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W&T Offshore (WTI)
NYSE:WTI
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W&T Offshore
(NYSE:WTI)
43Neutral
W&T Offshore (WTI) vs. S&P 500 (SPY)
Market Cap
$169.80M
Dividend Yield3.48%
Average Volume (3M)1.44M
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-1.39%
EPS Growth-655.53%
CountryUS
Employees400
SectorEnergy
Sector Strength47
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.59
Shares Outstanding147,651,810
10 Day Avg. Volume1,120,946
30 Day Avg. Volume1,443,169
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.18
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.52
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.13Price Target Upside428.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
W&T Offshore Business Overview & Revenue Model
Company DescriptionW&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 MoneyW&T Offshore generates revenue primarily through the sale of oil and natural gas produced from its properties. The company's revenue model is based on extracting these resources and selling them in the market, often through long-term contracts or spot market sales. Key revenue streams include the production and sale of crude oil, natural gas, and natural gas liquids. The company's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiency. Additionally, strategic partnerships and joint ventures with other energy sector players can contribute to both reducing costs and enhancing production capabilities.
W&T Offshore Financial Statement Overview
Summary
W&T Offshore is facing financial challenges characterized by declining revenues, profitability issues, and a leveraged balance sheet. The income statement shows negative net income and EBIT, with a decline in total revenue. The balance sheet reveals financial instability with a high debt load, and cash flow analysis highlights negative free cash flow.Income Statement
The income statement shows a significant challenge in profitability as indicated by negative net income and EBIT in the TTM (Trailing-Twelve-Months), with a decline in total revenue from the previous year. Gross profit margin remains positive, but net profit margin is negative, signaling operational difficulties.38
Negative
Balance Sheet
The balance sheet reveals financial instability, with negative stockholders' equity and a high debt load. The debt-to-equity ratio is unfavorably high, indicating potential financial risk, and the equity ratio is negative, further underscoring balance sheet weaknesses.25
Negative
Cash Flow
Cash flow analysis highlights a decline in free cash flow with negative figures in the recent period. The operating cash flow remains positive, yet the operating cash flow to net income ratio is concerning due to negative net income. Free cash flow growth is negative, showing cash management challenges.42
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 525.26M | 532.66M | 921.00M | 558.01M | 346.63M | Gross Profit |
| 354.06M | 248.73M | 527.83M | 416.64M | 205.40M | EBIT |
| -42.19M | 29.49M | 454.08M | 189.66M | -2.18M | EBITDA |
| 86.35M | 222.33M | 587.71M | 301.01M | 144.89M | Net Income Common Stockholders |
| -87.14M | 15.60M | 231.15M | -41.48M | 37.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 109.00M | 173.34M | 461.36M | 245.80M | 43.73M | Total Assets |
| 1.10B | 1.11B | 1.43B | 1.19B | 940.58M | Total Debt |
| 27.29M | 402.86M | 693.44M | 730.90M | 625.29M | Net Debt |
| -81.72M | 229.52M | 232.08M | 485.10M | 581.56M | Total Liabilities |
| 1.15B | 1.08B | 1.42B | 1.44B | 1.15B | Stockholders Equity |
| -52.58M | 31.19M | 7.63M | -247.18M | -208.29M |
| Cash Flow | Free Cash Flow | |||
| -58.64M | 34.25M | 246.34M | 100.94M | 87.43M | Operating Cash Flow |
| 59.54M | 115.33M | 339.53M | 133.67M | 108.51M | Investing Cash Flow |
| -118.18M | -81.61M | -95.08M | -27.44M | -47.62M | Financing Cash Flow |
| -8.56M | -321.74M | -28.89M | 100.27M | -49.60M |
W&T Offshore Technical Analysis
Negative
1.16
Price Trends
1.42
Negative
1.54
Negative
1.85
Negative
Market Momentum
-0.08
Negative
38.14
Neutral
42.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTI, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.42, and below the 200-day MA of 1.85, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTI.
