W&T Offshore, Inc. (WTI) — Agentic Tribune

PART I

ITEM 1. BUSINESS

W&T Offshore, Inc. (“we,” “our” or “us”) is a publicly held Texas corporation. We are an independent oil and natural gas producer with substantially all our operations offshore in the Gulf of America. We are active in the acquisition, exploration and development of oil and natural gas properties. We operate in one reportable segment.

Since our founding in 1983 by our Chairman and Chief Executive Officer, Tracy Krohn, we have developed significant technical expertise in finding and developing properties in the Gulf of America with existing production which provide the best opportunity to achieve a return on our invested capital. We have successfully discovered and produced properties on the conventional shelf and in the deepwater across the Gulf of America.

We have continually grown our footprint in the Gulf of America through acquisitions, exploration and development. As of December 31, 2025, we held working interests in 49 offshore producing fields in federal and state waters. Our producing fields are located in federal and state waters in the Gulf of America in water depths ranging from less than 10 feet to up to 7,300 feet. The reservoirs in our offshore fields are generally characterized as having high porosity and permeability, with higher initial production rates relative to other domestic reservoirs.

Our acreage, well, production and reserves information are described in more detail under Part I, Item 2. Properties, in this Form 10-K.

Business Strategy

The Gulf of America offers unique advantages, and we are uniquely positioned to create value with a diverse portfolio in valuable shelf, deep shelf and deepwater projects. Our diverse portfolio of operations in the Gulf of America enables stacked pay development, attractive primary production, and recompletion opportunities. We use advanced seismic and geoscience tools to execute successful drilling projects.

In managing our business, we are focused on optimizing production and increasing reserves in a profitable and prudent manner, while managing cash flows to meet our obligations and investment needs. Our goal is to pursue lower risk, high rate of return projects and develop oil and natural gas resources that allow us to grow our production, reserves and cash flow in a capital efficient manner, and organically enhance the value of our assets helping to ensure the long-term sustainability of our business.

We follow a proven and consistent business strategy:

●

Focus on free cash flow generation. Our strong production base and cost optimization has generated steady free cash flows. The Gulf of America is an area where we have developed significant technical expertise and where high production rates associated with hydrocarbon deposits have historically provided us the best opportunity to achieve high rates of return on our invested capital.

●

Maintain and optimize high-quality conventional asset base with low decline. We generate incremental production from probable reserves and possible reserves due to natural drive mechanisms. Typical fields with high-quality sands offer mechanisms superior to primary depletion and they often enjoy incremental reserve adds annually. Fewer conventional wells are required to develop these fields. While we continue to utilize proven techniques and technologies, we will also continuously seek efficiencies in our drilling, completion and production techniques in order to optimize ultimate resource recoveries, rates of return and cash flows.

●

Capitalize on unique and accretive acquisition opportunities. We strategically pursue the acquisition of compelling producing assets that generate cash flows at attractive valuations with upside potential and optimization opportunities. We may also use our capital flexibility to pursue value-enhancing, bolt-on acquisitions to opportunistically improve our positions in existing assets.

Table of Contents

●

Reduce costs to improve margins. We grow in opportunistic ways as we manage our balance sheet prudently and reinvest free cash flow. Our existing portfolio of 200 structures (142 of which we operate) provides a key advantage when evaluating and developing prospect opportunities and serves to reduce capital expenditures and maximize our returns on capital expenditures.

●	Preserve ample liquidity and maintain financial flexibility. By operating within our free cash flow, we are able to improve liquidity and optimize our balance sheet.

●

Maintain safety, sustainability and corporate responsibility as key principles for operations across all areas of our business. We are focused on maintaining high standards of safety, environmental responsibility and corporate citizenship across all elements of our business. We closely monitor safety performance and consistently take steps to improve our performance. We strive to execute our business plan while simultaneously minimizing our environmental footprint, including emissions, potential spills and other impacts. Production from the Gulf of America continues to provide some of the lowest greenhouse gas (“GHG”) emissions intensity due to the nature of subsea wells and established offshore pipelines, and we continue to strive to lower our GHG emissions. Finally, we aim to be a good corporate citizen in the regions and communities where we operate.

