W&T Offshore Inc. (NYSE:WTI) Q1 2020 Earnings Conference Call - Final Transcript

Jun 23, 2020 • 10:00 am ET


W&T Offshore Inc. (NYSE:WTI) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the W&T Offshore First Quarter 2020 Conference Call. [Operator Instructions] At this time, I'd like to turn the conference call over to Al Petrie, Investor Relations Coordinator. Sir, you may begin.

Al Petrie

Thank you, operator. On behalf of the management team, I would like to welcome all of you to today's conference call to review W&T Offshore's first quarter 2020 financial and operational results.

Before we begin, I would like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause W&T's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.

Today's call may also contain certain non-GAAP financial measures. Please refer to the first quarter 2020 earnings release that we released yesterday for a disclosure on forward-looking statements and reconciliations of non-GAAP measures. At this time, I would like to turn the call over to Tracy Krohn, W&T's Chairman and CEO.

Tracy W. Krohn

Thanks, Al. Good morning, everyone, and thank you for joining us for our first quarter 2020 conference call. With me today are Janet Yang, our Executive Vice President and Chief Financial Officer; William Williford, our Executive Vice President and General Manager, Gulf of Mexico; Steve Schroeder, our Chief Technical Officer; and Jim Hersch, our Vice President of Geosciences. They're all available to answer questions later during the call.

Over the last several months, the global COVID-19 pandemic, coupled with supply and demand imbalances, have certainly created an environment of uncertainty across the oil sector. We've reacted decisively to those conditions by significantly reducing our capital expenditure budget for the remainder of 2020, lowering our lease operating expenses without compromising safety or operational capabilities and temporarily shutting in some lower-margin operated and non-operated oil-weighted properties.

As always, we remain committed to the health and safety of our employees and contractors. At our corporate offices, we implemented a mandatory work-from-home policy in March and only recently reopened our corporate office. Despite being back in the office, we continue to monitor the situation and will follow the advice of government and health leaders.

For our field operations, we instituted screening of all personnel prior to entry to heliports and shore bases as well as our two gas plants in Alabama. We are conducting daily temperature screenings and implementing procedures for distancing and hygiene at our field locations. We're very pleased that thus far none of our onshore or offshore employees have tested positive for COVID-19.

For nearly 40 years, we've been able to persevere through multiple pricing cycles because our focus and strategy has always been to maximize cash flow and constantly improve the profitability of our assets at any commodity price. We expect to continue to find value in acquisitions, especially those that provide a solid foundation for our ability to generate free cash flow even in the current pricing environment. We built W&T through the right combination of attractive property acquisitions, methodical integration and