W&T Offshore Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $192.44M | 9.92 | 2.59% | 14.11% | -2.73% | -49.90% | |
56 Neutral | $155.04M | 21.52 | 0.79% | ― | -2.37% | ― | |
56 Neutral | $6.92B | 3.31 | -4.49% | 6.03% | -0.35% | -47.83% | |
55 Neutral | $183.00M | 2.63 | 8.20% | ― | 1.46% | -38.55% | |
54 Neutral | $143.87M | 86.42 | 1.95% | 11.46% | -10.60% | -90.09% | |
49 Neutral | $154.68M | ― | -33.15% | ― | 9.71% | 0.88% | |
43 Neutral | $169.80M | ― | 203.83% | 3.48% | -1.39% | -655.53% |
* Energy Sector Average
Performance Comparison
WTI
W&T Offshore
1.16
-1.12
-49.12%
EPM
Evolution Petroleum
4.20
-0.86
-17.00%
GTE
Gran Tierra Energy
4.32
-4.32
-50.00%
REI
Ring Energy
0.90
-1.00
-52.63%
BRY
Berry Petroleum
2.57
-4.97
-65.92%
EP
Empire Petroleum
4.65
-1.08
-18.85%
W&T Offshore Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q4-2024)
| % Change Since: -23.68%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in strategic acquisitions and financial performance, enhancing the company's asset base and liquidity. However, production challenges and pricing revisions posed notable challenges. Overall, the positive developments slightly outweigh the negatives, indicating a cautiously optimistic outlook.Q4-2024 Updates
Positive Updates
Strategic Acquisition and Reserves Growth
In January 2024, W&T Offshore invested $77 million to acquire six shallow water Gulf of Mexico fields, adding 21.7 million barrels of oil equivalent to 2024 proved reserves. This acquisition was executed at a cost of about $3.38 per barrel oil equivalent, enhancing the asset base and production capabilities.
Strong Financial Performance
For the full year 2024, W&T Offshore generated $154 million in adjusted EBITDA and $45 million in free cash flow. The company also improved its credit ratings and successfully reduced its debt by $39 million.
Reserve Replacement and PV-10 Value Increase
The company's reserve replacement rate was 219% for 2024, with a reserve life ratio of 10.4 years. The PV-10 value of SEC proved reserves increased by 14% to $1.2 billion, despite lower SEC pricing.
Operational Excellence and Safety
W&T Offshore achieved zero accidents in 2024, highlighting the company's focus on safety and operational excellence.
Strong Liquidity Position
As of early 2025, the company had cash and cash equivalents of about $350 million and net debt of $245 million, reflecting a strong liquidity position.
Negative Updates
Production Challenges
Several fields acquired from Cox were offline for most of 2024, affecting production. The company expects to return the remaining fields to production in Q2 2025.
Pricing Revisions Impact
SEC natural gas pricing decreased by 19% in 2023, and SEC oil pricing declined by 3%, leading to a decrease of 10.5 million barrels of oil equivalent due to pricing revisions.
Q1 2025 Production Dip
Unplanned downtime and winter freezes led to a reduction in Q1 2025 production volumes, with a midpoint prediction of 29,000 barrels of oil equivalent per day, lower than Q4 2024.
High Operating Expenses
Lease operating expenses are projected to be between $280 to $310 million for 2025, reflecting increased maintenance and facility upgrade costs.
Company Guidance
During W&T Offshore's fourth quarter and full year 2024 conference call, significant guidance was provided for fiscal year 2025. The company expects a production midpoint of 34,000 barrels of oil equivalent per day, reflecting a 6% increase from Q4 2024. This growth is largely attributed to the reactivation of fields acquired from Cox, anticipated in the second quarter of 2025. Capital expenditures for 2025 are projected to be between $34 million and $42 million. W&T also announced enhancements to its balance sheet, including the issuance of $350 million in new second lien notes which reduced their interest rate by 100 basis points and the establishment of a $50 million revolving credit facility. The company reported a reserve replacement ratio of 219% for 2024, with total proved reserves increasing by 3% to 127 million barrels of oil equivalent. Their lease operating expenses for the first quarter of 2025 are estimated between $72.5 million and $80.5 million. With a focus on acquisitions and operational efficiency, W&T is poised for continued success, supported by a strong liquidity position of $159 million as of year-end 2024.W&T Offshore Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
W&T Offshore Refinances Debt and Restructures Financial Strategy
Neutral
Feb 3, 2025
On January 28, 2025, W&T Offshore, Inc. issued $350 million in senior second lien notes due 2029, secured by oil and gas properties. The funds were used to refinance existing debt and enhance liquidity, impacting the company’s financial strategy and stakeholder interests. Additionally, the firm entered into a new credit agreement with an initial commitment of $50 million, which included specific covenants and hedging requirements, reflecting a strategic shift in financial management.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.