Should you sell W&T Offshore, Inc. or reduce the position?
Calculate what you would remove, what you would retain, and which assumptions support continuing to own it.
Price as of Nov 7, 2026, 11:01 AM UTC (polygon last daily bar) · Evidence through Nov 6, 2026
What has changed in the case for owning it?
Market Ontology's model values W&T Offshore, Inc. at $2.69 per share against $3.09 (-13.0%). 4 dated developments in the last 45 days reach the position.
| Development | Evidence | Assumption affected | Consequence for the case |
|---|---|---|---|
| Nov 6, 2026 · Energy stock call ties elevated prices to Middle East tensions | 1 source | Middle East tensions can keep crude prices elevated. | Supports the case for owning |
| Oct 30, 2026 · Valero earnings highlight refining margins and freight discounts | 1 source | refining and freight conditions influence regional crude discounts versus benchmark pricing | Mixed |
| Oct 24, 2026 · Exxon Mobil rose 2.79% before its Oct. 30 earnings | 1 source | Stronger integrated oil equities often track firmer crude expectations | Supports the case for owning |
| Oct 17, 2026 · Trump says gasoline prices will drop when the Iran war ends | 1 source | reduced Middle East supply-risk premium can soften crude and gasoline pricing | Weakens the case for owning |
What changes if you sell?
| Keep current position | Sell selected quantity | Exit position | |
|---|---|---|---|
| Shares remaining | 100 | 50 | 0 |
| Estimated proceeds after included transaction costs | — | $154 | $309 |
| Downside case ($1.57) outcome | −$152 | −$76 | $0 |
| Upside case ($4.30) outcome | $121 | $61 | $0 |
| Remaining exposure | $309 | $155 | $0 |
Included costs: an assumed 5 bps for commission and spread. Tax treatment: not calculated; cost basis is not used in this comparison.
Undecided: sale proceeds and remaining exposure are calculated; replacement performance is left unresolved.
What would justify keeping the remaining position?
- Revenue growth (yr 1) holds near -18.34%: Trailing 4-year revenue CAGR of -18.3%, faded toward terminal growth over 5 years.
- Operating margin (steady-state) holds near 9.07%: Anchored to mean operating margin of 9.1% across the last 4 reported periods.
- Discount rate (WACC) holds near 7.84%: CAPM baseline: 4.84% risk-free + β0.30 × 5.5% ERP = 7.84%.
What would justify investigating it again after an exit?
- Implied revenue growth (yr 1, faded to terminal) moves relative to -14.76%: First-year growth that, on the same model, reconciles the current price holding operating margin, 150% cash conversion, WACC and terminal g fixed.
- Implied steady-state operating margin moves relative to 9.98%: Operating margin the current price requires on the same model at modeled growth, tax, cash conversion and WACC.
- The price falls below the downside value of $1.57.
Preserve the reasoning behind the sale.
Save the reduction you're considering, the evidence behind it, and your conditions for reviewing the remaining position. If you exit, keep the research and specify what would justify revisiting WTI.
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