W&T Offshore Shares Popped: What You Need to Know

Travis Hoium, The Motley Fool

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of offshore oil and gas explorer W&T Offshore (NYS: WTI) jumped 10% today after the company released earnings and increased its dividend.

So what: Yesterday, after the market closed, W&T said fourth-quarter revenue had grown 40% to $261.9 million and net income had doubled to $46.1 million, or $0.61 per share. Analysts had expected earnings of $0.45 per share and revenue of $238.3 million. This morning the company said it was doubling its quarterly dividend to $0.08 per share.

Now what: Drilling in the Gulf of Mexico was alive and well at the end of 2011. W&T increased production year over year and was able to take advantage of high oil prices in the quarter. Shares are trading at just 12 times next year's estimated earnings, and I think that's a solid upside.

Interested in more info on W&T Offshore? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of W&T Offshore. 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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