We intend to execute the following elements of our business strategy in order to achieve our strategic goals:

●	Exploit existing and acquired properties to add additional reserves and production;

●	Explore for reserves on our extensive acreage holdings and in other areas of the Gulf of America;

●	Acquire reserves with substantial upside potential and additional leasehold acreage complementary to our existing acreage position at attractive prices;

●	Continue to manage our balance sheet in a prudent manner and continue our track record of financial flexibility in any commodity price environment; and

●	Carry out our business strategy in a safe and socially responsible manner.

We continually monitor current and forecasted commodity prices to assess if changes to our plans are needed. Our significant inside ownership ensures that executive management’s interests are highly aligned with those of our shareholders, thus incentivizing executive management to maximize value and mitigate risk in executing our business strategy, generating shareholder value.

Competition

The oil and natural gas industry is highly competitive. We encounter strong competition from numerous entities, including major domestic and foreign oil companies, other independent oil and natural gas companies and individual producers and operators, in acquiring oil and natural gas properties, contracting for drilling equipment and securing trained personnel. Many of these competitors are large, well-established companies that have financial and other resources substantially greater than ours. As a result, our competitors may be better able to withstand the financial pressures of significant declines in oil and natural gas prices, unsuccessful drill attempts, delays, sustained periods of volatility in financial markets and generally adverse global and industry-wide economic conditions, and may have a greater ability to provide the extensive regulatory financial assurances required for offshore properties and to absorb the burdens from changes in applicable laws and regulations. As a smaller oil and natural gas company, however, we have greater flexibility in decision making, can adapt quicker to market changes, have the potential for higher profit margins on smaller projects and have the opportunity to develop innovative strategies without the constraints of large-scale operations.

Table of Contents

Oil and Natural Gas Marketing and Delivery Commitments

The market for our oil, NGL and natural gas production depends on factors beyond our control, including the extent of domestic production and imports of oil, NGLs and natural gas; the proximity and capacity of natural gas pipelines and other transportation facilities; the demand for oil, NGLs and natural gas; the marketing of competitive fuels; and the effect of state and federal regulation. The oil and natural gas industry also competes with other industries in supplying the energy and fuel requirements of industrial, commercial and individual consumers.

We sell our oil, NGLs and natural gas to third-party customers. The terms of sale under the majority of existing contracts are short-term, usually one year or less in duration. The prices received for oil, NGL and natural gas sales are generally tied to monthly or daily indices as quoted in industry publications.

We are not dependent upon, or contractually limited to, any one customer or small group of customers. In 2025, BP Products North America and Shell Trading (US) Company accounted for 33% and 17%, respectively, of our revenues from sales of oil, NGLs and natural gas. Given the commoditized nature of the products we produce and market and the location of our production in the Gulf of America, we believe the loss of any of the customers above would not result in a material adverse effect on our ability to market future oil and natural gas production, as we believe that replacement customers could be obtained in a relatively short period of time on terms, conditions, and pricing substantially similar to those currently existing.

Seasonal Nature of Our Business

Generally, the demand for and price of natural gas increases during the winter months and decreases during the summer months. However, these seasonal fluctuations are somewhat reduced because during the summer, pipeline companies, utilities, local distribution companies and industrial users purchase and place a portion of their anticipated winter requirements of natural gas into storage facilities. As utilities continue to switch from coal to natural gas, some of this seasonality has been reduced as natural gas is used for both heating and cooling. In addition, the demand for oil is higher in the winter months but does not fluctuate seasonally as much as natural gas.

Seasonal weather changes affect our operations. Tropical storms and hurricanes occur in the Gulf of America during the summer and fall, which can require us to evacuate personnel and shut in production until a storm subsides. Also, periodic storms during the winter often impede our ability to safely load, unload and transport personnel and equipment, which can delay production and sales of our oil and natural gas.

