Oct 30, 2026 earnings call — Q3 results and higher 2026 capital spend
Company raised full-year 2026 capital spend to between $35 million and $38 million.
Revenue $0.2B (est $0.1B) · EPS $0.01 (est $-0.06)
Key quotes
"As an example, in the third quarter, we spent a little over $3 million on 7 workover projects and 1 recompletion that resulted in an uplift of over 2,000 barrels of oil equivalent per day."
"In addition, on October 1, 2026, we converted our credit facility to a reserve-based lending structure that provides greater financial flexibility and the potential to expand commitments from $50 million to $100 million."
"W&T has continued to pursue discovery materials in the surety lawsuits, and we have made significant progress in obtaining agreements from opposing counsel and a court order requiring defendants to review and produce communications relevant to our claims."
Analyst Q&A 6
use of extra cash and recompletions
Q (Neal Dingmann · William Blair): How will the larger cash balance change capital allocation into 2027? Would you slow recompletion work if attractive M&A appears?
A: Management said the extra cash would be used first for acquisitions and then for other activities. They expect the higher cash to continue and are excited about it. They also brought in the COO to address the recompletion inventory question.
"And I look at that as more something that we would utilize toward acquisitions first and then other activities after that." — Tracy Krohn (CEO·CHAIR)
recompletion and uplift opportunity count
Q (William Williford): How many more recompletion or uplift opportunities do you have? Would you slow them for M&A?
A: They said yes, they have plenty of opportunities to do additional optimization and uplift production through 2027. Most of the uplift projects mentioned were part of the workover portfolio rather than new capital drilling. They also said they are focused on recompletions from a capital standpoint in 2027 and have a nice inventory.
2027 plan: acquisitions vs drilling
Q (Derrick Whitfield · Texas Capital): In 2027, will you focus on maintenance/workovers or modest growth via new drilling? Are assets being marketed now synergistic for you?
A: Management said they prefer to pursue acquisitions rather than prioritize drilling, though they have a good inventory of drill targets and can drill if needed. They see many properties for sale and are active in data rooms. They also said larger and smaller assets can be attractive because they operate in shallow and deep water and excel at managing older properties.
"I would prefer to chase acquisitions at this point in time." — Tracy Krohn (CEO·CHAIR)
production outperformance, mix, and litigation costs
Q (Jeffrey Robertson · Water Tower): Was Q3 production outperformance due to asset profiles? Will recompletions change the production mix? What about the surety litigation timeline and G&A for 2027?
A: They said part of the outperformance comes from good production at the Mobile Bay gas field and from realizing 2P reserves over time, which helps cash and reserves. The COO said most recompletion projects are oily and should raise the oil percentage. The GC said surety litigation costs are expected to increase in 2027, with no huge spike expected for the remainder of 2026 while they finish discovery and prepare depositions.
"We certainly expect that the cost of the surety litigation will increase in 2027." — Sameer Parasnis (CFO)
2026 spend and LOE, hurricane impact
Q (Nicholas Pope · Roth Capital): Is the additional spending being brought into 2026 for recompletions or drilling? Is there broader opportunity to lower base LOE? Any storm equipment damage?
A: They said they have no drilling planned for 2027 and prefer to save cash for potential acquisitions. The additional 2026 spend is bulk on recompletions and workovers, which are easier and less expensive ways to increase production. On LOE they focus on maintaining margins while accepting some higher costs when prices rise, and storms caused shut-ins but no significant equipment damage.
"We don't have any drilling planned for 2027 at this point." — Tracy Krohn (CEO·CHAIR)
timing and competition for workovers
Q (Jeffrey Robertson · Water Tower): How long to mobilize for a workover or recompletion, and is there competition for required services?
A: They said there is competition for services, particularly in the liftboat market, so they must plan work around availability and cannot mobilize instantly. They are planning their 2027 budget now and laying out first-half activities while waiting for budget approval.
"We have to plan accordingly with what we have available, especially in the liftboat market, to be able to plan our work accordingly." — William Williford (COO)