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W&T Offshore Reports First Quarter 2006 Financial and Operational Results
                   Provides Guidance for the Second Quarter

HOUSTON, May 4 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) announced today financial and operational results for the first quarter 2006.

    -- Record earnings of $0.85 per diluted share (before adjustment) in first
       quarter 2006 vs. $0.60 in first quarter 2005.
    -- W&T was successful in six of six exploration wells, including two in
       the deepwater and two in the deep shelf.
    -- W&T also successfully drilled two out of two conventional shelf
       development wells.
    -- Current production rate is at 210 mmcfe/d or 85% of pre-Katrina

Net Income: Net income for the three months ended March 31, 2006 was $55.8 million, or $0.85 per diluted share, on revenue of $162.1 million. Net income reflects the impact of $5.3 million of unrealized income ($3.4 million after-tax), or $0.05 per share, associated with the fair market value of W&T's open derivative contracts. Without the effect of the open derivatives contracts, net income for the quarter would have been $52.4 million, or $0.79 per share. See "Reconciliation of Adjusted Net Income Available to Common Shareholders" later in this release.

This compares to net income of $39.3 million or $0.60 per diluted share, on revenue of $129.1 million for the first quarter of 2005.

Cash Flow from Operations and Adjusted EBITDA: Net cash provided by operating activities increased 56% to $113.3 million during the first quarter 2006 from $72.4 million during the prior year's first quarter. The increase in cash provided by operating activities was attributable to higher realized prices on oil and natural gas in the first quarter of 2006 coupled with a reduction in accounts payable in the first quarter of 2005, offset by lower sales volumes and the payment of a $25.0 million performance deposit in connection with the Kerr-McGee transaction in 2006. First quarter adjusted EBITDA was $128.2 million, compared to $101.5 million during the prior year's first quarter. For additional information regarding EBITDA, please refer to "Reconciliation of Net Income to EBITDA."

Production and Prices: Total production in the first quarter of 2006 was 10.9 billion cubic feet ("Bcf") of natural gas at an average price of $8.82 per thousand cubic feet ("Mcf") and 1.1 million barrels ("MMBbls") of oil at an average price of $56.90 per Bbl, or 17.3 billion cubic feet of gas equivalent ("Bcfe") at an average price of $9.06 per Mcfe. This compares to production of 12.4 Bcf of gas at an average price of $6.33 per Mcf and 1.2 MMBbls of oil at an average price of $43.67 per Bbl, or 19.3 Bcfe at an average price of $6.67 per Mcfe in the first quarter of 2005. The reduction in sales volumes for all products is attributable to hurricane deferrals and normal production declines.

Lease Operating Expenses ("LOE"): LOE for the first quarter of 2006 decreased to $15.8 million from $16.2 million in the first quarter of 2005, primarily due to the reduced production attributable to hurricane deferrals and lower workover expenses.

Depreciation, depletion, amortization and accretion ("DD&A"): DD&A increased to $49.1 million, or $2.84 per Mcfe, in the first quarter of 2006 from $41.3 million, or $2.14 per Mcfe, in the same period of 2005. The increase in DD&A during the first quarter of 2006 is a result of higher depletable costs due to higher capital expenditures.

Production and Hurricane Update: W&T Offshore is producing approximately 210 million cubic feet of gas equivalent (MMcfe) net per day, which represents 85% of the Company's pre-Hurricane Katrina production rate. W&T Offshore anticipates achieving pre-Hurricane Katrina production levels in the third quarter. Currently, the Company estimates that 19 MMcfe per day of net production is shut-in because of Hurricanes Katrina and Rita, primarily due to issues related to field infrastructure and product sales pipelines. W&T has $21 million in hurricane insurance receivables that it believes it will collect over the course of the year. Additional receivables will accrue during the year as work commences, which are also expected to be collected.

Capital Expenditures and Drilling Update: During the first quarter of 2006, W&T participated in the drilling of six gross exploration wells and two development wells, all of which were successful. W&T spent $62.6 million on development projects, $51.9 million on exploration and $8.4 million on other capital expenditure items. Of the exploration wells drilled in the first quarter of 2006, two were in deepwater, two were in the deep shelf, and two were on the conventional shelf.