Insurance Coverage

In accordance with industry practice, we maintain insurance coverage against some, but not all, of the operating risks to which our business is exposed. In general, our current insurance policies cover risks incident to the operation of oil and natural gas wells, including, but not limited to, personal injury or loss of life, severe damage to and destruction of property and equipment, pollution or other environmental damage and the suspension of operations. We do not carry business interruption insurance.

Our general and excess liability policies currently provide for $300.0 million of coverage for bodily injury and property damage liability, including coverage for liability claims resulting from seepage, pollution or contamination. Our Energy Package (defined as certain insurance policies relating to our oil and natural gas properties, which include named windstorm coverage) contains multiple layers of insurance coverage for our operating activities, with higher limits of coverage for higher valued properties and wells. Under the Energy Package, the limits for well control range from $30.0 million to $500.0 million depending on the risk profile and contractual requirements. With respect to coverage for named windstorms, we have a $162.5 million aggregate limit covering one of our higher valued properties, and $150.0 million for all other properties subject to four regional retentions ranging from $1.0 million to $15.0 million on the conventional shelf properties and $7.5 million on the deepwater properties.

We believe that our coverage limits are sufficient and are consistent with our exposure; however, we cannot insure against all possible losses. As a result, any damage or loss not covered by insurance could have a material adverse effect on our financial condition, results of operations and cash flow.

Table of Contents

We annually re-evaluate the purchase of insurance, coverage limits and deductibles. Future insurance coverage for the oil and natural gas industry could increase in cost and may include higher deductibles or retentions. In addition, some forms of insurance may become unavailable in the future or unavailable on terms that are economically acceptable. No assurance can be given that we will be able to insure our business activities at the levels we desire because of either limited market availability or unfavorable economics (limited coverage for the underlying cost).

Environmental, Health and Safety Matters and Government Regulations

Our operations are subject to complex and stringent federal, state and local laws and regulations that, among other things, govern the issuance of permits to conduct exploration, drilling and production operations, the amounts and types of materials that may be released into the environment and the discharge and disposal of waste materials and, to the extent waste materials are transported and disposed of in onshore facilities, remediation of any releases of those waste materials from such facilities. The federal environmental laws and regulations applicable to us and our operations include, among others, the following:

●	The Resource Conservation and Recovery Act, as amended, regulates the generation, transportation, storage, treatment and disposal of non-hazardous and hazardous wastes and can require cleanup of hazardous waste disposal sites;

●

The Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (“CERCLA”) and comparable state laws impose liability, without regard to fault or the legality of the original conduct, on certain classes of persons that are considered to be responsible for the release of a “hazardous substance” into the environment;

●	The Clean Air Act, as amended (the “CAA”), and comparable state and local requirements restrict the emission of air pollutants from many sources through the imposition of air emission standards, construction and operating permitting programs and other compliance requirements;

Loading financial statements...

Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-08-05 (period ending 2026-06-30).

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes included in Part I, Item 1. Financial Statements, of this Quarterly Report, as well as our audited consolidated financial statements and the notes thereto in the 2025 Annual Report and the related MD&A included in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our 2025 Annual Report. Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report to “us,” “we” and “our” are to W&T Offshore, Inc. and its wholly owned subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. If the risks or uncertainties materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements and assumptions. When used in this Quarterly Report, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast,” “may,” “objective,” “plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We assume no obligation, nor do we intend, to update these forward-looking statements, unless required by law.

The information included in this Quarterly Report includes forward-looking statements that involve risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects. Such statements specifically include our expectations as to our future financial position, liquidity, cash flows, results of operations and business strategy, potential acquisition opportunities, other plans and objectives for operations, capital for sustained production levels, expected production and operating costs, reserves, hedging activities, capital expenditures, return of capital, improvement of recovery factors and other guidance. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. For any such forward-looking statement that includes a statement of the assumptions or bases underlying such forward-looking statement, we caution that, while we believe such assumptions or bases to be reasonable and make them in good faith, assumed facts or bases almost always vary from actual results, sometimes materially. Known material risks that may affect our financial condition and results of operations are discussed in Part I, Item 1A. Risk Factors, and market risks are discussed in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of our 2025 Annual Report, and may be discussed or updated from time to time in subsequent reports filed with the SEC.

