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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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Fool contributor Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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