Between its acquisition of Devon Energy's (NYSE: DVN) shelf properties and its takeover offer for midsized Mariner Energy (NYSE: ME), Apache (NYSE: APA) sure made some big waves in the Gulf of Mexico this month.
The moves prompted me to assess how ATP Oil & Gas (Nasdaq: ATPG) stacks up from a comparable valuation perspective. ATP Oil & Gas shareholders are far from the only ones wondering whether they're sitting on the next Gulf gusher, however. A reader asked me to opine on W&T Offshore (NYSE: WTI), and I'm happy to oblige.
If you're not familiar with W&T Offshore, this is a company that's focused on the Gulf of Mexico shelf. Of the company's top 10 fields at year's end, only one was out in the deepwater. W&T Offshore recently reported holding an interest in 77 producing fields spread across the Gulf, so its asset base is far less concentrated than that of ATP Oil & Gas or Contango Oil & Gas (AMEX: MCF). Production is 53% natural gas-weighted, and clocks in at around 220 million cubic feet equivalent (Mmcfe) per day. Reserves dropped to 371 billion cubic feet equivalent (Bcfe) last year, largely on account of low average gas prices. (more)
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