Reserve engineering is a process of estimating underground accumulations of crude oil, NGLs and natural gas that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing, and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of crude oil, NGLs and natural gas that are ultimately recovered.

All forward-looking statements, expressed or implied, included in this Quarterly Report are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Table of Contents

BUSINESS OVERVIEW

We are an independent oil and natural gas producer, active in the exploration, development and acquisition of oil and natural gas properties in the Gulf of America. As of June 30, 2026, we hold working interests in 48 offshore fields in federal and state waters (which include 41 fields in federal waters and seven in state waters). We currently have under lease approximately 591,000 gross acres (457,100 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 5,600 gross acres in Alabama state waters, 449,200 gross acres on the conventional shelf and approximately 136,200 gross acres in the deepwater. A majority of our daily production is derived from wells we operate.

Recent Developments

On August 5, 2026, we declared a regular quarterly dividend of $0.01 per share of common stock for the third quarter of 2026. We expect to pay the dividend on August 26, 2026 to stockholders of record as of the close of business on August 19, 2026.

Business Outlook

Our financial condition, cash flow and results of operations are significantly affected by the volume of our oil, NGLs and natural gas production and the prices that we receive for such production. Changes in the prices that we receive for our production impact all aspects of our business; most notably our cash flows from operations, revenues, capital allocation and budgeting decisions and our reserves volumes. Prices of oil, NGLs and natural gas have historically been volatile and can fluctuate significantly over short periods of time for many factors outside of our control, including changes in market supply and demand, which are impacted by weather conditions, pipeline capacity constraints, inventory storage levels, domestic production activities and political issues, and international geopolitical and economic events.

On June 18, 2026, the United States and Iran signed a memorandum of understanding (“MOU”) related to the conflict between the two countries, including with respect to the re-opening of the Strait of Hormuz, which had been closed earlier in 2026 and had contributed to elevated oil prices. Expectations of increasing oil supply and moderating inventory draws have caused oil prices to fall. The average spot price for WTI oil averaged $84.81 per barrel in June 2026, down $17.32 per barrel from May 2026. In the Energy Information Administration’s (the “EIA”) Short-Term Energy Outlook published in July 2026, the EIA is forecasting that spot prices for WTI will average $68.50 per barrel for the remainder of 2026 and $60.83 per barrel in 2027. The EIA expects that ongoing oil inventory accumulation over the next year will continue to put downward pressure on oil prices.

Just over a week after signing the MOU, Iran launched a drone strike against a ship in the Strait of Hormuz. The attack, interpreted by the United States as a violation of the ceasefire agreement, prompted a round of contained strikes against Iran. In addition, Yemen’s Houthis opened a new front in the war by targeting vessels carrying Saudi oil, further disrupting global oil shipping as the Red Sea is another strategic waterway that oil companies use to transport their oil from the Middle East. Although oil prices rose as a result of these disruptions, prices are still significantly lower than the high prices experienced in the middle of May 2026. Workarounds via pipelines and the use of the southern shipping route through the Strait of Oman have kept the cost of oil from skyrocketing, and production worldwide has also stepped up in response to the off-and-on closure of the Strait of Hormuz.

The Henry Hub spot price averaged $2.95 per MMBtu for the second quarter of 2026, and the EIA expects the spot prices for Henry Hub natural gas to average $3.47 per MMBtu for the remainder of 2026 and average $3.49 per MMBtu in 2027. The EIA expects that record natural gas production will help meet rising demand from the electric power sector, putting moderate downward pressure on natural gas prices.

