Oasis Petroleum Inc.
Company Summary
Description
Oasis is the premier operator in the Williston Basin, possessing both coveted assets and creative people that drive the success of the Company. We are on the forefront of technology deployment, operational efficiencies, and infrastructure development. Our 506,000 net acres in the Williston Basin are highly concentrated and are prospective for the Bakken, Three Forks and other potential horizons. As we develop this acreage position that is in the heart of the play, we expect to increase long-term shareholder value while maintaining a conservative balance sheet. We have a long history of acquiring and exploiting oil and gas assets; which has been characterized by capital discipline coupled with differential views of the market. While we have a great track record of rapidly growing production and reserves, we do not subscribe to the idea of growth at any cost.Website
http://www.oasispetroleum.com/Operational Regions
- Bakken
- Williston Basin
- Three Forks Formation
Financial Data:
NYSE:OAS from Google FinanceTickers:
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OAS - New York Stock Exchange
Related Entities
Firm Transport Commitments
Project: Gray Oak Pipeline
Firm Commitment: 10 M Bbls/d
Recent news
- 3/7/2022 - Whiting Petroleum &... (subscriber access)
- 10/25/2021 - Oasis Petroleum... (subscriber access)
- 10/22/2021 - Diamondback Energy... (subscriber access)
- 10/22/2021 - Diamondback Energy... (subscriber access)
- 9/30/2021 - Oasis Petroleum Agrees... (subscriber access)
Investor Presentations
- May 2021 Update
- 1Q20 Investor Presentation (subscriber access)
- 1Q20 Investor Presentation (subscriber access)
- November 2019 Investor Presentation (subscriber access)
- August 2019 Presentation (subscriber access)
- 1Q19 Investor Presentation (subscriber access)
- 4Q18 Investor Presentation (subscriber access)
- 2Q18 Investor Presentation (subscriber access)
- May 2018 Investor Presentation (subscriber access)
- January 2018 Investor Presentation (subscriber access)
- 3Q17 Investor Presentation (subscriber access)
- 2Q17 Earnings Presentation (subscriber access)
- 1Q17 Investor Presentation (subscriber access)
- Investor Presentation - February 2017 (subscriber access)
- 3Q16 Investor Presentation (subscriber access)
- August 2016 Investor Presentation (subscriber access)
- 1Q16 Investor Presenation (subscriber access)
Company Transactions
Date: 9/30/2022
Type: Merger
NOTES:
Whiting Petroleum & Oasis Petroleum have announced an agreement to combine via a merger of equals, which will create a combined firm with more than 972K net acres in the Williston. The deal holds an equity value of $6 billion and closing is targeted in the second half of 2022.
Whiting Petroleum & Oasis Petroleum have announced an agreement to combine via a merger of equals, which will create a combined firm with more than 972K net acres in the Williston. The deal holds an equity value of $6 billion and closing is targeted in the second half of 2022.
REGIONS:
Williston Basin
Date: 7/30/2021
Type: Acquisition
BUYERS:
Oasis Petroleum Inc.
SELLERS:
Diamondback Energy, Inc.
DETAILS:
COST: 745 $MM
VOLUMES: 27 MBOE/d
ACRES: 95000 Acres
NOTES:
Oasis Petroleum has entered into a deal with Diamondback Energy to acquire select Williston Basin assets for $745 million. They will finance this with $106 million in cash on hand, revolver borrowings and a bridge loan. Closing is targeted in July 2021.
Oasis Petroleum has entered into a deal with Diamondback Energy to acquire select Williston Basin assets for $745 million. They will finance this with $106 million in cash on hand, revolver borrowings and a bridge loan. Closing is targeted in July 2021.
REGIONS:
Williston Basin
Date: 11/21/2018
Type: Acquisition
NOTES:
The deal includes an additional 15% stake in Bobcat and a 30% interest in Beartooth.
The deal includes an additional 15% stake in Bobcat and a 30% interest in Beartooth.
REGIONS:
Williston Basin
Delaware Basin
Date: 6/28/2018
Type: Acquisition
NOTES:
Oasis Petroleum has entered two seperate deals for the sale of non-core Williston Basin acreage.
Oasis Petroleum has entered two seperate deals for the sale of non-core Williston Basin acreage.
REGIONS:
Williston Basin
Date: 2/15/2018
Type: Acquisition
BUYERS:
Oasis Petroleum Inc.
SELLERS:
Forge Energy, LLC
DETAILS:
COST: 946 $MM
VOLUMES: 3.5 MBOE/d
ACRES: 20300 Acres
NOTES:
To fund the deal, Oasis intends to draw on its revolving credit facility or draw from capital markets in addition to selling its non-core Williston Basin asset for up to $500 million in 2018
To fund the deal, Oasis intends to draw on its revolving credit facility or draw from capital markets in addition to selling its non-core Williston Basin asset for up to $500 million in 2018
REGIONS:
Delaware Basin
Date: 12/5/2016
Type: Acquisition
BUYERS:
Oasis Petroleum Inc.
SELLERS:
SM Energy Company
DETAILS:
COST: 785 $MM
VOLUMES: 12.4 MBOE/d
ACRES: 55000 Acres
REGIONS:
Williston Basin
News & Press Releases
Criterion News
- 3/7/2022 - Whiting Petroleum &... (subscriber access)
- 10/25/2021 - Oasis Petroleum... (subscriber access)
- 10/22/2021 - Diamondback Energy... (subscriber access)
- 10/22/2021 - Diamondback Energy... (subscriber access)
- 9/30/2021 - Oasis Petroleum Agrees... (subscriber access)
- 6/29/2021 - Oasis Petroleum Declares... (subscriber access)
- 6/25/2021 - Oasis Midstream... (subscriber access)
- 5/25/2021 - Oasis Petroleum Offering... (subscriber access)
- 5/21/2021 - Oasis Midstream Partners... (subscriber access)
- 5/21/2021 - Oasis Petroleum Shifting... (subscriber access)
- 5/21/2021 - Oasis Divests Permian... (subscriber access)
- 5/4/2021 - Oasis Petroleum Reports... (subscriber access)
- 5/4/2021 - Oasis Petroleum... (subscriber access)
- 5/4/2021 - Oasis Petroleum Reports... (subscriber access)
- 5/4/2021 - Oasis Petroleum... (subscriber access)
- 3/31/2021 - Oasis Midstream Acquires... (subscriber access)
- 3/22/2021 - Oasis Petroleum to... (subscriber access)
- 2/25/2021 - Oasis Petroleum Issues... (subscriber access)
- 2/25/2021 - Oasis Petroleum Reports... (subscriber access)
- 11/20/2020 - Oasis Petroleum... (subscriber access)
- 11/11/2020 - Oasis Petroleum Reports... (subscriber access)
- 9/30/2020 - Oasis Petroleum Entering... (subscriber access)
- 9/18/2020 - Oasis Petroleum Defers... (subscriber access)
- 5/19/2020 - Oasis Petroleum... (subscriber access)
- 5/19/2020 - Oasis Petroleum Suspends... (subscriber access)
- 5/19/2020 - Oasis Expecting Free... (subscriber access)
- 5/19/2020 - Oasis Reduced 2Q-4Q... (subscriber access)
- 5/19/2020 - Oasis Reports 1Q20 CapEx... (subscriber access)
- 5/19/2020 - Oasis Reports 1Q20... (subscriber access)
- 4/29/2020 - Oasis Petroleum... (subscriber access)
Press Releases
- Delivered net cash provided by operating activities of $251.0 million and Adjusted EBITDA(1) of $256.6 million in 3Q 2019.
- Achieved positive free cash flow during the quarter and year to date and continue to expect to be free cash flow positive in 2019 for the E&P business(2).
- Reduced debt under the Oasis credit facility by $125.0 million during the quarter to $406.0 million as of September 30, 2019.
- LOE per Boe decreased 15.8% to $6.16 per Boe in 3Q 2019 compared to $7.32 per Boe in 2Q 2019.
- Crude oil differentials remained strong at $1.30 off of NYMEX WTI in 3Q 2019.
- Produced 88.7 MBoepd in 3Q 2019, which included the impact of divested volumes of approximately 330 Boepd. Volumes grew by 5% in 3Q 2019 (3% oil) as compared to 2Q 2019.
- Divested upstream assets in various packages in the Williston Basin, which resulted in approximately $41.0 million in cash proceeds. Transactions closed late in 3Q 2019.
- Production averaged 80.2 MBoepd (Williston Basin) and 8.5 MBoepd (Delaware Basin) in 3Q 2019.
- Oasis expects 4Q 2019 production to range between 83.3 to 85.3 MBoepd (70.5% oil cut), which is in line with the Company's pre-divestiture prior midpoint guidance of 86 MBoepd (71% oil cut). The anticipated impact from divested volumes in 2020 is approximately 1.1 MBoepd.
- In 3Q 2019, Oasis dropped down to one OWS crew and reduced company-wide headcount by 87, representing 12% of the workforce, resulting in a one-time G&A charge of approximately $2.4 million. The Company now expects 2019 G&A to range between $125 to $131 million, excluding $20 million of litigation contingency expenses, and the run-rate impact of the reduced headcount to be approximately $10 million. Oasis continues to focus on cost control measures across its businesses.
- CapEx in 3Q 2019 of $187 million consisted of $148 million of E&P and other (including $3 million of capitalized interest), $37 million of consolidated midstream and $3 million of acquisitions. The Company's 2019 E&P and other CapEx guidance remains unchanged from the August range of $620 to $640 million, which excludes capitalized interest charges of approximately $12 million. Total 2019 midstream CapEx is now expected to be $212 to $222 million, which is below the August guidance range of $219 to $230 million.
- Delivered net cash provided by operating activities of $214.0 million and Adjusted EBITDA(1) of $249.6 million for the second quarter of 2019.
- Produced 84.5 MBoepd, an increase of 6.3% from the second quarter of 2018.
- Temporary downtime in OMP's Wild Basin natural gas processing complex caused an estimated 3.0 MBoepd and $6 million in lost production and Adjusted EBITDA(1), respectively. July production averaged approximately 89 MBoepd.
- Achieved positive free cash flow year to date and continues to expect to be free cash flow positive in 2019 for the E&P business(2).
- Delaware Basin well costs are targeted at $9.6 million per ~10,000 foot lateral well.
- LOE totaled $7.32 per Boe in the second quarter of 2019, within the Company's guidance of $7.00 to $7.75 per Boe.
- Both total Company G&A expense and E&P Cash G&A(1) expense decreased 10% from the first quarter of 2019.
- Improved crude oil differentials to $0.96 off of NYMEX WTI, a significant improvement from the fourth quarter of 2018.
- Production averaged 78.3 MBoepd (Williston Basin) and 6.2 MBoepd (Delaware Basin). Oasis expects production in the third quarter of 2019 to range between 87 and 90 MBoepd (approximately 71.5% oil).
- Oasis updated its differential guidance to between $1.50 and $3.00 per barrel in 2019 as compared to between $1.50 and $3.50 per barrel previously.
- CapEx of $295 million consisted of $206 million of E&P and other, $83 million of consolidated midstream and $6 million of acquisitions. The Company now expects 2019 E&P and other CapEx to be approximately $620 to $640 million. The increase primarily reflects 1) an adjustment to deflation expectations related to a lower budgeted crude oil price, 2) improved cycle times in the Delaware Basin resulting in increased spuds with the two rig program, and 3) increased non-operated spending and a number of operating wells with higher working interests.
- OMP continues to successfully secure third party volumes to feed the Wild Basin natural gas processing complex. In June, the complex experienced temporary operational downtime, which was resolved in early July. The gas complex has recently been processing above 280 MMscfpd with the second natural gas plant processing at times above its 200 MMscfpd design capacity.
- Oasis continues to work with third parties for gas infrastructure in the Delaware Basin and expects to provide an update in the coming months on the outcome of the selection process.
- Total Midstream CapEx is expected to range between $219 to $230 million for 2019, which reflects capturing additional third party business, incremental plant costs and an acceleration of spending from 2020 to 2019. Net CapEx from Oasis attributable to its retained interest is expected to range between $15 and $16 million.
- More details on OMP's performance can be found in OMP's second quarter 2019 press release issued on August 6, 2019 available on OMP's website at www.oasismidstream.com.
- Delivered production during the first quarter of 2019 of 91.7 thousand barrels of oil equivalent per day ("MBoepd"), an increase of approximately 3.9% from the fourth quarter of 2018 and 3.6% above midpoint guidance. Crude oil production of 66.0 thousand barrels of oil per day ("MBopd") was approximately 2.2% above midpoint guidance.
- Completed and placed on production 15 gross (9.2 net) operated wells, including 12 gross (7.1 net) operated wells in the Williston Basin and 3 gross (2.0 net) operated wells in the Delaware Basin, in the first quarter of 2019.
- Improved crude oil differentials to $1.30 off of NYMEX West Texas Intermediate crude oil index price ("NYMEX WTI") in the first quarter of 2019, a significant improvement from the fourth quarter of 2018.
- Oasis's midstream subsidiary, Oasis Midstream Partners LP (NYSE: OMP) ("OMP"), continued to ramp up utilization of its second natural gas plant in Wild Basin. The completion of the second natural gas plant makes OMP the second largest natural gas processor in North Dakota.
- Delivered net cash provided by operating activities of $174.9 million and Adjusted EBITDA of $269.3 million for the first quarter of 2019. For a definition of Adjusted EBITDA and reconciliations of Adjusted EBITDA to net income (loss) including non-controlling interests and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Williston Basin production averaged 85.6 MBoepd and Delaware Basin production averaged 6.1 MBoepd during the first quarter of 2019. Oasis continues to expect volumes to range between 86.0 MBoepd and 91.0 MBoepd for the remainder of the year and the average oil production percentage to be approximately 72% over 2019 with 71% in the fourth quarter.
- Differentials entered the year wider and quickly narrowed, and Oasis differentials averaged $1.30 per barrel off of the NYMEX WTI for the first quarter of 2019. Oasis expects differentials to remain between $1.50 and $3.50 per barrel in 2019, as the Company has experienced modest widening in Williston Basin and Delaware Basin differentials in the second quarter of 2019.
- Oasis delivered more barrels down to the Gulf Coast from the Williston Basin on the Dakota Access Pipeline, which was the primary driver of the increase in marketing, transportation and gathering expenses ("MT&G") to $3.96 per barrel of oil equivalent ("Boe"), which excludes non-cash valuation changes on pipeline imbalances, during the first quarter of 2019. The Company expects this trend to continue and has updated its guidance on MT&G for the full year to $3.50 to $4.50 per Boe.
- Lease operating expenses ("LOE") averaged $7.08 per Boe in the first quarter of 2019, towards the low end of the Company's $7.00 to $8.00 per Boe guidance range. Oasis expects to manage LOE between $7.00 and $7.75 per Boe for the remainder of the year.
- Capital expenditures ("CapEx") of $226.8 million were in line with the Company's first quarter 2019 plan for both the exploration and production ("E&P") and midstream businesses. Oasis delivered positive free cash flow from its E&P business during the first quarter of 2019. The Company continues to expect E&P and other CapEx to range between $540 million and $560 million in 2019. Projections for free cash flow at both $50 and $60 WTI can be found on page seven of the Company's investor presentation.
- The Boards of Directors of Oasis and OMP GP LLC, OMP's general partner, have approved entering into acreage dedications and midstream services arrangements in the Delaware Basin on terms similar to the existing commercial arrangements between Oasis and OMP in the Williston Basin (the "Delaware Midstream Opportunity"). Final agreements have not been executed.
- Oasis expects to dedicate to OMP certain acreage representing areas in and around its Delaware Basin position that is currently undedicated to OMP for crude oil and produced water infrastructure development. OMP expects to spend an additional $53 million to $57 million in 2019 on such infrastructure build-out, including purchases from Oasis for existing midstream assets in the Delaware Basin.
- OMP Operating LLC ("OMP Operating"), which is a wholly owned subsidiary of OMP, will form a new development company called Panther DevCo LLC in the Delaware Basin, which will be 100% owned by OMP Operating.
- Oasis is continuing to work with third parties for gas infrastructure and expects to provide an update in the coming months on the outcome of the selection process.
- OMP continues to exceed expectations in the Williston Basin. More details on OMP's performance in the Williston Basin and the Delaware Midstream Opportunity can be found in OMP's first quarter 2019 press release issued on May 7, 2019 available on OMP's website at www.oasismidstream.com.
- With the increased CapEx in the Delaware Basin, total gross CapEx for midstream is now expected to range between $195 million and $219 million and net CapEx from Oasis attributable to its retained interest is now expected to range between $11 million and $13 million.
- Increased production guidance twice in 2018, adjusted for divestitures. Production volumes averaged 88.3 thousand barrels of oil equivalent per day ("MBoepd") (76.2% oil) in the fourth quarter of 2018, in-line with midpoint guidance. Production volumes averaged 82.5 MBoepd (76.5% oil) for the year ended December 31, 2018.
- Lowered lease operating expenses ("LOE") per barrels of oil equivalent ("Boe") by over 12% year over year to $6.44 per Boe for the year ended December 31, 2018.
- Completed and placed on production 121 gross (85.3 net) operated wells, including 114 gross (79.0 net) operated wells in the Williston Basin and 7 gross (6.3 net) operated wells in the Delaware Basin, while investing $942.2 million of exploration and production capital expenditures ("E&P CapEx"), which excludes acquisitions, other capital and midstream capital, during 2018.
- Closed and integrated the acquisition of approximately 22,000 net core acres in the over-pressured oil window of the Delaware Basin (the "Permian Basin Acquisition"). Additionally, Oasis purchased adjacent acreage at attractive pricing, bringing its total position to over 23,000 net acres in the Delaware Basin.
- Oasis's midstream subsidiary, Oasis Midstream Partners LP ("OMP"), completed the construction and startup of a second natural gas plant in Wild Basin, making Oasis the second largest natural gas processor in North Dakota.
- Successfully executed a divestiture "dropdown" of additional interests in midstream subsidiaries to OMP for $251.4 million, which increased Oasis's holdings of OMP common units and reduced debt.
- High-graded the portfolio since announcing the Permian Basin Acquisition including non-strategic divestitures of approximately $360 million, which helped reduce financial leverage.
- Net cash provided by operating activities was $996.4 million for the year ended December 31, 2018 and $234.4 million for the fourth quarter of 2018. Adjusted EBITDA, a non-GAAP financial measure, was $958.7 million for the year ended December 31, 2018 and $214.1 million for the fourth quarter of 2018. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss) including non-controlling interests and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Completing approximately 70 gross operated wells with a working interest of approximately 65% in the Williston Basin;
- Completing 9 to 11 gross operated wells with a working interest of approximately 90% in the Delaware Basin; and
- Cash flow from the Williston asset is expected to fund a small Delaware outspend in 2019. Oasis produced 88.3 MBoepd in the fourth quarter of 2018, and expects first quarter production to be essentially flat quarter over quarter.
- Produced 79.4 thousand barrels of oil equivalent per day ("MBoepd") in the second quarter of 2018, representing an increase of 28% over the second quarter of 2017. Expect third quarter of 2018 production to range between 85.0 to 88.0 MBoepd, which accounts for divestitures closing during the third quarter.
- Increased full year 2018 production guidance 4%, including the impact from divestitures. Additionally, increased 2018 exit rate 10% and 2019 exit rate 6% from last guidance, including the impact from divestitures. Additional details provided in the Financial and Operational Update and Outlook below.
- Completed and placed on production 37 gross (27.8 net) operated wells, including 35 gross (25.8 net) operated wells in the Williston Basin and 2 gross (2.0 net) operated wells in the Delaware Basin, in the second quarter of 2018. The Company now expects to complete approximately 110 gross operated wells in 2018 in the Williston Basin and 6 to 8 gross operated wells in the Delaware Basin.
- Oil differentials improved to $2.42 off of NYMEX West Texas Intermediate crude oil index price ("NYMEX WTI") in the second quarter of 2018, an approximate 34% decrease from the second quarter of 2017.
- Lease operating expenses ("LOE") per barrels of oil equivalent ("Boe") decreased over 23% to $6.11 per Boe in the second quarter of 2018 compared to $7.92 per Boe in the second quarter of 2017.
- Entered into or closed numerous agreements to sell non-core assets since December 2017 for total proceeds of $360 million, which represent approximately 5.0 MBoepd of net production and approximately 80,000 net acres.
- Delivered net cash provided by operating activities of $303.7 million and Adjusted EBITDA of $241.2 million for the second quarter of 2018. For a definition of Adjusted EBITDA and reconciliations of Adjusted EBITDA to net income (loss) including non-controlling interests and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Delivered production during the second quarter of 2018 of 79.4 MBoepd with an oil cut of 76%. Production trended towards the top end of the guided range and oil cut was in-line with the first quarter of 2018 and with guidance provided in May 2018.
- Increased full year 2018 production guidance to 83.0 to 84.5 MBoepd, representing a 4% increase at the midpoint from previous guidance of 79.0 to 82.0 MBoepd, which has been adjusted to reflect the full year impact from divestitures of approximately 2.0 MBoepd. The Company is forecasting oil cut to range between 75 to 76% during the full year of 2018.