    First Quarter Exploration Wells:

    Field Name/Well             Category                   Working Interest %
    Grand Isle 3 #1             Exploration / Deep Shelf          25%
    Venice MLF C-11             Exploration / Deep Shelf         100%
    Ewing Bank 977#1ST          Exploration / Deepwater           60%
    Green Canyon 82 #1          Exploration / Deepwater          100%
    Ship Shoal 130 J-2          Exploration / Shelf              100%
    South Timbalier 230 A-7     Exploration / Shelf              100%

    First Quarter Development Wells:

    Field Name/Well             Category                   Working Interest %
    East Cameron 321 A-28ST     Development / Shelf              100%
    Eugene Island 349 B-3ST     Development / Shelf               29%

Lease Sale Update: W&T was the apparent high bidder on four of seven leases at the Central Gulf of Mexico lease sale on March 15, 2006. Of the four blocks, one is on the shelf and three in the deepwater. W&T's net financial exposure totaled $4.9 million. The Viosca Knoll 520 and 916 leases have already been awarded, and the remaining two, Green Canyon 73 and 74, are pending the necessary approvals from the MMS.

Dividends: On March 13, 2006, the Company's board of directors declared a cash dividend of $0.03 per common share, which was paid on May 1, 2006 to shareholders of record on April 14, 2006.

"We have had an excellent start to 2006. I am proud of our teams' achievements through the drill bit," said Tracy W. Krohn, Chairman and Chief Executive Officer. "We were also pleased to have achieved better than expected production in the first quarter. We were able to reestablish production at Green Canyon 178 (Baccarat) much sooner than anticipated and at higher rates than expected. Furthermore, production going forward will continue to ramp up significantly throughout the year. We believe our accomplishments reflect the quality and mix of our drilling prospects and the expertise of our operations and exploration teams. We are particularly excited about the Green Canyon 82 (Healey) discovery and look forward to obtaining additional information to fully evaluate this well."

"We continue to work with Kerr-McGee and the regulatory agencies towards completing the transaction, the largest in the Company's history. We are virtually done with due diligence, and our staff and management are prepared to close immediately," said Mr. Krohn.

Outlook: Certain factors affecting these forward-looking statements are listed in this news release. Guidance on performance for the second quarter and full year of 2006 is shown in the table below. This guidance is for W&T stand-alone and does not include the impact of the pending Kerr-McGee transaction.

    Estimated Daily Production       Second Quarter 2006    Full-Year 2006
    Crude Oil (MMBbls)                     1.2 - 1.3          5.8 - 6.1
    Natural Gas (Bcf)                     10.7 - 11.0        48.2 - 51.1
    Total (Bcfe)                          18.1 - 18.6        83.0 - 87.7

    Operating expenses               Second Quarter 2006    Full-Year 2006
    ($ in millions, except as noted)
    Lease Operating Expense              $18.4 - 19.4       $73.3 - $82.3
    Gathering, Transportation &
     Production Taxes                     $3.6 - $4.0       $15.1 - $16.5
    General and Administrative            $7.8 - $9.8       $35.0 - $40.0
    Income Tax Rate, % deferred           35.0%, 40%         35.0%, 40%

Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Thursday, May 4, 2006 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate, dial (303) 205-0033 a few minutes before the call begins. The call will also be broadcast live over the Internet from the Company's website at A replay of the conference call will be available approximately two hours after the end of the call until Thursday, May 11, 2006. To access the replay, dial (303) 590-3000 and reference conference ID 11059579.

About W&T Offshore

Founded in 1983, W&T Offshore is an independent oil and natural gas company focused primarily in the Gulf of Mexico, including exploration in the deepwater, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 100 fields in federal and state waters and a majority of its daily production is derived from wells it operates. For more information on W&T Offshore, please visit its Web site at

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market position and conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, prospects unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2005 (

                                W&T OFFSHORE, INC.
                        Consolidated Statements of Income

                                              Three Months Ended
                                                   March 31,
                                            2006              2005
                                   (In thousands, except per share amounts)

