W&T Offshore Announces First Quarter 2019 Results


HOUSTON, May 01, 2019 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today reported operational and financial results for the first quarter of 2019.

Key highlights included:

  • Produced 33,350 barrels of oil equivalent per day (“Boe/d”), or 3.0 MMBoe (60% liquids), in the first quarter of 2019, near the midpoint of the guidance range;

  • Increased production to over 37,000 Boe/d in mid-April 2019, due to new wells online, improved existing well performance and completion of pipeline repairs and platform maintenance;

  • Recognized first quarter 2019 revenues of $116.1 million;

  • Reported a Net Loss of $47.8 million or $0.34 loss per share in the first quarter of 2019 which included a $50.5 million unrealized commodity derivative loss; excluding that loss and other items, Adjusted Net Income was $6.7 million or $0.05 per share;

  • Generated net cash provided by operating activities of $84.8 million and Adjusted EBITDA of $56.9 million for the first quarter of 2019;

  • Announced on March 25, 2019 that the Company was the apparent high bidder on 15 blocks in the Gulf of Mexico Lease Sale 252 held by the Bureau of Ocean Energy Management on March 20, 2019 which included eight deepwater and seven shallow water blocks; and

  • Continued to be an active driller in the Gulf of Mexico with four rigs running, which represents approximately 20% of the rigs operating in the basin during the quarter.

Tracy W. Krohn, W&T's Chairman and Chief Executive Officer, stated, “We performed well in the first quarter and delivered production results within our guidance ranges.  Nonetheless, the first quarter was challenging, with 13% lower commodity price realizations compared with the fourth quarter of 2018 and substantial production curtailments due to pipeline repairs and facility maintenance at three of our largest fields.  Despite these challenges, our production base continued to generate significant cash flow allowing us to generate $56.9 million in Adjusted EBITDA.  In mid-April, we saw a meaningful increase in production due to the completion of pipeline and facility repairs coupled with new wells and existing well performance improvements. Our current production has risen to over 37,000 Boe/d. As a result, we are estimating that the midpoint of our second quarter 2019 production guidance will be 36,400 Boe/d, which is up 9% over our first quarter actual production.  We are also encouraged by the improving pricing environment in the second quarter and again expect to generate significant free cash flow.”

“We continue to be optimistic about the future for W&T and believe we have a premier portfolio of both shallow water and deepwater properties that generate a solid and consistent source of cash flow with significant upside.  Our recent well results are very encouraging. We will be opportunistic as we continue to look at acquisition opportunities that add production, reserves and cash flow.  We are focused on executing our long-term strategy while continuing to deliver near-term results by operating efficiently and mitigating risk to maximize shareholder value,” concluded Mr. Krohn. 

For the first quarter of 2019, W&T reported a net loss of $47.8 million, or $0.34 loss per share.  Excluding primarily a $50.5 million unrealized commodity derivative loss and other adjustments, the Company’s Adjusted Net Income was $6.7 million, or $0.05 per share.  In the first quarter of 2018, net income was $27.6 million, or $0.19 per share, and Adjusted Net Income was $28.0 million, or $0.19 per share.

Net cash provided by operating activities for the three months ended March 31, 2019 was $84.8 million, compared with $75.0 million in the first quarter of 2018.  The Company generated $56.9 million of Adjusted EBITDA for the first quarter 2019, compared to $77.2 million in the first quarter of 2018. Adjusted EBITDA margin in the first quarter of 2019 was 49%, compared to 57% in the first quarter of 2018.   Margin declined primarily due to a combination of lower commodity prices and temporarily lower production volumes.

Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures, which are described in more detail and reconciled to net income, their most comparable GAAP measure, in the attached tables below under “Non-GAAP Information.”

