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W&T Offshore Reports Third Quarter Earnings Per Share of $1.03 and Adjusted Earnings Per Share of $0.79

HOUSTON, Nov. 4 /PRNewswire-FirstCall/ -- W&T Offshore, Inc. (NYSE: WTI) today provides financial and operational results for the third quarter 2008. Some of the highlights for the third quarter 2008 include:

Revenues increased 14% to $289.8 million from $255.2 million in third quarter 2007

  • Adjusted earnings per share increased 49% to $0.79 per share, compared to adjusted earnings per share of $0.53 in third quarter 2007
  • Adjusted EBITDA increased 9% to $208.4 million from $191.4 million in third quarter 2007
  • Production decreased to 3.3 million barrels of oil equivalent ("BOE"), consisting of 1.5 million barrels ("MMBbls") of oil and 10.9 billion cubic feet ("Bcf") of natural gas, or 19.9 billion cubic feet equivalent ("Bcfe") compared to 28.9 Bcfe in the third quarter 2007 primarily due to Hurricanes Gustav and Ike
  • Lenders reaffirmed the borrowing base of the undrawn $500 million revolving loan facility

Tracy W. Krohn, Chairman and Chief Executive Officer, stated, "The third quarter certainly had its share of challenges including two hurricanes in the Gulf of Mexico. Although we did have some damage from the storms, we are working hard to restore production. Currently our production rate is 8,800 barrels per day plus 106 million cubic feet ("Mcf") per day or 159 million cubic feet equivalent ("MMcfe") per day or approximately 52% of production prior to the storms. The majority of our production is ready to come back on line and we are waiting for downstream third party pipeline and processing facilities to complete their repairs. However our strong balance sheet, which included $685 million in cash on September 30, 2008, and our $500 million undrawn revolver, positions us to take advantage of the unique opportunities that are being created by the recent credit crisis. "continued Mr. Krohn. "As it relates to our drilling operations, we were three of five in exploration wells and one for one in development wells. Our overall drilling success rate for the year is 80%."

Revenues, Net Income and EPS: Net income for the third quarter of 2008 was $78.2 million, or $1.03 per diluted share, on revenues of $289.8 million, compared to net income for the same quarter of 2007 of $36.3 million, or $0.48 per diluted share, on revenues of $255.2 million. Net income increased in the third quarter 2008 principally due to a higher realized price of $14.57 per thousand cubic feet equivalent ("Mcfe"), a 65% increase over the $8.83 per Mcfe realized in the comparable period in 2007. Operating income for the third quarter of 2008 also reflects the impact of a $27.3 million unrealized derivative gain ($18.2 million after-tax), or $0.24 per diluted share, while operating income for the third quarter of 2007 included an unrealized derivative loss of $6.4 million ($4.2 million after-tax), or $0.05 per diluted share. Without the effect of these respective unrealized gains and losses, net income for the third quarter 2008 would have been $60.0 million, or $0.79 per diluted share, and net income for the corresponding quarter of 2007 would have been $40.5 million, or $0.53 per diluted share. Net income for the nine months ended September 30, 2008 was $292.6 million, or $3.85 per diluted share, on revenues of $1.1 billion, compared to net income of $94.9 million, or $1.25 per diluted share, on revenues of $774.3 million for the first nine months of 2007. See "Non-GAAP Information" later in this press release.

Cash Flow from Operating activities and Adjusted EBITDA: EBITDA and Adjusted EBITDA are non-GAAP measures and are defined in "Non-GAAP Information" later in this press release. Net cash provided by operating activities for the nine months ended September 30, 2008 increased 120% to approximately $1.0 billion from $472.7 million in the comparable period in 2007. The increase was associated with higher realized prices on sales of our oil and natural gas. Third quarter 2008 Adjusted EBITDA was $208.4 million, which represents a 9% increase over the $191.4 million reported during the prior year's third quarter. Adjusted EBITDA was $861.7 million for the nine months ended September 30, 2008, compared to $567.6 million for the comparable period of 2007.

