W&T Offshore has released preliminary financial figures for the full year 2025, revealing a significant expansion in its net loss alongside a sharp decline in revenue and free cash flow. The Houston-based Gulf of Mexico producer reported an unaudited net loss of $150.1 million, a substantial increase from the $87.1 million loss recorded in 2024. This deterioration comes as the company's revenue fell to $501.5 million.
The challenging results arrive during a period of volatility for smaller offshore operators, who are contending with fluctuating crude prices and stringent financial requirements for well decommissioning. While U.S. crude oil experienced notable price swings, including a spike to $119.48 per barrel on the reporting date, W&T's realized pricing moved in the opposite direction. The company's average oil selling price for the year dropped to $64.09 per barrel, down from $75.28 in the prior year.
Despite the pricing pressure, W&T managed a slight increase in production. Output averaged 34,000 barrels of oil equivalent per day (boe/d), up from 33,300 boe/d in 2024. On an adjusted basis, excluding certain items, the loss amounted to 37 cents per diluted share. A critical metric, free cash flow, plummeted to just $1.5 million from $44.9 million a year earlier, indicating severely constrained operational liquidity.
The balance sheet presented a mixed picture. Year-end liquidity improved to $184.5 million, with $140.6 million held in cash. Notably, net debt was reduced to $210.3 million, down from $284.2 million at the close of 2024. In a separate announcement just days prior, the company's board elected to maintain its quarterly dividend at 1 cent per share, marking the ninth consecutive quarter at that level. Chief Executive Tracy Krohn reiterated that returning value to shareholders remains a priority.
Potentially positive news for the company and its peers emerged from a regulatory proposal. The U.S. Department of the Interior published a notice in the Federal Register proposing an overhaul of the Bureau of Ocean Energy Management's rules regarding supplemental financial assurance. These rules dictate the extra collateral operators must post to guarantee future cleanup costs for retired wells and platforms.
The proposed update could provide substantial cost relief. The Interior Department estimates the new approach could reduce industry costs by approximately $484 million annually. The proposed rule itself projects an overall reduction of roughly $6.2 billion in required financial commitments. This regulatory shift is not exclusive to W&T; it impacts other Gulf of Mexico players with upstream assets, such as Talos Energy and Murphy Oil.
CEO Krohn has previously argued that the burden of the existing rules fell disproportionately on smaller independent producers. In December, he told Reuters the agency lacked a "real basis" for demanding significantly higher bonding. The proposed changes could alleviate a major financial and operational headwind for the sector.
W&T emphasized that all reported figures are preliminary and unaudited, subject to potential material revision before the company files its official annual report by March 16. The company also reported a decrease in its proved reserves, which fell to 121 million barrels of oil equivalent from 127 million at the end of 2024. W&T Offshore plans to discuss its full-year results in detail during a conference call scheduled for March 17. The company operates offshore fields primarily near the coasts of Louisiana, Texas, Mississippi, and Alabama.