- Expect fourth quarter 2018 production to range between 91.0 to 94.0 MBoepd, which at the midpoint, is 10% higher than prior guidance adjusted for divestitures. Production exiting 2019 is projected to increase approximately 15% above the 2018 exit rate, which is 6% higher than prior guidance adjusted for divestitures. Oasis is forecasting an oil cut of 74% for 2019.
- Grew Delaware production during the second quarter of 2018 to 4.2 MBoepd and increased fourth quarter 2018 guidance by 20% from 5.0 MBoepd up to 6.0 MBoepd.
- Oasis has increased 2018 CapEx by approximately $80 million focused on the Williston Basin, as infrastructure in the Williston Basin is yielding attractive realized oil and gas pricing. With approximately 95% of the Company's volumes produced from the Williston Basin during the second quarter of 2018, Oasis is well positioned to capture value during a period of tightness in takeaway capacity in the Delaware Basin.
- Oasis announced capacity of 10,000 barrels of oil per day on the Gray Oak Pipeline system. The Gray Oak Pipeline will provide crude oil transportation from West Texas to destinations in the Corpus Christi and Sweeny/Freeport markets. The Company continues to have a prudent development program in the Delaware Basin that is sculpted to deliver increased growth once long haul oil pipe is constructed and in-service.
- Produced 76.8 thousand barrels of oil equivalent per day ("MBoepd") in the first quarter of 2018, representing an increase of 22% over the first quarter of 2017.
- Completed and placed on production 17 gross (11.2 net) operated wells, including 16 gross (10.2 net) operated wells in the Williston Basin and 1 gross (1.0 net) operated well in the Delaware Basin, in the first quarter of 2018.
- Oil differentials improved to $1.67 off of NYMEX West Texas Intermediate crude oil index price ("WTI") in the first quarter of 2018, approximately a 65% decrease over the first quarter of 2017.
- Lease operating expenses ("LOE") per barrels of oil equivalent ("Boe") decreased over 15% to $6.48 in the first quarter of 2018 compared to $7.71 per Boe in the first quarter of 2017.
- Exploration and production ("E&P") capital expenditures ("CapEx") were $176.9 million for the three months ended March 31, 2018.
- Closed on the Permian Basin Acquisition from Forge Energy on February 14, 2018, adding an average of approximately 3.6 MBoepd of production and approximately 22,000 net undeveloped acres.
- Delivered net cash provided by operating activities was $228.4 million and Adjusted EBITDA of $232.9 million for the first quarter of 2018. For a definition of Adjusted EBITDA and reconciliations of Adjusted EBITDA to net income (loss) including non-controlling interests and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Exceeded average daily production exit target for 2017 with 73,207 barrels of oil equivalent per day ("Boepd") in the fourth quarter of 2017 and produced 66,144 Boepd for the year ended December 31, 2017.
- Decreased lease operating expenses per Boe to $6.42 per Boe for the quarter ended December 31, 2017.
- Completed and placed on production 88 gross (58.3 net) operated wells while investing $517.3 million of E&P capital expenditures ("E&P CapEx"), which excludes acquisitions, other capital and midstream capital, during 2017.
- Acquired approximately 22,000 net acres in the over-pressured oil window of the Delaware Basin. The acquisition was announced in late 2017 and subsequently closed on February 14, 2018.
- More than doubled core net inventory from 483 net undeveloped locations at December 31, 2016 to 1,092 net undeveloped locations at December 31, 2017, due to the expansion of the Company's core footprint in the Williston Basin into much of Painted Woods and its entry in the Delaware Basin.
- Oasis Midstream Partners LP ("OMP") completed its initial public offering resulting in net proceeds distributed to Oasis of $132.1 million.
- Commenced investment in second Wild Basin gas plant with a total capacity of 200 million standard cubic feet per day to service gas production from its highly economic inventory. OMP invested $94.7 million of capital in the second gas plant and $105.6 million of total capital expenditures in 2017. The Company invested $235.1 million in capital expenditures in midstream assets ("Midstream CapEx") in 2017, including the $105.6 million attributable to OMP.
- Successfully launched operations with second Oasis Well Services fracturing crew.
- Net cash provided by operating activities was $507.9 million for the year ended December 31, 2017 and $209.1 million for the fourth quarter of 2017. Adjusted EBITDA, a non-GAAP financial measure, was $707.7 million for the year ended December 31, 2017 and $236.2 million for the fourth quarter of 2017. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss) including non-controlling interests and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Total E&P CapEx plan of approximately $815 million to $855 million, excluding acquisitions.
- Williston Basin - $700 million to $730 million
- Delaware Basin - $115 million to $125 million
- Completing approximately 100 to 110 gross operated wells with a working interest of approximately 73% in the Williston Basin and approximately six to eight gross operated wells with high working interest in the Delaware Basin in 2018.
- Approximately 20,300 net acres acquired in the Delaware Basin across Loving, Ward, Winkler and Reeves Counties, Texas;
- Approximately 3,500 barrels of oil equivalent ("Boe") per day produced in November 2017 ($170 million PDP value at November 30, 2017 strip pricing);
- 601 gross operated locations (76% working interest) and 507 net core locations targeting the Wolfcamp A, B, and C and the Bone Spring formations, with extensive additional upside from other intervals in the column;
- Largely contiguous acreage blocks that allow for longer lateral development (expected median lateral length of approximately 8,000 feet);
- Ability to transfer technical, operational and managerial knowledge from full-field development of the Williston Basin to the Delaware Basin, in addition to future efficiencies from the vertical integration of Oasis Midstream Services LLC and Oasis Well Services LLC;
- Accretive to per-share NAV, long term cash flow, balance sheet, core inventory and overall inventory;
- Trading attractive non-core acreage in the Williston Basin for core Delaware Basin acreage;
- Expect to drill 16 to 20 gross wells and complete 6 to 8 gross wells with a capital program of approximately $100 million in 2018; and
- Initially running one rig with the potential to add a second rig in the second half of 2018
- Completed and placed on production 24 gross (15.1 net) operated wells in the Williston Basin in the third quarter of 2017.
- Produced 66.1 thousand barrels of oil equivalent per day ("MBoepd") in the third quarter of 2017, representing an increase of 7% over the second quarter of 2017, primarily driven by completion activity. Production during the third quarter of 2017 increased 36% over the third quarter of 2016.
- Produced over 69 MBoepd in October 2017 and expect to produce between 69 MBoepd and 72 MBoepd in the fourth quarter of 2017. Oasis continues to expect to hit an exit rate of 72 MBoepd, delivering 16% growth above the 2016 exit rate.
- Oil differentials have improved to $1.82 off of NYMEX West Texas Intermediate crude oil index price ("WTI") in the third quarter of 2017, and Oasis expects differentials in the fourth quarter to range from $1.25 to $2.00 off of WTI.
- Delivered Adjusted EBITDA of $179.6 million for the third quarter of 2017. For definitions of Adjusted EBITDA and reconciliations of Adjusted EBITDA to net income and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Commenced operations of its second Oasis Well Services ("OWS") frac crew during the third quarter of 2017.
- Oasis Midstream Partners LP ("OMP") sold 8,625,000 common units, representing limited partner interests in an initial public offering ("IPO" or the "Offering") for net proceeds of $137.2 million, of which $131.6 million was distributed to Oasis.
- Announced investment in and assignment of second Wild Basin Gas Plant ("Gas Plant II") with a total capacity of 200 million standard cubic feet per day ("MMscfpd") to service gas production from its highly economic inventory.
- Expects full year 2017 adjusted CapEx to total $620.0 million, in line with prior guidance. See "Capital Expenditures" below for adjustments.
- Including net proceeds distributed to Oasis from the OMP IPO and adjustments for the Gas Plant II assignment, Oasis generated positive free cash flow of $39.0 million for the nine months ended September 30, 2017.
- Completed and placed on production 15 gross (10.8 net) operated wells in the Williston Basin in the second quarter of 2017, 60% of which were completed in June.
- Produced over 66,000 barrels of oil equivalent per day ("Boepd") in July 2017, up from 61,943 Boepd produced in the second quarter of 2017.
- Expect to complete 48 gross operated wells and produce between 67,500 and 69,500 Boepd in the second half of 2017 and continue to expect to hit exit rate of 72,000 Boepd.
- Increased production to 63,192 barrels of oil equivalent per day ("Boepd") in the first quarter of 2017 from 53,150 Boepd in the fourth quarter of 2016.
- Completed and placed on production 13 gross (9.7 net) operated wells in the Williston Basin in the first quarter of 2017 and ended the quarter with 82 gross operated wells waiting on completion.
- Total capital expenditures ("CapEx") were $109.8 million for the three months ended March 31, 2017.
- Increased borrowing base from $1,150.0 million to $1,600.0 million on April 10, 2017, while leaving elected commitments at $1,150.0 million.
- At March 31, 2017, the Company had $13.8 million of cash and cash equivalents and had total liquidity of $785.8 million, including the availability under its revolving credit facility.
- Net cash provided by operating activities was $107.8 million for the three months ended March 31, 2017. Adjusted EBITDA for the Company was $150.6 million in the first quarter of 2017. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
- Average daily production was 50,372 barrels of oil equivalent per day ("Boepd") in 2016 and 53,150 for the fourth quarter of 2016, despite challenging weather conditions in December. Production immediately resumed to estimated year-end 2016 exit levels of 62,000 Boepd during the first week of January 2017, as the harsh weather subsided.
- Core inventory increased by 27%, from 607 gross undeveloped locations at December 31, 2015 to 770 gross undeveloped locations at December, 31 2016. Additionally, extended core inventory increased to 844 gross undeveloped locations as of December 31, 2016.
- Due to increased well performance and updated activity plans, the Company is revising its 2017 and 2018 year-end exit rate guidance to 72,000 Boepd and over 83,000 Boepd, respectively. Production growth in 2017 and 2018 is expected to be within cash flow.
- Closed on an accretive acquisition of approximately 55,000 net acres on December 1, 2016 in the Williston Basin for a purchase price of $765.8 million, subject to further customary post-close purchase price adjustments.
- Completed and brought online the Company's natural gas processing plant and other midstream infrastructure in Wild Basin. Oasis Midstream Services ("OMS") continues to play a strategic role in the Company's ability to drive operational efficiencies, lower costs structures, and maintain volumes during periods of challenging weather conditions.
- Increased net proved oil and natural gas reserves at December 31, 2016 by 40% to 305.1 MMBoe, which included an increase of almost 30% in net proved developed reserves and more than 60% in net proved undeveloped reserves year over year.
- Net cash provided by operating activities was $228.0 million for the year ended December 31, 2016 and $104.6 million for the fourth quarter of 2016. Adjusted EBITDA, a non-GAAP financial measure, was $500.3 million for the year ended December 31, 2016 and $130.9 million for the fourth quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- $605 million total CapEx budget
- Completing 76 gross (51.7 net) operated wells in 2017
- Increasing rig count from two rigs in Wild Basin to four rigs running across the core
- Investing $110 million in OMS capital, focused on Wild Basin gathering systems, and connecting wells that come online outside of Wild Basin
- Produced 48,509 Boepd in the third quarter of 2016.
- Total capital expenditures ("CapEx") were $78.5 million and $297.7 million for the three and nine months ended September 30, 2016, respectively, in line with the Company's 2016 CapEx plan.
- Net cash provided by operating activities was $123.4 million for the three months ended September 30, 2016. Adjusted EBITDA for the Company was $104.4 million in the third quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
- Select operational results, preliminary financial results for the third quarter of 2016, and an update to full year 2016 guidance
- The acquisition of approximately 55,000 net acres in the heart of the Williston Basin
- The redetermination of its borrowing base, which remained unchanged at $1,150 million, and liquidity outlook
- Update on hedging activity
- Conference call to discuss this press release as well as upcoming conference appearances
- Average daily production of 48,509 barrels of oil equivalent per day ("Boepd") in the third quarter of 2016 (81% oil) and increased full-year 2016 stand-alone Company guidance of 49,300 to 50,000 Boepd.
- Completed and placed on production 17 gross (7.1 net) operated wells during the third quarter of 2016. As of September 30, 2016, the Company had 80 gross operated wells awaiting completion.
- Completed $300 million public offering of senior unsecured convertible notes due 2023 and $367 million tender of existing senior notes, reducing annualized cash interest by approximately $17 million.
- Estimated capital expenditures ("CapEx") were between $76 million and $81 million for the third quarter of 2016.
- Oasis' offer to purchase the 2019 Notes (the "Fixed-Price Offer") will be conducted as a fixed-price tender offer.
- Oasis' offer to purchase the 2021 Notes, the 2022 Notes and 2023 Notes (the "Dutch Auction Offer" and, together with the Fixed-Price Offer, the "Tender Offers") will be conducted pursuant to a modified "Dutch auction."
- Produced 49,507 Boepd in the second quarter of 2016.
- Completed and placed on production 13 gross (8.7 net) operated wells in the second quarter of 2016. As of June 30, 2016, the Company had 83 gross operated wells waiting on completion.
- Total capital expenditures ("CapEx") were $131.3 million for the three months ended June 30, 2016, a 23% decrease from the second quarter of 2015. CapEx was $219.2 million for the six months ended June, 30, 2016, in line with the Company's 2016 CapEx plan.
- Reduced lease operating expenses ("LOE") per barrel of oil equivalent ("Boe") to $7.00, a 15% decrease from the second quarter of 2015.
- Net cash provided by operating activities was $91.4 million for the three months ended June 30, 2016. Adjusted EBITDA for the Company was $132.2 million in the second quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
- Income before income taxes for midstream services ("OMS") increased to $18.0 million in the second quarter of 2016, a 19% increase from the first quarter of 2016. OMS Adjusted EBITDA was $19.6 million in the second quarter of 2016.
- Produced over 50,000 barrels of oil equivalent per day ("Boepd") for the sixth consecutive quarter, with production of 50,315 Boepd in the first quarter of 2016.
- Completed and placed on production 15 gross (12.8 net) operated and 0.3 net non-operated wells in the first quarter of 2016. As of March 31, 2016, the Company had 83 gross operated wells waiting on completion.
- Total capital expenditures ("CapEx") were $88.0 million for the three months ended March 31, 2016, a 68% decrease from the first quarter of 2015 and a 3% sequential quarter decrease.
- Reduced lease operating expenses ("LOE") per barrel of oil equivalent ("Boe") to $6.78, a 21% decrease from the first quarter of 2015 and a 1% sequential quarter decrease.
- Adjusted EBITDA for the Company was $132.9 million in the first quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
- Increased Midstream Services ("OMS") EBITDA by 10%, from $17.7 million in the fourth quarter of 2015 to $19.5 million in the first quarter of 2016.
- Increased average daily production 11% year-over-year to 50,477 barrels of oil equivalent per day ("Boepd") in 2015 and increased fourth quarter of 2015 production to 50,652 Boepd.
- Completed and placed on production 80 gross (62.4 net) operated wells during 2015 and 16 gross (10.7 net) operated wells during the fourth quarter of 2015. As of December 31, 2015, the Company had 85 gross operated wells awaiting completion.
- Reduced lease operating expenses ("LOE") per barrel of oil equivalent ("Boe") by 23% to $7.84 per Boe for the year ended December 31, 2015.
- Adjusted EBITDA was $820.2 million for the year ended December 31, 2015 as compared to $952.8 million for the year ended December 31, 2014. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
- Net loss was $40.2 million for the year ended December 31, 2015 as compared to net income of $506.9 million for the year ended December 31, 2014. Lower realized prices for oil and natural gas reduced net income (loss) by $641.2 million year over year.
- Capital expenditures ("CapEx") were $610.0 million for the year ended December 31, 2015, a 61% decrease year over year.
- $400 million total CapEx budget
- Completing 46 gross (28.6 net) operated wells in 2016
- 100% of completions are high intensity in the core
- Running two rigs in Wild Basin
- Increased average daily production 11% year-over-year to 50,477 barrels of oil equivalent per day ("Boepd") in 2015 and increased fourth quarter of 2015 production to 50,652 Boepd, which exceeded the high-end of the Company's guidance of 49,000 Boepd.
- Completed and placed on production 80 gross (62.4 net) operated wells during 2015 and 16 gross (10.7 net) operated wells during the fourth quarter of 2015. As of December 31, 2015, the Company had 85 gross operated wells awaiting completion.
- Capital expenditures ("CapEx") ranged between $605 million and $615 million for the year ended December 31, 2015 compared to the Company's $670 million plan.
- Ended the year with $138 million of borrowings drawn under the Company's $1,525 million revolving credit facility compared to $180 million drawn at September 30, 2015.
12/23/2020 - Oasis Petroleum Announces Retirement of Thomas Nusz and Appointment of Douglas E. Brooks as Chief Executive Officer
Oasis Petroleum Announces Retirement of Thomas Nusz and Appointment of Douglas E. Brooks as Chief Executive Officer
Source: PR Newswire
HOUSTON, Dec. 23, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or the "Company") today announced that Thomas Nusz, the Company's Chief Executive Officer, retired from his position as Chief Executive Officer of Oasis and from its Board of Directors effective December 22, 2020. Mr. Nusz will remain employed by the Company through December 30, 2020. Douglas E. Brooks, Oasis' Board Chair, has been appointed to the additional role of Chief Executive Officer ("CEO") effective December 22nd. The Board of Directors will conduct a search for a new CEO, which it expects will be complete over the next few months. Mr. Brooks intends to maintain his role as Board Chair following selection of a new CEO. In addition, Samantha Holroyd, the chair of Oasis' Nominating, Environmental, Social & Governance Committee, has been named as Lead Independent Director during the period that Mr. Brooks is both the Board Chair and CEO.
In connection with his resignation from the Company, Mr. Nusz also resigned from the board of directors of OMP GP LLC ("OMP GP"), the general partner of Oasis Midstream Partners LP (Nasdaq: OMP), effective December 22, 2020. On that date, Mr. Brooks was elected to serve on the board of directors of OMP GP (the "GP Board"), and he is expected to be elected by the GP Board to serve as Chairman of the Board of OMP GP.
Board Chair Douglas E. Brooks commented, "We want to thank Tommy for his tireless efforts and leadership over the past 13 years. He founded and guided Oasis through numerous commodity cycles and built a unique and very positive culture with a talented workforce that we intend to maintain and continue to nurture. He has been well-respected by his employees and peers. We will immediately begin an active and thorough search for a new CEO. As we look to the future, we believe Oasis is uniquely positioned with a best-in-class balance sheet, quality assets that generate strong, sustainable free cash flow and new strategic priorities. I believe the ongoing strong leadership provided by the new Board, other key members of our strong senior management team and our employees will continue to guide Oasis forward as the world and energy industry emerges from a very difficult year. We remain focused on operational excellence, environmental stewardship and implementing a rigorous new capital discipline which should help create long-term value for our shareholders."
Thomas Nusz commented, "It has been an honor to have led Oasis since its inception in 2007 and a privilege to work closely with my very talented and dedicated management team and employees. I greatly appreciate the support that they provided me during my tenure and look forward to their future success."
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties, including those detailed in the Company's filings with the SEC, including the Company's most recent Form 10-Q and its 2019 Form 10-K. These risks and uncertainties are incorporated by this reference as though fully set forth herein. There is no assurance that the goals, expectations, and timing herein can or will be met. In addition, any forward-looking statements represent the Company's estimates only as of today and should not be relied upon as representing its estimates as of any future date. Oasis assumes no obligation to update its forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements.
About Oasis Petroleum Inc.
Oasis Petroleum, Inc. is an independent exploration and production company with quality and sustainable long-lived assets in the Williston and Delaware Basins. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. For more information, please visit the Company's website at www.oasispetroleum.com.
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SOURCE Oasis Petroleum Inc.
Article Date
12/23/2020Oasis Petroleum Schedules Second Quarter 2020 Conference Call for August 5, 2020
Source: PR Newswire
HOUSTON, July 31, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or the "Company") plans to announce its Second Quarter 2020 financial and operational results on Wednesday, August 5, 2020 before market open. Additionally, the Company will host a live webcast and conference call on Wednesday, August 5, 2020 at 10:00 a.m. Central Time to discuss Second Quarter 2020 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, August 5, 2020 |
Time: | 10:00 a.m. Central Time |
Live Webcast: | |
OR: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 6024862 |
Website: | |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, August 12, 2020 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10146766 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
August 12: | Citi's 2020 One-on-One Midstream / Energy Infrastructure Virtual Conference |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-second-quarter-2020-conference-call-for-august-5-2020-301104139.html
SOURCE Oasis Petroleum Inc.
Article Date
7/31/2020Oasis Petroleum Schedules First Quarter 2020 Conference Call for May 18, 2020
Source: PR Newswire
HOUSTON, May 15, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2020 financial and operational results on Monday, May 18, 2020 before market open. Additionally, the Company will host a live webcast and conference call on Monday, May 18, 2020 at 10:00 a.m. Central Time to discuss First Quarter 2020 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Monday, May 18, 2020 |
Time: | 10:00 a.m. Central Time |
Live Webcast: | |
OR: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 2708285 |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Monday, May 25, 2020 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10144348 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
June 2: | RBC's 2020 Global Energy and Power Executive Virtual Conference |
June 17: | J.P.Morgan's 2020 Energy, Power & Renewables Virtual Conference |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-first-quarter-2020-conference-call-for-may-18-2020-301060344.html
SOURCE Oasis Petroleum Inc.
