SerpApi.Org
W&T Offshore (WTI) up 2.8% in Tuesday's trading as Roth Capital resumes coverage with a Buy rating and a $4.25 price target, saying the company's improved balance sheet and leverage provide significant flexibility to expand its offshore base through acquisitions.
W&T (WTI) offers one of the last remaining U.S. E&P companies solely focused on offshore assets in the U.S. Gulf and Mobile Bay in Alabama state waters, Roth's Nick Pope says, noting the assets are conventional, mature, and have stacked pay, which allows the company's ongoing capital requirements to remain relatively low while maintaining production.
After several years of stressed and elevated financial leverage, W&T Offshore (WTI) has lowered its leverage metrics and may exit 2026 with a net debt-to-TTM EBITDA of 0.8x, Pope says, which should allow for significant flexibility as the company looks at opportunities to expand its offshore base, "and the opportunity set of potential assets remains compelling and well within the company's extensive offshore expertise.