Production, Prices and Revenues: Production for the first quarter of 2019 was 33,350 Boe/d or 3.0 MMBoe, down 10% compared to the first quarter of 2018.  First quarter 2019 production was comprised of 1.5 million barrels (“MMBbls”) of oil, 0.3 MMBbls of natural gas liquids (“NGLs”) and 7.3 billion cubic feet (“Bcf”) of natural gas.  Total liquids production comprised 60% of production in the first quarter of 2019.  Production for the quarter was near the mid-point of production guidance despite prolonged pipeline and facility downtime than was expected during the period. In April 2019, a majority of the pipeline and facility maintenance was completed and improved well performance and continued ramp up of new wells enabled the mid-April production rate to increase to over 37,000 Boe/d. 

For the first quarter of 2019, W&T’s realized crude oil sales price was $58.66 per barrel. The Company’s realized NGLs sales price was $20.88 per barrel, and its realized natural gas sales price was $3.00 per Mcf.  The Company’s combined average realized sales price for the quarter was $38.31 per Boe, compared with $39.92 per Boe in sales price that was realized in the first quarter of 2018. 

Revenues for the first quarter of 2019 decreased 14% to $116.1 million compared to $134.2 million in the first quarter of 2018. The revenue difference was driven by the decrease in realized commodity sales price per Boe and lower sales volumes. 

Lease Operating Expenses: Lease Operating Expense (“LOE”) which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance, was $43.5 million in the first quarter of 2019, higher by 18% compared to $36.8 million in the first quarter of 2018.  On a component basis for the first quarter of 2019, base lease operating expenses and insurance premiums were $34.2 million, workovers were $4.8 million and facilities maintenance expense was $4.5 million. The increase in LOE in the first quarter of 2019 compared with the first quarter of 2018 was due to higher workover and facility costs as well as the increase in base LOE related to the acquisition of Heidelberg in April 2018.

Depreciation, Depletion, Amortization and Accretion (“DD&A”):  DD&A, including accretion for asset retirement obligations, was $11.25 per Boe of production in the first quarter of 2019 compared to $11.44 per Boe in the first quarter of 2018. 

General and Administrative Expenses (“G&A”):  G&A was $14.1 million for the first quarter of 2019, a 6% decrease compared to $15.0 million in the first quarter of 2018.  G&A costs declined primarily due to a reduction in non-cash share-based compensation.

Derivative Loss:  In the first quarter of 2019, W&T recorded a net loss of $48.9 million on its outstanding commodity derivative contracts, of which $50.5 million was unrealized commodity derivative loss.  There were no derivative gains or losses in the first quarter of 2018.  In the first quarter of 2019, W&T did not enter into additional derivative contracts for crude oil and natural gas. A summary of the Company’s current outstanding derivative positions is included in the tables below as well as in the Investor Relations section of W&T’s web site under the “Other Reports” tab.

Interest Expense: Interest expense net, as reported in the income statement, in the first quarter of 2019 was $16.3 million compared with $11.0 million in the first quarter of 2018.  Prior to the refinancing transaction in October 2018, a portion of interest expense was capitalized which lowered interest expense in the income statement from January 1 through October 18, 2018 as a result of accounting requirements related to the Company’s prior debt structure.  After the refinancing transaction, all interest expense incurred has been reported as expense in the income statement.

Income Tax:  Income tax expense was $0.2 million in the first quarter of 2019.  W&T is not currently forecasting any cash income tax expense for the foreseeable future, and the Company’s net deferred tax assets are fully offset by a valuation allowance.  Consequently, the effective tax rate for W&T is not meaningful. 

At March 31, 2019, W&T had a current income tax receivable of $54.1 million.  The receivable relates primarily to net operating loss (“NOL”) claims for the years 2012, 2013 and 2014 that were carried back to prior years and require a review by the U.S. Congressional Joint Committee on Taxation prior to the payment being made.  These carryback claims were made pursuant to IRC Section 172 (f) which permits certain platform dismantlement, well abandonment and site clearance costs to be carried back 10 years.