Article Date
5/15/2020Oasis Petroleum Inc. Postpones First Quarter 2020 Earnings Release
Source: PR Newswire
HOUSTON, May 11, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or the "Company") today announced that it will postpone its first quarter 2020 earnings release and conference call, previously scheduled for today at 10:00 a.m. Central Time. The Company is completing the review of its unaudited condensed consolidated financial statements, including the finalization of certain documentation which may impact the presentation and disclosure of certain financial statement line items. That documentation is in process and is expected to be completed in the near term. The Company will make an announcement in a subsequent press release to schedule the date and time of its first quarter 2020 earnings conference call. As a result of this delay, the Company will also file a Form 12b-25 with the U.S. Securities and Exchange Commission relating to the Company's report on Form 10-Q for the period ended March 31, 2020. This filing gives the Company an additional five days to file its Form 10-Q and still be deemed to have been filed in a timely manner. It is the Company's current expectation that it will make its Form 10-Q filing within the five-day grace period stipulated by Rule 12b-25, though no assurance can be provided in that regard.
The Company expects total revenues will decrease approximately $187.9 million to approximately $387.8 million for the three months ended March 31, 2020 from the same period in 2019; impairment expense will increase to approximately $4,823.7 million for the three months ended March 31, 2020 from the same period in 2019; and total operating expenses, including the impairment expense, will increase approximately $4,739.2 million to approximately $5,261.6 million for the three months ended March 31, 2020 from the same period in 2019. The anticipated changes were primarily attributable to the significant decline in the Company's realized prices for crude oil, natural gas and natural gas liquids caused by the collapse in demand for such products beginning in March 2020 as a result of Saudi Arabia and the Organization of the Petroleum Exporting Countries' actions as well as the ongoing impact of stay at home orders issued in response to the novel coronavirus 2019 ("COVID-19") pandemic. The results presented are preliminary, unaudited and subject to change pending the filing of the Company's Form 10-Q for the period ended March 31, 2020.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the Company's anticipated financial results for the first quarter of 2020 as well as the anticipated filing of its Form 10-Q for such quarter. These statements are based on certain assumptions made by the Company based on management's review of the first quarter 2020 financial results to date as well as the process necessary to complete those results. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil and natural gas prices, developments in the global economy, particularly the public health crisis related to the COVID-19 pandemic and the adverse impact thereof on demand for crude oil and natural gas, the outcome of government policies and actions, including actions taken to address the COVID-19 pandemic and to maintain the functioning of national and global economies and markets, the impact of Company actions to protect the health and safety of employees, vendors, customers and communities, weather and environmental conditions, the timing of planned capital expenditures, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the U.S. Securities and Exchange Commission. Additionally, the actions of foreign oil producers (most notably Saudi Arabia and Russia) to increase crude oil production, the unprecedented nature of the current economic downturn, the COVID-19 pandemic and the related decline of the crude oil exploration and production industry may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. Because considerable uncertainty exists with respect to foreign oil production and the future pace and extent of a global economic recovery from the effects of the COVID-19 pandemic, the Company cannot predict whether or when crude oil production and economic activities will return to normalized levels.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
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SOURCE Oasis Petroleum Inc.
Article Date
5/11/2020Oasis Petroleum Schedules First Quarter 2020 Conference Call for May 11, 2020
Source: PR Newswire
HOUSTON, May 1, 2020 /PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2020 financial and operational results on Monday, May 11, 2020 before market open. Additionally, the Company will host a live webcast and conference call on Monday, May 11, 2020 at 10:00 a.m. Central Time to discuss First Quarter 2020 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Monday, May 11, 2020
Time: 10:00 a.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1052/34346
OR:
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 2746505
Website: www.oasispetroleum.com
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Monday, May 18, 2020 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Replay access: 10142996
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
May 13: Citi's 2020 Global Energy & Utilities Virtual Conference
June 2: RBC's 2020 Global Energy and Power Executive Virtual Conference
June 17: J.P.Morgan's 2020 Energy, Power & Renewables Virtual Conference
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-first-quarter-2020-conference-call-for-may-11-2020-301051160.html
SOURCE Oasis Petroleum Inc.
Article Date
5/1/2020Oasis Midstream Partners to Switch Listing to NASDAQ Stock Exchange
Source: PR Newswire
HOUSTON, Dec. 12, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that it is transferring the listing of its units from the New York Stock Exchange to The NASDAQ Stock Market LLC ("Nasdaq"). OMP expects its units to begin trading on Nasdaq at market open on December 24, 2019. The units will continue to be listed under the ticker symbol "OMP."
"With our switch to Nasdaq, OMP is pleased to join many prominent U.S. energy companies," said Taylor Reid, Chief Executive Officer of OMP. "We believe this transition will provide OMP with greater cost-effectiveness and access to Nasdaq's unique portfolio of tools and services to connect with our investors. We would also like to thank the NYSE for their valued relationship since our IPO."
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-to-switch-listing-to-nasdaq-stock-exchange-300974276.html
SOURCE Oasis Midstream Partners LP
Article Date
12/12/2019Oasis Petroleum to Switch Listing to NASDAQ Stock Exchange
Source: PR Newswire
HOUSTON, Dec. 12, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced that it is transferring the listing of its shares from the New York Stock Exchange to The NASDAQ Stock Market LLC ("Nasdaq"). Oasis expects its common stock to begin trading on Nasdaq at market open on December 24, 2019. The stock will continue to be listed under the ticker symbol "OAS."
"We are pleased to join other leading energy companies that are listed on Nasdaq," said Oasis CEO Tommy Nusz. "We believe moving to Nasdaq provides Oasis a cost-effective channel to connect with investors. We would also like to thank the NYSE for our valued relationship over the past nine years."
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-to-switch-listing-to-nasdaq-stock-exchange-300974274.html
SOURCE Oasis Petroleum Inc.
Article Date
12/12/2019Oasis Petroleum Inc. Announces Quarter Ended September 30, 2019 Earnings
Source: PR Newswire
HOUSTON, Nov. 5, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operating results for 3Q 2019.
Recent Highlights:
(1) Non-GAAP measure. See "Non-GAAP Financial Measures" below for definitions of all non-GAAP measures included herein and reconciliations to the most directly comparable measures under United States generally accepted accounting principles ("GAAP"). |
(2) For more detail on E&P free cash flow, see pages six and seven of the Company's investor presentation on the Company's website at www.oasispetroleum.com. |
"Oasis delivered a strong quarter across several fronts," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "As expected, Williston production rebounded strongly compared to the second quarter, driven by Oasis's prolific well results and industry-leading infrastructure. In the Delaware, we reached our year-end 2019 volume target, driven by high-return wells. Efficiency is improving rapidly, with Williston well costs expected to improve to $7.2 million vs. $7.6 million by year end and Delaware cycle times continuing to fall. E&P free cash generation during the quarter was supplemented by strong asset sale proceeds, both of which led to a meaningful reduction in net debt. We remain focused on driving additional operating efficiencies and reducing leverage further."
Financial and Operational Update and Outlook
The following table provides select actual metrics from 3Q 2019 and the associated guidance for 4Q 2019:
Metric | 3Q 2019 Actual | 4Q 2019 Guidance | ||
Production (MBoepd) | 88.7 | 83.3 - 85.3 | ||
Differential to NYMEX WTI ($ per Bbl) | $1.30 | $3.00 - $4.00 | ||
Natural gas realized price (as a % of Henry Hub) | 76% | 70% - 80% | ||
Lease operating expenses ($ per Boe) | $6.16 | $6.75 - $7.50 | ||
Marketing, transportation and gathering expenses ($ per Boe)(1) | $4.01 | $3.75 - $4.50 | ||
E&P Cash G&A ($ in millions)(2) | $18.1 | $15.5 - $17.0 | ||
Production taxes (as a % of oil and gas revenues) | 8.3% | 8.2% |
___________________ | ||
(1) | Marketing, transportation and gathering expenses ("MT&G") exclude the effect of non-cash valuation charges on pipeline imbalances. | |
(2) | E&P Cash G&A represents general and administrative ("G&A") expenses less non-cash equity-based compensation expenses and other non-cash charges included in the Company's exploration and production ("E&P") segment. Total 2019 cash G&A for Oasis is estimated at $92 to $96 million, which excludes non-cash amortization of equity-based compensation of approximately $33 to $35 million and litigation contingency expenses of $20 million. See "Non-GAAP Financial Measures" below. | |
The following table presents select operational and financial data for the periods presented:
3Q 2019 | 2Q 2019 | 3Q 2018 | |||||||||
Production data: | |||||||||||
Crude oil (Bopd) | 62,816 | 61,224 | 65,870 | ||||||||
Natural gas (Mcfpd) | 155,391 | 139,380 | 117,182 | ||||||||
Total production (Boepd) | 88,715 | 84,454 | 85,400 | ||||||||
Percent crude oil | 70.8% | 72.5% | 77.1% | ||||||||
Average sales prices: | |||||||||||
Crude oil, without derivative settlements ($ per Bbl) | $ | 55.12 | $ | 58.87 | $ | 68.33 | |||||
Differential to NYMEX WTI ($ per Bbl) | 1.30 | 0.96 | 1.16 | ||||||||
Crude oil, with derivative settlements ($ per Bbl)(1) | 56.03 | 56.79 | 57.50 | ||||||||
Crude oil derivative settlements - net cash receipts (payments) ($ in millions)(2) | 5.2 | (11.6) | (65.6) | ||||||||
Natural gas, without derivative settlements ($ per Mcf)(3) | 1.81 | 2.29 | 3.72 | ||||||||
Natural gas, with derivative settlements ($ per Mcf)(1)(3) | 1.95 | 2.43 | 3.76 | ||||||||
Natural gas derivative settlements - net cash receipts ($ in millions)(2) | 1.9 | 1.8 | 0.4 | ||||||||
Selected financial data ($ in millions): | |||||||||||
Revenues: | |||||||||||
Crude oil revenues(4) | $ | 318.6 | $ | 328.0 | $ | 414.1 | |||||
Natural gas revenues | 25.9 | 29.0 | 40.1 | ||||||||
Purchased oil and gas sales(4) | 79.4 | 109.4 | 173.0 | ||||||||
Midstream revenues | 50.0 | 51.6 | 31.2 | ||||||||
Well services revenues | 8.9 | 11.4 | 16.3 | ||||||||
Total revenues | $ | 482.8 | $ | 529.4 | $ | 674.7 | |||||
Net cash provided by operating activities | 251.0 | 214.0 | 230.0 | ||||||||
Adjusted EBITDA(5) | 256.6 | 249.6 | 270.4 | ||||||||
Select operating expenses: | |||||||||||
Lease operating expenses | $ | 50.3 | $ | 56.2 | $ | 48.5 | |||||
Midstream expenses | 13.0 | 17.4 | 8.7 | ||||||||
Well services expenses | 6.2 | 8.5 | 11.4 | ||||||||
MT&G, including non-cash valuation charges | 32.7 | 28.5 | 30.7 | ||||||||
Non-cash valuation charges | (0.1) | 0.1 | 0.6 | ||||||||
Purchased oil and gas expenses(4) | 78.7 | 109.7 | 174.3 | ||||||||
Production taxes | 28.5 | 28.1 | 38.7 | ||||||||
Depreciation, depletion and amortization | 210.8 | 177.4 | 163.0 | ||||||||
Total select operating expenses | $ | 420.2 | $ | 425.8 | $ | 475.3 | |||||
Select operating expenses data: | |||||||||||
Lease operating expense ($ per Boe) | $ | 6.16 | $ | 7.32 | $ | 6.18 | |||||
MT&G ($ per Boe)(6) | 4.01 | 3.69 | 3.84 | ||||||||
Depreciation, depletion and amortization ($ per Boe) | 25.83 | 23.08 | 20.74 | ||||||||
E&P G&A ($ per Boe)(7) | 5.68 | 3.35 | 3.88 | ||||||||
E&P Cash G&A ($ per Boe)(5) | 2.22 | 2.24 | 2.97 | ||||||||
Production taxes (as a % of oil and gas revenues) | 8.3% | 7.9% | 8.6% | ||||||||
___________________ | |
(1) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. |
(2) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(3) | Natural gas prices include the value for natural gas and natural gas liquids. |
(4) | For the three and nine months ended September 30, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised to correct errors related to the presentation of certain crude oil purchase and sale arrangements, which had no impact on reported net income (loss). The amounts presented herein reflect the impact of the revision. |
(5) | Adjusted EBITDA and E&P Cash G&A represent non-GAAP measures. See "Non-GAAP Financial Measures" below for further information and reconciliations to the most directly comparable financial measures under GAAP. |
(6) | Excludes non-cash valuation charges on pipeline imbalances. |
(7) | Includes $20 million of litigation contingency expenses in 3Q 2019. Excluding this accrual, E&P G&A per Boe would have been $3.23 in 3Q 2019. |
G&A totaled $52.9 million in 3Q 2019, $34.9 million in 3Q 2018 and $30.9 million in 2Q 2019. In 3Q 2019, a loss accrual was recorded in the amount of $20 million, which the Company believes is the estimable amount of loss that could potentially be incurred from the Company's pending legal proceedings based upon currently available information. Amortization of equity-based compensation, which is included in G&A, was $8.4 million, or $1.03 per barrel of oil equivalent ("Boe"), in 3Q 2019 as compared to $7.5 million, or $0.95 per Boe, in 3Q 2018 and $8.9 million, or $1.16 per Boe, in 2Q 2019. G&A for the Company's E&P segment totaled $46.4 million in 3Q 2019, $30.5 million in 3Q 2018 and $25.8 million in 2Q 2019.
MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $2.6 million to $32.7 million in 3Q 2019, as compared to $30.1 million in 3Q 2018, primarily attributable to higher natural gas gathering and processing expenses due to additional well connections on the Company's midstream infrastructure and the Company's second natural gas processing plant. MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $4.3 million in 3Q 2019, as compared to $28.4 million in 2Q 2019 primarily due to higher crude oil gathering and transportation expenses related to an increase in volumes being transported on the Dakota Access Pipeline to market the Company's equity barrels, which resulted in improved price realizations.
Depreciation, depletion and amortization ("DD&A") expenses increased $47.8 million to $210.8 million in 3Q 2019 as compared to 3Q 2018. This increase was a result of increased production during 3Q 2019, coupled with an increase in the DD&A rate to $25.83 per Boe for 3Q 2019 as compared to $20.74 per Boe for 3Q 2018. The increase in the DD&A rate was primarily due to lower recoverable reserves in the Williston Basin and Delaware Basin, coupled with higher well costs in the Delaware Basin.
Interest expense was $43.9 million in 3Q 2019 as compared to $39.6 million in 3Q 2018 and $43.2 million in 2Q 2019. Capitalized interest totaled $3.0 million in 3Q 2019, $4.5 million in 3Q 2018 and $3.6 million in 2Q 2019. Cash Interest totaled $41.9 million in 3Q 2019, $39.4 million in 3Q 2018 and $42.0 million in 2Q 2019. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
The Company's income tax benefit for the nine months ended September 30, 2019 was recorded at 25.0% of pre-tax loss. In 3Q 2019, the Company recorded an income tax benefit of $17.4 million, resulting in a (134.3)% effective tax rate as a percentage of its pre-tax income for the quarter. In 2Q 2019, the Company recorded an income tax expense of $12.2 million, resulting in a 19.3% effective tax rate as a percentage of its pre-tax income for the quarter.
In 3Q 2019, the Company reported net income of $20.3 million, or $0.06 per diluted share, as compared to net income of $62.3 million, or $0.20 per diluted share, in 3Q 2018. Excluding certain non-cash items and their tax effect, Adjusted Net Loss Attributable to Oasis was $16.0 million, or $0.05 per diluted share, in 3Q 2019, as compared to Adjusted Net Income Attributable to Oasis of $26.3 million, or $0.08 per diluted share, in 3Q 2018. Adjusted EBITDA in 3Q 2019 was $256.6 million, as compared to Adjusted EBITDA of $270.4 million in 3Q 2018. For definitions of Adjusted Net Income (Loss) Attributable to Oasis and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
Capital Expenditures and Completions
The following table depicts the Company's total capital expenditures ("CapEx") by category:
1Q 2019 | 2Q 2019 | 3Q 2019 | YTD - 3Q 2019 | ||||||||
(In millions) | |||||||||||
CapEx: | |||||||||||
E&P | $ | 165.7 | $ | 202.1 | $ | 143.5 | $ | 511.3 | |||
Well services | 0.1 | — | 0.2 | 0.3 | |||||||
Other(1) | 3.9 | 4.3 | 4.2 | 12.4 | |||||||
Total E&P & other CapEx | 169.7 | 206.4 | 147.9 | 524.0 | |||||||
Midstream(2) | 57.1 | 82.6 | 36.9 | 176.6 | |||||||
Total CapEx before acquisitions | 226.8 | 289.0 | 184.8 | 700.6 | |||||||
Acquisitions | — | 5.8 | 2.5 | 8.3 | |||||||
Total CapEx(3) | $ | 226.8 | $ | 294.8 | $ | 187.3 | $ | 708.9 | |||
___________________ | |
(1) | Other CapEx includes such items as administrative capital and capitalized interest. Capitalized interest totaled $3.0 million and $9.5 million for the three and nine months ended September 30, 2019, respectively. |
(2) | Midstream CapEx attributable to Oasis Midstream Partners ("OMP") was $45.2 million, $70.9 million and $27.6 million for 1Q 2019, 2Q 2019 and 3Q 2019, respectively. |
(3) | Total CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. |
Oasis completed and placed on production 22 gross (16.8 net) operated wells and 3.4 net non-operated wells during 3Q 2019. Completions included 17 gross (11.9 net) operated wells in the Williston Basin and 5 gross (4.9 net) operated wells in the Delaware Basin.
Liquidity and Balance Sheet
As of September 30, 2019, Oasis had cash and cash equivalents of $19.4 million, total elected commitments under the Oasis credit facility of $1,350.0 million and total elected commitments under the OMP credit facility of $575.0 million. In addition, Oasis had $406.0 million of borrowings and $14.0 million of outstanding letters of credit issued under the Oasis credit facility and $431.0 million of borrowings and $8.2 million of outstanding letters of credit under the OMP credit facility, resulting in a total unused borrowing capacity of $1,065.8 million for both revolving credit facilities as of September 30, 2019.
On November 4, 2019, Oasis completed its fall redetermination of its borrowing base under the Oasis credit facility. As a result, Oasis's borrowing base decreased to $1,300.0 million. The next redetermination is scheduled for April 1, 2020. Additionally, Oasis entered into an amendment to the Oasis credit facility, which decreased the aggregate elected commitment to $1,100.0 million.
