5 Best Value Penny Stocks To Buy

In this article, we will take a look at the 5 best value penny stocks to buy. To see more such companies, go directly to 10 Best Value Penny Stocks To Buy.

5. W&T Offshore, Inc. (NYSE:WTI)

Number of Hedge Fund Holders: 18

Texas-based energy company W&T Offshore, Inc. (NYSE:WTI) ranks 5th in our list of the best value penny stocks to buy according to hedge funds. W&T Offshore, Inc. (NYSE:WTI)’s PE ratio as of August 22 stands at 4.94.

As of the end of the second quarter of 2023, 18 hedge funds had stakes in W&T Offshore, Inc. (NYSE:WTI). The biggest stakeholder of W&T Offshore, Inc. (NYSE:WTI) was Joe Huber’s Huber Capital Management with an $8.6 million stake in the company.

W&T Offshore, Inc. (NYSE:WTI)’s management talked about their expectations for the third quarter in a recent earnings call. W&T Offshore, Inc. (NYSE:WTI)’s CEO Tracy Krohn said:

“For the third quarter, our guidance for lease operating expense is expected to be lower, so between $60 million and $67 million. We also continue to control our G&A costs. In the second quarter, cash G&A costs were $15.3 million, down 14% and $18 million in Q1 2023. For the third quarter, we are expecting cash G&A to increase modestly between $15.4 million and $17.3 million. We’ll continue to manage controllable costs to help maximize our margins. So turning to our balance sheet. During 2023, we’ve reduced total debt by almost $300 million from year end 2022. At the end of the second quarter, we had net debt of $231.9 million, which was total debt of $403.6 million, net of cash and cash equivalents of $171.6 million. As I mentioned previously, the large reduction in total debt was driven by issuing new 2026 senior second lien notes in January 2023 at par totaling $275 million in a private offering and using the proceeds along with a portion of our considerable cash position to retire all of our outstanding 2023 senior second lien notes.”

Kingdom Capital Advisors made the following comment about W&T Offshore, Inc. (NYSE:WTI) in its Q4 2022 investor letter:

“W&T Offshore, Inc. (NYSE:WTI) was our favorite trading vehicle, taking advantage of its volatile nature and gunslinging risk management department, to ride multiple >100% moves in the stock during 2022. WTI is a Gulf of Mexico E&P with a colorful CEO, no capital return plan, a valuable pile of reserves, and a slug of calls on the price of natural gas. We found this to be an exciting trade to express our belief in energy stocks, and a dangerous place to stay after sentiment peaks.”