W&T Offshore today provided an operational update.

Relative to previously reported production for the second quarter of 2021, approximately 80% of the Company’s production was shut-in at one point as a result of Hurricane Ida. The majority of the impacted production was brought back online throughout September. As a result of this downtime, based on preliminary estimates, net production for the third quarter is expected to average between 34,200 and 35,100 barrels of oil equivalent per day (“Boe/d”) (34% oil, 11% natural gas liquids, and 55% natural gas). Production for the fourth quarter is expected to average between 34,800 and 38,500 Boe/d (33% oil, 11% natural gas liquids, and 56% natural gas), which assumes the Big Bend and Dantzler wells are returned to production by the end of October as expected. The remaining hurricane-impacted production is expected to be online by the end of 2021. Through October 16, 2021, W&T estimates that it has averaged approximately 35,900 Boe/d net for the month of October. Unplanned costs for minor repairs and restoring production, as well as evacuating employees and contractors, were incurred as a result of the hurricane. Due to these costs, less than anticipated Office of Natural Resources Revenue (“ONRR”) credits, and slight increases to components of base lease operating expense (“LOE”), guidance for LOE is now expected to be between $174 and $180 million for 2021.

Hurricane season in the Gulf of Mexico typically lasts until the end of November and the commentary above does not contemplate any potential impact for further storm activity in the fourth quarter of 2021.

Tracy W. Krohn, W&T's Chairman and Chief Executive Officer, commented, 
“Regarding Hurricane Ida, our assets and infrastructure did not suffer significant damage during the hurricane. However, this storm required a meaningful amount of production to be shut-in and thus deferred by ourselves and our non-operated working interest owners due to third party issues associated with platforms, pipelines, refineries, and other onshore infrastructure. Accordingly, we are adjusting our third quarter production guidance today to reflect the impact of Hurricane Ida. It’s important to remember that shutting in production in advance of storms is a critical safety practice offshore operators undertake to keep employees and contractors safe and to minimize the potential for environmental incidents. While most of the Company’s impacted production has been restored, we estimate that the storm resulted in a temporary reduction of approximately 5,500 Boe/d net production to W&T for the third quarter. Our expectation is that the vast majority of the remaining shut-in production will be returned online by year end. We have proven for nearly 40 years that we know how to operate safely and profitably in the Gulf of Mexico despite these severe weather events. We will continue to focus on generating strong cash flow, operating efficiently, and creating value for W&T shareholders.”

KeyFacts Energy: W&T Offshore US Gulf of Mexico country profile