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX West Texas Intermediate crude oil index price ("NYMEX WTI") for fixed price swaps and two-way and three-way costless collars. The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. As of November 4, 2019, the Company had the following outstanding commodity derivative contracts:
Three Months Ending | Six Months Ending | |||||||||||
December 31, 2019 | June 30, 2020 | December 31, 2020 | June 30, 2021 | |||||||||
Crude Oil (Volume in MBopd) | ||||||||||||
Fixed Price Swaps | ||||||||||||
Volume | 25.0 | 18.0 | 3.0 | — | ||||||||
Price | $ | 57.42 | $ | 57.68 | $ | 58.85 | $ | — | ||||
Two-Way Collars | ||||||||||||
Volume | 14.0 | 9.0 | 2.0 | — | ||||||||
Floor | $ | 58.07 | $ | 50.83 | $ | 50.50 | $ | — | ||||
Ceiling | $ | 74.64 | $ | 60.31 | $ | 60.70 | $ | — | ||||
Three-Way Collars | ||||||||||||
Volume | 12.0 | 13.0 | 12.0 | 2.0 | ||||||||
Sub-Floor | $ | 40.00 | $ | 40.00 | $ | 40.00 | $ | 40.00 | ||||
Floor | $ | 51.57 | $ | 54.13 | $ | 52.48 | $ | 50.00 | ||||
Ceiling | $ | 65.40 | $ | 64.81 | $ | 63.86 | $ | 64.25 | ||||
Total Crude Oil Volume | 51.0 | 40.0 | 17.0 | 2.0 | ||||||||
Natural Gas (Volume in MMBtupd) | ||||||||||||
Fixed Price Swaps | ||||||||||||
Volume | 30,000 | — | — | — | ||||||||
Price | $ | 2.92 | $ | — | $ | — | $ | — | ||||
The September 2019 crude oil derivative contracts settled at a net $1.4 million received in October 2019 and will be included in the Company's 4Q 2019 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: | Wednesday, November 6, 2019 | |
Time: | 10:00 a.m. Central Time | |
Live Webcast: | ||
Website: |
Sell-side analysts with a question may use the following dial-in:
Dial-in: | 888-317-6003 | |
Intl. Dial in: | 412-317-6061 | |
Conference ID: | 2649560 |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, November 13, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10136374 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, the ability to realize the anticipated benefits from the previously announced Delaware midstream assets assignment from Oasis to OMP, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
Oasis Petroleum Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(Unaudited) | |||||
September 30, 2019 | December 31, 2018 | ||||
(In thousands, except share data) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 19,425 | $ | 22,190 | |
Accounts receivable, net | 381,617 | 387,602 | |||
Inventory | 36,758 | 33,128 | |||
Prepaid expenses | 5,302 | 10,997 | |||
Derivative instruments | 52,180 | 99,930 | |||
Intangible assets, net | — | 125 | |||
Other current assets | 332 | 183 | |||
Total current assets | 495,614 | 554,155 | |||
Property, plant and equipment | |||||
Oil and gas properties (successful efforts method) | 9,374,506 | 8,912,189 | |||
Other property and equipment | 1,339,268 | 1,151,772 | |||
Less: accumulated depreciation, depletion, amortization and impairment | (3,624,164) | (3,036,852) | |||
Total property, plant and equipment, net | 7,089,610 | 7,027,109 | |||
Assets held for sale, net | 6,700 | — | |||
Derivative instruments | 9,729 | 6,945 | |||
Long-term inventory | 14,395 | 12,260 | |||
Operating right-of-use assets | 21,255 | — | |||
Other assets | 29,674 | 25,673 | |||
Total assets | $ | 7,666,977 | $ | 7,626,142 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 18,003 | $ | 20,166 | |
Revenues and production taxes payable | 213,773 | 216,695 | |||
Accrued liabilities | 325,445 | 331,651 | |||
Accrued interest payable | 21,329 | 38,040 | |||
Derivative instruments | 830 | 84 | |||
Advances from joint interest partners | 3,649 | 5,140 | |||
Current operating lease liabilities | 8,050 | — | |||
Other current liabilities | 2,782 | — | |||
Total current liabilities | 593,861 | 611,776 | |||
Long-term debt | 2,798,859 | 2,735,276 | |||
Deferred income taxes | 291,215 | 300,055 | |||
Asset retirement obligations | 55,502 | 52,384 | |||
Liabilities held for sale | 6,700 | — | |||
Derivative instruments | — | 20 | |||
Operating lease liabilities | 19,095 | — | |||
Other liabilities | 2,084 | 7,751 | |||
Total liabilities | 3,767,316 | 3,707,262 | |||
Commitments and contingencies | |||||
Stockholders' equity | |||||
Common stock, $0.01 par value: 900,000,000 shares authorized; 324,235,047 shares issued and 321,343,995 shares outstanding at September 30, 2019 and 320,469,049 shares issued and 318,377,161 shares outstanding at December 31, 2018 | 3,186 | 3,157 | |||
Treasury stock, at cost: 2,891,052 and 2,091,888 shares at September 30, 2019 and December 31, 2018, respectively | (33,650) | (29,025) | |||
Additional paid-in capital | 3,104,938 | 3,077,755 | |||
Retained earnings | 630,852 | 682,689 | |||
Oasis share of stockholders' equity | 3,705,326 | 3,734,576 | |||
Non-controlling interests | 194,335 | 184,304 | |||
Total stockholders' equity | 3,899,661 | 3,918,880 | |||
Total liabilities and stockholders' equity | $ | 7,666,977 | $ | 7,626,142 | |
Oasis Petroleum Inc. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands, except per share data) | |||||||||||
Revenues | |||||||||||
Oil and gas revenues | $ | 344,470 | $ | 454,195 | $ | 1,070,256 | $ | 1,218,639 | |||
Purchased oil and gas sales | 79,352 | 172,985 | 337,212 | 368,758 | |||||||
Midstream revenues | 50,023 | 31,187 | 149,617 | 88,451 | |||||||
Well services revenues | 8,898 | 16,262 | 30,795 | 46,344 | |||||||
Total revenues | 482,743 | 674,629 | 1,587,880 | 1,722,192 | |||||||
Operating expenses | |||||||||||
Lease operating expenses | 50,313 | 48,534 | 164,985 | 137,456 | |||||||
Midstream expenses | 12,967 | 8,652 | 47,064 | 24,325 | |||||||
Well services expenses | 6,151 | 11,405 | 21,595 | 32,352 | |||||||
Marketing, transportation and gathering expenses | 32,659 | 30,713 | 96,097 | 74,559 | |||||||
Purchased oil and gas expenses | 78,655 | 174,269 | 338,221 | 374,442 | |||||||
Production taxes | 28,461 | 38,722 | 86,221 | 103,748 | |||||||
Depreciation, depletion and amortization | 210,832 | 162,984 | 578,023 | 465,819 | |||||||
Exploration expenses | 652 | 22,315 | 2,369 | 23,701 | |||||||
Impairment | — | — | 653 | 384,228 | |||||||
General and administrative expenses | 52,860 | 34,859 | 118,245 | 91,029 | |||||||
Total operating expenses | 473,550 | 532,453 | 1,453,473 | 1,711,659 | |||||||
Gain (loss) on sale of properties | (752) | 36,869 | (3,950) | 38,823 | |||||||
Operating income | 8,441 | 179,045 | 130,457 | 49,356 | |||||||
Other income (expense) | |||||||||||
Net gain (loss) on derivative instruments | 47,922 | (48,544) | (34,940) | (239,945) | |||||||
Interest expense, net of capitalized interest | (43,897) | (39,560) | (131,551) | (117,616) | |||||||
Loss on extinguishment of debt | — | (47) | — | (13,698) | |||||||
Other income | 473 | 111 | 706 | 146 | |||||||
Total other income (expense), net | 4,498 | (88,040) | (165,785) | (371,113) | |||||||
Income (loss) before income taxes | 12,939 | 91,005 | (35,328) | (321,757) | |||||||
Income tax benefit (expense) | 17,372 | (24,782) | 8,835 | 75,391 | |||||||
Net income (loss) including non-controlling interests | 30,311 | 66,223 | (26,493) | (246,366) | |||||||
Less: Net income attributable to non-controlling interests | 10,023 | 3,882 | 25,344 | 10,907 | |||||||
Net income (loss) attributable to Oasis | $ | 20,288 | $ | 62,341 | $ | (51,837) | $ | (257,273) | |||
Earnings (loss) attributable to Oasis per share: | |||||||||||
Basic | $ | 0.06 | $ | 0.20 | $ | (0.16) | $ | (0.84) | |||
Diluted | 0.06 | 0.20 | (0.16) | (0.84) | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 315,135 | 313,167 | 314,863 | 305,533 | |||||||
Diluted | 315,135 | 316,387 | 314,863 | 305,533 | |||||||
Oasis Petroleum Inc. | |||||||||||
Selected Financial and Operational Statistics | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Operating results (in thousands): | |||||||||||
Revenues | |||||||||||
Crude oil revenues(1) | $ | 318,564 | $ | 414,082 | $ | 964,662 | $ | 1,103,575 | |||
Natural gas revenues | 25,906 | 40,113 | 105,594 | 115,064 | |||||||
Purchased oil and gas sales(1) | 79,352 | 172,985 | 337,212 | 368,758 | |||||||
Midstream revenues | 50,023 | 31,187 | 149,617 | 88,451 | |||||||
Well services revenues | 8,898 | 16,262 | 30,795 | 46,344 | |||||||
Total revenues | $ | 482,743 | $ | 674,629 | $ | 1,587,880 | $ | 1,722,192 | |||
Production data: | |||||||||||
Crude oil (MBbls) | 5,779 | 6,060 | 17,294 | 16,862 | |||||||
Natural gas (MMcf) | 14,296 | 10,781 | 40,840 | 30,825 | |||||||
Oil equivalents (MBoe) | 8,162 | 7,857 | 24,101 | 21,999 | |||||||
Average daily production (Boe per day) | 88,715 | 85,400 | 88,283 | 80,583 | |||||||
Average sales prices: | |||||||||||
Crude oil, without derivative settlements (per Bbl) | $ | 55.12 | $ | 68.33 | $ | 55.78 | $ | 65.45 | |||
Crude oil, with derivative settlements (per Bbl)(2) | 56.03 | 57.50 | 56.19 | 55.78 | |||||||
Natural gas, without derivative settlements (per Mcf)(3) | 1.81 | 3.72 | 2.59 | 3.73 | |||||||
Natural gas, with derivative settlements (per Mcf)(2)(3) | 1.95 | 3.76 | 2.67 | 3.77 | |||||||
Costs and expenses (per Boe of production): | |||||||||||
Lease operating expenses | $ | 6.16 | $ | 6.18 | $ | 6.85 | $ | 6.25 | |||
MT&G(4) | 4.01 | 3.84 | 3.89 | 3.36 | |||||||
Production taxes | 3.49 | 4.93 | 3.58 | 4.72 | |||||||
Depreciation, depletion and amortization | 25.83 | 20.74 | 23.98 | 21.17 | |||||||
G&A(5) | 6.48 | 4.44 | 4.91 | 4.14 | |||||||
E&P G&A(5) | 5.68 | 3.88 | 4.14 | 3.52 | |||||||
___________________ | |
(1) | For the three and nine months ended September 30, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised to correct errors related to the presentation of certain crude oil purchase and sale arrangements, which had no impact on reported net income (loss). The amounts presented herein reflect the impact of the revision. |
(2) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(3) | Natural gas prices include the value for natural gas and natural gas liquids. |
(4) | Excludes non-cash valuation charges on pipeline imbalances. |
(5) | Includes $20 million of litigation contingency expenses in 3Q 2019. Excluding this accrual, G&A per Boe would have been $4.03 and E&P G&A per Boe would have been $3.23 in 3Q 2019. |
Oasis Petroleum Inc. | |||||
Condensed Consolidated Statements of Cash Flows | |||||
(Unaudited) | |||||
Nine Months Ended September 30, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Cash flows from operating activities: | |||||
Net loss including non-controlling interests | $ | (26,493) | $ | (246,366) | |
Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 578,023 | 465,819 | |||
Loss on extinguishment of debt | — | 13,698 | |||
(Gain) loss on sale of properties | 3,950 | (38,823) | |||
Impairment | 653 | 384,228 | |||
Deferred income taxes | (8,840) | (75,418) | |||
Derivative instruments | 34,940 | 239,945 | |||
Equity-based compensation expenses | 26,370 | 21,586 | |||
Deferred financing costs amortization and other | 18,190 | 20,074 | |||
Working capital and other changes: | |||||
Change in accounts receivable, net | 1,555 | (61,275) | |||
Change in inventory | (3,676) | (12,076) | |||
Change in prepaid expenses | 4,153 | 1,196 | |||
Change in accounts payable, interest payable and accrued liabilities | 22,280 | 50,308 | |||
Change in other assets and liabilities, net | (11,211) | (895) | |||
Net cash provided by operating activities | 639,894 | 762,001 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (714,270) | (841,088) | |||
Acquisitions | (8,337) | (579,886) | |||
Proceeds from sale of properties | 41,039 | 333,029 | |||
Costs related to sale of properties | — | (2,707) | |||
Derivative settlements | 10,752 | (162,013) | |||
Other | — | (1,038) | |||
Net cash used in investing activities | (670,816) | (1,253,703) | |||
Cash flows from financing activities: | |||||
Proceeds from revolving credit facilities | 1,651,000 | 2,499,000 | |||
Principal payments on revolving credit facilities | (1,600,000) | (1,959,000) | |||
Repurchase of senior unsecured notes | — | (423,190) | |||
Proceeds from issuance of senior unsecured notes | — | 400,000 | |||
Deferred financing costs | (852) | (7,650) | |||
Purchases of treasury stock | (4,625) | (6,806) | |||
Distributions to non-controlling interests | (15,551) | (10,393) | |||
Payments on finance lease liabilities | (1,423) | — | |||
Other | (392) | (87) | |||
Net cash provided by financing activities | 28,157 | 491,874 | |||
Increase (decrease) in cash and cash equivalents | (2,765) | 172 | |||
Cash and cash equivalents: | |||||
Beginning of period | 22,190 | 16,720 | |||
End of period | $ | 19,425 | $ | 16,892 | |
Supplemental non-cash transactions: | |||||
Change in accrued capital expenditures | $ | (42,751) | $ | 79,011 | |
Change in asset retirement obligations | 4,114 | 2,854 | |||
Issuance of shares in connection with acquisition | — | 371,220 | |||
Non-GAAP Financial Measures
E&P Cash G&A is defined as the total general and administrative expenses included in the Company's exploration and production segment less non-cash equity-based compensation expenses and other non-cash charges included in its exploration and production segment. E&P Cash G&A is not a measure of general and administrative expenses as determined by GAAP. Management believes that the presentation of E&P Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to equity-based compensation programs, which can vary substantially from company to company.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses included in its exploration and production segment to the non-GAAP financial measure of E&P Cash G&A for the periods presented:
Exploration and Production | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
E&P general and administrative expenses | $ | 46,377 | $ | 30,454 | $ | 99,665 | $ | 77,425 | |||
Equity-based compensation expenses | (8,246) | (7,102) | (25,348) | (20,565) | |||||||
Litigation contingency expenses(1) | (20,000) | — | (20,000) | — | |||||||
E&P Cash G&A | $ | 18,131 | $ | 23,352 | $ | 54,317 | $ | 56,860 | |||
___________________ | |
(1) | In 3Q 2019, the Company incurred a charge to establish a loss accrual of $20 million, which the Company believes is the estimable amount of loss that could potentially be incurred from the Company's pending legal proceedings based upon currently available information. |
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Interest expense | $ | 43,897 | $ | 39,560 | $ | 131,551 | $ | 117,616 | |||
Capitalized interest | 3,001 | 4,531 | 9,464 | 13,209 | |||||||
Amortization of deferred financing costs | (1,861) | (1,813) | (5,454) | (5,511) | |||||||
Amortization of debt discount | (3,137) | (2,852) | (9,027) | (8,201) | |||||||
Cash Interest | $ | 41,900 | $ | 39,426 | $ | 126,534 | $ | 117,113 | |||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA attributable to Oasis less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Net income (loss) including non-controlling interests | $ | 30,311 | $ | 66,223 | $ | (26,493) | $ | (246,366) | |||
(Gain) loss on sale of properties | 752 | (36,869) | 3,950 | (38,823) | |||||||
Loss on extinguishment of debt | — | 47 | — | 13,698 | |||||||
Net (gain) loss on derivative instruments | (47,922) | 48,544 | 34,940 | 239,945 | |||||||
Derivative settlements(1) | 7,123 | (65,190) | 10,752 | (162,013) | |||||||
Interest expense, net of capitalized interest | 43,897 | 39,560 | 131,551 | 117,616 | |||||||
Depreciation, depletion and amortization | 210,832 | 162,984 | 578,023 | 465,819 | |||||||
Impairment | — | — | 653 | 384,228 | |||||||
Exploration expenses | 652 | 22,315 | 2,369 | 23,701 | |||||||
Equity-based compensation expenses | 8,446 | 7,456 | 26,370 | 21,586 | |||||||
Income tax (benefit) expense | (17,372) | 24,782 | (8,835) | (75,391) | |||||||
Litigation contingency expenses(2) | 20,000 | — | 20,000 | — | |||||||
Other non-cash adjustments | (79) | 574 | 2,316 | 557 | |||||||
Adjusted EBITDA | 256,640 | 270,426 | 775,596 | 744,557 | |||||||
Adjusted EBITDA attributable to non-controlling interests | 13,606 | 5,194 | 35,501 | 14,647 | |||||||
Adjusted EBITDA attributable to Oasis | 243,034 | 265,232 | 740,095 | 729,910 | |||||||
Cash Interest | (41,900) | (39,426) | (126,534) | (117,113) | |||||||
Capital expenditures(3) | (187,216) | (372,343) | (708,884) | (1,898,105) | |||||||
Capitalized interest | 3,001 | 4,531 | 9,464 | 13,209 | |||||||
Free Cash Flow | $ | 16,919 | $ | (142,006) | $ | (85,859) | $ | (1,272,099) | |||
Net cash provided by operating activities | $ | 250,962 | $ | 229,985 | $ | 639,894 | $ | 762,001 | |||
Derivative settlements(1) | 7,123 | (65,190) | 10,752 | (162,013) | |||||||
Interest expense, net of capitalized interest | 43,897 | 39,560 | 131,551 | 117,616 | |||||||
Exploration expenses | 652 | 22,315 | 2,369 | 23,701 | |||||||
Deferred financing costs amortization and other | (5,945) | (9,556) | (18,190) | (20,074) | |||||||
Current tax (benefit) expense | 84 | (93) | 5 | 27 | |||||||
Changes in working capital | (60,054) | 52,831 | (13,101) | 22,742 | |||||||
Litigation contingency expenses(2) | 20,000 | — | 20,000 | — | |||||||
Other non-cash adjustments | (79) | 574 | 2,316 | 557 | |||||||
Adjusted EBITDA | 256,640 | 270,426 | 775,596 | 744,557 | |||||||
Adjusted EBITDA attributable to non-controlling interests | 13,606 | 5,194 | 35,501 | 14,647 | |||||||
Adjusted EBITDA attributable to Oasis | 243,034 | 265,232 | 740,095 | 729,910 | |||||||
Cash Interest | (41,900) | (39,426) | (126,534) | (117,113) | |||||||
Capital expenditures(3) | (187,216) | (372,343) | (708,884) | (1,898,105) | |||||||
Capitalized interest | 3,001 | 4,531 | 9,464 | 13,209 | |||||||
Free Cash Flow | $ | 16,919 | $ | (142,006) | $ | (85,859) | $ | (1,272,099) | |||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | In 3Q 2019, the Company incurred a charge to establish a loss accrual of $20 million, which the Company believes is the estimable amount of loss that could potentially be incurred from the Company's pending legal proceedings based upon currently available information. |
(3) | Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $2.5 million and $8.3 million for the three and nine months ended September 30, 2019, respectively, and $55.6 million and $950.1 million for the three and nine months ended September 30, 2018, respectively. In addition, capital expenditures (including acquisitions) reflected in the table above includes consideration paid through the issuance of common stock in connection with an acquisition for the nine months ended September 30, 2018. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
Exploration and Production | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income (loss) before income taxes including non-controlling interests | $ | (42,605) | $ | 59,375 | $ | (184,138) | $ | (423,470) | |||
(Gain) loss on sale of properties | 752 | (46,459) | 3,950 | (48,413) | |||||||
Loss on extinguishment of debt | — | 47 | — | 13,698 | |||||||
Net (gain) loss on derivative instruments | (47,922) | 48,544 | 34,940 | 239,945 | |||||||
Derivative settlements(1) | 7,123 | (65,190) | 10,752 | (162,013) | |||||||
Interest expense, net of capitalized interest | 39,385 | 39,398 | 119,082 | 117,009 | |||||||
Depreciation, depletion and amortization | 205,902 | 158,630 | 563,408 | 453,083 | |||||||
Impairment | — | — | 653 | 384,228 | |||||||
Exploration expenses | 652 | 22,315 | 2,369 | 23,701 | |||||||
Equity-based compensation expenses | 8,246 | 7,102 | 25,348 | 20,565 | |||||||
Litigation contingency expenses(2) | 20,000 | — | 20,000 | — | |||||||
Other non-cash adjustments | (79) | 574 | 2,316 | 557 | |||||||
Adjusted EBITDA | $ | 191,454 | $ | 224,336 | $ | 598,680 | $ | 618,890 | |||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | In 3Q 2019, the Company incurred a charge to establish a loss accrual of $20 million, which the Company believes is the estimable amount of loss that could potentially be incurred from the Company's pending legal proceedings based upon currently available information. |
Midstream Services | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income before income taxes including non-controlling interests | $ | 59,787 | $ | 30,959 | $ | 156,861 | $ | 100,754 | |||
Loss on sale of properties | — | 9,590 | — | 9,590 | |||||||
Interest expense, net of capitalized interest | 4,512 | 162 | 12,469 | 607 | |||||||
Depreciation, depletion and amortization | 9,340 | 7,373 | 27,420 | 20,902 | |||||||
Equity-based compensation expenses | 383 | 442 | 1,363 | 1,222 | |||||||
Adjusted EBITDA | $ | 74,022 | $ | 48,526 | $ | 198,113 | $ | 133,075 | |||
Well Services | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income before income taxes including non-controlling interests | $ | 375 | $ | 9,158 | $ | 2,694 | $ | 25,316 | |||
Depreciation, depletion and amortization | 3,206 | 3,940 | 10,493 | 11,560 | |||||||
Equity-based compensation expenses | 42 | 354 | 1,130 | 1,149 | |||||||
Adjusted EBITDA | $ | 3,623 | $ | 13,452 | $ | 14,317 | $ | 38,025 | |||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income (loss) attributable to Oasis | $ | 20,288 | $ | 62,341 | $ | (51,837) | $ | (257,273) | |||||||
(Gain) loss on sale of properties | 752 | (36,869) | 3,950 | (38,823) | |||||||||||
Loss on extinguishment of debt | — | 47 | — | 13,698 | |||||||||||
Net (gain) loss on derivative instruments | (47,922) | 48,544 | 34,940 | 239,945 | |||||||||||
Derivative settlements(1) | 7,123 | (65,190) | 10,752 | (162,013) | |||||||||||
Impairment | — | — | 653 | 384,228 | |||||||||||
Amortization of deferred financing costs | 1,861 | 1,814 | 5,454 | 5,512 | |||||||||||
Amortization of debt discount | 3,137 | 2,852 | 9,027 | 8,201 | |||||||||||
Litigation contingency expenses(2) | 20,000 | — | 20,000 | — | |||||||||||
Other non-cash adjustments | (79) | 574 | 2,316 | 557 | |||||||||||
Tax impact(3) | (21,173) | 12,214 | (28,026) | (108,028) | |||||||||||
Adjusted Net Income (Loss) Attributable to Oasis | $ | (16,013) | $ | 26,327 | $ | 7,229 | $ | 86,004 | |||||||
Diluted earnings (loss) attributable to Oasis per share | $ | 0.06 | $ | 0.20 | $ | (0.16) | $ | (0.84) | |||||||
(Gain) loss on sale of properties | — | (0.12) | 0.01 | (0.13) | |||||||||||
Loss on extinguishment of debt | — | — | — | 0.04 | |||||||||||
Net (gain) loss on derivative instruments | (0.15) | 0.15 | 0.11 | 0.78 | |||||||||||
Derivative settlements(1) | 0.02 | (0.21) | 0.03 | (0.52) | |||||||||||
Impairment | — | — | — | 1.24 | |||||||||||
Amortization of deferred financing costs | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||
Amortization of debt discount | 0.01 | 0.01 | 0.03 | 0.03 | |||||||||||
Litigation contingency expenses(2) | 0.06 | — | 0.06 | — | |||||||||||
Other non-cash adjustments | — | — | 0.01 | — | |||||||||||
Tax impact(3) | (0.06) | 0.04 | (0.09) | (0.34) | |||||||||||
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share | $ | (0.05) | $ | 0.08 | $ | 0.02 | $ | 0.28 | |||||||
Diluted weighted average shares outstanding(4) | 315,135 | 316,387 | 315,944 | 308,985 | |||||||||||
Effective tax rate applicable to adjustment items | (140.0) | % | 25.3 | % | 32.2 | % | 23.9 | % | |||||||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | In 3Q 2019, the Company incurred a charge to establish a loss accrual of $20 million, which the Company believes is the estimable amount of loss that could potentially be incurred from the Company's pending legal proceedings based upon currently available information. |
(3) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
(4) | No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three months ended September 30, 2019 because the effect was anti-dilutive due to the Adjusted Net Loss Attributable to Oasis. For the nine months ended September 30, 2019 and three and nine months ended September 30, 2018, the Company included 1,081,000, 3,220,000 and 3,452,000, respectively, of unvested stock awards in computing Adjusted Diluted Earnings Attributable to Oasis Per Share due to the dilutive effect under the treasury stock method. |
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-september-30-2019-earnings-300952244.html
SOURCE Oasis Petroleum Inc.