Our average realized sales price for oil and natural gas differs from the WTI average price and the NYMEX Henry Hub average price, respectively, primarily due to premiums or discounts, quality adjustments, location adjustments and volume weighting (collectively referred to as differentials). Oil price differentials primarily represent the transportation costs in moving produced oil at the wellhead to a refinery and are based on the availability of pipeline, rail and other transportation. Natural gas price differentials are strongly impacted by local market fundamentals, availability of transportation capacity from producing areas and seasonal impacts. Prices and differentials for NGLs are related to the supply and demand for the products making up these liquids. Some of them more typically correlate to the price

Table of Contents

of oil while others are affected by natural gas prices as well as the demand for certain chemical products which are used as feedstock.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Revenues

Our revenues are derived from the sale of our oil and natural gas production, as well as the sale of NGLs. Our oil, NGL and natural gas revenues do not include the effects of derivatives, which are reported in Derivative loss (gain), net in our Condensed Consolidated Statements of Operations.

The following table presents information regarding our revenues, production volumes and average realized sales prices (which exclude the effect of hedging unless otherwise stated) for the periods presented and corresponding changes (in thousands, except average realized sales prices data):


		Three Months Ended June 30,
		2026			2025				Change
Revenues:
Oil		$	120,454		$	80,014		$	40,440
NGLs			6,037			4,715			1,322
Natural gas			32,093			34,802			(2,709)
Other			4,035			2,836			1,199
Total revenues			162,619			122,367			40,252

Production Volumes:
Oil (MBbls) ⁽¹⁾			1,213			1,259			(46)
NGLs (MBbls)			329			245			84
Natural gas (MMcf) ⁽²⁾			9,689			9,285			404
Total oil equivalent (MBoe) ⁽³⁾			3,157			3,052			105

Average daily equivalent sales (Boe/day) ⁽⁴⁾			34,692			33,538			1,154

Average realized sales prices:
Oil ($/Bbl) ⁽⁵⁾		$	99.30		$	63.55		$	35.75
NGLs ($/Bbl)			18.35			19.24			(0.89)
Natural gas ($/Mcf) ⁽⁶⁾			3.31			3.75			(0.44)
Oil equivalent ($/Boe)			50.23			39.16			11.07
Oil equivalent ($/Boe), including realized commodity derivatives			45.90			42.29			3.61

(1)	MBbls — thousands of barrels of oil, condensate or NGLs

(2)	MMcf — million cubic feet

(3)	MBoe — thousand barrels of oil equivalent

(4)	Boe — barrels of oil equivalent

(5)	Bbl — barrels of oil, condensate or NGLs

(6)	Mcf — thousand cubic feet

Table of Contents

Changes in average sales prices and production volumes caused the following changes to our oil, NGL and natural gas revenues between the three months ended June 30, 2026 and 2025 (in thousands):


	Price			Volume		Total
Oil	$	43,321		$	(2,881)	$	40,440
NGLs		(289)			1,611		1,322
Natural gas		(4,222)			1,513		(2,709)
	$	38,810		$	243	$	39,053

Production volumes increased by 105 MBoe to 3,157 MBoe during the three months ended June 30, 2026 compared to the same period in 2025 primarily due to restoring production at our West Delta 73 and Eugene Island 64 fields and recompletion of a well at our Garden Banks 783 field, partially offset by reduced production at our Mobile Bay fields due to a temporary re-route of production due to third-party maintenance.

Operating Expenses

The following table presents information regarding costs and expenses and selected average costs and expenses per Boe sold for the periods presented and corresponding changes (in thousands, except average data):


		Three Months Ended June 30,
		2026			2025				Change
Operating expenses:
Lease operating expenses		$	71,563		$	76,924		$	(5,361)
Gathering, transportation and production taxes			6,565			5,499			1,066
Depreciation, depletion and amortization			25,578			26,446			(868)
Asset retirement obligations accretion			8,776			8,681			95
General and administrative expenses			27,508			17,670			9,838
Total operating expenses		$	139,990		$	135,220		$	4,770

