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1. Company Snapshot

1.a. Company Description

W&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.

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1.b. Last Insights on WTI

W&T Offshore's recent performance was driven by regulatory support, improved financials, and a growth outlook. The company benefits from recent U.S. executive actions supporting oil and gas, enhancing its regulatory environment and future free cash flow prospects. Additionally, W&T's refinancing lowered interest expenses, improving its financial profile and setting the stage for stronger free cash flow generation. The company's track record and ongoing investments in new reserves position it for continued production growth and value creation.

1.c. Company Highlights

2. W&T Offshore's Q3 2025 Earnings: A Strong Performance Amidst Strategic Investments

W&T Offshore reported a robust financial performance in the third quarter of 2025, with production increasing by 6% quarter-over-quarter to 35,600 barrels of oil equivalent per day. The company's adjusted EBITDA saw an 11% increase, driven by reduced LOE costs. However, the earnings per share (EPS) came out at -$0.05, beating the estimated -$0.12. Revenue growth is expected to continue, with analysts estimating a 4.9% increase in revenues for the next year.

Publication Date: Nov -18

📋 Highlights
  • Production Growth:: 6% QoQ increase to 35,600 barrels of oil equivalent per day.
  • Cost Efficiency:: Reduced LOE costs and 11% higher adjusted EBITDA year-to-date.
  • Capital Investment:: $22.5M Q3 CAPEX, with full-year guidance raised to $60M for midstream infrastructure.
  • Debt Reduction:: Net debt lowered by $60M in 2025, enhancing financial flexibility.
  • Acquisition Strategy:: Targeting free cash flow-generating assets with proved reserves and cost-cutting potential.

Operational Highlights and Capital Expenditures

The company's capital expenditures totaled $22.5 million in the third quarter, with an expected increase to $60 million in full-year 2025. According to CEO Tracy Krohn, this increase reflects strategic investments in owned midstream infrastructure to lower third-party transportation costs and enhance production. This investment is expected to drive future growth and improve the company's overall operational efficiency.

Debt Reduction and Future Plans

W&T Offshore reduced its net debt by $60 million in 2025, positioning itself for future growth. The company is well-positioned to take advantage of opportunities like accretive low-risk acquisitions of producing properties, focusing on assets that generate free cash flow and provide a solid base of proved reserves with upside potential. As Tracy Krohn stated, the company aims to add to its portfolio of assets, adjusting to changes in the market and leveraging its experience in managing through challenging times.

Valuation and Growth Prospects

With a P/S Ratio of 0.56 and an EV/EBITDA of 6.22, the company's valuation appears reasonable considering its growth prospects. The Dividend Yield stands at 2.13%, providing a relatively stable return to shareholders. The expected revenue growth of 4.9% next year, coupled with the company's strategic investments and debt reduction, positions W&T Offshore for potential long-term growth.

3. NewsRoom

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Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Markets Gain 1% Amid Lack Of Progress In Ukraine Peace Talks

Dec -04

Source: fxempire.com

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Oil News: WTI Straddles $59.23 Pivot as Ukraine Strikes Lift Crude Oil Futures

Dec -04

Source: fxempire.com

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Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Moves Higher As Traders React To U.S. – Russia Talks In Moscow

Dec -03

Source: fxempire.com

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Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Markets Pulls Back As Traders Focus On U.S. – Russia Talks

Dec -02

Source: fxempire.com

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Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Gains Ground As Ukrainian Drones Hit Two Tankers Heading To Russia

Dec -01

Source: fxempire.com

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3 Energy Value Names Under $5 That Look Like Smart Buys

Dec -01

Source: zacks.com

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Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Moves Higher As Traders Stay Focused On Geopolitics

Nov -28

Source: fxempire.com

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Oil News: WTI Holds Steady with OPEC+ Seen Keeping Output Unchanged and Supply Rising

Nov -28

Source: fxempire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.23%)

6. Segments

Oil

Expected Growth: 1.0%

W&T Offshore's 1.0 growth in oil production is driven by increased capital expenditures in existing fields, successful drilling programs, and strategic acquisitions. Additionally, improved operational efficiency, higher commodity prices, and a favorable regulatory environment contribute to the growth.

Natural Gas

Expected Growth: 2.0%

W&T Offshore's 2.0% natural gas growth is driven by increased production from existing fields, successful exploration and development activities, and strategic acquisitions. Additionally, improving operational efficiencies, favorable commodity prices, and a strong hedging program contribute to the growth. Furthermore, the company's focus on cost reduction and capital discipline also support its growth momentum.

Natural Gas Liquids

Expected Growth: 1.5%

W&T Offshore's 1.5% growth in Natural Gas Liquids is driven by increasing demand for petrochemical feedstocks, growing LNG exports, and rising production from existing wells. Additionally, the company's strategic acquisitions and focus on operational efficiency have contributed to the growth. Furthermore, favorable market conditions, including higher prices and reduced competition, have also supported the segment's expansion.

Other

Expected Growth: 0.5%

W&T Offshore's 0.5 growth driven by increased production from existing fields, successful drilling programs, and strategic acquisitions. Additionally, improving operational efficiencies, cost savings initiatives, and a favorable crude oil price environment contribute to the growth. Furthermore, the company's strong balance sheet and liquidity position enable it to capitalize on opportunities and drive future growth.

7. Detailed Products

Crude Oil

W&T Offshore, Inc. is a leading independent oil and natural gas acquisition, exploitation, and exploration company, with a focus on the Gulf of Mexico. The company produces crude oil from its offshore fields.

Natural Gas

W&T Offshore, Inc. also produces natural gas from its offshore fields, which is used as a clean-burning fuel for power generation, industrial processes, and heating.

Natural Gas Liquids (NGLs)

The company also produces NGLs, which are used as a feedstock for the production of plastics, fertilizers, and other petrochemicals.

8. W&T Offshore, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for W&T Offshore, Inc. is medium due to the availability of alternative energy sources and the increasing demand for renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for W&T Offshore, Inc. is low due to the company's strong market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for W&T Offshore, Inc. is medium due to the company's dependence on a few key suppliers and the high switching costs.

Threat Of New Entrants

The threat of new entrants for W&T Offshore, Inc. is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for W&T Offshore, Inc. is high due to the competitive nature of the oil and gas industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 92.81%
Debt Cost 11.74%
Equity Weight 7.19%
Equity Cost 11.74%
WACC 11.74%
Leverage 1291.56%

11. Quality Control: W&T Offshore, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Tellurian

A-Score: 3.7/10

Value: 7.0

Growth: 6.1

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
W&T Offshore

A-Score: 3.4/10

Value: 7.4

Growth: 1.1

Quality: 4.4

Yield: 2.0

Momentum: 3.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Vivakor

A-Score: 3.3/10

Value: 9.8

Growth: 6.4

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Empire Petroleum

A-Score: 3.3/10

Value: 7.4

Growth: 5.3

Quality: 2.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Battalion Oil

A-Score: 2.8/10

Value: 9.7

Growth: 3.1

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
USE

A-Score: 2.6/10

Value: 7.8

Growth: 2.2

Quality: 2.3

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.85$

Current Price

1.85$

Potential

-0.00%

Expected Cash-Flows