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W&T Offshore (WTI) Restores Production, Boosts Q4 Guidance

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Zacks Equity Research
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W&T Offshore, Inc. WTI recently provided fourth-quarter operational update. The company has brought back significant amount of production online well before time that was paused due to the storms in the Gulf of Mexico region. Moreover, output from its Magnolia field has been restored. Let’s see how the company is faring in the fourth quarter and which way estimates are headed.

Operational Update

W&T Offshore’s fourth-quarter production volumes are expected in the range of 34,700-36,900 barrels of oil equivalent per day (Boe/d). Of the total volumes, 34% is expected to be oil, while 11% and 55% are likely to be natural gas liquids and natural gas, respectively. The guidance has been raised from the prior estimates provided by the company and indicates an improvement from third-quarter realized volumes. However, the year-ago production was recorded at 52,773 Boe/d.

The sequential rise in production and improving prices will likely help the company generate higher profits for the December quarter. However, a year-over-year decrease in production and comparatively lower commodity prices amid the ongoing market volatility are expected to result in year-over-year reduced fourth-quarter profit levels for W&T Offshore.


The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 27 cents per share, indicating a 258.8% year-over-year decline. It has witnessed two downward estimate revisions and one upward movement in the past 60 days. Revenues for the fourth quarter are estimated at $74.6 million, signaling a 50.9% decrease from the year-ago period.

Despite an adverse operating environment, the company manages to keep investors happy with positive adjusted EBITDA. In fact, it delivered earnings beat in all the last four quarters, with an average surprise of 441.4%. Moreover, the company decreased spending in early-2020 to ensure free cash flow generation. Notably, its shares have risen 23.4% in the past six months.

W&T Offshore, Inc. Price and EPS Surprise

W&T Offshore, Inc. Price and EPS Surprise
W&T Offshore, Inc. Price and EPS Surprise

W&T Offshore, Inc. price-eps-surprise | W&T Offshore, Inc. Quote

Zacks Rank & Key Picks

Currently, W&T Offshore has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Covanta Holding Corporation (CVA), Ameresco, Inc. (AMRC) and Antero Midstream Corporation (AM), each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Covanta Holding’s bottom line for 2021 is expected to rise 95.3% year over year.

Ameresco’s bottom line for 2020 is expected to rise 21.7% year over year.

Antero Midstream’s bottom line for 2020 has witnessed two upward estimate revisions and no downward movement in the past 60 days.

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