W&T Offshore, Inc. (NYSE:WTI) reported that for 3Q2015, the company’s oil production stood at 2 million barrels, up 12.2% over 3Q2014. NGL production in 3Q2015 declined 23.1% to 389,000 barrels from 3Q2014. The production of Natural gas was 11.6 Bcf for 3Q2015, down 4.5% from the comparable quarter a year earlier. W&T combined total production stood at 4.3 million Boe in 3Q2015, unchanged compared to the third quarter of 2014.
W&T Offshore reported that revenue for 3Q2015 came at $126.2 million against $234.5 million in 3Q2014. Revenues dropped due to the steep plunge in commodity prices. Also, crude oil prices declined almost 54% between the two quarters. Natural gas prices declined 32.2% from the comparable quarter of 2014. NGLs prices dropped 50% following the drops in crude oil prices, weak natural gas prices and a considerable oversupply of both propane and ethane, which cover the majority of NGLs on a part basis.
In 3Q2015, the average realized sales rate for oil, natural gas and NGLcame at $43.85 per barrel,$2.69 per Mcf and $16.74 per barrel, respectively. On a combined basis, the company recorded sales of 46,757 Boe per day against 46,684 Boe per day sold in the third quarter of 2014.
The management view
Tracy W. Krohn, the Chief Executive Officer and Chairman of W&T Offshore, Inc. (NYSE:WTI), said that with itsRio Grande Loop project expected on-line in 4Q2015, they anticipate it will boost ending 2015 production rates considerably. Big Bend was brought on-line at the end of October and it will be rising up to full rates in coming period.
The two wells at W&T Dantzler field came on-line shortly after Big Bend, which is earlier than the projected time. It will result in variable production prices for the first few weeks as the company examine the completion of both wells. Krohn expect that they expect that both the Dantzler and Big Bend fields will be functional at full rates before the end of this fiscal.