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W&T Offshore
(NYSE:WTI)
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Rating:54Neutral
Price Target:
$4.00
▲(9.29% Upside)
Action:Reiterated
Date:08/09/26
Overall score reflects a company that is currently cash-generative and delivered a more constructive recent quarter and guidance tone (strong free cash flow, improving prices, and deleveraging), but is held back by weak TTM profitability and a structurally pressured balance sheet with negative equity. Technicals add modest downside risk given a below-trend setup and negative MACD, while valuation is only mildly supportive due to a loss-driven negative P/E and a small dividend yield.
Positive Factors
Cash generation
Sustained positive TTM operating cash flow (~$90.7M) and FCF (~$29.9M) show the Gulf asset base reliably converts production into cash. Over the next 2–6 months this underpins funding for maintenance capex, debt paydown, selective M&A, and potential shareholder distributions if prices remain favorable.
Negative Factors
Negative equity
A persistent stockholders' deficit (~-$196M) signals structural balance‑sheet stress. Negative equity limits financial flexibility, complicates capital raises, increases perceived risk to counterparties and can magnify distress in a price downturn, constraining strategic options over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive TTM operating cash flow (~$90.7M) and FCF (~$29.9M) show the Gulf asset base reliably converts production into cash. Over the next 2–6 months this underpins funding for maintenance capex, debt paydown, selective M&A, and potential shareholder distributions if prices remain favorable.
Read all positive factors
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$546.41M
Dividend Yield1.09%
Average Volume (3M)4.13M
Price to Earnings (P/E)―
Beta (1Y)0.29
Revenue Growth13.75%
EPS Growth3.54%
CountryUS
Employees370
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.73
Shares Outstanding150,942,950
10 Day Avg. Volume4,090,536
30 Day Avg. Volume4,125,156
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-1.21
Price to Sales (P/S)0.48
P/FCF Ratio8.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.25Price Target Upside16.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$582.32M
W&T Offshore Business Overview & Revenue Model
Company Description
W&T Offshore, Inc. operates as an independent energy producer, primarily focused on the identification, acquisition, and development of crude oil and natural gas assets within the Gulf of Mexico. The company markets and sells a range of products, ...
How the Company Makes Money
W&T Offshore makes money by producing and selling hydrocarbons—primarily crude oil, natural gas, and NGLs—from its offshore Gulf of Mexico properties. Its core revenue stream is commodity sales: volumes produced (net of royalties and other burdens...
W&T Offshore Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported solid Q2 profitability, strong free cash flow (Q2 FCF +50% vs Q1), improved realized prices (+11% QoQ, ~+40% since YE2025), modest capex, reduced leverage (net debt/EBITDA 1.2x) and production growth (+3% YoY) despite no new drilling. Material lowlights include ongoing surety litigation (potentially large but uncertain recoveries), planned near-term increases in LOE and G&A due to deferred maintenance, accelerating project spend that could push capex to the high end of guidance, sizable AROs, and exposure to oil-price volatility. On balance, the operational and financial positives — cash flow, balance-sheet strength, production resilience and acquisition optionality — outweigh the uncertainties.Positive Updates
Profitability and cash generation
Q2 net income of $12.6 million ($0.08 per share); adjusted EBITDA > $54 million in Q2 and nearly $110 million in the first half of 2026. Free cash flow in Q2 was $31 million, a 50% increase vs. Q1 2026, and free cash flow exceeded $52 million in H1 2026.
Negative Updates
Surety litigation uncertainty
Ongoing surety lawsuits remain unresolved. Management's damages expert estimates potential claims could reach "hundreds of millions" if W&T prevails, and antitrust damages could be trebled, but outcomes and timing are uncertain. Management expects litigation to play out within ~2 years, creating legal and cash-recovery uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability and cash generation
Q2 net income of $12.6 million ($0.08 per share); adjusted EBITDA > $54 million in Q2 and nearly $110 million in the first half of 2026. Free cash flow in Q2 was $31 million, a 50% increase vs. Q1 2026, and free cash flow exceeded $52 million in H1 2026.
