W&T Offshore reported higher production and stronger cash generation in the third quarter of 2026, while its net result remained a loss. The Houston-based oil and gas producer also declared a fourth-quarter dividend and said it had converted its credit facility to a reserve-based lending structure, which it says provides more financial flexibility and could allow borrowing commitments to rise.
Key details
-
Production beat guidance. W&T averaged 38,200 barrels of oil equivalent per day, with liquids making up 50% of output. Production was up 10% from the second quarter, about 9% above the midpoint of guidance and 4% above its high end.
-
Operating costs were slightly below guidance. Lease operating expenses were $76.7 million, slightly below the midpoint of the company’s forecast, despite higher oil prices than a year earlier and production above guidance.
-
The quarter remained unprofitable on a reported basis. W&T recorded a net loss of $13.6 million, or 9 cents per diluted share. Adjusted net income, which excludes certain items, was $0.9 million, or 1 cent per diluted share.
-
Cash-flow measures improved year over year. Adjusted EBITDA was $51.1 million for the quarter, up 30% from the third quarter of 2025. Free cash flow was $33.2 million. For the first nine months of 2026, adjusted EBITDA rose 50% to $163.9 million, while free cash flow totaled $89.3 million.
-
Cash increased and net debt fell. Unrestricted cash and cash equivalents rose 27% from June 30 to $191.3 million. Net debt declined 20% over the same period to $160.7 million. Net debt compared with trailing 12-month adjusted EBITDA fell to 0.9 times, from 1.1 times at the end of June and 1.6 times a year earlier.
-
Total available liquidity reached $234.7 million. That compares with $194.1 million at June 30 and $174.8 million at September 30, 2025.
-
W&T raised $14.7 million through share sales. During the quarter, it issued 3.6 million common shares under its at-the-market program, with net proceeds intended to support liquidity and near-term strategic growth. The issuance increased the share count.
-
The credit facility was converted on October 1. The new reserve-based lending structure has the potential to increase commitments from $50 million to $100 million; the higher amount is not described as already available. W&T said the change removes restrictive cash-flow and repayment requirements and increases its capacity to make shareholder distributions. It also said pricing, financial covenants and amendment fees did not change.
-
The fourth-quarter dividend is $0.01 per share. It is payable November 19 to shareholders of record on November 12. W&T said it paid its 12th consecutive quarterly dividend on August 26.
-
The company continues to pursue damages in surety litigation. W&T is working with damages experts to quantify its claims. Management said the claims could be substantial if the company prevails, including on its antitrust claims, but the outcome remains uncertain.
Plain-English implications
W&T’s higher production and cash generation coincided with lower net debt and greater reported liquidity. The credit-facility change removes certain cash-flow and repayment restrictions, while the possibility of a larger commitment could provide additional borrowing capacity if expanded. The quarter’s share issuance brought in cash but also added 3.6 million shares to the company’s common stock.