Production and Prices: We sold 10.9 billion cubic feet ("Bcf") of natural gas at an average price of $10.60 per thousand cubic feet ("Mcf") in the third quarter of 2008. We also sold 1.5 million barrels ("MMBbls") of oil and natural gas liquids at an average price of $116.54 per barrel ("Bbl") during the same time period. On a natural gas equivalent ("Bcfe") basis, we sold 19.9 Bcfe at an average price of $14.57 per Mcfe. For the third quarter of 2007, we sold 16.8 Bcf of natural gas at an average price of $6.45 per Mcf and 2.0 MMBbls of oil and natural gas liquids at an average price of $72.72 per Bbl. On a Bcfe basis for 2007, we sold 28.9 Bcfe at an average price of $8.83 per Mcfe. The production volume decrease is primarily attributable to the deferral of production caused by Hurricanes Gustav and Ike and properties that experienced natural reservoir declines, partially offset by increased production from our successful drilling and development efforts and the acquisition of the remaining interest in the Ship Shoal 349 field.

For the nine months ended September 30, 2008, our natural gas production totaled 45.6 Bcf and was sold at an average price of $10.21 per Mcf while our oil and natural gas liquids production totaled 6.0 MMBbls, which was sold at an average price of $106.71 per Bbl. On a combined basis our production was 81.7 Bcfe sold at an average price of $13.56 per Mcfe. For the comparable 2007 period, we produced 55.5 Bcf of natural gas that was sold at an average price of $7.17 per Mcf and 6.1 MMBbls of oil and natural gas liquids production sold at an average price of $61.49 per Bbl. On a combined basis for 2007 our production was 92.2 Bcfe sold at an average price of $8.40 per Mcfe.

Lease Operating Expenses: On a nominal basis, LOE for the third quarter of 2008 was up slightly to $52.4 million, from $51.6 million in the third quarter of 2007. LOE increased to $2.64 per Mcfe in the third quarter 2008 from $1.79 per Mcfe in the third quarter of 2007. On an absolute basis, the increase in LOE is due to higher facility expense associated with various maintenance projects and higher workover costs, partially offset by lower base operating costs due to lower production volumes.

On an absolute basis, LOE for the nine months ended September 30, 2008 decreased to $156.6 million, compared to $169.2 million for the same period in 2007. The 2007 period included $14.8 million of hurricane remediation costs related to Hurricanes Katrina and Rita not covered by insurance. Also contributing to the decrease in 2008 is $4.2 million of lower insurance premiums and $2.7 million of lower workover expenditures. This was partially offset by higher facility expenditures associated with maintenance projects and higher base operating expense associated with higher fuel costs.

Depreciation, depletion, amortization and accretion: DD&A decreased to $113.9 million for the third quarter 2008 from $123.1 million for the same period in 2007. DD&A decreased due to lower total sales volumes, the addition of reserves from the acquisition of an additional interest in the Ship Shoal 349 field and reserves added as a result of our successful drilling efforts. This was partially offset by capital expenditures, increased estimated future development costs and higher estimated asset retirement obligations. On a per Mcfe basis, DD&A was $5.73 for the quarter ended September 30, 2008, compared to $4.26 for the quarter ended September 30, 2007. The increase of $1.47 per Mcfe is primarily due to higher total depletable costs and lower estimated oil and natural gas reserves in the 2008 period. DD&A for the nine months ended 2008 was $413.2 million or $5.06 per Mcfe, compared to DD&A of $373.4 million, or $4.05 per Mcfe, for the same period in 2007.

Capital Expenditures and Operations Update: During the third quarter of 2008, the Company was 67% successful in the drilling of three conventional shelf and two deep shelf exploration wells and one conventional shelf development well. For the quarter ended September 30, 2008, capital expenditures for oil and gas properties were $222.5 million split between $120.0 million for development activities, $69.1 million for exploration, and $33.4 million for other capital items.

For the first nine months of 2008, our capital expenditures for oil and gas properties were $621.6 million, including $253.5 million for development activities, $196.1 million for exploration, $116.6 million for the acquisition of an additional interest in SS349 "Mahogany" and $55.4 million for seismic, capitalized interest and other leasehold costs.

Capital expenditures for 2008 are expected to generally be inline with our revised capital budget of $611 million.

