W&T Offshore, Inc. (NYSE:WTI) Files An 8-K Entry into a Material Definitive Agreement

W&T Offshore, Inc. (NYSE:WTI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01

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On June 26, 2019, W&T Offshore, Inc. (the “Company”) entered into a purchase and sale agreement (the “PSA”) with ExxonMobil Corporation and certain of its subsidiaries to acquire interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico, offshore Alabama, for a purchase price of $200 million, subject to adjustments for an effective date of January 1, 2019 and certain other customary closing adjustments. The Company has estimated net proved reserves to be acquired of approximately 74 million barrels of oil equivalents (using a 6 to 1 Mcf to barrel equivalency) as of the effective date, based on October 15, 2018 NYMEX Henry Hub gas and NYMEX WTI oil prices, of which 22% are liquids and 99% are proved developed producing. The properties to be acquired include working interests in nine offshore producing fields in the Gulf of Mexico and an onshore treating facility that are immediately adjacent to existing properties owned and operated by the Company. to the PSA, the Company has deposited $10.0 million of the purchase price into an escrow account, with the balance to be paid at closing subject to purchase price adjustments, including adjustments for an effective date of January 1, 2019.

The closing of the acquisition is subject to satisfaction of customary closing conditions and is anticipated to occur in August 2019. Unless extended by mutual agreement, the Company and the sellers each have the right to terminate the PSA if the acquisition has not been completed by February 28, 2020. The Company expects the purchase price will be funded from cash on hand and borrowings under its revolving loan facility.

Item 7.01     Regulation FD Disclosure.

On June 27, 2019, the Company announced that it had entered into the PSA. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 

W&T OFFSHORE INC Exhibit
EX-99.1 2 ex_148771.htm EXHIBIT 99.1 ex_148771.htm Exhibit 99.1  PRESS RELEASE       CONTACT: Al Petrie Janet Yang FOR IMMEDIATE RELEASE   Investor Relations Coordinator [email protected] 713-297-8024 EVP & CFO [email protected] 713-624-7326     W&T Offshore Announces Acquisition of Producing Properties in the Gulf of Mexico Accretive Expansion of Regional Operatorship   HOUSTON,…
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About W&T Offshore, Inc. (NYSE:WTI)

W&T Offshore, Inc. is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. The Company owns a platform in the Gulf of Mexico located in a National Marine Sanctuary. The Company’s fields are located in federal and state waters in the Gulf of Mexico. The fields are found in water depths ranging from 10 feet to 7,200 feet. The Company’s fields include Ship Shoal 349 Field (Mahogany), Fairway Field, Miss. Canyon 243 (Matterhorn), Viosca Knoll 783 (Tahoe/SE Tahoe), Miss. Canyon 782 (Dantzler), Main Pass 108, Brazos A133, Ewing Bank 910, Miss. Canyon 698 (Big Bend) and Miss. Canyon 538/582 (Medusa). The Company sells its crude oil, natural gas liquids (NGLs) and natural gas to third-party customers. The Company’s subsidiary is W & T Energy VI, LLC.

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