Shares of independent oil and gas producer W&T Offshore (NYSE:WTI) jumped by as much as 16.8% in trading Thursday after the company reported fourth-quarter 2016 earnings after the close Wednesday. As of 1:56 p.m. EST, shares were up 14.9% on the day.
Revenue rose 10.7% to $115.2 million and the company swung from a net loss of $51.6 million to net income of $16.5 million, or $0.12 per share. On an adjusted basis, which pulls out one-time items, that was much better than the $0.13 loss analysts were expecting.
Costs were down as lease operating expenses fell from $49.3 million a year ago to $33.8 million. Overall, expenses dropped 43.1% to $93.9 million, leading to the much better financial results.
W&T Offshore's focus on cutting costs is starting to pay off, and rising oil prices are starting to help it as well.
Fourth-quarter oil prices released were up 21.9% from a year ago to $45.10, much higher than the $37.35 realized for the full year. Given its lower cost structure and the support crude oil prices have in the market right now, I think the future looks bright for W&T Offshore.