Article Date
11/5/201910/21/2019 - Oasis Midstream Partners Schedules Third Quarter 2019 Conference Call for November 6, 2019
Oasis Midstream Partners Schedules Third Quarter 2019 Conference Call for November 6, 2019
Source: PR Newswire
HOUSTON, Oct. 21, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2019 financial and operational results on Tuesday, November 5, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, November 6, 2019 at 11:30 a.m. Central Time to discuss Third Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Wednesday, November 6, 2019
Time: 11:30 a.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1777/32113
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 1033646
Website: www.oasismidstream.com
A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Wednesday, November 13, 2019 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Replay access: 10136377
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
November 13-14: BAML's 2019 Global Energy Conference – Miami, FL
November 20: RBC Capital Market's Midstream Conference – Dallas, TX
December 11: Capital One Securities' 14th Annual Energy Conference – Houston, TX
December 12: Wells Fargo's 18th Annual Midstream and Utility Symposium – New York, NY
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-third-quarter-2019-conference-call-for-november-6-2019-300942252.html
SOURCE Oasis Midstream Partners LP
Article Date
10/21/2019Oasis Petroleum Schedules Third Quarter 2019 Conference Call for November 6, 2019
Source: PR Newswire
HOUSTON, Oct. 21, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Third Quarter 2019 financial and operational results on Tuesday, November 5, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, November 6, 2019 at 10:00 a.m. Central Time to discuss Third Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, November 6, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 2649560 |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, November 13, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10136374 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
November 13-14: | BAML's 2019 Global Energy Conference – Miami, FL |
November 20: | RBC Capital Market's Midstream Conference – Dallas, TX |
December 11: | Capital One Securities' 14th Annual Energy Conference – Houston, TX |
December 12: | Wells Fargo's 18th Annual Midstream and Utility Symposium – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
Contact:
Oasis Petroleum Inc.
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-third-quarter-2019-conference-call-for-november-6-2019-300942249.html
SOURCE Oasis Petroleum Inc.
Article Date
10/21/2019Oasis Petroleum Inc. Announces Quarter Ended June 30, 2019 Earnings
Source: PR Newswire
HOUSTON, Aug. 6, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operating results for the second quarter of 2019.
Recent Highlights:
(1) Non-GAAP measure. See "Non-GAAP Financial Measures" below for definitions of all non-GAAP measures included herein and reconciliations to the most directly comparable measures under United States generally accepted accounting principles ("GAAP"). |
(2) For more detail on E&P free cash flow, see pages six and seven of the Company's investor presentation on the Company's website at www.oasispetroleum.com. |
"Oasis continues to execute its plan of harvesting Williston free cash flow to fund growth in the Delaware," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Our operational expertise and deep inventory in the Williston support full field development and we are expanding outside of Wild Basin with impressive results. In the Delaware, our learnings are advancing faster than expected, resulting in faster cycle times, lowered costs, and strong well performance. We are seeing strong performance from not only the Wolfcamp A wells, but also from recent Wolfcamp B and C wells. With assets focused in two of the best oil basins in the US, a team with a proven operating track record, and strong realizations in both basins, we are structured to succeed through volatile commodity markets."
Financial and Operational Update and Outlook
Metric | 2Q 2019 Actual | Prior Full Year Guidance | Updated Full Year Guidance | |||
Production (MBoepd) | 84.5 | 86.0 - 91.0 | 86.8 - 88.5 | |||
Differential to NYMEX WTI ($ per Bbl) | $0.96 | $1.50 - $3.50 | $1.50 - $3.00 | |||
Natural gas realized price (as a % of Henry Hub) | 89% | N/A | 85% | |||
Lease operating expenses ($ per Boe) | $7.32 | $7.00 - $7.75 | $7.00 - $7.75 | |||
Marketing, transportation and gathering expenses ($ per Boe)(1) | $3.69 | $3.50 - $4.50 | $3.50 - $4.50 | |||
E&P Cash G&A ($ in millions)(2) | $17.2 | $77 - $81 | $77 - $81 | |||
Production taxes (as a % of oil and gas revenues) | 7.9% | 8.1% - 8.4% | 8.1% - 8.4% | |||
CapEx ($ in millions) | ||||||
E&P & Other CapEx(3) | $206.4 | $540 - $560 | $620 - $640 | |||
Midstream CapEx | $82.6 | $195 - $219 | $219 - $230 | |||
Midstream CapEx attributable to Oasis (included in Midstream CapEx above) | $70.9 | $11 - $13 | $15 - $16 |
___________________ | |
(1) | Marketing, transportation and gathering expenses ("MT&G") exclude the effect of non-cash valuation charges on pipeline imbalances. |
(2) | E&P Cash G&A represents general and administrative ("G&A") expenses less non-cash equity-based compensation expenses included in the Company's exploration and production ("E&P") segment. Total 2019 cash G&A for Oasis is estimated at $92 to $96 million, which excludes non-cash amortization of equity-based compensation of approximately $41 to $45 million. See "Non-GAAP Financial Measures" below. |
(3) | Other CapEx includes well services and administrative capital and excludes estimated capitalized interest of approximately $15 million for 2019. |
Midstream Update
Operational and Financial Update
The following table presents select operational and financial data for the periods presented:
Quarter Ended: | |||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||
Production data: | |||||||
Crude oil (Bopd) | 61,224 | 66,046 | 60,632 | ||||
Natural gas (Mcfpd) | 139,380 | 154,005 | 112,830 | ||||
Total production (Boepd) | 84,454 | 91,714 | 79,437 | ||||
Percent crude oil | 72.5% | 72.0% | 76.3% | ||||
Average sales prices: | |||||||
Crude oil, without derivative settlements ($ per Bbl) | $ 58.87 | $ | 53.52 | $ | 65.82 | ||
Differential to NYMEX WTI ($ per Bbl) | 0.96 | 1.30 | 2.07 | ||||
Crude oil, with derivative settlements ($ per Bbl)(1) | 56.79 | 55.79 | 54.88 | ||||
Crude oil derivative settlements - net cash receipts (payments) ($ in millions)(2) | (11.6) | 13.5 | (60.4) | ||||
Natural gas, without derivative settlements ($ per Mcf)(2) | 2.29 | 3.66 | 3.38 | ||||
Natural gas, with derivative settlements ($ per Mcf)(1)(2) | 2.43 | 3.65 | 3.43 | ||||
Natural gas derivative settlements - net cash receipts (payments) ($ in millions)(2) | 1.8 | (0.1) | 0.5 | ||||
Selected financial data ($ in millions): | |||||||
Revenues: | |||||||
Crude oil revenues(3) | $ 328.0 | $ | 318.1 | $ | 363.2 | ||
Natural gas revenues | 29.0 | 50.7 | 34.7 | ||||
Purchased oil and gas sales(3) | 109.4 | 148.5 | 128.1 | ||||
Midstream revenues | 51.6 | 48.0 | 29.3 | ||||
Well services revenues | 11.4 | 10.4 | 18.5 | ||||
Total revenues | $ 529.4 | $ | 575.7 | $ | 573.8 | ||
Net cash provided by operating activities | 214.0 | 174.9 | 303.7 | ||||
Adjusted EBITDA(4) | 249.6 | 269.3 | 241.2 | ||||
Select operating expenses: | |||||||
Lease operating expenses | $ 56.2 | $ | 58.4 | $ | 44.1 | ||
Midstream expenses | 17.4 | 16.7 | 7.7 | ||||
Well services expenses | 8.5 | 7.0 | 13.6 | ||||
MT&G(5) | 28.4 | 32.7 | 23.1 | ||||
Non-cash valuation charges | 0.1 | 2.3 | (0.2) | ||||
Purchased oil and gas expenses(3) | 109.7 | 149.9 | 129.6 | ||||
Production taxes | 28.1 | 29.6 | 34.0 | ||||
Depreciation, depletion and amortization | 177.4 | 189.8 | 153.6 | ||||
Total select operating expenses | $ 425.8 | $ | 486.4 | $ | 405.5 | ||
Select operating expenses data: | |||||||
Lease operating expense ($ per Boe) | $ 7.32 | $ | 7.08 | $ | 6.11 | ||
MT&G ($ per Boe)(5) | 3.69 | 3.96 | 3.19 | ||||
Depreciation, depletion and amortization ($ per Boe) | 23.08 | 23.00 | 21.24 | ||||
E&P G&A ($ per Boe) | 3.35 | 3.33 | 3.25 | ||||
E&P Cash G&A ($ per Boe)(4) | 2.24 | 2.30 | 2.28 | ||||
Production taxes (as a % of oil and gas revenues) | 7.9% | 8.0% | 8.6% | ||||
___________________ | |
(1) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | Natural gas prices include the value for natural gas and natural gas liquids. |
(3) | For the three and six months ended June 30, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised to correct errors related to the presentation of certain crude oil purchase and sale arrangements, which had no impact on reported net income (loss). The amounts presented herein reflect the impact of the revision. |
(4) | Adjusted EBITDA and E&P Cash G&A represent non-GAAP measures. See "Non-GAAP Financial Measures" below for further information and reconciliations to the most directly comparable financial measures under GAAP. |
(5) | Excludes non-cash valuation charges on pipeline imbalances. |
G&A totaled $30.9 million in the second quarter of 2019, $28.2 million in the second quarter of 2018 and $34.5 million in the first quarter of 2019. Amortization of equity-based compensation, which is included in G&A, was $8.9 million, or $1.16 per barrel of oil equivalent ("Boe"), in the second quarter of 2019 as compared to $7.4 million, or $1.02 per Boe, in the second quarter of 2018 and $9.0 million, or $1.09 per Boe, in the first quarter of 2019. G&A for the Company's E&P segment totaled $25.8 million in the second quarter of 2019, $23.5 million in the second quarter of 2018 and $27.5 million in the first quarter of 2019.
MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $5.3 million to $28.4 million in the second quarter of 2019, as compared to $23.1 million in the second quarter of 2018, primarily attributable to higher crude oil gathering and transportation expenses related to an increase in volumes being transported on the Dakota Access Pipeline to market the Company's equity barrels, which resulted in improved price realizations. MT&G, excluding non-cash valuation charges on pipeline imbalances, decreased $4.3 million in the second quarter of 2019, as compared to $32.7 million in the first quarter of 2019 primarily due to lower production volumes.
Interest expense was $43.2 million for the second quarter of 2019 as compared to $40.9 million for the second quarter of 2018 and $44.5 million for the first quarter of 2019. Capitalized interest totaled $3.6 million for the second quarter of 2019, $4.2 million for the second quarter of 2018 and $2.8 million for the first quarter of 2019. Cash Interest totaled $42.0 million for the second quarter of 2019, $40.5 million for the second quarter of 2018 and $42.6 million for the first quarter of 2019. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended June 30, 2019, the Company recorded an income tax expense of $12.2 million, resulting in a 19.3% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax benefit of $3.7 million, resulting in a 3.3% effective tax rate as a percentage of its pre-tax loss for the three months ended March 31, 2019.
For the second quarter of 2019, the Company reported net income of $42.8 million, or $0.14 per diluted share, as compared to a net loss of $320.2 million, or $1.02 per diluted share, for the second quarter of 2018. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis was $11.0 million, or $0.03 per diluted share, in the second quarter of 2019, as compared to Adjusted Net Income Attributable to Oasis of $28.9 million, or $0.09 per diluted share, in the second quarter of 2018. Adjusted EBITDA for the second quarter of 2019 was $249.6 million, as compared to Adjusted EBITDA of $241.2 million for the second quarter of 2018. For definitions of Adjusted Net Income (Loss) Attributable to Oasis and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
Capital Expenditures and Completions
The following table depicts the Company's total capital expenditures ("CapEx") by category:
1Q 2019 | 2Q 2019 | YTD - 2Q 2019 | |||||
(In millions) | |||||||
CapEx: | |||||||
E&P | $ 165.7 | $ | 202.1 | $ | 367.8 | ||
Well services | 0.1 | — | 0.1 | ||||
Other(1) | 3.9 | 4.3 | 8.2 | ||||
Total CapEx before midstream | 169.7 | 206.4 | 376.1 | ||||
Midstream(2) | 57.1 | 82.6 | 139.7 | ||||
Total CapEx before acquisitions | 226.8 | 289.0 | 515.8 | ||||
Acquisitions | — | 5.8 | 5.8 | ||||
Total CapEx(3) | $ 226.8 | $ | 294.8 | $ | 521.6 | ||
___________________ | |
(1) | Other CapEx includes such items as administrative capital and capitalized interest. |
(2) | Midstream CapEx attributable to Oasis Midstream Partners ("OMP") was $45.2 million and $70.9 million for the three months ended March 31, 2019 and June 30, 2019, respectively. |
(3) | Total CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. |
Oasis completed and placed on production 27 gross (20.6 net) operated wells and 0.8 net non-operated wells during the second quarter of 2019. Completions included 24 gross (17.6 net) operated wells in the Williston Basin and 3 gross (3.0 net) operated wells in the Delaware Basin. The completions cadence was back weighted during the quarter with only 2 wells completed in April.
Liquidity and Balance Sheet
As of June 30, 2019, Oasis had cash and cash equivalents of $20.3 million, total elected commitments under the Oasis credit facility of $1,350.0 million and total elected commitments under the OMP credit facility of $475.0 million. In addition, Oasis had $531.0 million of borrowings and $14.0 million of outstanding letters of credit issued under the Oasis credit facility and $408.0 million of borrowings and $8.2 million of outstanding letters of credit under the OMP credit facility, resulting in a total unused borrowing capacity of $863.8 million for both revolving credit facilities as of June 30, 2019.