Drilling Highlights: In the third quarter of 2008, the Company drilled or participated in the drilling of the following successful wells:


                                                      Working
    Lease Name/Well            Category              Interest %
    MP-283 A-1ST           Exploration/Shelf             75%
    ST-230 A-7ST           Development/Shelf            100%
    SS 232 B-2ST           Exploration/Deep shelf        90%
    MP Area                Exploration/Shelf             75%

The Company also drilled or participated in the drilling of two non- commercial wells, as follows:

                                                      Working
    Lease Name/Well            Category              Interest %
    VK 519 #1              Exploration/Deep shelf        90%
    MP 266 A-5             Exploration/Shelf             50%

After the close of the quarter, the Company drilled or participated in the drilling of two commercially successful wells:


                                                      Working
    Lease Name/Well            Category              Interest %
    EI 186 #1              Exploration/Deep shelf       100%
    SS 224 E-20ST          Exploration/Shelf            100%

Outlook: Guidance for the fourth quarter and revised full year 2008 is shown in the table below, which represents the Company's best estimate of likely future results, and is affected by the factors described below in "Forward-Looking Statements." Fourth quarter and full year 2008 guidance has been revised to reflect current information gathered by W&T and third party sources, which include other operators and pipeline companies about the progress of storm repairs and the return of production. Actual production and cost estimates could change suddenly because a significant portion of production and costs are beyond our control.

During the month of October 2008, market prices for oil and natural gas were much lower than the average for either the third quarter or the first nine months of 2008. As a result of lower production and lower realized prices on sales of our oil and natural gas, our cash flows for the fourth quarter are expected to be significantly less than what we realized in each of the first three quarters of 2008.



    Fourth Quarter and Full-Year 2008 Production and Cost Guidance:

    Estimated Production   Fourth Quarter  Prior Full-Year   Revised Full-Year
                               2008             2008               2008

    Crude oil (MMBbls)        0.8 - 1.0       8.6 - 9.3          6.8 - 7.0
    Natural gas (Bcf)         8.1 - 9.6      63.6 - 69.1        53.8 - 55.2
    Total (MMBoe)             2.2 - 2.6      19.2 - 20.8        15.8 - 16.2
    Total (Bcfe)             12.9 - 15.6    115.0 - 125.0       94.6 - 97.2

    Operating Expenses     Fourth Quarter  Prior Full-Year   Revised Full-Year
    ($ in millions,            2008             2008               2008
     except as noted)

    Lease operating expenses  $59 - $69      $212 - $232        $217 - $227
    Gathering,
     transportation &
     production taxes          $6 - $8        $35 - $39          $29 - $31
    General and
     administrative           $11 - $13       $45 - $52          $44 - $47
    Income tax rate,
     % deferred (1)            34%, NM%        34%, 40%           34%, 70%

    (1) Percentage change not meaningful ("NM")


Conference Call Information: W&T will hold a conference call to discuss financial and operational results on Tuesday, November 4, 2008 at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. To participate, dial (303) 262-2053 a few minutes before the call begins. The call will also be broadcast live over the Internet from the Company's website at www.wtoffshore.com. A replay of the conference call will be available approximately two hours after the end of the call until Tuesday, November 11, 2008, and may be accessed by calling (303) 590-3000 and using the pass code 11121166.

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 and deep shelf regions, where it has developed significant technical expertise. W&T has grown through acquisition, exploitation and exploration and now holds working interests in over 155 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 www.wtoffshore.com.

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 conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in our Annual Report on 10-K for the year ended December 31, 2007 (www.sec.gov).

Contacts: Manuel Mondragon, Vice President of Finance investorrelations@wtoffshore.com 713-297-8024

Ken Dennard / ksdennard@drg-e.com Lisa Elliott / lelliott@drg-e.com DRG&E / 713-529-6600



                       W&T OFFSHORE, INC. AND SUBSIDIARIES
                   Condensed Consolidated Statements of Income
                                   (Unaudited)

                                 Three Months Ended      Nine Months Ended
                                   September 30,           September 30,
                                  2008       2007        2008         2007
                                    (In thousands, except per share data)