        Oil and natural gas                $156,852          $128,724
        Commodity derivative income           5,276                 -
        Other                                     2               348
            Total revenues                  162,130           129,072
        Lease operating                      15,780            16,153
        Gathering, transportation costs
         and production taxes                 1,256             4,496
        Depreciation, depletion, and
         amortization                        46,838            38,957
        Asset retirement obligation
         accretion                            2,254             2,312
        General and administrative           11,660             6,909
            Total operating expenses         77,788            68,827

    Income from operations                   84,342            60,245

    Net interest income (expense)             1,322              (221)

    Income before income taxes               85,664            60,024

    Income tax expense                       29,833            20,742

    Net income                              $55,831           $39,282

    Earnings per common share:
        Basic                                 $0.85             $0.63

        Diluted                               $0.85             $0.60

    Shares outstanding:
        Weighted average shares - Basic      65,971            61,962

        Weighted average shares - Diluted    65,994            65,964

    Consolidated Cash Flow Information
    Net cash provided by operating
     activities                            $113,305           $72,428
    Capital expenditures                   $122,894           $56,040

    Other Financial Information
    Adj. EBITDA                            $128,158          $101,515

                               W&T OFFSHORE, INC.
                                 Operating Data

                                                  Three Months Ended
                                                      March 31,
                                                2006              2005

    Net sales:
        Natural gas (MMcf)                      10,904            12,375
        Oil (MBbls)                              1,067             1,154
        Total natural gas and oil (MMcfe)       17,307            19,299

    Average daily equivalent sales
     (MMcfe/d)                                   192.3             214.4

    Average realized sales price:
        Natural gas ($/Mcf)                      $8.82             $6.33
        Oil ($/Bbl)                              56.90             43.67
        Natural gas equivalent ($/Mcfe)           9.06              6.67

    Average per Mcfe data ($/Mcfe):
        Lease operating expenses                 $0.91             $0.84
        Gathering, transportation cost
         and production taxes                     0.07              0.23
        Depreciation, depletion,
         amortization and accretion               2.84              2.14
        General and administrative                0.67              0.36
        Net cash provided by operating
         activities                               6.55              3.75
        Adj. EBITDA                               7.41              5.26

                               W&T OFFSHORE, INC.
                           Consolidated Balance Sheets

                                             March 31,        December 31,
                                                2006              2005
                                                    (In thousands)

    Current assets:
       Cash and equivalents                   $136,053          $187,698
       Accounts receivable                      85,215            83,623
       Prepaid expenses and other               36,595            12,503
          Total current assets                 257,863           283,824

    Property and equipment - at cost         1,609,451         1,486,865
    Less accumulated depreciation,
     depletion and amortization                764,421           717,583
          Net property and equipment           845,030           769,282

    Other assets                                18,293            11,414
          Total assets                      $1,121,186        $1,064,520

        Liabilities and Shareholders' Equity
    Current liabilities:
       Accounts payable                       $155,843          $143,049
       Asset retirement obligations             37,511            39,653
       Accrued liabilities and other            50,951            48,990
          Total current liabilities            244,305           231,692

    Long-term debt                                   -            40,000
    Asset retirement obligations, less
     current portion                           115,367           112,621
    Deferred income taxes                      158,833           134,395
    Other liabilities                            4,021             2,429
    Shareholders' equity:
       Common stock                                  1                 1
       Additional paid-in capital               53,762            52,332
       Retained earnings                       544,897           491,050
          Total shareholders' equity           598,660           543,383
             Total liabilities and
              shareholders' equity          $1,121,186        $1,064,520

                                W&T OFFSHORE, INC.
                      Consolidated Statements of Cash Flows

                                                  Three Months Ended
                                                       March 31,
                                                2006               2005
                                                    (In thousands)

    Operating activities:
       Net income                               $55,831           $39,282
       Adjustments to reconcile net
        income to net cash provided
        by operating activities:
             Depreciation, depletion,
              amortization and accretion         49,092            41,269
             Amortization of debt
              issuance costs                         80               103
             Share-based compensation             1,430               381
             Commodity derivative income         (5,276)                -
             Deferred income taxes               24,438             7,038
             Changes in operating assets
              and liabilities                   (12,290)          (15,645)
                Net cash provided by
                 operating activities           113,305            72,428