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX West Texas Intermediate crude oil index price ("NYMEX WTI") for fixed price swaps and two-way and three-way costless collars. The Company's basis swaps for crude oil will settle monthly based on the fixed basis differential from Argus WTI Houston crude oil index price ("Houston") to NYMEX WTI. The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. As of August 6, 2019, the Company had the following outstanding commodity derivative contracts:
Six Months Ending | |||||||||||
December 31, 2019 | June 30, 2020 | December 31, 2020 | June 30, 2021 | ||||||||
Crude Oil (Volume in MBopd) | |||||||||||
Fixed Price Swaps | |||||||||||
Volume | 23.8 | 10.0 | 3.0 | — | |||||||
Price | $ | 57.35 | $ | 59.87 | $ | 58.85 | $ | — | |||
Two-Way Collars | |||||||||||
Volume | 14.0 | 5.0 | 2.0 | — | |||||||
Floor | $ | 58.07 | $ | 51.50 | $ | 50.50 | $ | — | |||
Ceiling | $ | 74.64 | $ | 61.76 | $ | 60.70 | $ | — | |||
Three-Way Collars | |||||||||||
Volume | 12.0 | 13.0 | 12.0 | 2.0 | |||||||
Sub-Floor | $ | 40.00 | $ | 40.00 | $ | 40.00 | $ | 40.00 | |||
Floor | $ | 51.57 | $ | 54.13 | $ | 52.48 | $ | 50.00 | |||
Ceiling | $ | 65.40 | $ | 64.81 | $ | 63.86 | $ | 64.25 | |||
Total Crude Oil Volume | 49.8 | 28.0 | 17.0 | 2.0 | |||||||
Basis Swaps (Houston-NYMEX WTI) | |||||||||||
Volume | 1.5 | — | — | — | |||||||
Price | $ | 4.55 | $ | — | $ | — | $ | — | |||
Natural Gas (Volume in MMBtupd) | |||||||||||
Fixed Price Swaps | |||||||||||
Volume | 30,000 | — | — | — | |||||||
Price | $ | 2.92 | $ | — | $ | — | $ | — | |||
The June 2019 crude oil derivative contracts settled at a net $0.6 million received in July 2019 and will be included in the Company's third quarter 2019 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: | Wednesday, August 7, 2019 | |
Time: | 10:00 a.m. Central Time | |
Live Webcast: | ||
Website: |
Sell-side analysts with a question may use the following dial-in:
Dial-in: | 888-317-6003 | |
Intl. Dial in: | 412-317-6061 | |
Conference ID: | 2649196 |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, August 14, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10133701 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, the ability to consummate the previously announced Delaware acreage from Oasis to OMP and realize the anticipated benefits therefrom, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
Oasis Petroleum Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(Unaudited) | |||||
June 30, 2019 | December 31, 2018 | ||||
(In thousands, except share data) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ 20,258 | $ | 22,190 | ||
Accounts receivable, net | 396,104 | 387,602 | |||
Inventory | 30,056 | 33,128 | |||
Prepaid expenses | 6,018 | 10,997 | |||
Derivative instruments | 19,089 | 99,930 | |||
Intangible assets, net | — | 125 | |||
Other current assets | 195 | 183 | |||
Total current assets | 471,720 | 554,155 | |||
Property, plant and equipment | |||||
Oil and gas properties (successful efforts method) | 9,283,462 | 8,912,189 | |||
Other property and equipment | 1,301,835 | 1,151,772 | |||
Less: accumulated depreciation, depletion, amortization and impairment | (3,416,183) | (3,036,852) | |||
Total property, plant and equipment, net | 7,169,114 | 7,027,109 | |||
Derivative instruments | 5,636 | 6,945 | |||
Long-term inventory | 13,286 | 12,260 | |||
Operating right-of-use assets | 20,054 | — | |||
Other assets | 30,478 | 25,673 | |||
Total assets | $ 7,710,288 | $ | 7,626,142 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ 15,155 | $ | 20,166 | ||
Revenues and production taxes payable | 170,534 | 216,695 | |||
Accrued liabilities | 315,450 | 331,651 | |||
Accrued interest payable | 37,701 | 38,040 | |||
Derivative instruments | 4,445 | 84 | |||
Advances from joint interest partners | 4,076 | 5,140 | |||
Current operating lease liabilities | 7,837 | — | |||
Other current liabilities | 3,230 | — | |||
Total current liabilities | 558,428 | 611,776 | |||
Long-term debt | 2,896,524 | 2,735,276 | |||
Deferred income taxes | 308,672 | 300,055 | |||
Asset retirement obligations | 55,228 | 52,384 | |||
Derivative instruments | — | 20 | |||
Operating lease liabilities | 18,021 | — | |||
Other liabilities | 6,957 | 7,751 | |||
Total liabilities | 3,843,830 | 3,707,262 | |||
Commitments and contingencies | |||||
Stockholders' equity | |||||
Common stock, $0.01 par value: 900,000,000 shares authorized; 324,680,450 shares issued and 321,894,286 shares outstanding at June 30, 2019 and 320,469,049 shares issued and 318,377,161 shares outstanding at December 31, 2018 | 3,183 | 3,157 | |||
Treasury stock, at cost: 2,786,164 and 2,091,888 shares at June 30, 2019 and December 31, 2018, respectively | (33,330) | (29,025) | |||
Additional paid-in capital | 3,096,355 | 3,077,755 | |||
Retained earnings | 610,564 | 682,689 | |||
Oasis share of stockholders' equity | 3,676,772 | 3,734,576 | |||
Non-controlling interests | 189,686 | 184,304 | |||
Total stockholders' equity | 3,866,458 | 3,918,880 | |||
Total liabilities and stockholders' equity | $ 7,710,288 | $ | 7,626,142 | ||
Oasis Petroleum Inc. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands, except per share data) | |||||||||||
Revenues | |||||||||||
Oil and gas revenues | $ | 357,004 | $ | 397,849 | $ | 725,786 | $ | 764,444 | |||
Purchased oil and gas sales | 109,389 | 128,064 | 257,860 | 195,773 | |||||||
Midstream revenues | 51,573 | 29,342 | 99,594 | 57,264 | |||||||
Well services revenues | 11,439 | 18,496 | 21,897 | 30,082 | |||||||
Total revenues | 529,405 | 573,751 | 1,105,137 | 1,047,563 | |||||||
Operating expenses | |||||||||||
Lease operating expenses | 56,228 | 44,141 | 114,672 | 88,922 | |||||||
Midstream expenses | 17,368 | 7,688 | 34,097 | 15,673 | |||||||
Well services expenses | 8,474 | 13,560 | 15,444 | 20,947 | |||||||
Marketing, transportation and gathering expenses | 28,488 | 22,833 | 63,438 | 43,846 | |||||||
Purchased oil and gas expenses | 109,662 | 129,579 | 259,566 | 200,173 | |||||||
Production taxes | 28,142 | 34,026 | 57,760 | 65,026 | |||||||
Depreciation, depletion and amortization | 177,358 | 153,570 | 367,191 | 302,835 | |||||||
Exploration expenses | 887 | 617 | 1,717 | 1,386 | |||||||
Impairment | 24 | 384,135 | 653 | 384,228 | |||||||
General and administrative expenses | 30,926 | 28,230 | 65,385 | 56,170 | |||||||
Total operating expenses | 457,557 | 818,379 | 979,923 | 1,179,206 | |||||||
Gain (loss) on sale of properties | (276) | 1,954 | (3,198) | 1,954 | |||||||
Operating income (loss) | 71,572 | (242,674) | 122,016 | (129,689) | |||||||
Other income (expense) | |||||||||||
Net gain (loss) on derivative instruments | 34,749 | (120,285) | (82,862) | (191,401) | |||||||
Interest expense, net of capitalized interest | (43,186) | (40,910) | (87,654) | (78,056) | |||||||
Loss on extinguishment of debt | — | (13,651) | — | (13,651) | |||||||
Other income | 279 | 218 | 233 | 35 | |||||||
Total other expense, net | (8,158) | (174,628) | (170,283) | (283,073) | |||||||
Income (loss) before income taxes | 63,414 | (417,302) | (48,267) | (412,762) | |||||||
Income tax benefit (expense) | (12,240) | 101,001 | (8,537) | 100,173 | |||||||
Net income (loss) including non-controlling interests | 51,174 | (316,301) | (56,804) | (312,589) | |||||||
Less: Net income attributable to non-controlling interests | 8,417 | 3,903 | 15,321 | 7,025 | |||||||
Net income (loss) attributable to Oasis | $ | 42,757 | $ | (320,204) | $ | (72,125) | $ | (319,614) | |||
Earnings (loss) attributable to Oasis per share: | |||||||||||
Basic | $ | 0.14 | $ | (1.02) | $ | (0.23) | $ | (1.06) | |||
Diluted | 0.14 | (1.02) | (0.23) | (1.06) | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 314,982 | 313,072 | 314,724 | 301,652 | |||||||
Diluted | 314,982 | 313,072 | 314,724 | 301,652 | |||||||
Oasis Petroleum Inc. | |||||||||||
Selected Financial and Operational Statistics | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Operating results (in thousands): | |||||||||||
Revenues | |||||||||||
Crude oil revenues(1) | $ 327,977 | $ 363,183 | $ | 646,098 | $ | 689,493 | |||||
Natural gas revenues | 29,027 | 34,666 | 79,688 | 74,951 | |||||||
Purchased oil and gas sales(1) | 109,389 | 128,064 | 257,860 | 195,773 | |||||||
Midstream revenues | 51,573 | 29,342 | 99,594 | 57,264 | |||||||
Well services revenues | 11,439 | 18,496 | 21,897 | 30,082 | |||||||
Total revenues | $ 529,405 | $ 573,751 | $ | 1,105,137 | $ | 1,047,563 | |||||
Production data: | |||||||||||
Crude oil (MBbls) | 5,571 | 5,517 | 11,515 | 10,802 | |||||||
Natural gas (MMcf) | 12,684 | 10,268 | 26,544 | 20,045 | |||||||
Oil equivalents (MBoe) | 7,685 | 7,229 | 15,940 | 14,142 | |||||||
Average daily production (Boe per day) | 84,454 | 79,437 | 88,064 | 78,135 | |||||||
Average sales prices: | |||||||||||
Crude oil, without derivative settlements (per Bbl) | $ 58.87 | $ 65.82 | $ | 56.11 | $ | 63.83 | |||||
Crude oil, with derivative settlements (per Bbl)(2) | 56.79 | 54.88 | 56.27 | 54.81 | |||||||
Natural gas, without derivative settlements (per Mcf)(3) | 2.29 | 3.38 | 3.00 | 3.74 | |||||||
Natural gas, with derivative settlements (per Mcf)(2)(3) | 2.43 | 3.43 | 3.07 | 3.77 | |||||||
Costs and expenses (per Boe of production): | |||||||||||
Lease operating expenses | $ 7.32 | $ 6.11 | $ | 7.19 | $ | 6.29 | |||||
MT&G(4) | 3.69 | 3.19 | 3.83 | 3.10 | |||||||
Production taxes | 3.66 | 4.71 | 3.62 | 4.60 | |||||||
Depreciation, depletion and amortization | 23.08 | 21.24 | 23.04 | 21.41 | |||||||
G&A | 4.02 | 3.91 | 4.10 | 3.97 | |||||||
E&P G&A | 3.35 | 3.25 | 3.34 | 3.32 | |||||||
___________________ | |
(1) | For the three and six months ended June 30, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised to correct errors related to the presentation of certain crude oil purchase and sale arrangements, which had no impact on reported net income (loss). The amounts presented herein reflect the impact of the revision. |
(2) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(3) | Natural gas prices include the value for natural gas and natural gas liquids. |
(4) | Excludes non-cash valuation charges on pipeline imbalances. |
Oasis Petroleum Inc. | |||||
Condensed Consolidated Statements of Cash Flows | |||||
(Unaudited) | |||||
Six Months Ended June 30, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Cash flows from operating activities: | |||||
Net loss including non-controlling interests | $ | (56,804) | $ | (312,589) | |
Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 367,191 | 302,835 | |||
Loss on extinguishment of debt | — | 13,651 | |||
(Gain) loss on sale of properties | 3,198 | (1,954) | |||
Impairment | 653 | 384,228 | |||
Deferred income taxes | 8,617 | (100,293) | |||
Derivative instruments | 82,862 | 191,401 | |||
Equity-based compensation expenses | 17,924 | 14,130 | |||
Deferred financing costs amortization and other | 12,245 | 10,518 | |||
Working capital and other changes: | |||||
Change in accounts receivable, net | (12,914) | (5,866) | |||
Change in inventory | 3,029 | (4,721) | |||
Change in prepaid expenses | 3,918 | 573 | |||
Change in accounts payable, interest payable and accrued liabilities | (36,514) | 40,849 | |||
Change in other assets and liabilities, net | (4,473) | (746) | |||
Net cash provided by operating activities | 388,932 | 532,016 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (525,501) | (536,959) | |||
Acquisitions | (5,781) | (524,255) | |||
Proceeds from sale of properties | — | 2,236 | |||
Derivative settlements | 3,629 | (96,823) | |||
Other | — | (933) | |||
Net cash used in investing activities | (527,653) | (1,156,734) | |||
Cash flows from financing activities: | |||||
Proceeds from revolving credit facilities | 1,178,000 | 1,933,000 | |||
Principal payments on revolving credit facilities | (1,025,000) | (1,265,000) | |||
Repurchase of senior unsecured notes | — | (423,143) | |||
Proceeds from issuance of senior unsecured notes | — | 400,000 | |||
Deferred financing costs | (482) | (6,790) | |||
Purchases of treasury stock | (4,305) | (6,064) | |||
Distributions to non-controlling interests | (10,093) | (6,846) | |||
Other | (1,331) | (87) | |||
Net cash provided by financing activities | 136,789 | 625,070 | |||
Increase (decrease) in cash and cash equivalents | (1,932) | 352 | |||
Cash and cash equivalents: | |||||
Beginning of period | 22,190 | 16,720 | |||
End of period | $ | 20,258 | $ | 17,072 | |
Supplemental non-cash transactions: | |||||
Change in accrued capital expenditures | $ | (30,598) | $ | 90,040 | |
Change in asset retirement obligations | 3,840 | 5,407 | |||
Issuance of shares in connection with acquisition | — | 371,220 | |||
Non-GAAP Financial Measures
E&P Cash G&A is defined as the total general and administrative expenses included in the Company's exploration and production segment less non-cash equity-based compensation expenses included in its exploration and production segment. E&P Cash G&A is not a measure of general and administrative expenses as determined by GAAP. Management believes that the presentation of E&P Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to equity-based compensation programs, which can vary substantially from company to company.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses included in its exploration and production segment to the non-GAAP financial measure of E&P Cash G&A for the periods presented:
Exploration and Production | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
E&P general and administrative expenses | $ | 25,761 | $ | 23,492 | $ | 53,288 | $ | 46,971 | |||
Equity-based compensation expenses | (8,522) | (7,012) | (17,102) | (13,463) | |||||||
E&P Cash G&A | $ | 17,239 | $ | 16,480 | $ | 36,186 | $ | 33,508 | |||
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Interest expense | $ | 43,186 | $ | 40,910 | $ | 87,654 | $ | 78,056 | |||
Capitalized interest | 3,645 | 4,227 | 6,463 | 8,678 | |||||||
Amortization of deferred financing costs | (1,823) | (1,937) | (3,593) | (3,698) | |||||||
Amortization of debt discount | (3,006) | (2,731) | (5,890) | (5,349) | |||||||
Cash Interest | $ | 42,002 | $ | 40,469 | $ | 84,634 | $ | 77,687 | |||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA attributable to Oasis less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Net income (loss) including non-controlling interests | $ | 51,174 | $ | (316,301) | $ | (56,804) | $ | (312,589) | |||
(Gain) loss on sale of properties | 276 | (1,954) | 3,198 | (1,954) | |||||||
Loss on extinguishment of debt | — | 13,651 | — | 13,651 | |||||||
Net (gain) loss on derivative instruments | (34,749) | 120,285 | 82,862 | 191,401 | |||||||
Derivative settlements(1) | (9,817) | (59,849) | 3,629 | (96,823) | |||||||
Interest expense, net of capitalized interest | 43,186 | 40,910 | 87,654 | 78,056 | |||||||
Depreciation, depletion and amortization | 177,358 | 153,570 | 367,191 | 302,835 | |||||||
Impairment | 24 | 384,135 | 653 | 384,228 | |||||||
Exploration expenses | 887 | 617 | 1,717 | 1,386 | |||||||
Equity-based compensation expenses | 8,911 | 7,376 | 17,924 | 14,130 | |||||||
Income tax (benefit) expense | 12,240 | (101,001) | 8,537 | (100,173) | |||||||
Other non-cash adjustments | 120 | (226) | 2,395 | (17) | |||||||
Adjusted EBITDA | 249,610 | 241,213 | 518,956 | 474,131 | |||||||
Adjusted EBITDA attributable to non-controlling interests | 11,693 | 5,148 | 21,896 | 9,452 | |||||||
Adjusted EBITDA attributable to Oasis | 237,917 | 236,065 | 497,060 | 464,679 | |||||||
Cash Interest | (42,002) | (40,469) | (84,634) | (77,687) | |||||||
Capital expenditures(2) | (294,875) | (358,534) | (521,668) | (1,525,762) | |||||||
Capitalized interest | 3,645 | 4,227 | 6,463 | 8,678 | |||||||
Free Cash Flow | $ | (95,315) | $ | (158,711) | $ | (102,779) | $ | (1,130,092) | |||
Net cash provided by operating activities | $ | 214,006 | $ | 303,657 | $ | 388,932 | $ | 532,016 | |||
Derivative settlements(1) | (9,817) | (59,849) | 3,629 | (96,823) | |||||||
Interest expense, net of capitalized interest | 43,186 | 40,910 | 87,654 | 78,056 | |||||||
Exploration expenses | 887 | 617 | 1,717 | 1,386 | |||||||
Deferred financing costs amortization and other | (5,315) | (5,043) | (12,245) | (10,518) | |||||||
Current tax (benefit) expense | 76 | 120 | (80) | 120 | |||||||
Changes in working capital | 6,467 | (38,973) | 46,954 | (30,089) | |||||||
Other non-cash adjustments | 120 | (226) | 2,395 | (17) | |||||||
Adjusted EBITDA | 249,610 | 241,213 | 518,956 | 474,131 | |||||||
Adjusted EBITDA attributable to non-controlling interests | 11,693 | 5,148 | 21,896 | 9,452 | |||||||
Adjusted EBITDA attributable to Oasis | 237,917 | 236,065 | 497,060 | 464,679 | |||||||
Cash Interest | (42,002) | (40,469) | (84,634) | (77,687) | |||||||
Capital expenditures(2) | (294,875) | (358,534) | (521,668) | (1,525,762) | |||||||
Capitalized interest | 3,645 | 4,227 | 6,463 | 8,678 | |||||||
Free Cash Flow | $ | (95,315) | $ | (158,711) | $ | (102,779) | $ | (1,130,092) | |||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $5.8 million for the three and six months ended June 30, 2019, and $3.5 million and $894.5 million for the three and six months ended June 30, 2018, respectively. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
Exploration and Production | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income (loss) before income taxes including non-controlling interests | $ | 14,925 | $ | (454,662) | $ | (141,533) | $ | (482,847) | |||
(Gain) loss on sale of properties | 276 | (1,954) | 3,198 | (1,954) | |||||||
Loss on extinguishment of debt | — | 13,651 | — | 13,651 | |||||||
Net (gain) loss on derivative instruments | (34,749) | 120,285 | 82,862 | 191,401 | |||||||
Derivative settlements(1) | (9,817) | (59,849) | 3,629 | (96,823) | |||||||
Interest expense, net of capitalized interest | 38,977 | 40,727 | 79,697 | 77,611 | |||||||
Depreciation, depletion and amortization | 172,687 | 149,250 | 357,506 | 294,454 | |||||||
Impairment | 24 | 384,135 | 653 | 384,228 | |||||||
Exploration expenses | 887 | 617 | 1,717 | 1,386 | |||||||
Equity-based compensation expenses | 8,522 | 7,012 | 17,102 | 13,463 | |||||||
Other non-cash adjustments | 120 | (226) | 2,395 | (17) | |||||||
Adjusted EBITDA | $ | 191,852 | $ | 198,986 | $ | 407,226 | $ | 394,553 | |||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
Midstream Services | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income before income taxes including non-controlling interests | $ | 51,016 | $ | 37,815 | $ | 97,074 | $ | 69,796 | |||
Interest expense, net of capitalized interest | 4,209 | 183 | 7,957 | 445 | |||||||
Depreciation, depletion and amortization | 8,893 | 6,900 | 18,080 | 13,529 | |||||||
Equity-based compensation expenses | 515 | 409 | 980 | 780 | |||||||
Adjusted EBITDA | $ | 64,633 | $ | 45,307 | $ | 124,091 | $ | 84,550 | |||
Well Services | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Income before income taxes including non-controlling interests | $ | 1,499 | $ | 8,051 | $ | 2,319 | $ | 16,158 | |||
Depreciation, depletion and amortization | 3,358 | 3,930 | 7,287 | 7,619 | |||||||
Equity-based compensation expenses | 527 | 409 | 1,088 | 795 | |||||||
Adjusted EBITDA | $ | 5,384 | $ | 12,390 | $ | 10,694 | $ | 24,572 | |||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands, except per share data) | |||||||||||
Net income (loss) attributable to Oasis | $ | 42,757 | $ | (320,204) | $ | (72,125) | $ | (319,614) | |||
(Gain) loss on sale of properties | 276 | (1,954) | 3,198 | (1,954) | |||||||
Loss on extinguishment of debt | — | 13,651 | — | 13,651 | |||||||
Net (gain) loss on derivative instruments | (34,749) | 120,285 | 82,862 | 191,401 | |||||||
Derivative settlements(1) | (9,817) | (59,849) | 3,629 | (96,823) | |||||||
Impairment | 24 | 384,135 | 653 | 384,228 | |||||||
Amortization of deferred financing costs | 1,823 | 1,937 | 3,593 | 3,698 | |||||||
Amortization of debt discount | 3,006 | 2,731 | 5,890 | 5,349 | |||||||
Other non-cash adjustments | 120 | (226) | 2,395 | (17) | |||||||
Tax impact(2) | 7,565 | (111,592) | 14,273 | (121,102) | |||||||
Adjusted Net Income Attributable to Oasis | $ | 11,005 | $ | 28,914 | $ | 44,368 | $ | 58,817 | |||
Diluted earnings (loss) attributable to Oasis per share | $ | 0.14 | $ | (1.02) | $ | (0.23) | $ | (1.06) | |||
(Gain) loss on sale of properties | — | (0.01) | 0.01 | (0.01) | |||||||
Loss on extinguishment of debt | — | 0.04 | — | 0.04 | |||||||
Net (gain) loss on derivative instruments | (0.11) | 0.38 | 0.26 | 0.63 | |||||||
Derivative settlements(1) | (0.03) | (0.19) | 0.01 | (0.32) | |||||||
Impairment | — | 1.23 | — | 1.26 | |||||||
Amortization of deferred financing costs | 0.01 | 0.01 | 0.01 | 0.01 | |||||||
Amortization of debt discount | 0.01 | 0.01 | 0.02 | 0.02 | |||||||
Other non-cash adjustments | — | — | 0.01 | — | |||||||
Tax impact(2) | 0.01 | (0.36) | 0.05 | (0.38) | |||||||
Adjusted Diluted Earnings Attributable to Oasis Per Share | $ | 0.03 | $ | 0.09 | $ | 0.14 | $ | 0.19 | |||
Diluted weighted average shares outstanding(3) | 314,982 | 315,664 | 316,081 | 304,859 | |||||||
Effective tax rate applicable to adjustment items | 19.2% | 24.2% | (14.0)% | 24.2% | |||||||
___________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
(3) | No unvested stock awards were included in computing Adjusted Diluted Earnings Attributable to Oasis Per Share for the three months ended June 30, 2019 because the effect was anti-dilutive under the treasury stock method. For the six months ended June 30, 2019 and the three and six months ended June 30, 2018, the Company included 1,357,000, 2,592,000 and 3,207,000, respectively, of unvested stock awards in computing Adjusted Diluted Earnings Attributable to Oasis Per Share due to the dilutive effect under the treasury stock method. |
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-june-30-2019-earnings-300897557.html
SOURCE Oasis Petroleum Inc.
Article Date
8/6/20197/22/2019 - Oasis Midstream Partners Schedules Second Quarter 2019 Conference Call for August 7, 2019
Oasis Midstream Partners Schedules Second Quarter 2019 Conference Call for August 7, 2019
Source: PR Newswire
HOUSTON, July 22, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Second Quarter 2019 financial and operational results on Tuesday, August 6, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, August 7, 2019 at 11:30 a.m. Central Time to discuss Second Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call: | |
Date: | Wednesday, August 7, 2019 |
Time: | 11:30 a.m. Central Time |
Live Webcast: | |
Sell-side analysts wishing to ask a question may use the following dial-in: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 5196987 |
Website: | |
A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Wednesday, August 14, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10133702 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
August 14: | Heikkinen's 5th Annual Energy Conference – Houston, TX |
August 14-15: | Citi's 2019 1:1 Midstream/Energy Infrastructure Conference – Las Vegas, NV |
September 24: | Johnson Rice's 2019 Energy Conference – New Orleans, LA |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-second-quarter-2019-conference-call-for-august-7-2019-300888711.html
SOURCE Oasis Midstream Partners LP
Article Date
7/22/2019Oasis Petroleum Schedules Second Quarter 2019 Conference Call for August 7, 2019
Source: PR Newswire
HOUSTON, July 22, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Second Quarter 2019 financial and operational results on Tuesday, August 6, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, August 7, 2019 at 10:00 a.m. Central Time to discuss Second Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, August 7, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 2649196 |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, August 14, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10133701 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
August 14: | Heikkinen's 5th Annual Energy Conference – Houston, TX |
August 14-15: | Citi's 2019 1:1 Midstream/Energy Infrastructure Conference – Las Vegas, NV |
September 24: | Johnson Rice's 2019 Energy Conference – New Orleans, LA |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-second-quarter-2019-conference-call-for-august-7-2019-300888710.html
SOURCE Oasis Petroleum Inc.
