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W&T Offshore (WTI)
NYSE:WTI
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W&T Offshore
(NYSE:WTI)
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Rating:53Neutral
Price Target:
$2.00
▲(13.64% Upside)
W&T Offshore's overall stock score reflects significant financial challenges, with negative profitability and high leverage being major concerns. However, improvements in cash flow and positive earnings call highlights, such as increased production and debt reduction, provide some optimism. Technical indicators suggest potential upward momentum, but valuation concerns persist due to negative earnings.
W&T Offshore (WTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$261.08M
Dividend Yield2.27%
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-11.53%
EPS Growth-342.58%
CountryUS
Employees400
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.08
Shares Outstanding148,339,040
10 Day Avg. Volume1,111,913
30 Day Avg. Volume1,011,238
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 Cap1.81
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit1.87
Enterprise Value/Ebitda7.65
Forecast
1Y Price Target
$6.00Price Target Upside240.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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, natural gas, and natural gas liquids produced from its properties. The company utilizes a revenue model where it sells its produced hydrocarbons at market prices, which can fluctuate based on global supply and demand, geopolitical events, and changes in energy policy. Key revenue streams include direct sales of oil and gas to refiners, marketers, and other end-users, often through long-term contracts or spot market transactions. Additionally, W&T Offshore may engage in joint ventures or partnerships with other energy companies to share resources, technology, and capital expenditures, which can enhance operational efficiency and reduce financial risk. The company's ability to manage production costs and optimize its asset portfolio also plays a significant role in its profitability.
W&T Offshore Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call emphasized several positive financial and operational achievements such as increased production, EBITDA growth, and successful resolution of surety issues, which were tempered by some operational challenges like temporary production shutdowns and higher maintenance costs for acquired assets.Q2-2025 Updates
Positive Updates
Production Increase
Production increased by 10% quarter-over-quarter to 33,500 barrels of oil equivalent per day, within guidance range.
EBITDA Growth
Adjusted EBITDA grew by 9% to $35 million compared to the first quarter of 2025.
Debt Reduction
Net debt was reduced by about $15 million to under $230 million, with total debt at $350 million.
Cash and Liquidity Enhancement
Unrestricted cash increased to over $120 million, and liquidity increased to $171 million.
Hedging Success
Implemented costless collars for oil and natural gas, locking in favorable price ranges for 2025.
Positive Reserve Revisions
Net positive revisions of 1.8 million barrels of oil equivalent in 2025 midyear reserve report.
Resolved Surety Issues
Settled disputes with major surety providers, improving financial stability.
Favorable Policy Environment
Expectations of reduced regulatory burdens and lower royalties under current administration.
Negative Updates
Temporary Production Shut-In
Mobile Bay production was temporarily shut in due to a pipeline issue, reducing second quarter production by about 1,000 barrels of oil equivalent per day.
Slight Decrease in Proved Reserves
Proved reserves decreased slightly from 127 million barrels equivalent at year-end 2024 to 123 million barrels equivalent mid-year 2025.
Higher Maintenance Costs on Acquired Assets
Higher than expected maintenance required for assets acquired from Cox, affecting near-term cash flow.
Company Guidance
During the W&T Offshore Second Quarter 2025 Conference Call, the company provided detailed guidance on its operational and financial performance metrics. Production increased by 10% quarter-over-quarter, reaching 33,500 barrels of oil equivalent per day, aligning with the guidance range. The company conducted nine successful low-cost workovers that positively impacted production and revenue. Total lease operating expenses were $77 million, and adjusted EBITDA grew by 9% to $35 million compared to the previous quarter. W&T Offshore reduced its net debt by $15 million to under $230 million while increasing its unrestricted cash to over $120 million. The company announced a third-quarter 2025 production guidance midpoint of 35,000 barrels of oil equivalent per day, a 5% increase from the second quarter, with cash operating costs expected to remain flat. Capital expenditures for the second quarter were $10 million, with full-year expectations between $34 million and $42 million. Additionally, the midyear 2025 reserve report showed SEC proved reserves of 123 million barrels of oil equivalent, with a pretax PV-10 valuation of $1.2 billion, reflecting the strength of their asset base and operational capabilities.W&T Offshore Financial Statement Overview
Summary
W&T Offshore is facing financial challenges with declining revenues and profitability, as evidenced by negative margins and high leverage. The balance sheet shows significant financial instability with negative equity. Despite these issues, there is some improvement in cash flow generation, which could provide a buffer against ongoing operational difficulties. The company needs to address its leverage and improve operational efficiency to stabilize its financial position.Income Statement
