May 22, 2023, ST. PETERSBURG, FL – Water Tower Research ( has published an Initiation of Coverage Report on WTI Offshore, Inc. (NYSE: WTI) titled, “Cash Provides Flexibility”. The report can be accessed here.

W&T Offshore is an independent oil and natural gas exploration and production company focused on extracting value from producing assets in the US Gulf of Mexico. The company has plied the Gulf since its founding 40 years ago. High-quality reservoir rock properties and the tendency for reservoirs in the Gulf of Mexico to outperform original reserve estimates are key drivers of management’s affinity for the basin.

The company’s asset base has been built through a series of producing property acquisitions over the decades. Management seeks properties that generate significant excess cash flow from a proved developed reserve base that has quantifiable upside. Upside can take many forms, including well performance, recompletions and step-out development, and facility improvements to lower costs. 1P total reserves totaled 165 MMBOE under SEC pricing guidelines as of December 31, 2022. Management estimates 81 MMBOE of incremental probable reserves related to existing proved reserves could ultimately be recovered for minimal capital.

W&T generated $42 million of adjusted EBITDA in 1Q23. At the end of 1Q23, the company had a cash balance of $182 million and total liquidity of $227 million. Net debt was $232 million. Our FY23 and FY24 adjusted EBITDA estimates are $247 million and $300 million. The company is trading at adjusted EBITDA multiples of 3.1x and 2.2x our FY23 and FY24 estimates.

Management’s interests are highly aligned with common shareholders. Tracy Krohn, W&T’s Founder, Chairman, and Chief Executive Officer, owns ~33% of the outstanding shares.

About Water Tower Research

Water Tower Research is modernizing Investor Relations through research-driven communications and Investor Engagement. Sound investment research begins with good information. At WTR, we help companies and investors connect by creating expert information flow and strategies that are the foundation of a successful modern investor relations platform. Our analysts and capital markets professionals bring decades of unrivaled Wall Street experience and insight to a new digital world of investor communications and engagement. Our research and investor content is distributed across traditional research aggregators like Bloomberg, FactSet, etc., proprietary direct distribution lists, social media, search engines, and our website. As a result, every institutional and retail investor has equal access to our high-quality company research. Our mission is to help companies take control of their IR program and proactively reach investors while bringing investors a consistent flow of quality information to help them understand our clients’ businesses, industries, and the investment opportunities they present.

Tags: , , , , ,

See Campaign:

Contact Information:

Name: Water Tower Research LLC
Email: [email protected]
Job Title: WTR Investor Engagement

Go Media, CE, ReleaseLive, Google News, Reportedtimes, IPS, Extended Distribution, iCN Internal Distribution, English