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 $616.6M against $483.3M — 1.3× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 29.9×. W&T Offshore, Inc. grew revenue faster over the last twelve months: 20.3% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −8.44%) and the higher return on invested capital (1.47% vs 0.00%). Across the 18 metrics below, Obsidian Energy leads on 9 and W&T Offshore, Inc. on 9.

Valuation

Metric OBE WTI Oil & Gas E&P median
P/E 29.94 n/m 9.67
P/S 1.40 0.79 1.76
P/B 0.61 n/m 1.19
Price to free cash flow n/m 7.70 8.37
EV/EBITDA 5.42 3.59 4.59
EV/Sales 2.05 1.05 2.27
Earnings yield 3.34% (10.90%) 7.55%
Free cash flow yield (21.65%) 12.99% 3.98%

Profitability

Metric OBE WTI Oil & Gas E&P median
Gross margin 63.83% 46.40% 79.54%
Operating margin 6.70% 4.99% 24.01%
Net margin 4.53% (8.44%) 14.11%
Free cash flow margin (30.26%) 10.23% 7.72%
Return on equity 1.99% 28.00% 8.99%
Return on assets 1.43% (5.20%) 4.63%
Return on invested capital 1.47% 0.00% 6.33%

Growth

Metric OBE WTI Oil & Gas E&P median
Revenue growth (TTM) (19.29%) 20.26% 13.60%
EPS growth (last fiscal year) 117.95% (71.19%) (10.17%)
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 (1.85) 0.29
Current ratio 0.78 1.31 0.92
Net debt to EBITDA 0.66 2.09 0.93

Dividend

Metric OBE WTI Oil & Gas E&P median
Dividend yield — 1.28% 3.76%
Payout ratio — — 0.33

Size

Metric OBE WTI Oil & Gas E&P median
Market cap 616.59m 483.27m 953.29m

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