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W&T Offshore
(NYSE:WTI)
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Rating:52Neutral
Price Target:
$4.00
▲(9.29% Upside)
Action:Reiterated
Date:10/08/26
WTI scores in the low-to-mid range primarily due to weak recent profitability and elevated balance-sheet risk from negative equity, partially offset by positive operating/free cash flow. The latest earnings call adds support through stronger near-term results, improving realized prices, and deleveraging progress, while technicals remain soft with the stock below key moving averages and negative MACD. Valuation is hard to assess on a negative P/E, and the dividend yield is modest. The recent credit facility change is an incremental positive for financial flexibility.
Positive Factors
Positive cash generation and deleveraging
Recent cash generation provides internal funding for operations, debt reduction, and selected growth investments. With net leverage at 1.2x and management targeting below 1.0x, sustained margins could improve financial resilience and reduce funding pressure over the next several quarters.
Negative Factors
Persistent negative equity and balance-sheet risk
A persistent equity deficit weakens financial flexibility and makes leverage harder to evaluate on a conventional equity basis. It can also heighten refinancing and covenant sensitivity during a weaker commodity cycle, leaving less room to absorb losses or fund capital requirements internally.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation and deleveraging
Recent cash generation provides internal funding for operations, debt reduction, and selected growth investments. With net leverage at 1.2x and management targeting below 1.0x, sustained margins could improve financial resilience and reduce funding pressure over the next several quarters.
Read all positive factors
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$632.45M
Dividend Yield0.95%
Average Volume (3M)3.76M
Price to Earnings (P/E)―
Beta (1Y)0.13
Revenue Growth13.75%
EPS Growth3.54%
CountryUS
Employees370
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.73
Shares Outstanding150,942,950
10 Day Avg. Volume3,826,890
30 Day Avg. Volume3,761,638
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-1.21
Price to Sales (P/S)0.48
P/FCF Ratio8.70
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit3.22
Enterprise Value/Ebitda5.18
Forecast
1Y Price Target
$4.25Price Target Upside16.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$590.75M
W&T Offshore Business Overview & Revenue Model
Company Description
W&T Offshore, Inc. operates as an independent energy producer, primarily focused on the identification, acquisition, and development of crude oil and natural gas assets within the Gulf of Mexico. The company markets and sells a range of products, ...
How the Company Makes Money
W&T Offshore primarily makes money by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its offshore Gulf of Mexico properties. Revenue is generally recognized based on the volumes of hydrocarbons delivered to purch...
W&T Offshore Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported solid Q2 profitability, strong free cash flow (Q2 FCF +50% vs Q1), improved realized prices (+11% QoQ, ~+40% since YE2025), modest capex, reduced leverage (net debt/EBITDA 1.2x) and production growth (+3% YoY) despite no new drilling. Material lowlights include ongoing surety litigation (potentially large but uncertain recoveries), planned near-term increases in LOE and G&A due to deferred maintenance, accelerating project spend that could push capex to the high end of guidance, sizable AROs, and exposure to oil-price volatility. On balance, the operational and financial positives — cash flow, balance-sheet strength, production resilience and acquisition optionality — outweigh the uncertainties.Positive Updates
Profitability and cash generation
Q2 net income of $12.6 million ($0.08 per share); adjusted EBITDA > $54 million in Q2 and nearly $110 million in the first half of 2026. Free cash flow in Q2 was $31 million, a 50% increase vs. Q1 2026, and free cash flow exceeded $52 million in H1 2026.
Negative Updates
Surety litigation uncertainty
Ongoing surety lawsuits remain unresolved. Management's damages expert estimates potential claims could reach "hundreds of millions" if W&T prevails, and antitrust damages could be trebled, but outcomes and timing are uncertain. Management expects litigation to play out within ~2 years, creating legal and cash-recovery uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability and cash generation
Q2 net income of $12.6 million ($0.08 per share); adjusted EBITDA > $54 million in Q2 and nearly $110 million in the first half of 2026. Free cash flow in Q2 was $31 million, a 50% increase vs. Q1 2026, and free cash flow exceeded $52 million in H1 2026.