Balance Sheet, Cash Flow and Liquidity:  Total liquidity on March 31, 2019 was $307.0 million, consisting of cash and cash equivalents of $86.1 million and $220.9 million of availability under W&T’s revolving bank credit facility. At March 31, 2019, the Company had $21.0 million borrowings on the revolving credit facility and $8.1 million of letters of credit outstanding.  Total long-term debt was $634.0 million, net of unamortized debt issuance costs.

Capital Expenditures:  Total capital expenditures for oil and gas properties were $31.6 million for the first quarter of 2019.  During the quarter, the Company performed a recompletion on the A-6 well, as well as an acid stimulation on the A-18 well in the Mahogany field; completed the A-13 well at Viosca Knoll 823 (“Virgo”); and drilled the ST 320 A-3 well at the Ewing Bank 910 field.

OPERATIONS UPDATE 

W&T is currently operating or participating in several active drilling programs in the Gulf of Mexico, as described below.  

Ship Shoal 349 “Mahogany” (operated, shelf, 100% working interest):  The SS 359 A-19 well was completed in the T-Sand and brought online in late November.  In February, the well reached 5,205 Boe per day of production and the Company continues to perform a staged ramp up of production on the well. In April, the well was producing over 5,900 Boe per day.  This well has thus far shown significantly higher rates of early production than any T-Sand well drilled to date in the field with a productivity index that is more than double the best prior completion in the field.  Upon completion of a planned maintenance and repair program at Mahogany, the Company began drilling the A-12ST development well in mid-April, which was previously referred to as the A-20 well and is also targeting the T-Sand. In the first quarter, W&T performed a recompletion on the A-6 well, as well as an acid stimulation on the A-18 well in the Mahogany field. The A-6 recompletion resulted in production uplift of approximately 500 Boe per day and the A-18 workover doubled the well’s daily production rate.

Ewing Bank 910 Field Area (non-operated, deepwater, in JV Drilling Program):  The ST 320 A-2 well was completed and brought online in December 2018.  Due to limited equipment capacity to handle vapor recovery on the ST 311 platform, the well was brought online at a curtailed rate of 3,400 Boe per day.  The operator has resolved the issue and is continuing to ramp-up production on the A-2 well.  In mid-April, the well was producing approximately 7,000 Boe per day.  The ST 320 A-3 well was successfully drilled in the first quarter of 2019 and discovered two high quality Pliocene sand zones.  The operator is currently completing the two target intervals and expects first production before the end of the second quarter of 2019.  The Company has a 10.8% interest in the ST 320 A-3 well until certain performance thresholds are met.

Viosca Knoll 823 “Virgo” (operated, deepwater, in JV Drilling Program):  The Virgo field platform rig drilled the A-13 well to target depth and encountered 77 feet of net vertical pay in the 2.4 Sec and 3.4 Sec sand intervals.  The well was brought online in the first quarter of 2019 and is currently producing out of the 2.4 Sec zone, with the 3.4 Sec zone to be brought online early in the second quarter.

Mississippi Canyon 800 Gladden Deep Prospect (operated, deepwater, in JV Drilling Program): W&T is currently drilling the first exploration well in 2019 in the Gladden Field. The well is in over 3,000 feet of water with a planned total depth of over 18,000 feet. The Company expects to reach total depth in the second quarter of 2019.     

Well Recompletions and Workovers:  During the first quarter of 2019, the Company performed one well recompletion that added approximately 500 Boe per day of initial production and two workovers that added approximately 2,200 Boe per day of initial production. 

Gulf of Mexico Lease Sale 252:  As previously announced, the Company was the apparent high bidder on 15 blocks in the recent Gulf of Mexico Lease Sale 252 which included eight deepwater and seven shallow water blocks.  These blocks include Garden Banks 173, Green Canyon blocks 3, 46, 47, 49, 91 and 92 and Mississippi Canyon 244 in the deepwater and Eugene Island blocks 357, 378, 393, 395, 396, Main Pass 286, and South Marsh 205 in the shallow water.

