W&T Offshore Plans $350 Million Senior Second Lien Notes Offering

W&T Offshore's Proposed Senior Second Lien Notes Offering

W&T Offshore, Inc. (NYSE: WTI), a key player in the oil and natural gas sector, has announced an exciting new initiative to enhance its financial stance. The company plans to offer $350 million in senior second lien notes, maturing in 2029. This private offering, made under circumstances exempt from the Securities Act of 1933, indicates a strategic move to bolster the company’s resources for future projects.

Utilization of Proceeds from the Offering

The proceeds generated from this notes offering are intended to be utilized strategically to not only manage existing debts but also to invest in areas that will help accelerate growth. Specifically, the funds will facilitate a tender offer to purchase W&T's existing 11.750% Senior Second Lien Notes due 2026, ensuring a more favorable financial position for the company.

Debt Management and Financial Commitments

Utilizing the net proceeds alongside existing cash reserves, W&T Offshore aims to complete a series of financial maneuvers. These include the redemption of any remaining notes from the 2026 offerings not validated during the initial tender process. The company will also use the funds to repay significant loan amounts from Munich Re Risk Financing, Inc., enhancing its overall liquidity.

Understanding the Notes and Guarantees

It is important to note that the senior second lien notes, along with their respective guarantees, are not registered under the Securities Act or any other securities laws, which means they can only be offered under specific exempt conditions. The company is focused on ensuring that these financial instruments are marketed toward qualified institutional buyers within the United States and to select non-U.S. investors.

Market Conditions and Offer Details

W&T Offshore’s innovative approach to financing through this offering showcases their adaptability to evolving market conditions. While this announcement is significant, it is crucial to stress that it does not serve as an offer to purchase or solicit any sales concerning these notes under the existing regulations.

About W&T Offshore

With a strong foundation built through strategic acquisitions, exploration, and development, W&T Offshore has continuously expanded its operational footprint, predominantly in the Gulf of Mexico. As of September 30, 2024, the company proudly owns interests in 53 fields, with a substantial amount of its production coming from wells that it actively operates. This operational efficiency highlights the company’s commitment to sustainable growth in the competitive energy sector.

Offering Landscape and Future Outlook

Moving forward, W&T Offshore is poised to leverage its financial robustness from the offering to address pressing market dynamics. These efforts include navigating the complexities of oil and gas price fluctuations and optimizing production efficiency while managing costs effectively.

Commitment to Transparency and Risks

This announcement emphasizes W&T Offshore's commitment to transparency by elucidating potential risks tied to market conditions and operational uncertainties. Investors are encouraged to remain informed about ongoing developments and consider the disclosed risk factors that accompany such financial undertakings.

Contact Information

For more details, investors and interested parties can reach out to:

Al Petrie
Investor Relations Coordinator
Email: investorrelations@wtoffshore.com
Phone: 713-297-8024

Sameer Parasnis
Executive Vice President and Chief Financial Officer
Email: sparasnis@wtoffshore.com
Phone: 713-513-8654

Frequently Asked Questions

What is W&T Offshore planning with the senior second lien notes?

W&T Offshore intends to raise $350 million through the offering to manage existing debts and support growth strategies.

How will the proceeds from the offering be used?

The proceeds will be employed to purchase existing senior second lien notes due 2026, repay loans, and address various expenses related to the offering.

Are the notes being offered registered?

No, the notes and related guarantees are not registered and will only be offered under specific exemption conditions.

What does this offering signify for investors?

This offering represents W&T Offshore's efforts to strengthen its financial position amidst evolving market conditions, signaling a strategic focus on sustainability.

Who can invest in these senior second lien notes?

The offering is targeted at qualified institutional buyers within the U.S. and selected non-U.S. investors, emphasizing aim for robust financial backing.

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