W&T Offshore Settles Insurance Claim for $58.5 Million

W&T Offshore, Inc. (NYSE: WTI) recently announced that it has reached a Settlement and Release Agreement with the underwriters of its energy package insurance policy to settle claims related to a casualty loss event at the Company’s Mobile Bay 78-1 well in 2023. The Settlement Agreement outlines that W&T Offshore will resolve the Insurance Claim for a total payment of $58.5 million, expected to be received in January 2025.

The Settlement requires the Insurers to make the payment within 30 days. Additionally, the Agreement includes standard representations, warranties, and agreements by both the Company and the Insurers. Although the summary of the Settlement Agreement provided does not encompass all details, a complete copy will be filed by W&T Offshore with its Annual Report on Form 10-K for the year ended December 31, 2024.

In a press release issued on January 8, 2025, the Company stated that it does not expect any operational impact from the recent Presidential ban announced on January 6, 2025, regarding new offshore oil and gas drilling activities. The ban, which affects specific U.S. offshore areas including the Atlantic coast, eastern Gulf of Mexico, and the Pacific coast, does not impact W&T Offshore’s production or leases.

Furthermore, W&T Offshore’s Chairman and Chief Executive Officer, Tracy W. Krohn, expressed positivity regarding recent developments. He highlighted the sale of non-core interests in Garden Banks Blocks 385 and 386, the expected restart of operations in the West Delta 73 field by mid-second quarter 2025, and the planned return to production of the Main Pass 108 and 98 fields by early second quarter of 2025 as significant factors contributing to the Company’s outlook for 2025.

It is essential to note that forward-looking statements in the Company’s announcements, including the development of operations, business strategy, and anticipated future results, come with inherent risks and uncertainties. These statements are based on current expectations and assumptions but are subject to numerous factors beyond the Company’s control that could lead to actual outcomes differing from those forecasted.

The financial information and updates provided by W&T Offshore indicate a strategic focus on generating free cash flow, maintaining production levels, and maximizing margins. The Company’s commitment to executing its vision remains unwavering as it anticipates continuing to deliver strong results throughout 2025.

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, an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil and condensate, natural gas liquids, and natural gas. W&T Offshore, Inc was founded in 1983 and is headquartered in Houston, Texas.