W&T Offshore (WTI) AI Stock Analysis

• Market Cap: $461.21M
• Dividend Yield: 2.41%
• Average Volume (3M): 7.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -6.92%
• EPS Growth: -126.24%
• Country: US
• Employees: 400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.14
• Shares Outstanding: 148,777,700
• 10 Day Avg. Volume: 13,811,171
• 30 Day Avg. Volume: 7,568,482
• PEG Ratio: -0.02
• Price to Book (P/B): -1.21
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 8.70
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.45
• Revenue Forecast (FY): $502.40M

• Rating: 55 Neutral
• Price Target: $3.00 ▲(71.43% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak financial performance (recurring losses and negative equity despite improved cash flow) and only moderate valuation support due to a negative P/E. These are partially offset by constructive technical momentum and a generally positive earnings call focused on liquidity improvement, debt reduction, and cost discipline.

Positive Factors

Improved cash generation and positive free cash flow

Sustained positive operating cash flow and a return to free cash flow provide durable internal funding for capex, P&A obligations and dividend payments. This reduces near-term refinancing pressure and supports capital allocation flexibility over the next several quarters.

Strong adjusted EBITDA and higher PDP reserve mix

Robust adjusted EBITDA indicates recurring cash-earnings capacity independent of GAAP losses, while a higher proved-developed producing mix lowers development risk and supports more predictable near-term production and cash flows versus undeveloped reserves.

Disciplined capital plan and lower operating costs

A materially lower, backhalf-weighted CapEx plan plus demonstrable LOE reductions indicate management focus on margin preservation and capital efficiency, improving cash conversion sensitivity to commodity swings and supporting sustainable cash generation.

Negative Factors

Negative shareholders' equity and high leverage

Negative equity distorts leverage metrics and constrains balance-sheet flexibility, increasing refinancing and covenant risk during commodity downdrafts. Substantial outstanding debt versus limited equity makes capital structure fragile over multiple quarters.

Recurring net losses and weak profitability

Persistent GAAP losses despite positive EBITDA highlight weak earnings quality and sensitivity to commodity prices. This limits retained earnings accumulation and increases reliance on cash generation and non‑organic transactions to fund obligations over the medium term.

Reserve replacement reliant on acquisitions, no new wells drilled

Lack of organic drilling reduces internal reserve replacement optionality and makes future production growth dependent on acquisitions. This increases capital intensity and execution risk for sustaining reserves and long-term production levels.

W&T Offshore Business Overview & Revenue Model

Company Description

W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas. As of December 31, 2021, the company had working interests in 43 fields in federal and state waters; and under lease approximately 606,000 gross acres, including approximately 419,000 gross acres on the Gulf of Mexico Shelf, as well as approximately 187,000 gross acres in the Gulf of Mexico deepwater. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.

How the Company Makes Money

W&T Offshore makes money primarily by producing and selling hydrocarbons—crude oil, natural gas, and (when applicable) natural gas liquids—from its working interests in offshore Gulf of Mexico wells and fields. Revenue is recognized from the sale of these produced volumes at market-based prices, which can be influenced by commodity benchmarks and any price differentials tied to quality, location, and transportation. The company’s sales are typically made to third-party purchasers/marketers, with cash flow driven by (1) realized commodity prices and (2) production volumes net to its ownership interests and royalties. In addition to sales revenue, W&T’s financial results can be affected by derivative/hedging activities used to manage exposure to oil and gas price volatility; gains or losses on these instruments may contribute to earnings depending on market conditions and hedge positions. The company also may generate or use cash through asset transactions (e.g., acquiring or divesting property interests), but specific recurring contributions from such items are not available here and are therefore null.

W&T Offshore Financial Statement Overview

Summary

Cash generation improved in 2025 (operating cash flow positive and free cash flow turned positive), but profitability remains weak with net losses in 2024–2025 and a steep net loss in 2025. The balance sheet is a major constraint given negative stockholders’ equity and sizable debt, which elevates refinancing and down-cycle resilience risk.

Income Statement

Revenue has been volatile: after a sharp drop in 2023, it stabilized in 2024 and improved in 2025 (annual revenue growth of ~27%). However, profitability has deteriorated materially—2025 shows a steep net loss (about -30% net margin) and negative operating profit, following a loss in 2024 and modest profit in 2023. While cash earnings remained positive (EBITDA margin ~19% in 2025), the swing from strong profitability in 2022 to losses in 2024–2025 signals weak earnings quality and high sensitivity to the operating environment.

Balance Sheet

Leverage and capitalization are the key concerns. Stockholders’ equity is negative in 2025 and 2024, which limits financial flexibility and makes debt metrics unstable (debt-to-equity is not meaningful when equity is negative). Total debt remains sizable (~$351M in 2025) versus the company’s equity position, and returns on equity are distorted by negative/very low equity. While total assets are substantial, the negative equity profile raises refinancing and balance-sheet risk, especially during weaker commodity cycles.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow stayed positive across recent years and improved to ~$77M in 2025, and free cash flow turned positive to ~$28M after a notably negative 2024. That said, cash flow coverage of debt is modest (operating cash flow is roughly one-third of total debt in 2025), and free cash flow has been volatile year-to-year, implying execution and/or price sensitivity despite the recent rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	501.46M	525.26M	532.66M	921.00M	558.01M
Gross Profit	27.15M	354.06M	391.73M	778.75M	439.57M
EBITDA	96.98M	118.72M	222.33M	487.88M	133.96M
Net Income	-150.06M	-87.14M	15.60M	231.15M	-41.48M
Balance Sheet
Total Assets	955.81M	1.10B	1.11B	1.43B	1.19B
Cash, Cash Equivalents and Short-Term Investments	140.62M	109.00M	173.34M	461.36M	245.80M
Total Debt	350.81M	394.75M	402.86M	705.59M	743.24M
Total Liabilities	1.16B	1.15B	1.08B	1.42B	1.44B
Stockholders Equity	-199.75M	-52.58M	31.19M	7.63M	-247.18M
Cash Flow
Free Cash Flow	27.76M	-58.64M	34.25M	246.34M	100.94M
Operating Cash Flow	77.24M	59.54M	115.33M	339.53M	133.67M
Investing Cash Flow	21.86M	-118.18M	-81.61M	-95.08M	-27.44M
Financing Cash Flow	-69.04M	-8.56M	-321.74M	-28.89M	100.27M

W&T Offshore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTI, the sentiment is Positive. The current price of 1.75 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 2.43, and below the 200-day MA of 1.98, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTI.

W&T Offshore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPY	76 Outperform	$269.05M	4.20	10.56%	―	-9.46%	-144.89%
PNRG	71 Outperform	$352.83M	6.52	12.19%	―	-6.03%	-54.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	65 Neutral	$161.72M	28.10	4.46%	13.52%	-2.23%	-104.00%
REI	60 Neutral	$314.09M	―	-4.02%	―	-15.44%	-113.21%
WTI	55 Neutral	$461.21M	-1.61	107.62%	2.41%	-6.92%	-126.24%