On this page of StockholderLetter.com we present the 4/29/2024 shareholder letter from W&T OFFSHORE INC — ticker symbol WTI. Reading current and past WTI letters to shareholders can bring important insights into the investment thesis.

 •  4/29/2024 Letter Continued (Full PDF)
 •  5/1/2023 WTI Stockholder Letter
 •  4/16/2025 WTI Stockholder Letter
 •  More "Oil & Gas Exploration & Production" Category Stockholder Letters
 •  WTI Benford's Law Stock Score = 70

WTI 4/29/2024 Shareholder/Stockholder Letter Transcript:

MAINTAINING
OUR FOCUS
2023 ANNUAL REPORT

MAINTAINING
OUR FOCUS
Founded in 1983, W&T Offshore, Inc. (   W&T   ) is an
independent oil and natural gas producer with offshore
operations across all water depths in the Gulf of Mexico
(   GOM   ). For more than 40 years, we have grown through
the right combination of attractive property acquisitions,
methodical integration and exploitation of those acquisitions,
and successful drilling of both development and exploration
opportunities on our legacy fields.
A majority of our daily production is derived from wells we operate. As of December 31, 2023, we owned
working interests in 169 offshore structures, 108 of which are located in fields that we operate. We had
ownership interests in 241 gross productive wells, 196 of which we operate. Approximately 79% of our
average daily production was in shallow water while the balance was in deepwater.
We owned working interests in 53 producing fields, of which 44 were in federal waters and nine were
in state waters, and our leases covered approximately 597,100 gross acres, of which 435,600 acres are
on the GOM shelf in less than 500 feet of water, 153,500 acres are in deepwater in 500 feet of water or
greater, and 8,000 acres are in Alabama state waters. Approximately 88.3% of our net acreage is held
by production.
We further increased our footprint in the shallow water of the GOM in January 2024 with the acquisition
of eight additional producing fields which increased our gross acreage by 98,000 acres.
W&T became a public company in 2005 and trades on the NYSE under the symbol    WTI   .

2023 Annual Report
   For many years, we have maintained
our focus on the GOM and successfully
executed our consistent strategy to create
value for our shareholders through a
combination of meaningful acquisitions
and successful development of our
legacy acreage. We constantly look for
acquisitions that meet our stringent
criteria of generating free cash flow,
providing a solid base of proved reserves
with upside potential, and offer the ability
for our experienced team to reduce costs.
I am pleased that in the last 10 months,
we completed two attractive shallow
water GOM property acquisitions in close
proximity to our existing assets, utilizing
cash on hand, that clearly met those
criteria. When fully integrated into our
asset portfolio, we expect these fields to
provide meaningful growth in production
and reserves.   
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W&T Offshore, Inc.
NYSE: WTI
2023 WAS
A YEAR OF
STRONG
FINANCIAL &
OPERATING
RESULTS.
TO MY FELLOW
SHAREHOLDERS,
2
In 2023, we continued to deliver strong results while
executing on our strategic vision. Our proven strategy is
simple and effective. We focus on generating free cash flow,
maintaining and optimizing our high-quality conventional
assets, and opportunistically capitalizing on accretive
opportunities to build shareholder value. We have a strong
balance sheet and continue to build cash on hand. We have
generated positive free cash flow every quarter for the past
six years because we know that cash flow is paramount
to our success. Our most valuable asset, our people, have
done an excellent job adapting to the changing market
conditions while maintaining the highest levels of safety and
operational excellence. We prioritize operational excellence,
cost controlling initiatives, prudent capital spending, and
maximizing the value of our prolific asset base to deliver
strong production and meaningful EBITDA. In addition, it is
our ability to successfully and efficiently integrate producing
property acquisitions that has helped W&T grow during our
40-plus year history.

2023 Annual Report
Our liquidity and
cash position enables us
to continue to evaluate
growth opportunities, both
organically and inorganically,
and we are poised to execute
on accretive opportunities
that meet our long-standing
and proven criteria.
TRACY W. KROHN
Founder, Chairman, Chief
Executive Officer and President
We are in a strong position today, both
operationally and financially, thanks
in part to many accomplishments
over the past year. We began 2023
by redeeming all of our outstanding
second lien notes due in 2023 and
issuing new second lien notes due
in 2026, significantly reducing our
debt and interest payments moving
forward while strengthening our
balance sheet. At year-end 2023, we
had a low leverage profile of 1.2 times
Net Debt to trailing twelve months
Adjusted EBITDA, which, coupled with
the significant cash we have on hand,
provides us with financial flexibility to
act quickly should we see additional
acquisition opportunities arise. In
September 2023, we used about $27
million of cash on hand to purchase
working interests in eight shallow
GOM fields. In January 2024, we used
about $72 million of cash on hand to
purchase 100% working interest in
six shallow GOM fields, adding 18.7
MMBoe of proved reserves. While
we were very busy from a financial
and acquisitions standpoint, we also
executed operationally. We delivered
strong production, operated efficiently
and continued to pay down debt. For
the full year 2023, we generated $15.6
million in net income, $183.2 million in
Adjusted EBITDA, and $63.3 million
in Free Cash Flow. In addition, we
adopted a quarterly cash dividend
policy to return cash value to our
shareholders. In December 2023, we
paid our initial dividend and continued
with the payment of the first quarter
2024 dividend as well. As you can see,
we had a very productive year.
Over the years, we have created
significant value by integrating
producing properties acquisitions,
which can be a complicated process.
We have a large footprint across the
Gulf of Mexico, so we look for ways
to optimize operations, increase
production, utilize that large footprint
where we can, and reduce costs to
maximize value. Implementing our
operational procedures can result in
production deferrals and increased
near-term investment to both bring the
fields up to our standards and increase
production. With over 40 years of
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 4/29/2024 Letter Continued (Full PDF)