Results
W&T Offshore Inc.
10/07/2026 | Press release | Distributed by Public on 10/07/2026 14:51
W&T Offshore Completes Conversion of Revolving Credit Facility to Reserve-Based Lending Structure, Enhancing Financial Flexibility (Form 8-K)
W&T Offshore Completes Conversion of Revolving Credit Facility to Reserve-Based Lending Structure, Enhancing Financial Flexibility
Eliminates cash sweep, quarterly clean-down and asset coverage test; increases restricted payments capacity 50% to $15 million with no change to pricing or financial covenants and no amendment fees
HOUSTON, October 7, 2026 - W&T Offshore, Inc. (NYSE: WTI) ("W&T" or the "Company") today announced that on October 1, 2026, the Company entered into the Second Amendment to its Credit Agreement with Texas Capital Bank, as administrative agent, and its bank group, converting its existing $50.0 million revolving credit facility into a conventional reserve-based lending ("RBL") facility, effective as of that date.
Key Highlights of the Amended Facility
| · | Conventional RBL structure: Initial borrowing base of $50.0 million, fully supporting $50.0 million of elected commitments, with an aggregate maximum credit amount of $100.0 million that provides capacity, subject to borrowing base availability and lender consent, to increase commitments to support future growth. The borrowing base will be redetermined semi-annually each May 1 and November 1, beginning November 1, 2026; |
| · | Removal of restrictive features: Eliminates the 75% excess cash flow sweep, the requirement to repay any outstanding revolving credit facility balance every three months (clean-down) and the $100.0 million minimum PDP PV-10 asset coverage covenant, giving the Company greater control over its cash flow and liquidity; |
| · | Increased shareholder return capacity: The annual restricted payments basket was increased by 50%, from $10.0 million to $15.0 million; |
| · | Unchanged pricing and covenants: No change to interest rate margins, the Term SOFR floor, maturity, collateral or the Company's financial covenants, including a maximum net leverage ratio of 2.50x and a minimum current ratio of 1.00x; |
| · | No amendment fees: The lenders did not charge any amendment fees in connection with the transaction, other than the reimbursement of customary fees and expenses of the administrative agent; and |
| · | Continued bank group support: Each of the Company's continuing lenders maintained their full commitment, and CIBC rejoined the bank group with a $10.0 million commitment, replacing an exiting lender. |
Management Commentary
"This amendment is an important step in the evolution of W&T's capital structure," said Tracy W. Krohn, Chairman of the Board and Chief Executive Officer. "Moving to a conventional reserve-based facility removes the cash sweep, clean-down and asset coverage requirements that constrained our liquidity management. It also provides the potential to expand borrowing capacity up to $100 million as we grow our reserve base, and increases our flexibility to grow the Company and return capital to shareholders - all with no change to pricing or financial covenants and without any amendment fees. We are thankful for the continued support of our bank group, led by Texas Capital Bank. We are delighted to welcome back CIBC, a past lender to W&T, with whom we look forward to growing our relationship further. Additionally, we are entering the fourth quarter of 2026 with total liquidity of approximately $234 million. This solid base will help us execute the goals we have set for 2026 and 2027.
Additional information regarding the amendment is included in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on October 7, 2026.
About W&T Offshore
W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of America and has grown through acquisitions, exploration and development. As of June 30, 2026, the Company had working interests in 48 fields in federal and state waters (which include 41 fields in federal waters and seven in state waters). The Company has under lease approximately 591,000 gross acres (457,000 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 450,000 gross acres on the conventional shelf, approximately 136,000 gross acres in the deepwater and 5,000 gross acres in Alabama state waters. A majority of the Company's daily production is derived from wells it operates. For more information on W&T, please visit the Company's website at www.wtoffshore.com.
W&T Offshore Inc. published this content on October 07, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 07, 2026 at 20:51 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]