W&T Offshore To Sell Noncore Permian Asset For About $57 Million

In the midst of exploration success in the Gulf of Mexico (GoM), W&T Offshore Inc. (NYSE: WTI) on Sept. 25 took aim at its balance sheet with an agreement to sell a noncore asset in the Permian Basin.

W&T said an undisclosed buyer agreed to purchase its ownership in overriding royalty interests in the Permian Basin for $56.8 million. The interests were retained by W&T from the sale of its Yellow Rose Field assets in the northern Midland Basin to Ajax Resources LLC in 2015, according to analysts with Capital One Securities Inc.

“The sale further improves W&T’s balance sheet and liquidity position,” Capital One analysts said in a research note on Sept. 25. The firm now projects W&T’s net debt-to-EBITDA is down from previous estimates and year-end 2018 liquidity of about $288 million.