W&T Offshore, Inc. (WTI) Fundamental Analysis: Bull vs. Bear Case

WTI

W&T Offshore, Inc.

Fundamental data last updated:August 13, 2026

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company profile

SECTOR

Energy

industry

Oil & Gas Exploration & Production

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

VALUATION

P/E

-3.90

Market Cap ($M USD)

$553.45M

Forward P/E

-16.91

PEG

-0.22

PRICE TO SALES

1.06 PRICE TO BOOK

-2.50

EV / EBITDA

7.36 5-Year Average P/E

Free Cash Flow Yield

8.52%

DCF Value

$10.13

Graham Number

N/A

Price to FCF

11.73 EV to FCF

16.44 Earnings Yield

-25.66%

FCF Yield

8.52%

DIVIDEND

Yield

1.08%

Annual Payout

$0.04

Payout Ratio

-4.23%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.95

Next Year EPS Growth Estimate

-$0.22

Next Year Revenue Growth Estimate

$508.00M

Return on Equity (ROE)

81.53%

FREE CASH FLOW

Operating Margin

-5.74%

Debt-to-Equity

-1.76

Piotroski F-Score

4 Altman Z-Score

-0.43

Return on Invested Capital (ROIC)

-4.22%

Current Ratio

0.99 Quick Ratio

0.99 Net Debt to EBITDA

2.11 Interest Coverage

-0.83

Gross Profit margin

26.39%

FCF PER SHARE

$0.32

REVENUE PER SHARE

$3.51

Gainseekers Quantitative Analysis

Summary

The market seems to be missing the mark on W&T Offshore, Inc. Despite trading significantly below its DCF value, the negative Forward P/E and Earnings Yield paint a grim picture of future profitability. The Altman Z-score suggests financial distress, raising red flags about the company’s long-term viability. With a negative Price/Book ratio, the market is signaling skepticism about asset value. This stock is priced as if it’s on the brink, yet there’s a disconnect between its current valuation and potential intrinsic worth.

AI Exposure / Tech Reliance

In the energy sector, W&T Offshore is not directly tied to AI or tech innovations. However, advancements in drilling technology and data analytics could enhance operational efficiency. The company must leverage these tools to remain competitive amidst evolving industry standards.

The Bull Case

For the value-driven investor, W&T Offshore offers intriguing prospects. The robust Return on Equity of 81.53% signals exceptional capital efficiency, while a Piotroski F-Score of 4 indicates moderate financial health. The FCF Yield of 8.55% suggests solid cash generation, providing a cushion against market volatility. Despite a negative operating margin, the company’s ability to generate free cash flow hints at underlying pricing power and operational resilience.

The Bear Case

W&T Offshore faces significant structural challenges. The negative operating margin and interest coverage ratio indicate operational inefficiencies and potential liquidity issues. Trading near its 52-week high, the stock appears technically overextended, raising concerns about its sustainability. The Altman Z-score and negative earnings metrics highlight a precarious financial position, suggesting the company might struggle to weather economic downturns.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.29 Insider Buying % (6 Mo)

Distance to 52-Week High

36.56%

Distance to 52-Week Low

60.75%

EARNINGS SURPRISE %

-850.00%

50-DAY SMA

$3.64

200-DAY SMA

$2.44

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.