Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>W&amp;T Offshore closed an acquisition of six operated oil &amp; gas fields in the Gulf of Mexico on January 22, 2024, for $72 million.</li><li>The acquisition, which was funded with cash on hand, fits management’s philosophy of investing capital in short- cycle opportunities capable of generating free cash flow.</li><li>The acquired assets include 100% working interests (82% net revenue interests) in six producing fields adjacent to W&amp;T’s existing asset footprint.</li></ul>

W&amp;T Offshore closed an acquisition of six operated oil &amp; gas fields in the Gulf of Mexico on January 22, 2024, for $72 million.The acquisition, which was funded with cash on hand, fits management’s philosophy of investing capital in short- cycle opportunities capable of generating free cash flow.The acquired assets include 100% working interests (82% net revenue interests) in six producing fields adjacent to W&amp;T’s existing asset footprint.

W&T Offshore, Inc. - Cox Acquisition Bolsters Free Cash Flow Profile

<ul>
<li>W&amp;T implemented a $0.01 per share quarterly dividend that will be paid on December 22, 2023, to shareholders of record on November 28, 2023.</li>
<li>The dividend reflects management’s focus on generating free cash flow from the asset base that is available for reinvestment, debt reduction, and returns to shareholders.</li>
<li>The annualized yield is currently 1.1%.</li>
</ul>


W&amp;T implemented a $0.01 per share quarterly dividend that will be paid on December 22, 2023, to shareholders of record on November 28, 2023.
The dividend reflects management’s focus on generating free cash flow from the asset base that is available for reinvestment, debt reduction, and returns to shareholders.
The annualized yield is currently 1.1%.


W&T Offshore, Inc. - Cash Flow Supports Dividend Implementation

<div><div><div><div><ul style="list-style-type: disc;"><li><p>We are updating our 2Q23 commodity prices and realizations.</p></li><li><p>Our NYMEX reference prices averaged $73.78/barrel of oil and $2.32/MMBtu for natural gas.</p></li><li><p>Our previous estimates were $75/bbl and $2.50/Mcf.</p></li></ul></div></div></div></div>

We are updating our 2Q23 commodity prices and realizations.Our NYMEX reference prices averaged $73.78/barrel of oil and $2.32/MMBtu for natural gas.Our previous estimates were $75/bbl and $2.50/Mcf.

W&T Offshore, Inc. - Adjusting Realized 2Q23 Commodity Price Estimates

<ul><li>W&amp;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.</li><li>The company has plied the Gulf since its founding 40 years ago.</li><li>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. Proved reserves (1P) often expose the company to embedded optionality in probable and possible reserves that can be captured over time through well performance with modest incremental capital investment.</li></ul>

W&amp;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. Proved reserves (1P) often expose the company to embedded optionality in probable and possible reserves that can be captured over time through well performance with modest incremental capital investment.

W&T Offshore, Inc - Initiating Coverage: Cash Provides Flexibility

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>The recent rate surge has upset the picture for growth stocks and, consequently, the S&amp;P 500 is going through a consolidation phase. While we cannot say precisely how deep this pullback will be or if the lows are already in, ongoing positive market dynamics tell us the pullback is likely to be contained and therefore should be viewed as a buying opportunity. With that said, a break below 3789 would signal additional downside ahead. In today’s report we highlight attractive Groups and stocks within Energy and Manufacturing (Agricultural Equipment).</p>

The recent rate surge has upset the picture for growth stocks and, consequently, the S&amp;P 500 is going through a consolidation phase. While we cannot say precisely how deep this pullback will be or if the lows are already in, ongoing positive market dynamics tell us the pullback is likely to be contained and therefore should be viewed as a buying opportunity. With that said, a break below 3789 would signal additional downside ahead. In today’s report we highlight attractive Groups and stocks within Energy and Manufacturing (Agricultural Equipment).

U.S. Equity Strategy: Upgrading Financials, Downgrading Technology & Consumer Discretionary

United States

W&T Offshore, Inc. is an independent oil and natural gas company focused primarily on the Gulf of Mexico area in the United States.

W&T Offshore (WTI US)

W&T Offshore, Inc. - Cox Acquisition Bolsters Free Cash Flow Profile

W&T Offshore closed an acquisition of six operated oil & gas fields in the Gulf of Mexico on January 22, 2024, for $72 million.

Water Tower Research

W&T Offshore, Inc. - Cash Flow Supports Dividend Implementation

W&T implemented a $0.01 per share quarterly dividend that will be paid on December 22, 2023, to shareholders of record on November 28, 2023.

Water Tower Research

W&T Offshore, Inc. - Adjusting Realized 2Q23 Commodity Price Estimates

We are updating our 2Q23 commodity prices and realizations. Our NYMEX reference prices averaged $73.78/barrel of oil and $2.32/MMBtu for natural gas.

Water Tower Research

W&T Offshore, Inc - Initiating Coverage: Cash Provides Flexibility

W&T Offshore is an independent oil and natural gas exploration and production company focused on extracting value from producing assets in the US...

Water Tower Research

U.S. Equity Strategy: Upgrading Financials, Downgrading Technology & Consumer Discretionary

The recent rate surge has upset the picture for growth stocks and, consequently, the S&P 500 is going through a consolidation phase.

Vermilion Research