W&T Offshore, Inc., First Quarter 2023 Results

• Reported first quarter 2023 production of 32.5 thousand barrels of oil equivalent per day ("MBoe/d") (56% liquids), or 2.9 million barrels of oil equivalent ("MMBoe");
  • Production during the quarter was impacted by several planned periodic facility and pipeline maintenance projects at the Mobile Bay field as well as unplanned downtime at several non-operated fields that temporarily reduced production volumes;
  • Shut-in production has mostly been restored and total Company production is currently averaging approximately 38.1 Mboe/d;
• Generated net income of $26.0 million or $0.17 per diluted share in the first quarter of 2023, which includes $39.2 million in net unrealized gain on outstanding derivative contracts;
  • Adjusted Net Loss totaled $2.4 million, or $0.02 per share in the first quarter of 2023, which excludes the net unrealized gain on outstanding derivative contracts;
• Reported Adjusted EBITDA of $43.1 million for the first quarter of 2023;
• Produced Free Cash Flow of $12.4 million for the first quarter of 2023, the 21^st consecutive quarter of positive Free Cash Flow;
• Closed the previously-announced offering of $275 million in aggregate principal amount of 11.75% Senior Second Lien Notes due 2026 (the "2026 Senior Second Lien Notes") on January 27, 2023;
  • The Company used the net proceeds of the offering, along with cash on hand, to fund the redemption of all of the Company's outstanding 9.75% Senior Second Lien Notes due 2023 (the "2023 Senior Second Lien Notes");
• Maintained strong cash and cash equivalents of $177.4 million at March 31, 2023;
• Decreased Net Debt to $225.9 million as of March 31, 2023, which is down substantially from Net Debt of $504.8 million a year ago;
• Continued to maintain a low leverage profile with Net Debt to trailing twelve months ("TTM") Adjusted EBITDA of 0.4 times compared to over 2.0 times one year ago;
• Appointed a new independent director to the Board, Dr. Nancy Chang, who will serve as chair of the Environmental, Safety and Governance Committee and as a member of the Audit Committee and the Nominating and Corporate Governance Committee; and
• Named apparent high bidder in the most recent Gulf of Mexico ("GOM") lease sale on two shallow water blocks, Eugene Island South Addition block 371 and Eugene Island South Addition block 387. These two blocks cover a total of approximately 10,000 gross acres.

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