Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

W&T Offshore, Inc. (NYSE: WTI) is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. It has a working interest in over 54 offshore producing fields in federal and state waters (which include 45 fields in federal waters and nine in state waters).

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• WTI's share price has corrected by 23.06% in the past three months. Similarly, in the long term, the stock has given a negative return of 50.69% over the past year.
• The stock is currently trading near to the lower end of its 52-week range of USD 32 and 52-week low price of USD 2.55, with the expectations of an upside movement from the current support levels.
• The price is currently below its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 44.09.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Underlying Commodities Analysis

WTI crude futures remained above USD76 per barrel on Friday, poised for an almost 6% weekly gain, propelled by ongoing geopolitical tensions in the Middle East. The week saw a more than 3% surge in WTI prices on Thursday, triggered by Israeli Prime Minister Benjamin Netanyahu's rejection of a ceasefire proposal by Hamas, leading Israeli forces to intensify their offensive in the southern border city of Rafah. Additionally, the US conducted a strike on Wednesday targeting a Kataib Hezbollah commander in Iraq, adding to regional uncertainties. On the demand front, official data revealed a substantial 3.15-million-barrel decline in US gasoline inventories last week, surpassing the expected 140,000-barrel draw. However, US crude stockpiles experienced a notable 5.5-million-barrel increase during the same period, exceeding market projections for a 1.895-million-barrel build.

Section 2: W&T Offshore Inc (“Buy” at the closing market price of USD 2.87, as of February 08, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 08, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.