W&T Offshore Inc., an oil and natural gas exploration company, on Thursday raised its production estimates and said its full-year lease operating expenses are expected to increase because of newly acquired properties in Alabama.
For the third quarter, the Houston company predicted it would produce between 4.2 million and 4.4 million barrels of oil equivalent. That compared with the prior estimate of between 3.9 million and 4.3 million barrels of oil equivalent.
For the full year, W&T predicted production would range from 16 million to 17.2 million barrels of oil equivalent. The prior estimate was between 15.4 million and 17.1 million barrels.
The company also expects full-year lease operating expenses of between $210 million and $220 million, compared with the previous estimate of $190 million to $220 million.
Earlier this month W&T completed a $36.7 million purchase of Shell Offshore's 64.3 percent interest in the Fairway Field south of Mobile Bay and a 64.3 percent interest in the associated nearby gas processing plant.
Shares of W&T fell 39 cents, or 2 percent, to end at $18.96.