Read all positive updates
Company Guidance
Management reiterated unchanged full‑year production and cost guidance and gave Q3 specifics: Q2 production was ~34,700 boe/d (midpoint) and Q3 midpoint is forecast in excess of 35,000 boe/d; Q2 realized price was $50.23/boe (up 11% Q/Q, ~40% vs year‑end 2025). Q3 cost guidance: LOE $73–81M (Q2 LOE $72M), gathering/transportation & production taxes $8.8–9.7M, and cash G&A $17.2–19.0M. 2026 capital guidance is $20–25M (ex‑acquisitions) with Q2 capex $10.4M and project acceleration potentially pushing spend to the high end; ARO guidance is $34–42M (Q2 ARO settlements $3.4M; typical decommissioning ~$35–45M/year). Financial targets and recent results: Q2 net income $12.6M ($0.08/sh), adjusted EBITDA >$54M (H1 ~ $110M), Q2 free cash flow $31M (50% above Q1; H1 >$52M), cash on hand >$150M, liquidity $194M, total debt $351M, net debt $200M and trailing net‑debt/adjusted‑EBITDA ~1.2x (management said it could fall below 1.0x by year‑end if margins sustain).W&T Offshore Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 561.87M | 501.46M | 525.26M | 532.66M | 921.00M | 558.01M |
| Gross Profit | 217.32M | 359.31M | 354.06M | 391.73M | 778.75M | 439.57M |
| EBITDA | 118.18M | 87.15M | 118.72M | 222.33M | 487.88M | 133.96M |
| Net Income | -108.57M | -150.06M | -87.14M | 15.60M | 231.15M | -41.48M |
Balance Sheet | ||||||
| Total Assets | 959.51M | 955.81M | 1.10B | 1.11B | 1.43B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 150.68M | 140.62M | 109.00M | 173.34M | 461.36M | 245.80M |
| Total Debt | 353.39M | 350.81M | 394.75M | 402.86M | 705.59M | 743.24M |
| Total Liabilities | 1.16B | 1.16B | 1.15B | 1.08B | 1.42B | 1.44B |
| Stockholders Equity | -196.20M | -199.75M | -52.58M | 31.19M | 7.63M | -247.18M |
Cash Flow | ||||||
| Free Cash Flow | 37.66M | 27.76M | -58.64M | 34.25M | 246.34M | 100.94M |
| Operating Cash Flow | 88.19M | 77.24M | 59.54M | 115.33M | 339.53M | 133.67M |
| Investing Cash Flow | -49.60M | 21.86M | -118.18M | -81.61M | -95.08M | -27.44M |
| Financing Cash Flow | -10.18M | -69.04M | -8.56M | -321.74M | -28.89M | 100.27M |
W&T Offshore Technical Analysis
Positive
3.66
Price Trends
3.50
Positive
3.61
Positive
2.86
Positive
Market Momentum
0.04
Negative
53.78
Neutral
57.66
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 3.66 is above the 20-day moving average (MA) of 3.55, above the 50-day MA of 3.50, and above the 200-day MA of 2.86, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $316.46M | 13.21 | 10.10% | ― | -26.15% | -56.98% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | $200.23M | 9.56 | 5.13% | ― | -23.70% | 30.67% | |
57 Neutral | $349.12M | -1.24 | -28.80% | ― | -3.15% | -416.57% | |
56 Neutral | $134.52M | -36.08 | -5.44% | 12.53% | -3.16% | -313.41% | |
54 Neutral | $546.41M | -5.03 | 54.96% | 1.09% | 13.75% | 3.54% |
* Energy Sector Average
WTI
W&T Offshore
3.67
1.98
117.03%
EPM
Evolution Petroleum
3.76
-0.74
-16.39%
AMPY
Amplify Energy
4.78
0.65
15.74%
PNRG
Primeenergy
200.98
51.59
34.53%
REI
Ring Energy
1.37
0.44
47.15%
W&T Offshore Corporate Events
Business Operations and StrategyExecutive/Board Changes
W&T Offshore Boosts CEO Compensation to Secure Leadership
Positive
Aug 7, 2026
On August 5, 2026, WT Offshore, Inc. amended the employment agreement of its Chief Executive Officer, President and Chairman, Tracy W. Krohn. The amendment sets Krohn’s annual base salary at not less than $1,000,000, subject to annual review...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
W&T Offshore Shareholders Back Board, Pay and Incentive Plan
Positive
Jun 4, 2026
At its recent Annual Meeting, WT Offshore shareholders elected six directors, including Virginia Boulet, John D. Buchanan, Nancy Chang, Daniel O. Conwill IV, Tracy W. Krohn and B. Frank Stanley, to serve until the 2027 Annual Meeting, reinforcing ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.