An independent oil and gas producer,
W&T Offshore, Inc.
) has allotted around $450 million as its capital budget for
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W&T OFFSHORE (WTI): Free Stock Analysis
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W&T plans to spend the majority of its capital (around 63% or
$283.5 million) towards exploratory drilling with an aim to push
organic growth in both reserves and production. This amount will
be allocated for the projects in the Gulf of Mexico, both on the
shelf and in the deepwater. The remaining 37% or $166.5 million
will go towards projects onshore Texas.
The company entered 2013 with a high level of activity, having
completed SS 349 A-9 in the Mahogany field, MC 698 #1 in the Big
Bend and MP 163 #1 during the fourth quarter of 2012. In the
ongoing first quarter, it started drilling the SS 349 A-14, the
sixth well in its multi-well drilling program at its Mahogany
field. Other wells, where drilling operations are ongoing
include MC 243 A-2 ST in the Matterhorn field, SS 349 A-14 in the
Mahogany field and MP 159#1.
In 2013, W&T expects to drill exploration wells - MP 108 B-2,
MC 243 A-5 in the Matterhorn field, SS 349 A-15 in the Mahogany
field and HI 21 A-1.
The success attained by the company in both the Wolfcamp
horizontal drilling program and the 40-acre infill spacing has
added significant value to W&T's Yellow Rose project in the
Permian Basin in its Onshore segment. During 2013, W&T
expects to drill 7 horizontal and 20 vertical wells. Currently,
it has 2 rigs operational in the field.
W&T also forecasts its production for the first quarter of
2013 and full-year 2013 in the range of 4.3 million barrels of
oil equivalent (MMBoe) to 4.8 MMBoe and 17.0 MMBoe to 18.7 MMBoe,
W&T holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, other stocks in the oil and gas
Cabot Oil & Gas Corporation
Range Resources Corporation
Penn Virginia Corporation
) hold a Zacks Rank #1 (Strong Buy) and are expected to perform