W&T Offshore (NYSE: WTI) reported Q2 EPS of $0.29, $0.10 better than the analyst estimate of $0.19. Revenue for the quarter came in at $149.61 million versus the consensus estimate of $147.03 million.

Tracy W. Krohn, W&T Offshore's Chairman and Chief Executive Officer, stated, "We had an excellent second quarter, with a high level of cash flow generation and continued drilling success. During the quarter our production volumes, which came in at the mid-range of our guidance, benefited from a 39.5% increase in our realized sales price, while our lease operating costs were significantly lower than anticipated, driving a 47.4% increase in operating income compared to the same period last year.

"Our Mahogany and Virgo Fields continue to add substantial value with additional successful wells in both fields this year. Earlier in the year we completed and began producing the A-17 well at Mahogany and just recently completed and brought on line the A-5 sidetrack well that tested at about 2,700 Boe per day gross. At our Virgo Field we completed and brought on line the A-10 ST well and are currently drilling the A-12 well. At our Ewing Bank 910 field, we are currently drilling the ST320 A-2 well and expect to reach total depth this quarter and if successful, commence completion operations shortly thereafter. Each of these fields has existing infrastructure that allow for quick cash flow generation, which substantially shortens our payback and accordingly increases our rates of return.

"Funding for the JV Drilling Program was closed in June which raised $361.4 million from outside investors and W&T, which is expected to cover the cost to drill and complete 14 identified projects. The program is off to an excellent start with three successful wells drilled so far and two wells currently underway. The JV Drilling Program is helping us maximize our liquidity, while increasing our cash flow. Our capital expenditures for the first six months of 2018 were $31.8 million and our Adjusted EBITDA was $170.5 million. The JV Drilling Program was a key aspect of our strategy to increase our free cash flow, strengthen our balance sheet and put ourselves in an excellent position to manage our debt obligations as well as end the year with a much improved financial position," concluded Mr. Krohn.

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