Top 10 Oil and Gas Stocks To Buy According to Analysts

Page 9 of 9

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

Average Analyst Price Target: $7.80

Upside Potential: 288.06%

Number of Hedge Fund Holders as of Q3: 15

W&T Offshore, Inc. (NYS:WTI), headquartered in Houston, Texas, is an independent oil and natural gas producer specializing in the acquisition, exploration, and development of properties in the Gulf of Mexico. Founded in 1983, the company engages in the production and sale of crude oil, condensate, natural gas liquids, and natural gas.

In Q3 2024, W&T Offshore, Inc. (NYS:WTI) faced notable operational challenges, reporting a net loss of $36.9 million ($0.25 per share) and a drop in production to 31.0 MBoe/d from 34.9 MBoe/d in Q2, largely due to hurricane-related disruptions and downtime, while revenue declined by 15% quarter-over-quarter to $121.4 million. Despite this, the company achieved its 27th consecutive quarter of positive free cash flow at $3.9 million, showcasing financial resilience. Lease operating expenses were also well-managed at $72.4 million, coming in below guidance. Additionally, W&T maintained its $0.01 quarterly dividend, reflecting its commitment to shareholder returns despite the challenges.

The company continues to expand its footprint in the Gulf of Mexico, where its operations are concentrated. Earlier in 2024, W&T Offshore, Inc. (NYS:WTI) completed a $72 million acquisition to enhance its regional operations, aligning with its growth strategy through targeted acquisitions in the offshore drilling sector.

While we acknowledge the potential of WTI, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9