    Investing activities:
       Investment in oil and gas property
        and equipment                          (120,637)          (56,025)
       Purchases of furniture, fixtures
        and other                                (2,257)              (15)
       Change in restricted deposits                (77)              (47)
                Net cash used in
                 investing activities          (122,971)          (56,087)

    Financing activities:
       Repayments of borrowings of
        long-term debt                          (40,000)          (35,000)
       Dividends                                 (1,979)                -
       Debt issuance costs                            -              (889)
                Net cash used in
                 financing activities            (41,979)          (35,889)
                Decrease in cash and cash
                 equivalents                     (51,645)          (19,548)
    Cash and cash equivalents, beginning
     of period                                   187,698            64,975
    Cash and cash equivalents, end of
     period                                     $136,053           $45,427

                               W&T OFFSHORE, INC.
     Reconciliation of Adjusted Net Income Available to Common Shareholders

Earnings stated without the effect of certain items is a non-GAAP financial measure. Earnings without the effects of these items are presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period. In addition, earnings without the effects of these items are more comparable to earnings estimates provided by securities analysts.

                                                  Three Months Ended
                                                      March 31,
                                                2006              2005
                                           (In thousands, except per share
    Net income                                $55,831           $39,282
    Less: Commodity derivative income          (5,276)                -
    Plus: Income tax provision adjustment
     for above item                             1,847                 -
    Earnings stated without effect of the
     above item                               $52,402           $39,282

    Earnings per share-diluted without
     the effect of the above item               $0.79             $0.60

                    Reconciliation of Net Income to EBITDA

We define EBITDA as net income plus income tax expense, net interest expense, depreciation, depletion, amortization and accretion and non-cash expenses associated with unrealized changes in the fair market value of open derivative contracts. Although not prescribed under GAAP, we believe the presentation of EBITDA is relevant and useful because it helps our investors understand our operating performance and makes it easier to compare our results with those of other companies that have different financing, capital or tax structures. EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. EBITDA, as we calculate it, may not be comparable to EBITDA measures reported by other companies. In addition, EBITDA does not represent funds available for discretionary use.

The following table presents a reconciliation of our consolidated net income to consolidated EBITDA:

                                                 Three Months Ended
                                                      March 31,
                                                 2006          2005
                                     (In thousands, except per share amounts)
    Net income                                  $55,831       $39,282
    Income tax expense                           29,833        20,742
    Net interest (income) expense                (1,322)          221
    Depreciation, depletion, amortization
     and accretion                               49,092        41,269
    EBITDA                                     $133,434      $101,515

    Non-cash change in commodity
     derivatives (before tax)                    (5,276)            -

    Adjusted EBITDA*                           $128,158      $101,515

    * Adjusted EBITDA excludes certain items that management believes affect
      the comparability of operating results.

                              W&T Offshore Inc.
                         Commodity Hedging Activities
                              at March 31, 2006

                 Effective   Termination    Notional     NYMEX Contract Price
    Commodity       Date        Date        Quantity      Floor     Ceiling
    Natural Gas   5/1/2006    6/30/2006  3,233,000 MMBtu  $7.14     $12.65
    Natural Gas   7/1/2006    9/30/2006  2,116,000 MMBtu   7.32      13.10
    Natural Gas  10/1/2006   12/31/2006  3,036,000 MMBtu   8.04      14.49
    Natural Gas   1/1/2007   12/31/2007  8,760,000 MMBtu   7.76      16.80
    Oil           1/1/2007   12/31/2007  1,569,500 Bbls   61.68      76.40
    Natural Gas   1/1/2008   12/31/2008  5,124,000 MMBtu   7.31      15.80
    Oil           1/1/2008   12/31/2008  1,024,800 Bbls   60.00      74.50

                     Effective    Termination    Notional
    Commodity           Date          Date       Quantity        Price
    Oil              4/1/2006      6/30/2006    364,000 Bbls    $69.33
    Oil              7/1/2006      9/30/2006    165,600 Bbls     69.72
    Oil             10/1/2006     12/31/2006    248,400 Bbls     69.85

Manuel Mondragon, Assistant VP of Finance

Ken Dennard /
Lisa Elliott /
DRG&E / 713-529-6600