Article Date
7/22/2019Oasis Petroleum Inc. Announces Quarter Ended March 31, 2019 Earnings
Source: PR Newswire
HOUSTON, May 7, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended March 31, 2019 and provided an operational update.
Recent Highlights:
"Oasis delivered a strong start to 2019, exceeding our volume expectations while maintaining capital discipline," said Thomas B. Nusz, Oasis's Chairman and Chief Executive Officer. "Our solid execution gives us confidence we can hit or exceed our operational targets, and generate free cash flow at the E&P business. In the Williston, our deep inventory and emphasis on operating efficiency supports rapid growth in the Delaware and overall E&P free cash flow. In the Delaware, well performance remains impressive, and we continue to advance our understanding of the subsurface as we prepare for full-field development. Oasis Midstream Services performed well over the quarter as internally controlled infrastructure supported flow assurance, reduced costs and provided access to liquid marketing points. Our strategy continues to serve us well as Oasis is built to withstand and prosper through volatile commodity prices."
Financial and Operational Update and Outlook
Midstream Update
Operational and Financial Update | ||||||
The following table presents select operational and financial data for the periods presented: | ||||||
Quarter Ended: | ||||||
3/31/2019 | 12/31/2018 | 3/31/2018 | ||||
Production data: | ||||||
Crude Oil (Bopd) | 66,046 | 67,266 | 58,713 | |||
Natural gas (Mcfpd) | 154,005 | 126,135 | 108,635 | |||
Total production (Boepd) | 91,714 | 88,288 | 76,819 | |||
Percent Crude Oil | 72.0% | 76.2% | 76.4% | |||
Average sales prices: | ||||||
Crude oil, without derivative settlements ($ per Bbl) | $ | 53.52 | $ | 52.01 | $ | 61.75 |
Differential to NYMEX WTI ($ per Bbl) | 1.30 | 6.79 | 1.12 | |||
Crude oil, with derivative settlements ($ per Bbl)(1) | 55.79 | 44.14 | 54.73 | |||
Crude oil derivative settlements - net cash receipts (payments) ($ in millions)(2) | 13.5 | (48.7) | (37.1) | |||
Natural gas, without derivative settlements ($ per Mcf)(2) | 3.66 | 4.27 | 4.12 | |||
Natural gas, with derivative settlements ($ per Mcf)(1)(2) | 3.65 | 4.02 | 4.13 | |||
Natural gas derivative settlements - net cash receipts (payments) ($ in millions)(2) | (0.1) | (2.9) | 0.1 | |||
Selected financial data ($ in millions): | ||||||
Revenues: | ||||||
Crude oil revenues(3) | $ | 318.1 | $ | 321.8 | $ | 326.3 |
Natural gas revenues | 50.7 | 49.6 | 40.3 | |||
Purchased oil and gas sales(3)(4) | 148.5 | 181.6 | 67.7 | |||
Midstream revenues(4) | 48.0 | 32.1 | 27.9 | |||
Well services revenues | 10.4 | 14.7 | 11.6 | |||
Total revenues | $ | 575.7 | $ | 599.8 | $ | 473.8 |
Net cash provided by operating activities | 174.9 | 234.4 | 228.4 | |||
Adjusted EBITDA(5) | 269.3 | 214.1 | 232.9 | |||
Select operating expenses: | ||||||
LOE | $ | 58.4 | $ | 56.5 | $ | 44.8 |
Midstream expenses(4) | 16.7 | 8.4 | 8.0 | |||
Well services expenses | 7.0 | 8.8 | 7.4 | |||
MT&G(6) | 32.7 | 28.9 | 20.8 | |||
Non-cash valuation charges | 2.3 | 3.8 | 0.2 | |||
Purchased oil and gas expenses(3)(4) | 149.9 | 179.1 | 70.6 | |||
Production taxes | 29.6 | 29.9 | 31.0 | |||
Depreciation, depletion and amortization ("DD&A") | 189.8 | 170.5 | 149.3 | |||
Total select operating expenses | $ | 486.4 | $ | 485.9 | $ | 332.1 |
Select operating expenses data: | ||||||
LOE ($ per Boe) | $ | 7.08 | $ | 6.95 | $ | 6.48 |
MT&G ($ per Boe)(6) | 3.96 | 3.55 | 3.01 | |||
DD&A ($ per Boe) | 23.00 | 20.99 | 21.59 | |||
E&P G&A ($ per Boe) | 3.33 | 3.08 | 3.40 | |||
E&P Cash G&A ($ per Boe)(5) | 2.30 | 2.18 | 2.46 | |||
Production taxes (% of oil and gas revenue) | 8.0% | 8.1% | 8.5% | |||
(1) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
(2) | Natural gas prices include the value for natural gas and natural gas liquids. | |||||
(3) | For the three months ended March 31, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised as described in Revision of Prior Period Financial Statements below. | |||||
(4) | For the fourth quarter of 2018, midstream revenues and midstream expenses have been adjusted to include $1.5 million and $0.8 million, respectively, for certain natural gas product sales and expenses, which were previously recognized in purchased oil and gas sales and purchased oil and gas expenses on the Company's Condensed Consolidated Statements of Operations. | |||||
(5) | Adjusted EBITDA and E&P Cash G&A represent non-GAAP measures. See "Non-GAAP Financial Measures" below for further information and reconciliations to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP"). | |||||
(6) | Excludes non-cash valuation charges on pipeline imbalances. | |||||
G&A totaled $34.5 million in the first quarter of 2019, $27.9 million in the first quarter of 2018 and $30.3 million in the fourth quarter of 2018. Amortization of equity-based compensation, which is included in G&A, was $9.0 million, or $1.09 per Boe, in the first quarter of 2019 as compared to $6.8 million, or $0.98 per Boe, in the first quarter of 2018 and $7.7 million, or $0.95 per Boe, in the fourth quarter of 2018. G&A for the Company's E&P segment totaled $27.5 million in the first quarter of 2019, $23.5 million in the first quarter of 2018 and $25.1 million in the fourth quarter of 2018.
MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $11.9 million to $32.7 million in the first quarter of 2019, as compared to $20.8 million in the first quarter of 2018, primarily attributable to higher crude oil gathering and transportation expenses related to an increase in volumes being transported on the Dakota Access Pipeline to market the Company's equity barrels, which resulted in improved price realizations. MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $3.8 million as compared to $28.9 million in the fourth quarter of 2018 primarily due to the higher aforementioned costs.
Interest expense was $44.5 million for the first quarter of 2019 as compared to $37.1 million for the first quarter of 2018 and $41.5 million for the fourth quarter of 2018. Capitalized interest totaled $2.8 million for the first quarter of 2019, $4.5 million for the first quarter of 2018 and $4.0 million for the fourth quarter of 2018. Cash Interest totaled $42.6 million for the first quarter of 2019, $37.2 million for the first quarter of 2018 and $40.5 million for the fourth quarter of 2018. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended March 31, 2019, the Company recorded an income tax benefit of $3.7 million, resulting in a 3.3% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax expense of $69.5 million, resulting in a 23.5% effective tax rate as a percentage of its pre-tax income for the three months ended December 31, 2018.
For the first quarter of 2019, the Company reported net loss of $114.9 million, or $0.37 per diluted share, as compared to a net income of $0.6 million, or $0.00 per diluted share, for the first quarter of 2018. Excluding certain non-cash items and their tax effect, Adjusted Net Loss Attributable to Oasis (non-GAAP) was $6.9 million, or $0.02 per diluted share, in the first quarter of 2019, as compared to Adjusted Net Income Attributable to Oasis of $30.2 million, or $0.10 per diluted share, in the first quarter of 2018. Adjusted EBITDA for the first quarter of 2019 was $269.3 million, as compared to Adjusted EBITDA of $232.9 million for the first quarter of 2018. For definitions of Adjusted Net Income (Loss) Attributable to Oasis and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
Revision of Prior Period Financial Statements. As previously disclosed in the Company's February press release, in connection with the preparation of the Company's 2018 Annual Report, the Company identified errors in its previously issued 2017 annual consolidated financial statements and in each of the interim periods within 2018 and 2017. These prior period errors related to the manner in which it accounted for certain crude oil purchase and sale arrangements. Specifically, although the Company previously presented the transactions on a net basis in oil and gas revenues, the Company was required to present these purchase and sale arrangements on a gross basis in purchased oil and gas expenses and purchased oil and gas sales. The correction of these errors had no effect on the reported consolidated net income (loss) attributable to Oasis or earnings (loss) attributable to Oasis per share data. Based on an analysis of quantitative and qualitative factors, the Company determined that the related impact was not material to its consolidated financial statements, and therefore, amendments of previously filed reports are not required.
For the quarter ended March 31, 2018, the Company revised the Condensed Consolidated Statement of Operations by increasing purchased oil and gas sales, purchased oil and gas expenses, and oil and gas revenues by $49.7 million, $52.6 million and $2.9 million, respectively. The amounts presented herein reflect the impact of this revision.
As a result of the errors noted above, the Company identified a material weakness in its internal control over financial reporting as described in "Management's report on internal control over financial reporting" in the Company's 2018 Annual Report under Part II, Item 9A. "Controls and Procedures." During the quarter ended March 31, 2019, management implemented its remediation plan and began testing the operating effectiveness of the remediated controls.
Capital Expenditures | |||
The following table depicts the Company's total CapEx by category: | |||
1Q 2019 | |||
(In millions) | |||
CapEx: | |||
E&P | $ | 165.7 | |
Well services | 0.1 | ||
Other(1) | 3.9 | ||
Total CapEx before midstream | 169.7 | ||
Midstream(2) | 57.1 | ||
Total CapEx(3) | $ | 226.8 | |
(1) | Other CapEx includes such items as administrative capital and capitalized interest. | |||||
(2) | Midstream CapEx attributable to OMP was $45.2 million for the three months ended March 31, 2019. | |||||
(3) | Total CapEx reflected in the table above differs from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. | |||||
Liquidity and Balance Sheet
As of March 31, 2019, Oasis had cash and cash equivalents of $15.4 million, total elected commitments under the Oasis credit facility of $1,350.0 million and total elected commitments under the OMP credit facility of $400.0 million. In addition, Oasis had $493.0 million of borrowings and $14.0 million of outstanding letters of credit issued under the Oasis credit facility and $345.0 million of borrowings under the OMP credit facility, resulting in a total unused borrowing base capacity of $898.0 million for both revolving credit facilities as of March 31, 2019.
On April 15, 2019, the lenders under the Oasis credit facility completed their regular semi-annual redetermination of the borrowing base scheduled for April 1, 2019, which reaffirmed the borrowing base and the aggregate elected commitment at $1,600.0 million and $1,350.0 million, respectively. In connection with the April 1, 2019 borrowing base redetermination, the Company entered into the First Amendment to the Third Amended and Restated Credit Agreement to the Oasis credit facility, dated April 15, 2019, which, among other things, incorporated the ability of the Company to request swingline loans subject to a swingline loans sublimit of $50.0 million. All other significant rates, terms and conditions of the Oasis credit facility remained the same. The next redetermination of the Oasis credit facility's borrowing base is scheduled for October 1, 2019.
On May 6, 2019, OMP entered into an amendment to its revolving credit facility to (i) increase the aggregate amount of commitments from $400.0 million to $475.0 million; (ii) provide for the ability to further increase commitments to $675.0 million; and (iii) add a new lender to the bank group. OMP believes that it will have ample debt capacity to finance the infrastructure build-out related to the Delaware Midstream Opportunity, while managing leverage below 3.0x debt to current quarter annualized EBITDA and exiting 2019 with leverage below 2.5x.
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX WTI for fixed price swaps and two-way and three-way costless collars. The Company's basis swaps for crude oil will either settle monthly based on the fixed basis differential from Intercontinental Exchange, Inc. Brent crude oil index price ("ICE Brent") to NYMEX WTI, Argus WTI Midland crude oil index price ("Midland") to NYMEX WTI or Argus WTI Houston crude oil index price ("Houston") to NYMEX WTI. The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. The Company's basis swaps for natural gas will settle monthly based on the fixed basis differential from Inside FERC Northern Natural Gas Ventura ("IF NNG Ventura") to NYMEX HH. As of May 7, 2019, the Company had the following outstanding commodity derivative contracts:
Three Months Ending | Six Months Ending | |||||||
June 30, 2019 | December 31, 2019 | June 30, 2020 | December 31, 2020 | |||||
Crude Oil (Volume in MBopd) | ||||||||
Fixed Price Swaps | ||||||||
Volume | 14.3 | 21.0 | 6.0 | 3.0 | ||||
Price | $ | 54.44 | $ | 57.10 | $ | 60.52 | $ | 58.85 |
Collars | ||||||||
Volume | 15.0 | 14.0 | — | — | ||||
Floor | $ | 56.93 | $ | 58.07 | $ | — | $ | — |
Ceiling | $ | 72.20 | $ | 74.64 | $ | — | $ | — |
3-Way | ||||||||
Volume | 12.0 | 12.0 | 10.0 | 6.0 | ||||
Sub-Floor | $ | 40.83 | $ | 40.00 | $ | 40.00 | $ | 40.00 |
Floor | $ | 51.25 | $ | 51.57 | $ | 55.37 | $ | 54.96 |
Ceiling | $ | 68.59 | $ | 65.40 | $ | 64.13 | $ | 62.31 |
Total Crude Oil Volume | 41.3 | 47.0 | 16.0 | 9.0 | ||||
Basis Swaps (ICE Brent-NYMEX WTI) | ||||||||
Volume | 2.0 | — | — | — | ||||
Price | $ | 9.68 | $ | — | $ | — | $ | — |
Basis Swaps (Midland-NYMEX WTI) | ||||||||
Volume | 4.0 | — | — | — | ||||
Price | $ | (6.71) | $ | — | $ | — | $ | — |
Basis Swaps (Houston-NYMEX WTI) | ||||||||
Volume | 3.0 | 1.5 | — | — | ||||
Price | $ | 4.55 | $ | 4.55 | $ | — | $ | — |
Total Crude Oil Basis Volume | 9.0 | 1.5 | — | — | ||||
Natural Gas (Volume in MMBtupd) | ||||||||
Fixed Price Swaps | ||||||||
Volume | 36,000 | 30,000 | — | — | ||||
Price | $ | 2.92 | $ | 2.92 | $ | — | $ | — |
Total Natural Gas Volume | 36,000 | 30,000 | — | — | ||||
Basis Swaps (IF NNG Ventura-NYMEX HH) | ||||||||
Volume | 25,000 | — | — | — | ||||
Price | $ | 0.02 | $ | — | $ | — | $ | — |
Total Natural Gas Basis Volume | 25,000 | — | — | — | ||||
The March 2019 crude oil derivative contracts settled at a net $2.2 million paid in April 2019 and will be included in the Company's second quarter 2019 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: | Wednesday, May 8, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: | |
Website: | |
Sell-side analysts with a question may use the following dial-in: | |
Dial-in: | 888-317-6003 |
Intl. Dial in: | 412-317-6061 |
Conference ID: | 0299125 |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, May 15, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay code: | 10131111 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, the ability to consummate the Delaware Midstream Opportunity and realize the anticipated benefits therefrom, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
Oasis Petroleum Inc. | ||||
Condensed Consolidated Balance Sheets | ||||
(Unaudited) | ||||
March 31, 2019 | December 31, 2018 | |||
(In thousands, except share data) | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ | 15,442 | $ | 22,190 |
Accounts receivable, net | 456,639 | 387,602 | ||
Inventory | 36,269 | 33,128 | ||
Prepaid expenses | 8,404 | 10,997 | ||
Derivative instruments | 4,467 | 99,930 | ||
Intangible assets, net | — | 125 | ||
Other current assets | 309 | 183 | ||
Total current assets | 521,530 | 554,155 | ||
Property, plant and equipment | ||||
Oil and gas properties (successful efforts method) | 9,073,085 | 8,912,189 | ||
Other property and equipment | 1,216,763 | 1,151,772 | ||
Less: accumulated depreciation, depletion, amortization and impairment | (3,233,106) | (3,036,852) | ||
Total property, plant and equipment, net | 7,056,742 | 7,027,109 | ||
Derivative instruments | 181 | 6,945 | ||
Long-term inventory | 13,767 | 12,260 | ||
Operating right-of-use assets | 24,741 | — | ||
Other assets | 29,385 | 25,673 | ||
Total assets | $ | 7,646,346 | $ | 7,626,142 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ | 10,172 | $ | 20,166 |
Revenues and production taxes payable | 249,569 | 216,695 | ||
Accrued liabilities | 338,819 | 331,651 | ||
Accrued interest payable | 21,931 | 38,040 | ||
Derivative instruments | 27,663 | 84 | ||
Advances from joint interest partners | 5,072 | 5,140 | ||
Current operating lease liabilities | 13,135 | — | ||
Other current liabilities | 2,485 | — | ||
Total current liabilities | 668,846 | 611,776 | ||
Long-term debt | 2,791,333 | 2,735,276 | ||
Deferred income taxes | 296,508 | 300,055 | ||
Asset retirement obligations | 53,404 | 52,384 | ||
Derivative instruments | 1,271 | 20 | ||
Operating lease liabilities | 17,610 | — | ||
Other liabilities | 6,239 | 7,751 | ||
Total liabilities | 3,835,211 | 3,707,262 | ||
Commitments and contingencies | ||||
Stockholders' equity | ||||
Common stock, $0.01 par value: 900,000,000 shares authorized; 324,829,258 shares issued and 322,051,268 shares outstanding at March 31, 2019 and 320,469,049 shares issued and 318,377,161 shares outstanding at December 31, 2018 | 3,182 | 3,157 | ||
Treasury stock, at cost: 2,777,990 and 2,091,888 shares at March 31, 2019 and December 31, 2018, respectively | (33,286) | (29,025) | ||
Additional paid-in capital | 3,087,083 | 3,077,755 | ||
Retained earnings | 567,807 | 682,689 | ||
Oasis share of stockholders' equity | 3,624,786 | 3,734,576 | ||
Non-controlling interests | 186,349 | 184,304 | ||
Total stockholders' equity | 3,811,135 | 3,918,880 | ||
Total liabilities and stockholders' equity | $ | 7,646,346 | $ | 7,626,142 |
Oasis Petroleum Inc. | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands, except per share data) | ||||
Revenues | ||||
Oil and gas revenues | $ | 368,782 | $ | 366,595 |
Purchased oil and gas sales | 148,471 | 67,709 | ||
Midstream revenues | 48,021 | 27,922 | ||
Well services revenues | 10,458 | 11,586 | ||
Total revenues | 575,732 | 473,812 | ||
Operating expenses | ||||
Lease operating expenses | 58,444 | 44,781 | ||
Midstream expenses | 16,729 | 7,985 | ||
Well services expenses | 6,970 | 7,387 | ||
Marketing, transportation and gathering expenses | 34,950 | 21,013 | ||
Purchased oil and gas expenses | 149,904 | 70,594 | ||
Production taxes | 29,618 | 31,000 | ||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Exploration expenses | 830 | 769 | ||
Impairment | 629 | 93 | ||
General and administrative expenses | 34,459 | 27,940 | ||
Total operating expenses | 522,366 | 360,827 | ||
Loss on sale of properties | (2,922) | — | ||
Operating income | 50,444 | 112,985 | ||
Other income (expense) | ||||
Net loss on derivative instruments | (117,611) | (71,116) | ||
Interest expense, net of capitalized interest | (44,468) | (37,146) | ||
Other expense | (46) | (183) | ||
Total other expense | (162,125) | (108,445) | ||
Income (loss) before income taxes | (111,681) | 4,540 | ||
Income tax benefit (expense) | 3,703 | (828) | ||
Net income (loss) including non-controlling interests | (107,978) | 3,712 | ||
Less: Net income attributable to non-controlling interests | 6,904 | 3,122 | ||
Net income (loss) attributable to Oasis | $ | (114,882) | $ | 590 |
Earnings (loss) attributable to Oasis per share: | ||||
Basic | $ | (0.37) | $ | 0.00 |
Diluted | (0.37) | 0.00 | ||
Weighted average shares outstanding: | ||||
Basic | 314,464 | 290,105 | ||
Diluted | 314,464 | 291,738 | ||
Oasis Petroleum Inc. | ||||
Selected Financial and Operational Statistics | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Operating results (in thousands): | ||||
Revenues | ||||
Crude oil revenues(1) | $ | 318,121 | $ | 326,310 |
Natural gas revenues | 50,661 | 40,285 | ||
Purchased oil and gas sales(1) | 148,471 | 67,709 | ||
Midstream revenues | 48,021 | 27,922 | ||
Well services revenues | 10,458 | 11,586 | ||
Total revenues | $ | 575,732 | $ | 473,812 |
Production data: | ||||
Crude oil (MBbls) | 5,944 | 5,284 | ||
Natural gas (MMcf) | 13,860 | 9,777 | ||
Oil equivalents (MBoe) | 8,254 | 6,914 | ||
Average daily production (Boe per day) | 91,714 | 76,819 | ||
Average sales prices: | ||||
Crude oil, without derivative settlements (per Bbl) | $ | 53.52 | $ | 61.75 |
Crude oil, with derivative settlements (per Bbl)(2) | 55.79 | 54.73 | ||
Natural gas, without derivative settlements (per Mcf)(3) | 3.66 | 4.12 | ||
Natural gas, with derivative settlements (per Mcf)(2)(3) | 3.65 | 4.13 | ||
Costs and expenses (per Boe of production): | ||||
