Obsidian Energy (OBE) vs W&T Offshore, Inc. (WTI)

Obsidian Energy and W&T Offshore, Inc. are both Oil & Gas E&P companies. Obsidian Energy is the larger, with a market value of $750.7M against $589.8M — 1.3× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 34.5×. W&T Offshore, Inc. grew revenue faster over the last twelve months: 13.8% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −19.3%) and the lower return on invested capital (1.47% vs 74.1%). Across the 18 metrics below, W&T Offshore, Inc. leads on 10 and Obsidian Energy on 8.

Valuation

Metric OBE WTI Oil & Gas E&P median
P/E 34.48 n/m 10.57
P/S 1.61 0.97 1.80
P/B 0.71 n/m 1.27
Price to free cash flow n/m 14.45 9.99
EV/EBITDA 5.98 4.91 5.08
EV/Sales 2.27 1.33 2.39
Earnings yield 2.90% (20.00%) 6.06%
Free cash flow yield (18.80%) 6.92% 6.17%

Profitability

Metric OBE WTI Oil & Gas E&P median
Gross margin 63.83% 43.34% 80.41%
Operating margin 6.70% 0.99% 21.39%
Net margin 4.53% (19.32%) 14.17%
Free cash flow margin (30.26%) 6.73% 9.71%
Return on equity 1.99% 72.64% 10.05%
Return on assets 1.43% (10.95%) 5.81%
Return on invested capital 1.47% 74.05% 6.32%

Growth

Metric OBE WTI Oil & Gas E&P median
Revenue growth (TTM) (19.29%) 13.75% 9.94%
EPS growth (last fiscal year) 117.95% (71.19%) —
Revenue growth, 5-year CAGR 15.86% 7.66% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OBE WTI Oil & Gas E&P median
Debt to equity 0.25 (1.79) 0.28
Current ratio 0.78 1.17 0.96
Net debt to EBITDA 0.66 2.09 0.91

Dividend

Metric OBE WTI Oil & Gas E&P median
Dividend yield — 0.70% 4.93%
Payout ratio 0.00 0.00 0.07

Size

Metric OBE WTI Oil & Gas E&P median
Market cap 750.71m 589.76m 923.59m

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