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W&t Offshore (WTI)
NYSE:WTI
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W&T Offshore
(NYSE:WTI)
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Rating:50Neutral
Price Target:
$2.00
▲(14.29% Upside)
The score is held back primarily by weak profitability and a high-risk balance sheet (negative equity), partially offset by a solid earnings-call operational update (higher production, lower costs, improved cash and lower net debt). Technicals are moderately supportive, while valuation remains constrained by losses despite a modest dividend yield.
Positive Factors
Production Growth
Sustained production growth from asset integrations and high-return workovers increases scalable cash generation and reserve conversion. Over 2-6 months higher output supports revenue stability, better unit economics, and provides operational momentum for further investment.
Unit Cost Reduction
Lower lease operating expenses improve margin resiliency and free-cash generation per barrel. Durable cost discipline reduces breakeven sensitivity to commodity prices, strengthening the company's ability to sustain operations and dividends through commodity cycles.
Improved Liquidity and Deleveraging
Material cash buildup and a meaningful net-debt reduction enhance near-term liquidity and financing optionality. This stronger cash position supports planned capex, dividends, and reduces refinancing pressure, improving financial flexibility over the coming quarters.
Negative Factors
Negative Equity
Negative shareholders' equity indicates liabilities exceed assets, elevating solvency and covenant risks. Over months this undermines capital-market access, limits strategic flexibility, and increases the likelihood that the company must pursue dilutive equity, asset sales, or costly refinancing.
Persistent GAAP Losses
Large GAAP losses and negative operating margins erode retained earnings and limit ability to self-fund growth. Even with adjusted EBITDA improvements, continued negative profitability threatens long-term dividend sustainability and constrains reinvestment without structural margin recovery.
Declining Free Cash Flow
Declining free cash flow reduces internal funding for capex and debt reduction, increasing reliance on external financing or asset monetizations. Coupled with negative equity, weaker FCF materially constrains balance sheet repair and long-term operational investments.
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$322.85M
Dividend Yield2.41%
Average Volume (3M)1.61M
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-6.92%
EPS Growth-126.24%
CountryUS
Employees400
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.05
Shares Outstanding148,777,220
10 Day Avg. Volume2,080,145
30 Day Avg. Volume1,607,149
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-4.65
Price to Sales (P/S)0.46
P/FCF Ratio-4.17
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda6.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 crude oil and natural gas produced from its properties. The company operates on a model that involves acquiring interests in oil and gas fields, drilling wells, and extracting hydrocarbons for sale in the energy market. The main revenue streams include the sale of produced oil and natural gas, with prices generally influenced by market conditions, global supply and demand, and geopolitical factors. Additionally, W&T Offshore may engage in joint ventures or partnerships for exploration and production, which can provide shared costs and risks while enhancing their earning potential. The company also benefits from hedging strategies that can stabilize cash flow by locking in prices for future production.
W&T Offshore Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong operational performance with increased production, cost reduction, and EBITDA growth. However, the company reported a GAAP net loss due to noncash adjustments and increased capital expenditures. Overall, the company is well-positioned financially and operationally.Q3-2025 Updates
Positive Updates
Increased Production
Production increased by 6% quarter-over-quarter to 35,600 barrels of oil equivalent per day, near the high end of guidance.
Cost Reduction
LOE reduced by 8% to approximately $23 per barrel oil equivalent, reflecting disciplined cost management.
EBITDA Growth
Adjusted EBITDA grew by 11% quarter-over-quarter to $39 million, despite lower commodity prices.
Improved Financial Position
Unrestricted cash grew to approximately $125 million while net debt was lowered to under $226 million.
Successful Asset Integration
Integration of former Cox assets and high-return workovers contributed to increased production and cash flow.
Negative Updates
GAAP Net Loss
Reported a net loss due to a noncash increase to the valuation allowance on deferred tax assets.
Increased Capital Expenditures
Capital expenditures increased to $22.5 million in Q3 2025, driven by recompletion and facility CapEx work.