These 15 blocks cover approximately 73,500 acres and, assuming all leases are awarded, the Company would pay approximately $3.5 million for all of the awarded leases combined, which reflects a 100% working interest in the acreage. All of the blocks have a five-year lease term, with the exception of one of the deepwater blocks which has a seven-year lease term. The royalty rate for eight of the blocks is 12.5%, and the remaining seven leases are at a rate of 18.75%. Of the 30 companies participating in the lease sale, W&T ranked fourth in the number of apparent high bids.

Second Quarter 2019 Production and Expense Guidance

The guidance for the second quarter 2019 in the table below represents the Company's current best estimate of the range of likely future results. Guidance could be affected by the factors described below in "Forward-Looking Statements".     

      
  Second Quarter Full Year 
 Production2019 2019 
      
 Oil and NGL's (MMBbls)1.9 - 2.1 8.0 - 8.9 
      
 Natural Gas (Bcf)7.3 - 8.0 29.3 - 31.4 
      
 Total (MMBoe)3.15 - 3.47 12.91 - 14.27 
      
 Total (BOEPD)34,600 - 38,200 35,400 - 39,100 
      
 Operating ExpensesSecond Quarter Full Year 
 ($ in millions)2019 2019 
      
 Lease operating expenses$42 - $46 $153 - $169 
      
 Gathering, transportation & production taxes$6 - $7 $25 - $28 
      
 General and administrative$14 - $16 $55 - $61 
      
 Income tax rate   0% 
      

Conference Call Information:  W&T will hold a conference call to discuss its financial and operational results on Thursday, May 2, 2019, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).  Interested parties may participate by dialing (844) 564-1117.  International parties may dial (409) 983-9704.  The confirmation code is 7679417.  This call will also be webcast and available on W&T’s website at www.wtoffshore.com under “Events Calendar.”  An audio replay will be available on the Company’s website following the call. 

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development.  The Company currently has working interests in 48 producing fields in federal and state waters and has under lease approximately 720,000 gross acres, including approximately 515,000 gross acres on the Gulf of Mexico Shelf and approximately 205,000 gross acres in the deepwater.  A majority of the Company’s daily production is derived from wells it operates.  For more information on W&T, please visit the Company’s website at www.wtoffshore.com.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 W&T Offshore’s Annual Report on Form 10-K for the year ended December 31, 2018 and subsequent Form 10-Q reports found at www.sec.gov or at our website at www.wtoffshore.com under the Investor Relations section. Investors are urged to consider closely the disclosures and risk factors in these reports.  We refer to feet of “pay” in our discussions concerning the evaluation of our recently drilled wells. This refers to geological indications, typically obtained from well logging, of the estimated thickness of sands which we believe are capable of producing hydrocarbons in commercial quantities. These indications of “pay” may not necessarily forecast the amount of future production or reserve quantities from the well, which can be dependent upon numerous other factors.

 
W&T OFFSHORE, INC. AND SUBSIDIARIES 
Condensed Consolidated Statements of Operations
  (In thousands, except per share data) 
(Unaudited)
        
  Three Months Ended 
  March 31, 
  2019  2018 
    
    
Revenues:       
Oil     86,703     97,306 
NGLs     6,448     9,660 
Natural gas     21,838     25,867 
Other     1,091     1,380 
Total revenues  $  116,080  $  134,213 
        
Operating costs and expenses:       
Lease operating expenses     43,456     36,843 
Gathering, transportation costs and production taxes     6,839     5,512 
Depreciation, depletion, amortization and accretion     33,766     38,081 
General and administrative expenses     14,109     15,038 
Derivative loss     48,886     - 
Total costs and expenses     147,056     95,474 
Operating (loss) income    (30,976)    38,739 
        
Interest expense, net     16,282     10,962 
Other expense, net     331     28 
(Loss) income before income tax expense     (47,589)    27,749 
Income tax expense     172     109 
Net (loss) income $  (47,761) $  27,640 
        
        
Basic and diluted (loss) earnings per common share  $  (0.34) $  0.19 
        
Weighted average common shares outstanding    140,462     138,845 
        


 

 

