W&T Offshore, Inc. WTI has entered into a transaction with its wholly owned Special Purpose Vehicles (SPVs) and Munich Re Reserve Risk Financing, Inc. (“MRRF”). The upstream actor added that the transaction aims to improve its capital structure.

In detail, the company has transferred all of its production properties to Mobile Bay as well as its gas processing facilities associated with SPVs. In return, the Company received the net cash proceeds of a senior non-recourse term loan of $ 215 million which is provided by MRRF to the SPVs. In particular, the upward value of Mobile Bay’s assets has been maintained, with W&T Offshore holding 100% of the shares in the SPVs.

The company said a portion of the proceeds was used to repay the outstanding $ 48 million balance under its reserve-based loan facility. A portion has also been used by the company to enter into commodity hedging contracts, which are associated with its projected production from the Mobile Bay properties. W&T Offshore added that a very large portion of the proceeds will be allocated for general corporate purposes which include acquisitions of oil and gas assets, activities related to developments as well as key opportunities to expand its business base. active.

Price, Consensus and Surprise EPS from W&T Offshore, Inc.

Price, Consensus and Surprise EPS from W&T Offshore, Inc.

Surprise-price-consensus-eps-surprise graph from W&T Offshore, Inc. | Quote from W&T Offshore, Inc.

Based in Houston, TX, W&T Offshore currently carries a Zacks # 3 (Hold) rank. Meanwhile, a few higher ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Matador Resources Company MTDR. All stocks have a Zacks # 1 rank (strong buy). You can see The full list of current Zacks # 1 Rank stocks here.

Whiting Petroleum has seen upward revisions to earnings estimates for 2021 over the past 30 days.

Continental is expected to experience 256% profit growth in 2021.

Matador is expected to experience 300% profit growth in 2021.

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W&T Offshore, Inc. (WTI): Free Inventory Analysis Report

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