W&T Offshore (WTI) AI Stock Analysis

• Market Cap: $255.14M
• Dividend Yield: 2.33%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -11.53%
• EPS Growth: -342.58%
• Country: US
• Employees: 400
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.08
• Shares Outstanding: 148,339,040
• 10 Day Avg. Volume: 1,170,464
• 30 Day Avg. Volume: 1,431,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: $5.75
• Price Target Upside: 230.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $1.50 ▼(-13.79% Downside)

W&T Offshore's overall stock score reflects significant financial challenges, particularly in terms of declining profitability and high leverage. While there are positive signs from the earnings call, such as production increases and debt reduction, these are tempered by ongoing operational and valuation concerns. Technical indicators suggest potential for short-term weakness, and the valuation remains challenging due to negative earnings.

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 generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its properties. The company utilizes a revenue model where it sells its produced hydrocarbons at market prices, which can fluctuate based on global supply and demand, geopolitical events, and changes in energy policy. Key revenue streams include direct sales of oil and gas to refiners, marketers, and other end-users, often through long-term contracts or spot market transactions. Additionally, W&T Offshore may engage in joint ventures or partnerships with other energy companies to share resources, technology, and capital expenditures, which can enhance operational efficiency and reduce financial risk. The company's ability to manage production costs and optimize its asset portfolio also plays a significant role in its profitability.

W&T Offshore Financial Statement Overview

Summary

W&T Offshore is facing financial challenges with declining revenues and profitability, as evidenced by negative margins and high leverage. The balance sheet shows significant financial instability with negative equity. Despite these issues, there is some improvement in cash flow generation, which could provide a buffer against ongoing operational difficulties.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -3.96% TTM. Gross profit margin has decreased from 67.41% in 2024 to 51.30% TTM, indicating reduced profitability. Net profit margin is negative at -22.62% TTM, reflecting ongoing losses. The EBIT margin is also negative, suggesting operational challenges. EBITDA margin has decreased significantly from 22.60% in 2024 to 12.53% TTM, highlighting reduced operational efficiency.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and a negative debt-to-equity ratio of -0.0056 TTM, indicating high leverage and financial instability. Return on equity is positive at 165.79% TTM, but this is due to negative equity, which distorts the metric. The equity ratio is negative, reflecting a precarious financial position.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 66.06% TTM, indicating better cash management. However, the operating cash flow to net income ratio is low at 0.18 TTM, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is positive at 0.32 TTM, showing some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.95M	525.26M	532.66M	921.00M	558.01M	346.63M
Gross Profit	253.38M	354.06M	248.73M	527.83M	416.64M	205.40M
EBITDA	61.88M	118.72M	222.33M	587.71M	301.01M	144.89M
Net Income	-111.74M	-87.14M	15.60M	231.15M	-41.48M	37.79M
Balance Sheet
Total Assets	1.02B	1.10B	1.11B	1.43B	1.19B	940.58M
Cash, Cash Equivalents and Short-Term Investments	120.72M	109.00M	173.34M	461.36M	245.80M	43.73M
Total Debt	351.80M	394.75M	402.86M	693.44M	730.90M	625.29M
Total Liabilities	1.13B	1.15B	1.08B	1.42B	1.44B	1.15B
Stockholders Equity	-102.72M	-52.58M	31.19M	7.63M	-247.18M	-208.29M
Cash Flow
Free Cash Flow	11.43M	-58.64M	34.25M	246.34M	100.94M	87.43M
Operating Cash Flow	35.22M	58.78M	115.33M	339.53M	133.67M	108.51M
Investing Cash Flow	28.71M	-118.18M	-81.61M	-95.08M	-27.44M	-47.62M
Financing Cash Flow	-69.85M	-8.56M	-321.74M	-28.89M	100.27M	-49.60M

W&T Offshore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.74
• 50DMA: Negative
• 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 1.74 is below the 20-day moving average (MA) of 1.74, below the 50-day MA of 1.79, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 36.66 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REI	68 Neutral	$192.40M	2.81	8.08%	―	-13.66%	-4.85%
BRY	66 Neutral	$220.39M	44.10	0.75%	4.26%	-40.96%	―
Sector *	65 Neutral	$14.85B	7.05	2.76%	5.52%	4.66%	-61.61%
EPM	57 Neutral	$171.88M	89.30	-1.24%	9.52%	3.79%	-131.01%
EP	51 Neutral	$173.34M	―	-30.24%	―	-10.49%	17.74%
WTI	50 Neutral	$255.14M	―	203.83%	2.33%	-11.53%	-342.58%
GTE	43 Neutral	$135.87M	21.67	-16.06%	―	-5.53%	-216.84%

W&T Offshore Corporate Events

W&T Offshore Completes Collateral Obligations

W&T Offshore, Inc. has fulfilled its post-issue date collateral obligations under the Indenture dated January 28, 2025. The company completed necessary deliveries to the Collateral Trustee, including executed mortgages and legal documents, which may impact its operational stability and stakeholder confidence.

W&T Offshore Settles Lawsuit with Surety Providers

On June 17, 2025, W&T Offshore announced a settlement with two major surety providers, resolving a lawsuit related to indemnity agreements. The settlement ensures no increase in premium rates and withdrawal of collateral demands until December 31, 2026, providing stability and predictability for the company. This agreement, alongside favorable regulatory developments, is expected to enhance shareholder value and support W&T’s strong financial and operational performance in 2025.

W&T Offshore Holds Annual Shareholder Meeting Virtually

On June 3, 2025, W&T Offshore, Inc. conducted its annual meeting of shareholders virtually, where key proposals were voted upon. The meeting resulted in the election of six directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent accountants for the year 2025. These decisions are expected to impact the company’s governance and financial oversight positively.