W&T Offshore, Inc. — Form 8-K
Reporting context: The report covers a material credit agreement amendment entered into October 1, 2026; it is not a quarterly or annual financial-results filing. The company announced the amendment by press release on October 7, 2026.
Credit facility and key terms
- The revolving facility was converted to a reserve-based revolving credit facility secured by the borrowing base value of proved oil and gas reserves.
- Aggregate maximum credit amount: $100 million. Initial elected commitments and initial borrowing base: $50 million each. Availability is limited to the least of the borrowing base, elected commitments, and maximum credit amount.
- Maturity is the earlier of July 28, 2028, or six months before the stated maturity of the Senior Second Lien Notes.
- Borrowing base redeterminations begin on or around November 1, 2026, and are scheduled semi-annually thereafter. The company and required lenders may each request one interim redetermination between scheduled reviews.
- The company may seek increases in elected commitments up to the $100 million maximum. The borrowing base can be reduced automatically following certain additional debt, asset dispositions, or hedge liquidations.
Interest and fees
Borrowers may elect Adjusted Term SOFR, subject to a 3.00% floor, or the defined Base Rate, plus applicable margins. Margins vary with facility utilization; SOFR margins range from 3.75% to 4.75%, and Base Rate margins from 2.75% to 3.75%. The commitment fee is 0.50%; letter-of-credit fees range from 3.75% to 4.75%. The filing also describes quarterly payment timing and an administrative fee under a separate fee letter.
Material changes and covenants
- The annual cap on certain restricted payments increased from $10 million to $15 million.
- Each borrowing and letter-of-credit issuance is conditioned on the company’s consolidated cash balance after the transaction not exceeding the greater of $10 million and 10% of the then-current borrowing base.
- The company is no longer required to maintain quarterly PDP PV-10 of at least $100 million, make specified monthly prepayments equal to 75% of Excess Cash Flow when leverage exceeds 2.00 to 1.00, or make quarterly full revolver prepayments followed by a five-day borrowing restriction.
- Quarter-end financial covenants remain: Consolidated Net Leverage Ratio no greater than 2.50 to 1.00 and Current Ratio no less than 1.00 to 1.00.
- The amendment did not change the stated maturity, interest-rate margins, SOFR floor, commitment-fee rate, or minimum hedging requirements.
- Macquarie Bank assigned its $10 million commitment and related lender interests to Canadian Imperial Bank of Commerce, New York Branch. The new lender holds 20% of the $50 million elected commitments; Macquarie ceased to be a lender, except for any existing swap obligations.
Financial performance, outlook, and risks
This 8-K does not report revenue, profit, cash flow, operating margins, total debt, or liquidity balances, and provides no earnings guidance or operating outlook. It establishes financing capacity and obligations but does not disclose amounts drawn or remaining availability beyond the stated facility limits and initial borrowing base.
The agreement includes customary affirmative and negative covenants and events of default. Restrictions, subject to exceptions, cover additional debt, investments, distributions, hedging, liens, asset transfers, affiliate transactions, and other matters. Following an event of default, lenders may accelerate obligations, terminate commitments, foreclose on collateral, and pursue other remedies. Borrowing-base redeterminations and automatic reductions may affect availability.
Investor facts to verify
- Review Exhibit 10.1 for the complete amendment, including definitions, exceptions, and the detailed borrowing-base and fee provisions.
- Confirm the Senior Second Lien Notes’ stated maturity, which determines the alternative facility maturity trigger.
- Monitor borrowing-base redeterminations, elected commitments, borrowings, and cash balances against the new cash-balance condition.
- Check subsequent filings for covenant compliance, facility utilization, and any borrowing-base reductions or lender remedies.