Texas-based oil and natural gas producer W&T Offshore, Inc. (WTI) has provided operational update for 2021 after Hurricane Ida impacted nearly 80% of its production.
The company brought back most of the impacted production online throughout September, and expects to bring back the remaining impacted production online by the end of the year.
As a result of this downtime, W&T expects net production to average between 34,200 and 35,100 barrels of oil equivalent per day (boe/d) in the third quarter, and 34,800 and 38,500 boe/d in the fourth quarter.
For October, the company expects net production to average around 35,900 boe/d. (See Insiders’ Hot Stocks on TipRanks)
W&T announced the update after the market closed on Monday. Its shares gained 1.2% in early trade on Tuesday.
Furthermore, it expects the lease operating expense to lie between $174 million and $180 million in 2021.
The Chairman and CEO of W&T, Tracy W. Krohn, said, “While most of the company’s impacted production has been restored, we estimate that the storm resulted in a temporary reduction of approximately 5,500 boe/d net production to W&T for the third quarter.”
Meanwhile, the company is scheduled to release its financial results for the third quarter on November 2 after market close. Its operations are primarily focused in the Gulf of Mexico.
Last month, Roth Capital analyst John M. White reiterated a Buy rating on the stock with a price target of $5.50 (35.5% upside potential). The analyst is of the view that investors should buy the stock on any weakness.
Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average W&T Offshore price target of $5.30 implies 29.7% upside potential. Shares have gained 152.1% over the past year.
According to TipRanks’ Smart Score rating system, W&T scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.
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