    Revenues                    $289,793   $255,191   $1,107,303    $774,293

    Operating costs and
     expenses:
    Lease operating expenses      52,403     51,627      156,554     169,154
    Gathering, transportation
     costs and production taxes    6,207      5,783       22,953      14,626
    Depreciation, depletion and
     amortization                104,201    117,539      384,078     356,881
    Asset retirement obligation
     accretion                     9,671      5,574       29,117      16,477
    General and administrative
     expenses                     10,657      9,952       34,294      29,240
    Derivative (gain) loss       (15,174)     2,809       20,897      15,082
     Total costs and expenses    167,965    193,284      647,893     601,460
     Operating income            121,828     61,907      459,410     172,833
    Interest expense:
     Incurred                     13,371     14,332       40,210      47,774
     Capitalized                  (4,605)    (6,024)     (15,040)    (19,117)
    Loss on extinguishment of debt     -          -            -       2,806
    Other income                    4,140     1,567        9,271       2,508
      Income before income taxes  117,202    55,166      443,511     143,878
    Income taxes                   39,021    18,826      150,914      48,988
      Net income                  $78,181   $36,340     $292,597     $94,890


    Earnings per common share:
     Basic                          $1.03     $0.48        $3.85       $1.25
     Diluted                         1.03      0.48         3.85        1.25

    Weighted average shares outstanding:
     Basic                         75,913    75,787       75,909      75,787
     Diluted                       76,132    75,949       76,083      75,914

    Consolidated Cash Flow Information
     Net cash provided by
      operating activities       $492,297  $164,290   $1,040,259    $472,668
     Capital expenditures-oil
      and gas properties          222,468    79,452      621,624     277,299

    Other Financial Information
     EBITDA                      $235,700  $185,020     $872,605    $543,385
     Adjusted EBITDA              208,372   191,389      861,672     567,551



                     W&T OFFSHORE, INC. AND SUBSIDIARIES
                           Condensed Operating Data
                                 (Unaudited)

                                        Three Months Ended   Nine Months Ended
                                          September 30,        September 30,
                                          2008     2007       2008      2007
    Net sales:
     Natural gas (MMcf)                  10,923   16,753     45,587    55,498
     Oil (MBbls)                          1,493    2,022      6,012     6,116
     Total natural gas and oil
      (MBoe) (1)                          3,313    4,814     13,610    15,366
     Total natural gas and oil
      (MMcfe) (2)                        19,880   28,886     81,659    92,194

    Average daily equivalent sales
     (MBoe/d)                              36.0     52.3       49.7      56.3
    Average daily equivalent sales
     (MMcfe/d)                            216.1    314.0      298.0     337.7

    Average realized sales prices (Unhedged):
     Natural gas ($/Mcf)                 $10.60    $6.45     $10.21     $7.17
     Oil ($/Bbl)                         116.54    72.72     106.71     61.49
     Barrel of oil equivalent ($/Boe)     87.44    53.01      81.34     50.39
     Natural gas equivalent ($/Mcfe)      14.57     8.83      13.56      8.40

    Average realized sales prices (Hedged):(3)
     Natural gas ($/Mcf)                 $10.60    $6.69     $10.21     $7.27
     Oil ($/Bbl)                         109.01    72.52     101.75     61.64
     Barrel of oil equivalent ($/Boe)     84.05    53.74      79.15     50.79
     Natural gas equivalent ($/Mcfe)      14.01     8.96      13.19      8.47

    Average per Boe ($/Boe):
     Lease operating expenses            $15.82   $10.72     $11.50    $11.01
     Gathering and transportation costs
      and production taxes                 1.87     1.20       1.69      0.95
     Depreciation, depletion,
      amortization and accretion          34.37    25.57      30.36     24.30
     General and administrative expenses   3.22     2.07       2.52      1.90
     Net cash provided by operating
      activities                         148.58    34.13      76.43     30.76
     Adjusted EBITDA                      62.89    39.75      63.31     36.94

    Average per Mcfe ($/Mcfe):
     Lease operating expenses             $2.64    $1.79      $1.92     $1.83
     Gathering and transportation costs
      and production taxes                 0.31     0.20       0.28      0.16
     Depreciation, depletion,
      amortization and accretion           5.73     4.26       5.06      4.05
     General and administrative expenses   0.54     0.34       0.42      0.32
     Net cash provided by operating
      activities                          24.76     5.69      12.74      5.13
     Adjusted EBITDA                      10.48     6.63      10.55      6.16

(1) One million barrels of oil equivalent (MMBoe), one thousand barrels of oil equivalent (Mboe) and one barrel of oil equivalent (Boe) are determined using the ratio of one Bbl of crude oil, condensate or natural gas liquids to six Mcf of natural gas (totals may not add due to rounding).

