W&T Offshore Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 62.32% to $0.26 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Decreased 9.45% to $237.15 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: W&T Offshore Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.25. It beat the average revenue estimate of $231.01 million.

Quoting Management: Tracy W. Krohn, W&T Offshore’s Chairman and Chief Executive Officer, stated, “In 2012 we successfully executed our capital plan, which was heavily weighted towards development and complemented with exploration projects to drive organic growth in 2013. We converted 50% of our 2011 proved undeveloped reserves to a proved developed status and increased our proved developed crude oil reserves by 51% in 2012. This allowed us to continue to take advantage of the on-going strength in oil prices and the premium we receive for our Gulf Coast production. Additionally, our high value reserves provide a cushion from potential ceiling test impairment issues.”

Key Stats (on next page)…

Revenue increased 27.53% from $185.95 million in the previous quarter. EPS increased 36.84% from $0.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.3 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $1.17 to a profit of $1.13 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)