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W&T Offshore (WTI) Bids High on 2 Gulf of Mexico Offshore Blocks
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W&T Offshore, Inc. (WTI - Free Report) claimed to be the apparent high bidder on two blocks in the U.S. Gulf of Mexico lease sale 256. The region’s offshore lease sale was conducted on Nov 18 by the Bureau of Ocean Energy Management ("BOEM") under the Trump presidency.
The two apparent bids were on Eugene Island South Addition block 389 and Ewing Banks block 979 on the Gulf of Mexico. The two shallow-water blocks spread over 8,800 acres. Notably, the drive came as the offshore oil companies expect to face restrictions related to drilling on federal lands under the incoming Biden administration.
Upon approval, the independent oil and natural gas producer’s combined investment on both blocks is expected to be approximately $518,000, reflecting a 100% working interest on the property.
Notably, the Houston-based upstream firm hopes to receive the final award results within the next three months as the BOEM restrained from granting the lease currently on the basis of their minimum bidding criteria. When approved, the upstream company shall enjoy a five-year lease period for the two shallow-water blocks and pay a 12.5% royalty.
The offshore company is reluctant to miss the chance of securing the two blocks since the window of opportunities become limited for the future as the incoming administration might impose new drilling regulations. In other words, given the current uncertain times, owing to the coronavirus pandemic, the circumstances did not seem to suppress operator enthusiasm, while acquiring the Gulf of Mexico acreage during the lease sale.
Company Profile & Price Performance
Headquartered in Houston, TX, W&T Offshore is a leading upstream energy company. However, its shares have underperformed the industry in the past month. The company’s stock has gained 43.9% compared with the industry’s 44.5% growth.
Zacks Rank & Stocks to Consider
W&T Offshore currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are Summit Midstream Partners, LP and Altus Midstream Company (ALTM - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Enerplus Corporation , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Summit Midstream’s 2020 earnings has been raised by 25.9%.
Altus Midstream is expected to see earnings growth of 364.4% in 2021, while Enerplus is likely to see earnings growth of 400% next year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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W&T Offshore (WTI) Bids High on 2 Gulf of Mexico Offshore Blocks
W&T Offshore, Inc. (WTI - Free Report) claimed to be the apparent high bidder on two blocks in the U.S. Gulf of Mexico lease sale 256. The region’s offshore lease sale was conducted on Nov 18 by the Bureau of Ocean Energy Management ("BOEM") under the Trump presidency.
The two apparent bids were on Eugene Island South Addition block 389 and Ewing Banks block 979 on the Gulf of Mexico. The two shallow-water blocks spread over 8,800 acres. Notably, the drive came as the offshore oil companies expect to face restrictions related to drilling on federal lands under the incoming Biden administration.
Upon approval, the independent oil and natural gas producer’s combined investment on both blocks is expected to be approximately $518,000, reflecting a 100% working interest on the property.
Notably, the Houston-based upstream firm hopes to receive the final award results within the next three months as the BOEM restrained from granting the lease currently on the basis of their minimum bidding criteria. When approved, the upstream company shall enjoy a five-year lease period for the two shallow-water blocks and pay a 12.5% royalty.
The offshore company is reluctant to miss the chance of securing the two blocks since the window of opportunities become limited for the future as the incoming administration might impose new drilling regulations. In other words, given the current uncertain times, owing to the coronavirus pandemic, the circumstances did not seem to suppress operator enthusiasm, while acquiring the Gulf of Mexico acreage during the lease sale.
Company Profile & Price Performance
Headquartered in Houston, TX, W&T Offshore is a leading upstream energy company. However, its shares have underperformed the industry in the past month. The company’s stock has gained 43.9% compared with the industry’s 44.5% growth.
Zacks Rank & Stocks to Consider
W&T Offshore currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are Summit Midstream Partners, LP and Altus Midstream Company (ALTM - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Enerplus Corporation , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Summit Midstream’s 2020 earnings has been raised by 25.9%.
Altus Midstream is expected to see earnings growth of 364.4% in 2021, while Enerplus is likely to see earnings growth of 400% next year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>