(2) One billion cubic feet equivalent (Bcfe), one million cubic feet equivalent (MMcfe) and one thousand cubic feet equivalent (Mcfe) are determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids (totals may not add due to rounding).

(3) Data for 2008 and 2007 includes the effects of our commodity derivative contracts that do not qualify for hedge accounting.



                     W&T OFFSHORE, INC. AND SUBSIDIARIES
                    Condensed Consolidated Balance Sheets
                                 (Unaudited)

                                           September 30,      December 31,
                                                2008            2007 (1)
                                                (In thousands, except
                                                      share data)
                   Assets
    Current assets:
     Cash and cash equivalents                $685,311          $314,050
     Receivables                               101,078           161,998
     Prepaid expenses and other assets          47,965            43,645
      Total current assets                     834,354           519,693
     Property and equipment - at cost:
      Oil and gas properties and equipment
       (full cost method, of which $233,820
       at September 30, 2008 and $278,947 at
       December 31, 2007 were excluded from
       amortization)                         4,512,578         3,805,208
      Furniture, fixtures and other             13,745            10,267
       Total property and equipment          4,526,323         3,815,475
      Less accumulated depreciation,
       depletion and amortization            1,936,822         1,552,744
       Net property and equipment            2,589,501         2,262,731
     Restricted deposits for asset
      retirement obligations and other
      assets                                    31,225            29,780
       Total assets                         $3,455,080        $2,812,204

           Liabilities and Shareholders' Equity

    Current liabilities:
     Current maturities of long-term debt       $3,000            $3,000
     Accounts payable                          340,084           159,973
     Undistributed oil and gas proceeds         66,144            47,911
     Asset retirement obligations -
      current portion                           41,057            19,749
     Accrued liabilities                        29,016            65,328
     Income taxes                               72,986            12,975
      Total current liabilities                552,287           308,936
    Long-term debt, less current
     maturities - net of discount              650,568           651,764
    Asset retirement obligations, less
     current portion                           488,886           438,932
    Deferred income taxes                      314,726           255,097
    Other liabilities                            4,982             6,135
    Commitments and contingencies
    Shareholders' equity:
     Common stock, $0.00001 par value;
      118,330,000 shares authorized;
      issued and outstanding 76,353,100
      and 76,175,159 shares at September
      30, 2008 and December 31, 2007,
      respectively                                   1                 1
     Additional paid-in capital                371,905           365,667
     Retained earnings                       1,072,529           786,803
     Accumulated other comprehensive loss         (804)           (1,131)
      Total shareholders' equity             1,443,631         1,151,340
      Total liabilities and shareholders'
       equity                               $3,455,080        $2,812,204

(1) Certain reclassifications have been made to the December 31, 2007 balance sheet to conform to our current reporting practices.



                       W&T OFFSHORE, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                    (Unaudited)

                                                   Nine Months Ended
                                                     September 30,
                                                2008               2007
                                                    (In thousands)

    Operating activities:
    Net income                                 $292,597           $94,890
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
     Depreciation, depletion, amortization
      and accretion                             413,195           373,358
     Amortization of debt issuance costs
      and discount on indebtedness                2,032             5,840
     Loss on extinguishment of debt                   -             2,806
     Share-based compensation related to
      restricted stock issuances                  4,563             2,491
     Unrealized derivative (gain) loss          (10,933)           21,360
     Deferred income taxes                       64,248                92
     Other                                          505               746
     Changes in operating assets and
      liabilities                               274,052           (28,915)
      Net cash provided by operating
       activities                             1,040,259           472,668

