10 Best Oil and Gas Penny Stocks To Buy

07. W&T Offshore, Inc. (NYSE:WTI)

Number of Hedge Fund Holders: 19

Share Price: $2.07

W&T Offshore, Inc. (NYSE:WTI), headquartered in Houston, Texas, is an independent oil and natural gas producer focused on acquiring, exploring, and developing properties in the Gulf of Mexico. Established in 1983, the company is involved in the production and sale of crude oil, condensate, natural gas liquids, and natural gas. As of Q2 2024, W&T Offshore, Inc. (NYSE:WTI) was held by 19 hedge funds, down from 22 in the previous quarter, indicating a slight decrease in institutional interest.

During the second quarter of 2024, W&T Offshore, Inc. (NYSE:WTI) demonstrated strong operational and financial performance, with a solid focus on generating free cash flow and reducing debt. The company reported a production of 34,900 barrels of oil equivalent per day, consistent with its guidance and nearly unchanged from the previous quarter. This stable production level reflects the company’s efficient operational management and successful integration of assets acquired earlier in 2024.

W&T Offshore, Inc. (NYSE:WTI) generated an impressive $45.9 million in adjusted EBITDA during the quarter. Additionally, the company’s free cash flow of $18.7 million further strengthened its financial position, allowing it to increase cash and cash equivalents by 30% to $123 million and reduce net debt by 9% to $268.5 million. These achievements are a testament to W&T Offshore’s ability to optimize costs and realize synergies from recent acquisitions.

The company’s midyear 2024 SEC proved reserves increased by 15% to 141.9 million barrels of oil equivalent, while the pre-tax PV-10 value of these reserves rose by 28% to $1.4 billion, compared to $1.1 billion at year-end 2023. This growth was driven by positive performance revisions and the successful addition of 21.8 million barrels of oil equivalent through acquisitions, showcasing W&T Offshore, Inc. (NYSE:WTI) expertise in expanding its asset base.

Furthermore, the company continues to deliver shareholder value through its quarterly dividend payments and strong balance sheet. As W&T Offshore, Inc. (NYSE:WTI) advances its operational strategy and explores new opportunities in the Gulf of Mexico, it remains well-positioned for continued growth in 2024 and beyond, supported by a robust cash flow profile and disciplined capital allocation strategy.