What W&T Offshore, Inc. told the SEC could break it.

As an E&P producer, W&T's revenue is tied to commodity prices; the EIA forecasts WTI crude averaging $52.25/bbl in 2026 (20% below the 2025 average of $65.46) as global supply outpaces demand, pressuring W&T's cash flow.

“The EIA forecasts that the spot price for WTI oil will average $52.25 per barrel in 2026, 20% less than the average price of $65.46 per barrel in 2025 and then average $50.33 per barrel in 2027.”

W&T's oil, NGL and natural gas sales are concentrated in two customers (BP and Shell — 33% and 17% in 2025; historically as high as 44%/41%), though management believes replacement purchasers are readily available given commoditized products.

“In 2025, two customers accounted for approximately 33 % and 17 %, respectively, of the Company's revenue from sales of oil, NGL and natural gas.”

About 36% of W&T's 2025 production (and 20% of total revenue) came from its Mobile Bay Properties off the coast of Alabama, so localized production problems, adverse weather, or reserve-estimate errors there could materially affect the business.

“For 2025, approximately 36% of our production and 20% of our total revenue was attributable to our interests in certain oil and natural gas leasehold interests and associated wells and units located off the coast of Alabama”

W&T's ability to market production depends substantially on third-party-owned gathering systems, pipelines, and processing facilities it does not control; their unavailability (maintenance, capacity, consolidation, storm damage) could force well shut-ins and lost revenue.

“Our ability to market our production depends substantially on the availability and capacity of gathering systems, pipelines and processing facilities, which in some cases are owned and operated by third parties.”