W&T OFFSHORE Reports Second Quarter FY2023 Earnings Results
August 25, 2023
🌥️Earnings Overview
On June 30, 2023, W&T OFFSHORE ($NYSE:WTI) reported a USD 126.2 million total revenue for the second quarter of FY2023, a 53.9% decrease from the same quarter the year prior. Net income for the quarter was reported at USD -12.1 million, compared to USD 123.4 million in the previous year.
Market Price
On Tuesday, W&T OFFSHORE reported their second quarter earnings results for the fiscal year 2023. The company’s stock opened at $4.3 and closed at $4.3, a decrease of 1.6% from its previous closing price of 4.4. Despite these encouraging results, W&T OFFSHORE’s stock price still fell due to investor concerns about the future of the company’s operations and prospects. The company is currently struggling to cope with the current oil market downturn, which has adversely impacted their ability to generate sufficient profits. Additionally, W&T OFFSHORE has been struggling to reduce its debt burden, which has further affected its stock price over the past few months.
However, investors remain cautious about the company’s long-term prospects in light of the current oil market downturn and high debt levels. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for W&t Offshore. More…
| Total Revenues | Net Income | Net Margin |
| 714.09 | 124.07 | 38.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for W&t Offshore. More…
| Operations | Investing | Financing |
| 151.4 | -50.72 | -306.78 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for W&t Offshore. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.1k | 1.08k | 0.17 |
Key Ratios Snapshot
Some of the financial key ratios for W&t Offshore are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | 48.6% | 30.2% |
| FCF Margin | ROE | ROA |
| 13.9% | 451.5% | 12.2% |
Analysis
At GoodWhale, we have analyzed the financials of W&T OFFSHORE and organized our findings into a Star Chart. According to this chart, W&T OFFSHORE has a strong score in its profitability, but medium in its growth and weak in its asset and dividend. Based on this performance, we have classified W&T OFFSHORE as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. For investors who are considering W&T OFFSHORE, there are several possibilities depending on their individual goals. For those looking for a steady income, the weak score in dividends may be a deterrent, but for those looking for a long-term investment it may present an opportunity to capitalize on future growth. Additionally, the high health score of 8/10 may be attractive to those looking for a company capable of sustaining future operations in times of crisis. More…
Peers
The oil and gas industry is a competitive marketplace where companies vie for resources, customers, and market share. The company’s competitors include Headwater Exploration Inc, SandRidge Energy Inc, and Centaurus Energy Inc. These companies are all fighting for a share of the market, and each has its own strengths and weaknesses. W&T Offshore Inc has a strong history and reputation in the industry, but its competitors are also formidable players.
– Headwater Exploration Inc ($TSX:HWX)
Headwater Exploration Inc is a Canadian oil and gas company with a focus on exploration and production in the Western Canadian Sedimentary Basin. The company has a market capitalization of 1.6 billion as of 2022 and a return on equity of 23.85%. Headwater’s operations are concentrated in the provinces of Alberta and Saskatchewan. The company’s primary focus is on the development of its Montney natural gas play in northeastern British Columbia.
– SandRidge Energy Inc ($NYSE:SD)
SandRidge Energy Inc is an oil and natural gas company with a market cap of 688.54M as of 2022. The company has a Return on Equity of 30.54%. SandRidge Energy Inc is engaged in the exploration, development, production and acquisition of oil and natural gas properties.
– Centaurus Energy Inc ($TSXV:CTA)
Centaurus Energy Inc is a Canadian oil and gas company with a market cap of 2.72M as of 2022. The company has a Return on Equity of 264.86%. Centaurus Energy is engaged in the exploration, development and production of oil and gas properties in Canada. The company’s principal focus is on the development of its Montney natural gas asset in northeastern British Columbia.
Summary
Investors may want to keep an eye on W&T OFFSHORE, as the company reported their earnings results for the second quarter of FY2023 on June 30th. Total revenue decreased by 53.9% compared to the same period the previous year, down to USD 126.2 million, and net income was reported at USD -12.1 million. Despite the large drop in net income, investors may want to further research W&T OFFSHORE if their share price appears to be attractive. They may want to consider the current economic environment, potential growth opportunities, industry trends, and management decisions when making an investment decision.
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