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Operating Data
(Unaudited)
         
  Three Months Ended 
  March 31, 
  2019  2018 
Net sales volumes:         
Oil  (MBbls)     1,478     1,557 
NGL (MBbls)     309     351 
Oil and NGLs (MBbls)     1,787     1,907 
Natural gas (MMcf)     7,288     8,523 
Total oil and natural gas (MBoe) (1)     3,001     3,328 
         
Average daily equivalent sales (Boe/d)     33.3     37.0 
         
Average realized sales prices:         
Oil ($/Bbl)  $  58.66  $  62.52 
NGLs ($/Bbl)     20.88     27.54 
Oil and NGLs ($/Bbl)     52.13     56.08 
Natural gas ($/Mcf)     3.00     3.03 
Barrel of oil equivalent ($/Boe)     38.31     39.92 
         
Average per Boe ($/Boe):         
Lease operating expenses  $  14.58  $  11.07 
Gathering and transportation costs and production taxes     2.28     1.66 
Depreciation, depletion, amortization and accretion     11.25     11.44 
General and administrative expenses     4.70     4.52 
         

(1) MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding).  The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly.

 
W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
       
  March 31, December 31,
  2019  2018 
   
   
Assets      
Current assets:      
Cash and cash equivalents $  86,116  $  33,293 
Receivables:      
  Oil and natural gas sales     41,308     47,804 
  Joint interest     17,620     14,634 
  Income taxes     54,076     54,076 
  Total receivables     113,004     116,514 
Prepaid expenses and other assets     34,127     76,406 
Total current assets    233,247     226,213 
       
Property and equipment    8,218,621     8,190,099 
Less accumulated depreciation, depletion and amortization     7,703,856     7,674,678 
Net property and equipment     514,765     515,421 
Restricted deposits for asset retirement obligations     15,498     15,685 
Other assets     79,005     91,547 
Total assets  $  842,515  $  848,866 
       
Liabilities and Shareholders’ Deficit      
Current liabilities:      
Accounts payable  $  71,359  $  82,067 
Undistributed oil and natural gas proceeds     22,014     28,995 
Advances from joint interest partners     65,271     20,627 
Asset retirement obligations     24,799     24,994 
Accrued liabilities     35,197     29,611 
Total current liabilities     218,640     186,294 
       
Long-term debt    634,005     633,535 
Asset retirement obligations, less current portion    289,363     285,143 
Other liabilities    73,142     68,690 
Commitments and contingencies    -     - 
Shareholders’ deficit:      
Common stock, $0.00001 par value; 200,000 shares authorized; 143,513 issued       
and 140,644 outstanding for both dates presented    1     1 
Additional paid-in capital     545,627     545,705 
Retained deficit     (894,096)    (846,335)
Treasury stock, at cost     (24,167)    (24,167)
Total shareholders’ deficit     (372,635)    (324,796)
Total liabilities and shareholders’ deficit  $  842,515  $  848,866 
       

 

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
  (In thousands) 
 (Unaudited)
       
  Three Months Ended
  March 31,
  2019  2018 
   
   
Operating activities:      
Net (loss) income  $  (47,761) $  27,640 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation, depletion, amortization and accretion     33,766     38,081 
Amortization of debt items and other items    1,152     466 
Share-based compensation     (78)    1,219 
Derivative loss     48,886     - 
Cash receipts on derivative settlements, net     11,948     - 
Deferred income taxes     172     109 
Changes in operating assets and liabilities:       
  Oil and natural gas receivables     6,496     501 
  Joint interest receivables     (2,986)    1,919 
  Prepaid expenses and other assets     (4,269)    (6,391)
  Asset retirement obligation settlements     (254)    (7,022)
  Cash advances from JV Partners     44,644     19,147 
  Accounts payable, accrued liabilities and other     (6,871)    (688)
Net cash provided by operating activities     84,845     74,981 
       
Investing activities:      
Investment in oil and natural gas properties and equipment     (31,581)    (38,271)
Deposit for acquisition     -     (3,000)
Net cash used in investing activities    (31,581)    (41,271)
       