Average per Boe ($/Boe):
Lease operating expenses		$	22.67		$	25.20		$	(2.53)
Gathering, transportation and production taxes			2.08			1.80			0.28
Depreciation, depletion and amortization			8.10			8.67			(0.57)
Asset retirement obligations accretion			2.78			2.84			(0.06)
General and administrative expenses			8.71			5.79			2.92
Total operating expenses		$	44.34		$	44.30		$	0.04

Lease operating expenses – Lease operating expenses (“LOE”) include the expense of operating and maintaining our wells, platforms and other infrastructure primarily in the Gulf of America. These operating costs are comprised of several components including direct or base lease operating expenses, insurance premiums, workover costs and facility maintenance expenses. LOE, which depend in part on the type of commodity produced, the level of workover activity and the geographical location of the properties, decreased $5.4 million during the three months ended June 30, 2026 compared to the same period in 2025. On a per Boe basis, LOE decreased to $22.67 per Boe during the three months ended June 30, 2026 compared to $25.20 per Boe during the three months ended June 30, 2025. On a component basis, base LOE decreased $2.5 million, workover expenses decreased $1.1 million, facilities maintenance expense decreased $1.9 million and hurricane repairs increased $0.1 million.

Expenses for direct labor, materials, supplies, repair, third-party costs and insurance comprise the most significant portion of our base LOE. These costs decreased primarily due to lower costs overall, reflecting the success of our cost reduction efforts that began in the fourth quarter of 2025 and continued into the three months ended June 30, 2026.

Table of Contents

Workover and facilities maintenance expenses consist of costs associated with major remedial operations on completed wells to restore, maintain or improve the well’s production. Since these remedial operations are not regularly scheduled, workover and maintenance expense are not necessarily comparable from period to period. The decreases in workover expenses and facilities maintenance expenses were due to the timing and mix of projects undertaken.

Gathering, transportation and production taxes – Gathering and transportation consist of costs incurred in the post-production shipping of oil, NGLs, and natural gas to the point of sale. Production taxes consist of severance taxes levied by the Alabama Department of Revenue, the Louisiana Department of Revenue and the Texas Department of Revenue on production of oil and natural gas from land or water bottoms within the boundaries of each state. Gathering, transportation and production taxes increased $1.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to the impact of the new NGL processing contract at Mobile Bay and higher production volumes in the three months ended June 30, 2026.

Depreciation, depletion and amortization – Depreciation, depletion and amortization expense (“DD&A”) is the expensing of the capitalized costs incurred to acquire, explore and develop oil and natural gas reserves. We use the full cost method of accounting for oil and natural gas activities. DD&A decreased $0.9 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 primarily due to a decrease of $1.6 million from the decrease in the depletion rate per thousand cubic feet equivalent (“Mcfe”) offset by an increase of $0.9 million from the increase in production. The DD&A rate decreased to $8.10 per Boe for the three months ended June 30, 2026 from $8.67 per Boe for the three months ended June 30, 2025. The DD&A rate per Boe decreased primarily as a result of decreases in future development costs, partially offset by decreased proved reserves.

General and administrative expenses – General and administrative (“G&A”) expenses generally consist of costs incurred for overhead, including payroll and benefits for our corporate staff, costs of maintaining our headquarters, costs of managing our production operations, bad debt expense, share-based compensation costs, audit and other fees for professional services and legal compliance. G&A expenses increased $9.8 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to increases of $8.2 million in share-based compensation costs and $1.1 million in legal and professional fees.

Other Income and Expense Items

The following table presents the components of other income and expense items for the periods presented and corresponding changes (in thousands):


		Three Months Ended June 30,
		2026			2025				Change
Interest expense, net		$	9,231		$	9,005		$	226
Derivative loss (gain), net			1,917			(12,047)			13,964
Other expense, net			287			13,455			(13,168)
Income tax benefit			(1,367)			(2,382)			1,015

Derivative loss (gain), net – During the three months ended June 30, 2026, we recorded a $1.9 million derivative loss for our derivative contracts consisting of $13.7 million of realized losses offset by $11.8 million of unrealized gain from the increase in the fair value of our open contracts. During the three months ended June 30, 2025, we recorded a $12.0 million derivative gain for our natural gas derivative contracts consisting of $9.5 million of realized gains and $2.5 million of unrealized gain from the increase in the fair value of our open contracts.