Company Guidance
In the third quarter of 2025, W&T Offshore demonstrated strong operational and financial performance, with several key metrics highlighting its achievements. The company increased production by 6% quarter-over-quarter to 35,600 barrels of oil equivalent per day, driven by successful asset integrations and high-return workovers. Operating costs were managed effectively, with LOE reduced by 8% to approximately $23 per barrel of oil equivalent, falling within the guidance range. Adjusted EBITDA grew by 11% to $39 million, despite lower commodity prices. Cash flow from operations amounted to $26.5 million, bolstering the company's unrestricted cash reserves to $125 million. W&T also reduced its net debt by about $60 million in 2025, further strengthening its balance sheet. The company has maintained its dividend policy, having paid consistent quarterly dividends over two years, with the fourth quarter 2025 dividend announced. Looking ahead, W&T expects to sustain growth with a production target of 36,000 barrels of oil equivalent per day for the fourth quarter and continues to focus on cost reduction and operational synergies.W&T Offshore Financial Statement Overview
Summary
Financials are pressured by weak profitability (TTM net margin -29.25%, EBIT margin -12.28%) and a highly stressed balance sheet with negative equity (-$172.49M), indicating elevated financial risk despite positive operating cash flow ($46.99M TTM).Income Statement
The income statement shows a declining trend in revenue and profitability. The TTM data reveals a negative net profit margin of -29.25%, indicating significant losses. Gross profit margin has decreased to 36.24% from a high of 74.67% in 2021. Revenue growth is minimal at 1.24% TTM, following a decline in previous years. The EBIT and EBITDA margins are also under pressure, with EBIT margin at -12.28% and EBITDA margin at 16.25% TTM. Overall, the company is struggling with profitability and revenue growth.45
Neutral
Balance Sheet
The balance sheet reflects high financial risk with negative stockholders' equity of -$172.49 million TTM, resulting in a negative debt-to-equity ratio. The return on equity is extremely high at 142.53% TTM, but this is due to the negative equity base rather than strong performance. The equity ratio is negative, indicating that liabilities exceed assets. The company is highly leveraged, posing a significant risk to financial stability.30
Negative
Cash Flow
Cash flow analysis shows mixed results. Operating cash flow is positive at $46.99 million TTM, but free cash flow has decreased significantly. The free cash flow to net income ratio is 0.70, indicating some ability to cover net losses with free cash flow. However, the free cash flow growth rate is negative, suggesting declining cash generation capabilities. The company needs to improve its cash flow management to support operations and reduce financial risk.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 500.09M | 525.26M | 532.66M | 921.00M | 558.01M | 346.63M |
| Gross Profit | 181.26M | 354.06M | 391.73M | 778.75M | 439.57M | 227.92M |
| EBITDA | 81.24M | 118.72M | 222.33M | 487.88M | 133.96M | 189.38M |
| Net Income | -146.30M | -87.14M | 15.60M | 231.15M | -41.48M | 37.79M |
Balance Sheet | ||||||
| Total Assets | 960.63M | 1.10B | 1.11B | 1.43B | 1.19B | 940.58M |
| Cash, Cash Equivalents and Short-Term Investments | 124.80M | 109.00M | 173.34M | 461.36M | 245.80M | 43.73M |
| Total Debt | 352.18M | 394.75M | 402.86M | 705.59M | 743.24M | 637.04M |
| Total Liabilities | 1.13B | 1.15B | 1.08B | 1.42B | 1.44B | 1.15B |
| Stockholders Equity | -172.49M | -52.58M | 31.19M | 7.63M | -247.18M | -208.29M |
Cash Flow | ||||||
| Free Cash Flow | 11.04M | -58.64M | 34.25M | 246.34M | 100.94M | 87.43M |
| Operating Cash Flow | 46.99M | 59.54M | 115.33M | 339.53M | 133.67M | 108.51M |
| Investing Cash Flow | 17.49M | -118.18M | -81.61M | -95.08M | -27.44M | -47.62M |
| Financing Cash Flow | -69.09M | -8.56M | -321.74M | -28.89M | 100.27M | -49.60M |
W&T Offshore Technical Analysis
Positive
1.75
Price Trends
1.78
Positive
1.88
Positive
1.75
Positive
Market Momentum
0.12
Negative
69.46
Neutral
89.37
Negative
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 1.84, below the 50-day MA of 1.78, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $299.35M | 17.51 | 12.07% | ― | -6.03% | -54.59% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $246.60M | ― | -1.91% | ― | -15.44% | -113.21% | |
52 Neutral | $203.19M | -7.26 | -6.90% | ― | -9.46% | -144.89% | |
51 Neutral | $137.90M | -635.48 | -0.19% | 13.52% | -2.23% | -104.00% | |
50 Neutral | $322.85M | -2.20 | ― | 2.41% | -6.92% | -126.24% |
* Energy Sector Average
WTI
W&T Offshore
2.17
0.66
43.52%
EPM
Evolution Petroleum
3.94
-0.81
-17.04%
AMPY
Amplify Energy
5.02
-0.20
-3.83%
PNRG
Primeenergy
183.09
-26.71
-12.73%
REI
Ring Energy
1.19
-0.13
-9.85%
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.