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W&t Offshore (WTI)
NYSE:WTI
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W&T Offshore
(NYSE:WTI)
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Rating:47Neutral
Price Target:
$2.00
▲(14.29% Upside)
W&T Offshore's overall stock score reflects significant financial challenges, including declining profitability and high leverage. Technical analysis indicates bearish trends, and valuation metrics are concerning with a negative P/E ratio. However, the earnings call provided some positive insights into operational improvements and future growth potential, slightly offsetting the negative aspects.
Positive Factors
Operational Performance
The increase in production demonstrates effective asset integration and operational efficiency, supporting long-term growth and stability.
Cost Management
Disciplined cost management enhances profitability and cash flow, providing a buffer against volatile commodity prices.
Financial Position
Improved cash reserves and reduced net debt enhance financial stability, allowing for strategic investments and debt servicing.
Negative Factors
Revenue Decline
Declining revenue and profitability indicate challenges in maintaining market share and pricing power, impacting long-term growth.
High Leverage
High leverage and negative equity pose significant financial risks, limiting flexibility and increasing vulnerability to market fluctuations.
Negative Cash Flow Trend
Declining free cash flow suggests weakening cash generation, potentially impacting the company's ability to fund operations and growth.
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$230.60M
Dividend Yield2.41%
Average Volume (3M)1.23M
Price to Earnings (P/E)―
Beta (1Y)0.80
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. Volume1,207,682
30 Day Avg. Volume1,227,782
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 Cap2.15
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda6.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.44
Revenue Forecast (FY)$526.17M
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
W&T Offshore is facing significant financial challenges. The income statement reveals declining revenue and profitability, with substantial net losses. The balance sheet shows high leverage and negative equity, indicating financial instability. Cash flow is under pressure, with declining free cash flow. The company must address these issues to improve its financial health and reduce risk.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.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.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.| 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
Negative
1.75
Price Trends
1.79
Negative
1.86
Negative
1.70
Negative
Market Momentum
-0.07
Positive
36.58
Neutral
9.19
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 1.75 is above the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.79, and above the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 9.19 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $271.41M | 15.88 | 12.07% | ― | -6.03% | -54.59% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | $191.68M | -12.08 | -1.91% | ― | -15.44% | -113.21% | |
54 Neutral | $117.26M | -545.16 | -0.19% | 13.52% | -2.23% | -104.00% | |
52 Neutral | $185.38M | -6.62 | -6.90% | ― | -9.46% | -144.89% | |
47 Neutral | $230.60M | ― | ― | 2.41% | -6.92% | -126.24% |
* Energy Sector Average
WTI
W&T Offshore
1.55
-0.20
-11.43%
EPM
Evolution Petroleum
3.38
-1.55
-31.44%
AMPY
Amplify Energy
4.58
-1.95
-29.86%
PNRG
Primeenergy
166.00
-39.02
-19.03%
REI
Ring Energy
0.93
-0.58
-38.33%
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.