Tracey has given himself a $40+ million in dividends and a similar amount to the rest of the stockholders. He should be reinvesting the money in good projects instead of giving it away. It has now become an income stock with dividends approaching 6.5% this year. The P/E is pretty #$%$ with natural gas barely breaking even, high G&A and LOE costs, and oil heading south. You can't give back that much money and maintain a good rate of return. They also have very little cash on hand. This is not good. Make up your mind, income stock or growth stock. I think Tracey made his pick. The new areas, West Texas and onshore resource plays are very high cost and long payouts.
Most folks like dividends.
I think your own words from this post summarize the future for WTI.
"Sounds like a pretty good deal if the probable and possible reserves pan out. They paid $228 million for 3089 net barrels of oil a day. The 63% natural gas production on a boe basis is probably income neutral or a little negative based on prices and LOE and G&A. If natural gas prices turn around in the next few years, it will be an awesome deal."
Absolutely, if natural prices go up, then W&T is a great buy. But for now, W&T stock price is currently in line with other income stocks, like ATO. Not much growth potential, just a good income generator. But there are a number of new areas where shale gas resource plays are starting up, such as North Carolina. There will be very little upward pressure on Natural Gas for a long time. When winter natural gas storage isn't depleted much by March and natural prices drop some, that will be a good time to buy.