W&T Offshore Completes Conversion of Revolving Credit Facility to Reserve-Based Lending Structure, Enhancing Financial Flexibility
Key Highlights
- ➤$50.0M revolving facility converted to conventional reserve-based lending structure
- ➤$100.0M aggregate maximum credit amount provides potential expansion capacity
- ➤75% excess cash flow sweep, quarterly clean-down and $100.0M PDP PV-10 covenant eliminated
- ➤Annual restricted payments basket increased 50% to $15.0M
- ➤Total liquidity approximately $234M entering fourth quarter 2026
Expert Statements
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“This amendment is an important step in the evolution of W&T’s capital structure”
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“Moving to a conventional reserve-based facility removes the cash sweep, clean-down and asset coverage requirements that constrained our liquidity management.”
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“It also provides the potential to expand borrowing capacity up to $100 million as we grow our reserve base, and increases our flexibility to grow the Company and return capital to shareholders – all with no change to pricing or financial covenants and without any amendment fees.”
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“We are thankful for the continued support of our bank group, led by Texas Capital Bank.”
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“We are delighted to welcome back CIBC, a past lender to W&T, with whom we look forward to growing our relationship further.”
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore
“Additionally, we are entering the fourth quarter of 2026 with total liquidity of approximately $234 million. This solid base will help us execute the goals we have set for 2026 and 2027.”
HOUSTON, Oct. 07, 2026 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today announced that on October 1, 2026, the Company entered into the Second Amendment to its Credit Agreement with Texas Capital Bank, as administrative agent, and its bank group, converting its existing $50.0 million revolving credit facility into a conventional reserve-based lending (“RBL”) facility, effective as of that date.
Key Highlights of the Amended Facility * Conventional RBL structure: Initial borrowing base of $50.0 million, fully supporting $50.0 million of elected commitments, with an aggregate maximum credit amount of $100.0 million that provides capacity, subject to borrowing base availability and lender consent, to increase commitments to support future growth. The borrowing base will be redetermined semi-annually each May 1 and November 1, beginning November 1, 2026;
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