W&T Offshore Announces Intent to Offer $350 Million in Senior Second Lien Notes

W&T Offshore, Inc. (NYSE: WTI) disclosed in a recent Form 8-K filing that it intends to offer $350 million in aggregate principal amount of senior second lien notes due 2029 in a private offering exempt from registration under the Securities Act of 1933. This announcement was made on January 13, 2025.

The purpose of this offering, subject to market conditions and other factors, was highlighted in the filing. The company provided details concerning this offering in a press release attached to the filing as Exhibit 99.1. It was emphasized that this press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any related guarantees.

In addition to the notes offering, investors in this offering were provided with a report prepared by Netherland, Sewell & Associates, Inc. The report detailed estimates of reserves and future revenue as of June 30, 2024, relating to W&T’s interest in specific oil and gas properties in various locations. This report was attached as Exhibit 99.2 to the filing.

The filing also highlighted that there are inherent risks and uncertainties associated with forward-looking statements, including those concerning the notes offering. The company cautioned that these statements are subject to various factors beyond its control that could lead to actual results differing significantly from the expectations expressed in these statements.

It was specified in the filing that the information provided is for disclosure purposes and does not constitute a filing for actual financial or legal purposes. This information was “furnished” rather than “filed” pursuant to General Instruction B.2 of Form 8-K.

Furthermore, the filing elaborated on the Company’s ongoing litigations with certain Sureties. These legal actions involved demands for substantial amounts in cash collateral, with total demanded collateral reaching approximately $254.7 million. The Company highlighted potential outcomes and the impact these situations might have on their liquidity and operational capabilities.

As per the filing, W&T Offshore also addressed possible challenges regarding the extension, replacement, or refinancing of the Existing Credit Agreement expiring on January 31, 2025. Uncertainties were noted regarding whether the Company would be able to secure an extension or replacement on satisfactory terms or at all, potentially affecting its liquidity outlook.

Investors and stakeholders are advised to review the complete Form 8-K filing on the SEC’s EDGAR database for more detailed information about W&T Offshore’s recent developments, financial disclosures, and risk factors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read W&T Offshore’s 8K filing here.

About W&T Offshore

W&T Offshore, Inc engages in the production, exploration, development, and acquisition of oil and natural gas properties. It focuses its operations in the Gulf of Mexico. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX.