Why W&T Offshore Is Rising So Strongly in 2018



W&T Offshore: The second-best performer in 2018

In 2018 so far, W&T Offshore (WTI) is turning out to be the second-best-performing energy stock from the US oil and gas production, or upstream, sector. W&T Offshore is an offshore oil and gas production company with a primary focus on the US Gulf of Mexico. So far in 2018, WTI has risen ~14% from its 2017 close of $3.31 to $3.78.

In 2018, the increase in WTI’s stock price is easily outperforming the decline in the Energy Select Sector SPDR Fund (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). Year-to-date, XLE and XOP are down ~5% and ~6%, respectively. XLE represents an index of stocks across the energy sector, whereas XOP represents an index of stocks across the energy industry and has ~79.3% exposure to the oil and gas exploration and production industry.

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W&T Offshore’s revenues and earnings

In 2017, W&T Offshore reported revenues of ~$487 million, which is ~22% higher than the 2016 revenues of ~$400 million. In 2017, W&T Offshore turned profitable after reporting losses in 2015 and 2016. In 2017, WTI posted adjusted profit of ~$80 million from its loss of around -$115 million in 2016. On a per share basis, W&T Offshore posted adjusted profit of $0.56 per share in 2017 from the loss of -$1.21 per share in 2016.

Next, we’ll compare 2018 returns of Enerplus Corporation (ERF) with broader energy market and energy commodities and will also analyze fundamental metrics.


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