Within forecast, W&T Oshore Inc., Houston, produced 32,500 boe/d (2.9 MMboe) in the rst quarter of 2023, a decline of 16% from the 38,600 boe/d produced in the fourth quarter of 2022 and a decrease of 14% from the 37,800 boe/d produced in the rst quarter of 2022.

The Gulf of Mexico operator produced 15,000 barrels of oil per day (46 percent), 3,300 barrels of natural gas liquids (10 percent), and 85.3 million cubic feet per day (44 percent) in Q1.

Mobile Bay eld production was shut in for 35 days, 10 days longer than estimated in previous guidance, due to maintenance at the operator’s onshore treatment plant and pipeline, the company said in rst-quarter earnings on May 9. The decline was driven by unplanned downtime at non-operated elds and extended planned downtime associated with maintenance at the operator’s Mobile Bay onshore treatment plant and pipeline.

The company reported that the shutdown production has mostly recovered, averaging around 38,100 boe/d.

The business also reported that the deep water Holy Grail well at Garden Banks 783 in the Magnolia eld is still in the early stages of engineering, design, and permitting.

Financials

The net unrealized gain on derivative contracts contributed $39.2 million to the company’s quarterly net income of $26.0 million. After taking away the net unrealized gain on derivative contracts, the adjusted net loss came to $2.4 million.

Lower realized prices and lower production volumes led to quarterly revenues of $131.7 mln, down from $189.7 mln in the fourth quarter of 2022 and down from $191.0 mln in the rst quarter of 2022.

As of March 31, 2023, the company’s net debt was $225.9 million.

In the rst quarter, the company spent $7.4 million on capital expenditures (not counting the impact on working capital from investing operations) and paid out $8.6 million in asset retirement charges.