The income statement shows a declining trend in revenue with a negative revenue growth rate of -3.96% TTM. Gross profit margin has decreased from 67.41% in 2024 to 51.30% TTM, indicating reduced profitability. Net profit margin is negative at -22.62% TTM, reflecting ongoing losses. The EBIT margin is also negative, suggesting operational challenges. EBITDA margin has decreased significantly from 22.60% in 2024 to 12.53% TTM, highlighting reduced operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals a concerning financial structure with negative stockholders' equity and a negative debt-to-equity ratio of -0.0056 TTM, indicating high leverage and financial instability. Return on equity is positive at 165.79% TTM, but this is due to negative equity, which distorts the metric. The equity ratio is negative, reflecting a precarious financial position.30
Negative
Cash Flow
Cash flow analysis shows a significant improvement in free cash flow growth at 66.06% TTM, indicating better cash management. However, the operating cash flow to net income ratio is low at 0.18 TTM, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is positive at 0.32 TTM, showing some ability to generate cash despite net losses.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 493.95M | 525.26M | 532.66M | 921.00M | 558.01M | 346.63M |
| Gross Profit | 253.38M | 354.06M | 248.73M | 527.83M | 416.64M | 205.40M |
| EBITDA | 61.88M | 118.72M | 222.33M | 587.71M | 301.01M | 144.89M |
| Net Income | -111.74M | -87.14M | 15.60M | 231.15M | -41.48M | 37.79M |
Balance Sheet | ||||||
| Total Assets | 1.02B | 1.10B | 1.11B | 1.43B | 1.19B | 940.58M |
| Cash, Cash Equivalents and Short-Term Investments | 120.72M | 109.00M | 173.34M | 461.36M | 245.80M | 43.73M |
| Total Debt | 351.80M | 394.75M | 402.86M | 693.44M | 730.90M | 625.29M |
| Total Liabilities | 1.13B | 1.15B | 1.08B | 1.42B | 1.44B | 1.15B |
| Stockholders Equity | -102.72M | -52.58M | 31.19M | 7.63M | -247.18M | -208.29M |
Cash Flow | ||||||
| Free Cash Flow | 11.43M | -58.64M | 34.25M | 246.34M | 100.94M | 87.43M |
| Operating Cash Flow | 35.22M | 58.78M | 115.33M | 339.53M | 133.67M | 108.51M |
| Investing Cash Flow | 28.71M | -118.18M | -81.61M | -95.08M | -27.44M | -47.62M |
| Financing Cash Flow | -69.85M | -8.56M | -321.74M | -28.89M | 100.27M | -49.60M |
W&T Offshore Technical Analysis
Neutral
1.76
Price Trends
1.75
Positive
1.68
Positive
1.61
Positive
Market Momentum
<0.01
Negative
48.89
Neutral
60.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTI, the sentiment is Neutral. The current price of 1.76 is below the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.75, and above the 200-day MA of 1.61, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 60.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WTI.
W&T Offshore Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | 202.41M | 2.87 | 7.86% | ― | -13.66% | -4.85% | |
66 Neutral | 302.65M | 60.56 | 0.76% | 3.08% | -40.96% | 0.00% | |
57 Neutral | 182.10M | 159.64 | 0.00% | 9.06% | -0.04% | -71.98% | |
53 Neutral | $261.08M | ― | 203.83% | 2.27% | -11.53% | -342.58% | |
49 Neutral | 145.87M | -8.37 | -31.39% | ― | -10.49% | 17.74% | |
47 Neutral | 137.28M | -2.09 | -16.70% | ― | -5.53% | -216.84% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
WTI
W&T Offshore
1.76
-0.28
-13.73%
EPM
Evolution Petroleum
5.30
0.17
3.31%
GTE
Gran Tierra Energy
3.89
-2.26
-36.75%
REI
Ring Energy
0.98
-0.67
-40.61%
BRY
Berry Petroleum
3.90
-1.28
-24.71%
EP
Empire Petroleum
4.32
-0.65
-13.08%
W&T Offshore Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
W&T Offshore Amends Equity Distribution Agreement
Neutral
Aug 28, 2025
On August 28, 2025, W&T Offshore, Inc. amended its At-The-Market Equity Distribution Agreement to include Virtu Americas LLC as a sales agent and remove Stifel, Nicolaus & Company, Incorporated. This amendment allows the company to offer and sell its common stock, with an aggregate gross sales price of up to $83,001,247, under a new prospectus supplement filed with the SEC, potentially impacting its market operations and stakeholder interests.
The most recent analyst rating on (WTI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on W&T Offshore stock, see the WTI Stock Forecast page.
Business Operations and StrategyRegulatory Filings and Compliance
W&T Offshore Completes Collateral Obligations
Neutral
Jul 8, 2025
W&T Offshore, Inc. has fulfilled its post-issue date collateral obligations under the Indenture dated January 28, 2025. The company completed necessary deliveries to the Collateral Trustee, including executed mortgages and legal documents, which may impact its operational stability and stakeholder confidence.
The most recent analyst rating on (WTI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on W&T Offshore stock, see the WTI Stock Forecast page.
Business Operations and StrategyLegal Proceedings
W&T Offshore Settles Lawsuit with Surety Providers
Positive
Jun 17, 2025
On June 17, 2025, W&T Offshore announced a settlement with two major surety providers, resolving a lawsuit related to indemnity agreements. The settlement ensures no increase in premium rates and withdrawal of collateral demands until December 31, 2026, providing stability and predictability for the company. This agreement, alongside favorable regulatory developments, is expected to enhance shareholder value and support W&T’s strong financial and operational performance in 2025.
The most recent analyst rating on (WTI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on W&T Offshore stock, see the WTI Stock Forecast page.
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.