UPDATE: KLR Group Upgrades W&T Offshore, Inc.

Analysts at KLR group upgraded shares of W&T Offshore, Inc. (NYSE: WTI) to Buy and placed an $18 price target on the stock.

Gail Nicholson finds that the company offers 45 percent upside to their price target.

In addition, W&T has future catalysts ahead with the company’s new oil well at its Mahogany Field. Production at this well is expected to begin in the fourth quarter 2014.

Nicholson is forecasting WTI to grow liquid volumes by 30 percent in 2016 prompted by the Big Bend and Dantzler prospects. WTI’s Big Bend well is projected to begin production in late 2015.

W&T has roughly 1.2 million gross acres in the Gulf of Mexico and is currently running four rigs on these properties.

Shares of W&T closed Wednesday at $12.18.