Read all positive updates
Company Guidance
Management reiterated unchanged full‑year production and cost guidance and gave Q3 specifics: Q2 production was ~34,700 boe/d (midpoint) and Q3 midpoint is forecast in excess of 35,000 boe/d; Q2 realized price was $50.23/boe (up 11% Q/Q, ~40% vs year‑end 2025). Q3 cost guidance: LOE $73–81M (Q2 LOE $72M), gathering/transportation & production taxes $8.8–9.7M, and cash G&A $17.2–19.0M. 2026 capital guidance is $20–25M (ex‑acquisitions) with Q2 capex $10.4M and project acceleration potentially pushing spend to the high end; ARO guidance is $34–42M (Q2 ARO settlements $3.4M; typical decommissioning ~$35–45M/year). Financial targets and recent results: Q2 net income $12.6M ($0.08/sh), adjusted EBITDA >$54M (H1 ~ $110M), Q2 free cash flow $31M (50% above Q1; H1 >$52M), cash on hand >$150M, liquidity $194M, total debt $351M, net debt $200M and trailing net‑debt/adjusted‑EBITDA ~1.2x (management said it could fall below 1.0x by year‑end if margins sustain).W&T Offshore Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 561.87M | 501.46M | 525.26M | 532.66M | 921.00M | 558.01M |
| Gross Profit | 217.32M | 359.31M | 354.06M | 391.73M | 778.75M | 439.57M |
| EBITDA | 134.96M | 87.15M | 118.72M | 222.33M | 487.88M | 133.96M |
| Net Income | -108.57M | -150.06M | -87.14M | 15.60M | 231.15M | -41.48M |
Balance Sheet | ||||||
| Total Assets | 959.51M | 955.81M | 1.10B | 1.11B | 1.43B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 150.68M | 140.62M | 109.00M | 173.34M | 461.36M | 245.80M |
| Total Debt | 353.39M | 350.81M | 394.75M | 402.86M | 705.59M | 743.24M |
| Total Liabilities | 1.16B | 1.16B | 1.15B | 1.08B | 1.42B | 1.44B |
| Stockholders Equity | -196.20M | -199.75M | -52.58M | 31.19M | 7.63M | -247.18M |
Cash Flow | ||||||
| Free Cash Flow | 37.66M | 27.76M | -58.64M | 34.25M | 246.34M | 100.94M |
| Operating Cash Flow | 88.19M | 77.24M | 59.54M | 115.33M | 339.53M | 133.67M |
| Investing Cash Flow | -49.60M | 21.86M | -118.18M | -81.61M | -95.08M | -27.44M |
| Financing Cash Flow | -10.18M | -69.04M | -8.56M | -321.74M | -28.89M | 100.27M |
W&T Offshore Technical Analysis
Positive
3.66
Price Trends
3.79
Positive
3.64
Positive
3.35
Positive
Market Momentum
0.07
Negative
64.94
Neutral
81.42
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 3.66 is below the 20-day moving average (MA) of 3.72, below the 50-day MA of 3.79, and above the 200-day MA of 3.35, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.42 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $341.45M | 14.18 | 11.47% | ― | -19.15% | -28.59% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $159.74M | -52.96 | -3.80% | 12.21% | 0.59% | -345.77% | |
57 Neutral | $372.57M | -1.30 | -28.80% | ― | -3.15% | -416.57% | |
52 Neutral | $632.45M | -5.74 | 54.96% | 0.95% | 13.75% | 3.54% | |
52 Neutral | $190.29M | 9.18 | 5.13% | 59.31% | -23.70% | 30.67% |
* Energy Sector Average
WTI
W&T Offshore
4.19
2.04
94.79%
EPM
Evolution Petroleum
3.93
-0.08
-2.07%
AMPY
Amplify Energy
4.59
0.05
1.10%
PNRG
Primeenergy
215.75
64.36
42.51%
REI
Ring Energy
1.43
0.43
43.00%
W&T Offshore Corporate Events
Business Operations and StrategyPrivate Placements and Financing
W&T Offshore Amends Credit Facility, Boosts Flexibility
Positive
Oct 7, 2026
On October 1, 2026, WT Offshore amended its credit agreement with Texas Capital Bank and its lending group, converting its existing $50 million revolving credit facility into a conventional reserve-based lending structure with an initial $50 milli...
Business Operations and StrategyExecutive/Board Changes
W&T Offshore Boosts CEO Compensation to Secure Leadership
Positive
Aug 7, 2026
On August 5, 2026, WT Offshore, Inc. amended the employment agreement of its Chief Executive Officer, President and Chairman, Tracy W. Krohn. The amendment sets Krohn’s annual base salary at not less than $1,000,000, subject to annual review...
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.