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What: Shares of W&T Offshore (NYSE:WTI) were getting pumped up today, gaining as much as 16% after reporting earnings and increasing its dividend payout.
So what: The Gulf of Mexico oil and gas explorer posted revenue in the quarter of $259.2 million, well ahead of estimates of $239 million, and delivered earnings per share of $0.35, which also easily beat expectations of $0.28. CEO Tracy Krohn noted that W&T "saw 20% growth in oil production" and credited the results on "the success of our strong development drilling program." W&T also raised its quarterly dividend 12.5% from $0.08 to $0.09, giving investors a 2.5% yield.
Now what: Shares of W&T had been nearly cut in half since September, so it was certainly pleasing for investors to see an earnings beat. EPS was down slightly from a year ago, but with a 20% increase an oil production, the pieces appear to be coming together for a recovery as production volumes are expected to grow sequentially according to W&T's outlook. Don't be surprised to see shares continue to bounce back from here.
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