Other expense, net – Other expense, net decreased $13.2 million for the three months ended June 30, 2026 compared to the same period in 2025 primarily related to an accrual of additional expenses in the three months ended June 30, 2025 for net abandonment obligations related to our assumption of decommissioning obligations when certain counterparties in past divestiture transactions or third parties in existing leases have filed for bankruptcy protection or may not be able to perform required abandonment obligations.

Table of Contents

Income tax benefit – Our effective tax rates for the three months ended June 30, 2026 and 2025 were (12.2)% and 10.2%, respectively, and differed from the federal statutory rate primarily due to the impact of losses with no tax benefit and adjustments to the valuation allowance.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Revenues


	Six Months Ended June 30,
	2026			2025				Change
Revenues:
Oil	$	210,557		$	167,730		$	42,827
NGLs		12,948			9,487			3,461
Natural gas		81,980			69,911			12,069
Other		7,153			5,106			2,047
Total revenues	$	312,638		$	252,234		$	60,404

Production Volumes:
Oil (MBbls)		2,509			2,489			20
NGLs (MBbls)		754			445			309
Natural gas (MMcf)

Loading holders...

Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Recent insider activity

Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 8 transactions across 8 insiders. Net: -306,000 shares, -$1,062,840.

Date	Insider	Role	Action	Shares	Price	Value
2026-07-16	Conwill Daniel O. IV	Director	Sell	-60,000	$3.41	-$204,600
2026-07-15	CHANG NANCY T	Director	Sell	-60,000	$3.31	-$198,600
2026-07-14	Williford William J	EVP & Chief Operating Officer	Sell	-30,000	$3.56	-$106,800
2026-07-14	Hittner George	EVP, GC & Corporate Secretary	Sell	-30,000	$3.53	-$105,900
2026-07-14	Parasnis Sameer	EVP & Chief Financial Officer	Sell	-30,000	$3.56	-$106,800
2026-07-14	Hartman Bart P. III	VP & Chief Accounting Officer	Sell	-6,000	$3.54	-$21,240
2026-07-14	Boulet Virginia	Director	Sell	-60,000	$3.54	-$212,400
2026-07-14	Gamblin Huan	EVP & Chief Technical Officer	Sell	-30,000	$3.55	-$106,500

Source: SEC Form 4 filings.

Next expected filings

~2026-11-06 10-Q expected by 2026-11-09 (in 30 days)
~2027-03-15 10-K expected by 2027-03-25 (in 159 days)
~2027-05-07 10-Q expected by 2027-05-10 (in 212 days)
~2027-08-05 10-Q expected by 2027-08-08 (in 302 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-10-07 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
2026-09-28 2.01 SD 2.01 SD
2026-08-07 8-K Officer/Director Change; Financial Statements and Exhibits
2026-08-05 8-K Earnings Release; Financial Statements and Exhibits
2026-08-05 10-Q Quarterly Report
2026-06-08 S-8 Employee Benefit Plan Registration
2026-06-04 8-K Officer/Director Change; Shareholder Vote Results; Financial Statements and Exhibits
2026-05-07 8-K Earnings Release; Financial Statements and Exhibits
2026-05-07 10-Q Quarterly Report
2026-04-23 DEF 14A Proxy Statement
2026-03-16 10-K Annual Report
2026-03-16 8-K Earnings Release; Financial Statements and Exhibits
2026-03-09 8-K Earnings Release; Financial Statements and Exhibits
2025-11-06 10-Q Quarterly Report
2025-11-05 8-K Earnings Release; Financial Statements and Exhibits

Line item
Period ending