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W&T Offshore (WTI) Announces Transactions With SPVs & MRRF

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W&T Offshore, Inc. (WTI - Free Report) has entered into a transaction with its wholly-owned special purpose vehicles (SPVs) and Munich Re Reserve Risk Financing, Inc. ("MRRF"). The upstream player added that the transaction is meant to enhance its capital structure.

In details, the company has transferred all of its Mobile Bay producing properties along with its associated gas treatment facilities to SPVs. In return, the company has received net cash proceeds from a first-lien non-recourse term loan of $215 million that are provided by MRRF to the SPVs. Notably, the upside value in the Mobile Bay Assets has been retained with W&T Offshore owning 100% stake in the SPVs.

The company announced that part of the proceeds was allocated for repaying the $48 million outstanding balance under its reserve-based lending facility. A portion has also been used up by the company for entering into commodity hedging contracts, which are associated with its projected production from the Mobile Bay properties. W&T Offshore added that a king size of the proceeds will get allocated toward general corporate purposes which comprise acquisitions of oil & gas assets, activities related to developments along with key opportunities to broaden its asset base.

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

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

W&T Offshore, Inc. price-consensus-eps-surprise-chart | W&T Offshore, Inc. Quote

Headquartered in Houston, TX, W&T Offshore currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and Matador Resources Company (MTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

Matador is likely to see earnings growth of 300% in 2021.

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