Voya Financial (VOYA) Q3 Earnings and Revenues Top Estimates

It has been about a month since the last earnings report for W&T Offshore (WTI). Shares have lost about 8.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is W&T due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

W&T Offshore Q4 Earnings & Revenues Beat Estimates

W&T Offshore reported fourth-quarter 2022 adjusted earnings (excluding one-time items) of 10 cents per share, beating the Zacks Consensus Estimate of 3 cents. The bottom line is in line with the year-ago quarter’s earnings.

Total quarterly revenues of $189.7 million surpassed the Zacks Consensus Estimate of $182 million. The top line also increased from $165.6 million in the prior-year quarter.

The strong quarterly results were driven by higher production and the realization of commodity prices.

Production Statistics

The total production averaged 38.6 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 37.2 MBoe/d.

Oil production was 1,375 thousand barrels (MBbls), up from the year-ago level of 1,186 MBbls. Natural gas liquids’ output totaled 371 MBbls, higher than 345 MBbls a year ago. However, natural gas production of 10,843 million cubic feet (MMcf) for the reported quarter was lower than 11,321 MMcf in the year-earlier period.

Realized Commodity Prices

The average realized price for oil in the fourth quarter was $81.27 a barrel, higher than the year-ago level of $75.14. The average realized price of NGL declined to $25.70 from $40.46 per barrel in the prior year. The average realized price of natural gas for the December-end quarter was $6.12 per thousand cubic feet, up from $5.29 in the last year’s comparable period. The average realized price for oil-equivalent output increased to $52.82 per barrel from $47.70 a year ago.

Operating Expenses

Lease operating expenses rose to $19.42 per Boe in the fourth quarter from $13.22 a year ago. Also, general and administrative expenses increased to $6.18 per Boe from $4.19 in the year-ago period.

Overall, total costs and expenses increased to $133.7 million from the year-ago level of $97.3 million.

Cash Flow

Net cash from operations for the fourth quarter was $12.7 million, which declined from $22.4 million in the year-ago period.

Free cash flow for the reported quarter increased to $25 million from $22.5 million in the year-ago quarter.

Capital Spending & Balance Sheet

W&T Offshore spent $11.7 million in capital through the December-end quarter (excluding acquisitions) on oil and gas resources.

As of Dec 31, 2022, the company’s cash and cash equivalents were $461.4 million, up from the third-quarter 2022 level of $447.1 million. Its net long-term debt, as of the December-end quarter, was $111.2 million, down from the prior-quarter level of $666 million. The current portion of the long-term debt is $582.2 million.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, W&T has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren’t focused on one strategy, this score is the one you should be interested in.


W&T has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

W&T belongs to the Zacks Oil and Gas – Exploration and Production – United States industry. Another stock from the same industry, SM Energy (SM), has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.

SM Energy reported revenues of $671.32 million in the last reported quarter, representing a year-over-year change of -21.5%. EPS of $1.29 for the same period compares with $1.14 a year ago.

SM Energy is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of -32.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -16.3%.

SM Energy has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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