Financing activities:      
Payment of interest on 1.5 Lien Term Loan    -     (2,057)
Debt issuance costs     (441)    - 
Net cash used in financing activities     (441)    (2,057)
Increase in cash and cash equivalents     52,823     31,653 
Cash and cash equivalents, beginning of period     33,293     99,058 
Cash and cash equivalents, end of period  $  86,116  $  130,711 
       

 

W&T OFFSHORE, INC. AND SUBSIDIARIES 
Financial Commodity Derivative
As of May 1, 2019
   
           
Crude Oil Natural Gas
QuarterInstrumentVolumeAverage QuarterInstrumentVolumeAverage
  Bbl/dFloorCeiling   Mcf/dFloorCeiling
2Q19WTI Swaps  10,000$60.92$60.92 2Q19NYMEX Collars  50,000$2.49$3.98
 WTI Calls (long)  10,000$61.00       
           
3Q19WTI Swaps  10,000$60.92$60.92      
 WTI Calls (long)  10,000$61.00       
           
4Q19WTI Swaps  10,000$60.92$60.92      
 WTI Calls (long)  10,000$61.00       
           
1Q20WTI Swaps  10,000$60.92$60.92      
 WTI Calls (long)  10,000$61.00       
           
Apr-May'20WTI Swaps  10,000$60.92$60.92      
 WTI Calls (long)  10,000$61.00       
           

 

 

 

 

 

 

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 financial measures in its analysis of our performance.  In addition, Adjusted EBITDA is a key metric used to determine our incentive compensation awards.  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 (Loss) Income to Adjusted Net Income

The Company defines “Adjusted Net Income” as net income excluding any impacts related to unrealized commodity derivative loss, amortization of derivative premium, and bad debt reserve. W&T believes the presentation of Adjusted Net Income is useful to our investors as it provides a metric of profit or loss excluding the impact of items that, either due to timing or amount, cannot be reasonably estimated and affect the comparability of profit or loss from current period to prior period.

       
  Three Months Ended
  March 31,
  2019  2018
  (In thousands, except per share amounts)
  (Unaudited)
       
Net (loss) income  $  (47,761) $  27,640
Unrealized commodity derivative loss     50,459     -
Amortization of derivative premium     3,845     -
Bad debt reserve     120     342
Adjusted Net Income  $  6,663  $  27,982
       
Basic and diluted adjusted income per common share,  $  0.05  $  0.19
       

 

 

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

Reconciliation of Net (Loss) Income to Adjusted EBITDA

We define EBITDA as net income plus income tax expense, net interest expense, and depreciation, depletion, amortization and accretion.  Adjusted EBITDA excludes the unrealized commodity derivative loss, amortization of derivative premium, and bad debt reserve.  We believe the presentation of EBITDA and Adjusted EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures.  We believe this presentation 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 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. Adjusted EBITDA margin represents the ratio of Adjusted EBITDA to total revenues.

The following table presents a reconciliation of our net (loss) income to EBITDA and Adjusted EBITDA along with our Adjusted EBITDA margin.

   
  Three Months Ended
  March 31,
  2019  2018 
    (In thousands)
    (Unaudited)
       
Net (loss) income  $  (47,761) $  27,640 
Income tax expense     172     109 
Net interest expense     16,282     10,990 
Depreciation, depletion, amortization and accretion     33,766     38,081 
EBITDA     2,459     76,820 
       
Adjustments:      
Unrealized commodity derivative loss     50,459     - 
Amortization of derivative premium     3,845     - 
Bad debt reserve     120     342 
Adjusted EBITDA  $  56,883  $  77,162 
       
       
Adjusted EBITDA margin   49%  57%
       

 

CONTACT:

Al Petrie
Investor Relations Coordinator
apetrie@wtoffshore.com
713-297-8024

Janet Yang
EVP & CFO
investorrelations@wtoffshore.com
713-624-7326