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W&T Offshore (WTI)
NYSE:WTI
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W&T Offshore
(NYSE:WTI)
Rating:57Neutral
Price Target:
$1.50
▲( 7.91% Upside)
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$205.24M
Dividend Yield2.88%
Average Volume (3M)1.28M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-5.05%
EPS Growth-383.38%
CountryUS
Employees400
SectorEnergy
Sector Strength45
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.13
Shares Outstanding147,651,810
10 Day Avg. Volume1,427,876
30 Day Avg. Volume1,283,824
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)-3.84
Price to Sales (P/S)0.00
P/FCF Ratio-3.43
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit2.53
Enterprise Value/Ebitda0.84
Forecast
1Y Price Target
$6.13Price Target Upside341.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
W&T Offshore Business Overview & Revenue Model
Company DescriptionW&T Offshore, Inc. (WTI) is an independent oil and natural gas producer, primarily engaged in the exploration, development, and acquisition of oil and natural gas properties. The company operates primarily in the Gulf of Mexico, where it holds a diverse portfolio of assets, including both shallow-water and deepwater properties. W&T Offshore focuses on optimizing production from its existing assets while strategically acquiring new properties to expand its resource base.
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 faces significant financial challenges, evidenced by declining revenues, negative profitability, and a leveraged balance sheet. The company's financial health is further strained by negative net income, high debt levels, and cash flow difficulties.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 |
| 118.72M | 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 |
| 394.75M | 402.86M | 693.44M | 730.90M | 625.29M | Net Debt |
| 285.74M | 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 |
| 58.78M | 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
1.39
Price Trends
1.34
Positive
1.49
Negative
1.76
Negative
Market Momentum
0.04
Negative
53.68
Neutral
17.99
Positive
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 1.39 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.34, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 17.99 is Positive, 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $193.21M | 9.56 | -5.66% | 14.06% | -31.28% | -1265.13% | |
57 Neutral | $205.24M | ― | 203.83% | 2.88% | -5.05% | -383.38% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
56 Neutral | $147.87M | 89.30 | -1.24% | 11.14% | 3.79% | -131.01% | |
53 Neutral | $167.11M | 21.67 | -4.07% | ― | -2.39% | -425.29% | |
50 Neutral | $163.05M | 2.23 | 8.52% | ― | -4.51% | -10.09% | |
42 Neutral | $136.56M | ― | -36.23% | ― | 6.28% | 13.18% |
* Energy Sector Average
Performance Comparison
WTI
W&T Offshore
1.39
-0.81
-36.82%
EPM
Evolution Petroleum
4.31
-0.91
-17.43%
GTE
Gran Tierra Energy
4.73
-4.48
-48.64%
REI
Ring Energy
0.79
-1.12
-58.64%
BRY
Berry Petroleum
2.49
-3.99
-61.57%
EP
Empire Petroleum
4.05
-4.17
-50.73%
W&T Offshore Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 20.87%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for W&T Offshore, with strong production and financial results, strategic balance sheet improvements, and beneficial regulatory changes. However, weather-related challenges and operational costs for acquired assets pose ongoing issues.Q1-2025 Updates
Positive Updates
Production and Financial Performance
Production reached 30,500 barrels of oil equivalent per day, near the top-end of guidance, despite weather challenges. Lease operating expenses were below guidance at $71 million. Adjusted EBITDA increased by 2% to $32.2 million compared to Q4 2024, with $10.5 million in free cash flow generated.
Balance Sheet Improvements
Successfully issued $350 million in new second lien notes, reducing interest rates by 100 basis points. Total debt decreased by $39 million, enhancing liquidity and credit ratings. New $50 million revolving credit facility established, maturing in July 2028.
Regulatory Developments
Positive regulatory changes announced by the Department of Interior, reducing financial assurance requirements, expected to decrease costs and credit facility overhangs.
Asset Optimization and Production Uplift
Successful sale of non-core interest in Garden Bank's Blocks, generating $12 million. Additional production expected from West Delta 73 and Main Pass 108 fields, contributing to a projected 13% increase in Q2 2025 production.
Natural Gas Price Strategy
Implemented costless collars to lock in favorable natural gas prices for the remainder of 2025, enhancing revenue stability.
Negative Updates
Weather-Related Production Interruptions
Freezing weather in January led to unplanned downtime, impacting production capabilities temporarily.
Higher Operating Costs Expected
Guidance for LOE and related costs in Q2 2025 expected to be higher due to increased production, though per BOE costs are anticipated to decrease.
Operational Challenges with Acquired Assets
Ongoing operational improvements needed for assets acquired from bankruptcy to reach W&T standards, resulting in additional, albeit diminishing, costs.
Company Guidance
In the first quarter of 2025, W&T Offshore delivered strong operational and financial results, meeting or exceeding guidance in several metrics. The company achieved production of 30,500 barrels of oil equivalent per day, near the top-end of their guidance range, despite January's freezing weather causing temporary unplanned downtime. Lease operating expenses came in below the low-end of guidance at $71 million, while adjusted EBITDA increased by 2% from the previous quarter to $32.2 million. Furthermore, W&T generated $10.5 million in free cash flow and continued to return value to shareholders through their quarterly dividend. The company's balance sheet was strengthened by several transactions, including the issuance of $350 million in new second lien notes, which reduced total debt by $39 million and improved liquidity. Additionally, the sale of a non-core interest in Garden Bank's Blocks 385 and 386 for $12 million contributed to their financial flexibility. Looking ahead, W&T expects second-quarter production to increase by 13% to approximately 34,500 barrels of oil equivalent per day, and they plan to maintain a focus on low-risk acquisitions that generate free cash flow and offer potential for cost reduction.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.