pass fields are mostly completed, and they are expected to come back online soon [56]
W&T Offshore(WTI)2025-03-04 20:34