    Investing activities:
    Acquisition of property interest           (116,551)                -
    Investment in oil and gas properties
     and equipment, net                        (505,073)         (273,638)
    Purchases of furniture, fixtures and
     other, net                                  (3,833)             (348)
      Net cash used in investing activities    (625,457)         (273,986)

    Financing activities:
    Issuance of Senior Notes                          -           450,000
    Borrowings of other long-term debt                -           458,000
    Repayments of long-term debt                 (2,250)         (945,750)
    Dividends to shareholders                   (39,159)           (6,850)
    Debt issuance costs and other                (2,132)           (5,510)
     Net cash used in financing activities      (43,541)          (50,110)
     Increase in cash and cash equivalents      371,261           148,572
    Cash and cash equivalents, beginning
     of period                                  314,050            39,235
    Cash and cash equivalents, end of
     period                                    $685,311          $187,807



                     W&T OFFSHORE, INC. AND SUBSIDIARIES
                             Non-GAAP Information

Certain financial information included in our financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are "Adjusted Net Income," "EBITDA," and "Adjusted EBITDA." Our management uses these non-GAAP measures in its analysis of our performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures, which may be reported by other companies.



             Reconciliation of Net Income to Adjusted Net Income

                                     Three Months Ended   Nine Months Ended
                                       September 30,        September 30,
                                       2008      2007      2008       2007
                                    (In thousands, except per share amounts)
                                                   (Unaudited)

    Net Income                       $78,181    $36,340  $292,597   $94,890
    Unrealized derivative (gain)
     loss                            (27,328)     6,369   (10,933)   21,360
    Loss on extinguishment of debt         -          -         -     2,806
    Income tax adjustment for above
     items                             9,099     (2,173)    3,720    (8,228)
    Adjusted net income              $59,952    $40,536  $285,384  $110,828

    Adjusted earnings per share-
     diluted                           $0.79      $0.53     $3.75     $1.46


"Adjusted Net Income" does not include the unrealized derivative (gain) loss and associated tax effects. Adjusted Net Income is presented because the timing and amount of the derivative items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.

Reconciliation of Net Income to Adjusted EBITDA

We define EBITDA as net income plus income tax expense, net interest expense (which includes interest income), and depreciation, depletion, amortization and accretion. Adjusted EBITDA also excludes the loss on extinguishment of debt and the unrealized gain or loss related to our derivative contracts. Although not prescribed under GAAP, we believe the presentation of EBITDA and Adjusted EBITDA provide useful information regarding our ability to service debt and fund capital expenditures and they help our investors understand our operating performance and make it easier to compare our results with those of other companies that have different financing, capital and tax structures. EBITDA and Adjusted 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 and Adjusted EBITDA, as we calculate them, may not be comparable to EBITDA and Adjusted EBITDA measures reported by other companies. In addition, EBITDA and Adjusted EBITDA do not represent funds available for discretionary use.

The following table presents a reconciliation of our consolidated net income to consolidated EBITDA and Adjusted EBITDA.



                                     Three Month Ended    Nine Months Ended
                                       September 30,        September 30,
                                       2008      2007      2008       2007
                                                 (In thousands)
                                                  (Unaudited)

    Net Income                       $78,181    $36,340  $292,597   $94,890
    Income taxes                      39,021     18,826   150,914    48,988
    Net interest expense               4,626      6,741    15,899    26,149
    Depreciation, depletion,
     amortization and accretion      113,872    123,113   413,195   373,358
    EBITDA                           235,700    185,020   872,605   543,385

    Adjustments:
    Unrealized derivative (gain)
     loss                            (27,328)     6,369   (10,933)   21,360
    Loss on extinguishment of debt         -          -         -     2,806
    Adjusted EBITDA                 $208,372   $191,389  $861,672  $567,551

SOURCE W&T Offshore, Inc. 11/04/2008 /CONTACT: Manuel Mondragon, Vice President of Finance of W&T Offshore Inc., +1-713-297-8024, investorrelations@wtoffshore.com; Ken Dennard ksdennard@drg-e.com, or Lisa Elliott, lelliott@drg-e.com, both of DRG&E +1-713-529-6600 /Web site: http://www.wtoffshore.com (WTI)