LOE | $ | 7.08 | $ | 6.48 |
MT&G(4) | 3.96 | 3.01 | ||
Production taxes | 3.59 | 4.48 | ||
DD&A | 23.00 | 21.59 | ||
G&A | 4.17 | 4.04 | ||
E&P G&A | 3.33 | 3.40 | ||
(1) | For the three months ended March 31, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised. Refer to Revision of Prior Period Financial Statements for further details. | |||||
(2) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
(3) | Natural gas prices include the value for natural gas and natural gas liquids. | |||||
(4) | Excludes non-cash valuation charges on pipeline imbalances. | |||||
Oasis Petroleum Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Cash flows from operating activities: | ||||
Net income (loss) including non-controlling interests | $ | (107,978) | $ | 3,712 |
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Loss on sale of properties | 2,922 | — | ||
Impairment | 629 | 93 | ||
Deferred income taxes | (3,547) | 828 | ||
Derivative instruments | 117,611 | 71,116 | ||
Equity-based compensation expenses | 9,013 | 6,754 | ||
Deferred financing costs amortization and other | 6,930 | 5,475 | ||
Working capital and other changes: | ||||
Change in accounts receivable, net | (71,083) | (5,708) | ||
Change in inventory | (3,184) | (3,672) | ||
Change in prepaid expenses | 1,505 | 492 | ||
Change in accounts payable, interest payable and accrued liabilities | 36,666 | (244) | ||
Change in other assets and liabilities, net | (4,391) | 248 | ||
Net cash provided by operating activities | 174,926 | 228,359 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (237,448) | (254,838) | ||
Acquisitions | — | (520,728) | ||
Derivative settlements | 13,446 | (36,974) | ||
Other | — | (28) | ||
Net cash used in investing activities | (224,002) | (812,568) | ||
Cash flows from financing activities: | ||||
Proceeds from Revolving Credit Facilities | 420,000 | 1,470,000 | ||
Principal payments on Revolving Credit Facilities | (368,000) | (875,000) | ||
Deferred financing costs | (43) | (215) | ||
Purchases of treasury stock | (4,261) | (6,021) | ||
Distributions to non-controlling interests | (4,937) | (3,450) | ||
Other | (431) | (90) | ||
Net cash provided by financing activities | 42,328 | 585,224 | ||
Increase (decrease) in cash and cash equivalents | (6,748) | 1,015 | ||
Cash and cash equivalents: | ||||
Beginning of period | 22,190 | 16,720 | ||
End of period | $ | 15,442 | $ | 17,735 |
Supplemental non-cash transactions: | ||||
Change in accrued capital expenditures | $ | (23,686) | $ | 12,855 |
Change in asset retirement obligations | 2,016 | 3,453 | ||
Issuance of shares in connection with acquisition | — | 371,220 | ||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
E&P Cash G&A
E&P Cash G&A is defined as the total general and administrative expenses included in the Company's exploration and production segment less non-cash equity-based compensation expenses included in its exploration and production segment. E&P Cash G&A is not a measure of general and administrative expenses as determined by GAAP. Management believes that the presentation of E&P Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to equity-based compensation programs, which can vary substantially from company to company.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses included in its exploration and production segment to the non-GAAP financial measure of E&P Cash G&A for the periods presented:
Exploration and Production | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
E&P general and administrative expenses | $ | 27,527 | $ | 23,479 |
Equity-based compensation expenses | (8,580) | (6,454) | ||
E&P Cash G&A | $ | 18,947 | $ | 17,025 |
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Interest expense | $ | 44,468 | $ | 37,146 |
Capitalized interest | 2,818 | 4,451 | ||
Amortization of deferred financing costs | (1,770) | (1,761) | ||
Amortization of debt discount | (2,884) | (2,618) | ||
Cash Interest | $ | 42,632 | $ | 37,218 |
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA attributable to Oasis less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Net income (loss) including non-controlling interests | $ | (107,978) | $ | 3,712 |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 44,468 | 37,146 | ||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Impairment | 629 | 93 | ||
Exploration expenses | 830 | 769 | ||
Equity-based compensation expenses | 9,013 | 6,754 | ||
Income tax (benefit) expense | (3,703) | 828 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | 269,346 | 232,918 | ||
Adjusted EBITDA attributable to non-controlling interests | 10,203 | 3,911 | ||
Adjusted EBITDA attributable to Oasis | 259,143 | 229,007 | ||
Cash Interest | (42,632) | (37,218) | ||
Capital expenditures(2) | (226,793) | (1,167,228) | ||
Capitalized interest | 2,818 | 4,451 | ||
Free Cash Flow | $ | (7,464) | $ | (970,988) |
Net cash provided by operating activities | $ | 174,926 | $ | 228,359 |
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 44,468 | 37,146 | ||
Exploration expenses | 830 | 769 | ||
Deferred financing costs amortization and other | (6,930) | (5,475) | ||
Current tax expense | (156) | — | ||
Changes in working capital | 40,487 | 8,884 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | 269,346 | 232,918 | ||
Adjusted EBITDA attributable to non-controlling interests | 10,203 | 3,911 | ||
Adjusted EBITDA attributable to Oasis | 259,143 | 229,007 | ||
Cash Interest | (42,632) | (37,218) | ||
Capital expenditures(2) | (226,793) | (1,167,228) | ||
Capitalized interest | 2,818 | 4,451 | ||
Free Cash Flow | $ | (7,464) | $ | (970,988) |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||
(2) | Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $890.9 million for the three months ended March 31, 2018. | ||||||
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
Exploration and Production | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Loss before income taxes including non-controlling interests | $ | (156,458) | $ | (28,184) |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 40,720 | 36,884 | ||
Depreciation, depletion and amortization | 184,819 | 145,203 | ||
Impairment | 629 | 93 | ||
Exploration expenses | 830 | 769 | ||
Equity-based compensation expenses | 8,580 | 6,454 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | $ | 215,374 | $ | 195,570 |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||
Midstream Services | |||||
Three Months Ended March 31, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Income before income taxes including non-controlling interests | $ | 46,058 | $ | 31,979 | |
Interest expense, net of capitalized interest | 3,748 | 262 | |||
Depreciation, depletion and amortization | 9,187 | 6,629 | |||
Equity-based compensation expenses | 465 | 370 | |||
Adjusted EBITDA | $ | 59,458 | $ | 39,240 | |
Well Services | |||||
Three Months Ended March 31, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Income before income taxes including non-controlling interests | $ | 820 | $ | 8,107 | |
Depreciation, depletion and amortization | 3,929 | 3,690 | |||
Equity-based compensation expenses | 561 | 385 | |||
Adjusted EBITDA | $ | 5,310 | $ | 12,182 | |
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss)
Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands, except per share data) | ||||
Net income (loss) attributable to Oasis | $ | (114,882) | $ | 590 |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Impairment | 629 | 93 | ||
Amortization of deferred financing costs | 1,770 | 1,761 | ||
Amortization of debt discount | 2,884 | 2,618 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Tax impact(2) | (33,596) | (9,217) | ||
Adjusted Net Income (Loss) Attributable to Oasis | $ | (6,941) | $ | 30,196 |
Diluted earnings (loss) attributable to Oasis per share | $ | (0.37) | $ | 0.00 |
Loss on sale of properties | 0.01 | — | ||
Net loss on derivative instruments | 0.37 | 0.24 | ||
Derivative settlements(1) | 0.04 | (0.13) | ||
Impairment | — | — | ||
Amortization of deferred financing costs | 0.01 | 0.01 | ||
Amortization of debt discount | 0.01 | 0.01 | ||
Other non-cash adjustments | 0.01 | — | ||
Tax impact(2) | (0.10) | (0.03) | ||
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share | $ | (0.02) | $ | 0.10 |
Diluted weighted average shares outstanding(3) | 314,464 | 291,738 | ||
Effective tax rate applicable to adjustment items | 23.7% | 23.7% | ||
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||
(2) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. | ||||||
(3) | No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three months ended March 31, 2019 because the effect was anti-dilutive due to the Adjusted Net Loss Attributable to Oasis. | ||||||
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SOURCE Oasis Petroleum Inc.
Article Date
5/7/2019Oasis Petroleum Schedules First Quarter 2019 Conference Call for May 8, 2019
Source: PR Newswire
HOUSTON, April 23, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2019 financial and operational results on Tuesday, May 7, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, May 8, 2019 at 10:00 a.m. Central Time to discuss First Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, May 8, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 0299125 |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, May 15, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10131111 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
May 15: | TPH's 15th Annual Hotter 'N Hell Energy Conference – Houston, TX |
May 16: | Citi's 2019 Global Energy & Utilities Conference – Boston, MA |
June 4: | RBC's 2019 Global Energy & Power Conference – New York, NY |
June 11-12: | Wells Fargo's 2019 West Coast Energy Conference – San Francisco, CA |
June 18-19: | J.P. Morgan's 2019 Energy Conference – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
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SOURCE Oasis Petroleum Inc.
Article Date
4/23/2019OASIS PETROLEUM INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Oasis Petroleum Inc. - OAS
Source: PR Newswire
NEW ORLEANS, March 1, 2019 /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Oasis Petroleum Inc. (NYSE: OAS).
On January 2, 2019, The Wall Street Journal reported in an article titled "Fracking's Secret Problem—Oil Wells Aren't Producing as Much as Forecast" that, according to a review of available public data on production, many of the Company's shale wells, specifically those involved in the fracking process, were producing oil and gas at a much lower rate than the Company had forecasted to investors. Further, the report noted that "findings suggest current production levels may be hard to sustain without greater spending because operators will have to drill more wells to meet growth targets."
KSF's investigation is focusing on whether Oasis' officers and/or directors breached their fiduciary duties to Oasis' shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Oasis shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-oas/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 3200
New Orleans, LA 70163
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SOURCE Kahn Swick & Foti, LLC
Article Date
3/2/2019Oasis Petroleum Inc. Announces Quarter and Year Ending December 31, 2018 Earnings and Provides an Operational Update and 2019 Outlook
Source: PR Newswire
HOUSTON, Feb. 26, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2018 and provided its 2019 outlook.
Highlights
"2018 was a successful year for Oasis," said Thomas B. Nusz, Oasis's Chairman and Chief Executive Officer. "We focused on development of our core Williston asset, which drove full-year oil production up 20% vs. 2017, adjusted for the Delaware acquisitions and Bakken divestitures. Also in the Williston, OMP successfully started its new 200 million cubic feet per day plant in December which puts us in a great position to capture and realize the full value of our gas production in North Dakota. Separately, we continue to integrate our new Delaware asset and prepare for full-field development. Our technical learnings have validated the quality of this acreage, first year financial performance exceeded expectations, and we expect to realize exceptional returns and value creation in coming years."
"Additionally, throughout 2018 we high-graded our asset base through a series of non-core divestitures. Operationally, our team continues to do a tremendous job optimizing our cost structure. On the resource delineation side, in the Williston Basin, several strong well results at Painted Woods and Montana in the west and Cottonwood in the east heighten our confidence in the competitive position of these areas. At year-end 2018, Oasis had over 2,000 gross operated locations in the Williston and Delaware with breakeven pricing below $45 per barrel WTI. At our current completions pace, this represents over 20 years of development. While prices have weakened considerably since 2018, we have the asset quality, inventory depth, financial strength, midstream capabilities, and services to succeed at low prices."
"Oasis has an enviable asset base. We are in a formidable position to generate significant free cash flow in 2019 through prudent capital spending reductions and operating efficiencies. Free cash flow generation from the Williston is expected to fund growth at our core Delaware asset and reduce corporate debt. Consistent with our dedication to generating free cash flow, we entered into a capital expenditures arrangement with OMP for Bobcat DevCo's 2019 expansion capital expenditures that permits us to minimize midstream spending at the Oasis level. We are poised to succeed in the current environment. Oasis has the strategic, operating, and financial capabilities to drive capital efficiency, generate strong free cash flow, and deliver for our shareholders."
Midstream Update
OMP completed its new 200 MMscfpd natural gas processing plant in early December and has gradually ramped up volumes through February. OMP is now the second largest natural gas processor in the Williston Basin. OMP's gas plant is currently running at approximately 60% utilization, and now expects utilization to increase to over 90% by year-end 2019 consisting of both Oasis and third-party volumes. In late 2018, OMP successfully signed additional third-party agreements, which diversifies the revenue base and provides financial resiliency. OMP continues to pursue additional opportunities with third-parties to further increase the utilization of its gas gathering and processing infrastructure.
On February 22, 2019, Oasis entered into a capital expenditures arrangement (the "Capital Expenditures Arrangement") with OMP, allowing OMP to fund growth capital for Bobcat DevCo. As a result of this arrangement, Oasis's ownership in Bobcat DevCo is expected to decline from 75% to between approximately 64% and 66% by the end of the 2019 calendar year. The Company believes this arrangement is mutually beneficial to both Oasis and OMP, as it significantly reduces Oasis's midstream spending and OMP can accretively increase its leverage to Bobcat DevCo. Additionally, in 2019, Oasis is planning capital expenditures related to its retained interest in Williston Basin infrastructure of approximately $11 million to $13 million and midstream capital expenditures of approximately $8 million in the Delaware Basin.
The terms of the Capital Expenditures Arrangement were approved by the Board of Directors of the general partner of OMP following a unanimous recommendation for approval from the conflicts committee of the Board of Directors of the general partner of OMP, which consists entirely of independent directors. The conflicts committee was advised by Baird on financial matters and Richards, Layton & Finger, P.A. on legal matters. Oasis was advised by Vinson and Elkins L.L.P. on legal matters.
2019 Plan
Oasis constructed its 2019 plan based on being free cash flow positive at $50 WTI. In order to achieve this objective, the total E&P and Other CapEx plan has been reduced by approximately 40% year over year and is expected to range between $540 million and $560 million. Oasis is directing approximately 75% of its capital to the Williston Basin and approximately 25% to the Delaware Basin. The Company expects 85% of its E&P and Other CapEx to be invested in drilling and completions activities, including:
Metric | Range |
Production (Boepd)(1) | |
Full Year 2019 | 86,000 to 91,000 |
Full Year Financial Metrics | |
LOE ($ per Boe) | $7.00 to $8.00 |
Marketing, transportation and gathering ("MT&G") ($ per Boe)(2) | $1.50 to $3.50 |
E&P Cash G&A ($ in millions)(3) | $77 - $81 |
Production taxes (% of oil and gas revenue) | 8.1% to 8.4% |
2019 CapEx Plan ($ in millions) | |
E&P & Other CapEx(4) | $540 - $560 |
Midstream CapEx | 150 - 170 |
Midstream CapEx attributable to Oasis (included in Midstream CapEx above) | 19 - 21 |
__________________ | |
(1) | Average oil production percentage of 72% in 2019. |
(2) | Excludes the effect of non-cash valuation charges. |
(3) | Cash E&P G&A represents general and administrative ("G&A") expenses less non-cash equity-based compensation expense included in our exploration and production segment. Total cash G&A for Oasis estimated at $92 million to $96 million, which excludes non-cash amortization of equity-based compensation of approximately $41 million to $45 million. See "Non-GAAP Financial Measures" below. |
(4) | Other CapEx includes OWS and administrative capital and excludes capitalized interest of approximately $15 million. |
Operational and Financial Update
Select operational and financial statistics are included in the following table for the periods presented:
Quarter Ended | Year Ended | ||||||||||||||
12/31/2018 | 9/30/2018 | 12/31/2018 | 12/31/2017 | ||||||||||||
Production data: | |||||||||||||||
Oil (Bopd) | 67,266 | 65,870 | 63,151 | 51,557 | |||||||||||
Natural gas (Mcfpd) | 126,135 | 117,182 | 116,246 | 87,522 | |||||||||||
Total production (Boepd) | 88,288 | 85,400 | 82,525 | 66,144 | |||||||||||
Percent Oil | 76.2 | % | 77.1 | % | 76.5 | % | 77.9 | % | |||||||
Average sales prices: | |||||||||||||||
Oil, without derivative settlements ($ per Bbl) | $ | 52.01 | $ | 68.33 | $ | 61.84 | $ | 48.51 | |||||||
Differential to WTI ($ per Bbl) | 6.79 | 1.16 | 2.88 | 2.62 | |||||||||||
Oil, with derivative settlements ($ per Bbl)(1)(2) | 44.14 | 57.50 | 52.65 | 47.99 | |||||||||||
Oil derivative settlements - net cash payments ($ in millions)(2) | (48.7) | (65.6) | (211.7) | (9.8) | |||||||||||
Natural gas, without derivative settlements ($ per Mcf)(3) | 4.27 | 3.72 | 3.88 | 3.81 | |||||||||||
Natural gas, with derivative settlements ($ per Mcf)(1)(2)(3) | 4.02 | 3.76 | 3.84 | 3.86 | |||||||||||
Natural gas derivative settlements - net cash receipts (payments) ($ in millions)(2) | (2.9) | 0.4 | (1.8) | 1.5 | |||||||||||
Selected financial data ($ in millions): | |||||||||||||||
Revenues: | |||||||||||||||
Oil revenues(4) | $ | 321.8 | $ | 414.1 | $ | 1,425.4 | $ | 912.8 | |||||||
Natural gas revenues | 49.6 | 40.1 | 164.6 | 121.8 | |||||||||||
Purchased oil and gas sales(4) | 183.1 | 173.0 | 551.8 | 133.5 | |||||||||||
Midstream revenues | 30.6 | 31.2 | 119.0 | 72.8 | |||||||||||
Well services revenues | 14.7 | 16.3 | 61.1 | 52.8 | |||||||||||
Total revenues | $ | 599.8 | $ | 674.7 | $ | 2,321.9 | $ | 1,293.7 | |||||||
Net cash provided by operating activities | $ | 234.4 | $ | 230.0 | $ | 996.4 | $ | 507.9 | |||||||
Adjusted EBITDA | $ | 214.1 | $ | 270.4 | $ | 958.7 | $ | 707.7 | |||||||
Select operating expenses: | |||||||||||||||
LOE | $ | 56.5 | $ | 48.5 | $ | 193.9 | $ | 177.1 | |||||||
Midstream operating expenses | 7.6 | 8.7 | 31.9 | 17.6 | |||||||||||
Well services operating expenses | 8.8 | 11.4 | 41.2 | 37.2 | |||||||||||
MT&G(5) | 28.9 | 30.1 | 102.9 | 56.6 | |||||||||||
Non-cash valuation charges | 3.8 | 0.6 | 4.3 | (0.8) | |||||||||||
Purchased oil and gas expenses(4) | 179.9 | 174.3 | 554.3 | 134.6 | |||||||||||
Production taxes | 29.9 | 38.7 | 133.7 | 88.1 | |||||||||||
Depreciation, depletion and amortization ("DD&A") | 170.5 | 163.0 | 636.3 | 530.8 | |||||||||||
Total select operating expenses | $ | 485.9 | $ | 475.3 | $ | 1,698.5 | $ | 1,041.2 | |||||||
Select operating expenses data: | |||||||||||||||
LOE ($ per Boe) | $ | 6.95 | $ | 6.18 | $ | 6.44 | $ | 7.34 | |||||||
MT&G ($ per Boe)(5) | 3.55 | 3.84 | 3.41 | 2.34 | |||||||||||
DD&A ($ per Boe) | 20.99 | 20.74 | 21.12 | 21.99 | |||||||||||
E&P G&A ($ per Boe) | 3.08 | 3.88 | 3.40 | 3.21 | |||||||||||
E&P Cash G&A ($ per Boe)(6) | 2.18 | 2.97 | 2.48 | 2.16 | |||||||||||
Production taxes (% of oil and gas revenue) | 8.1 | % | 8.6 | % | 8.4 | % | 8.5 | % | |||||||
__________________ | |
(1) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. |
(2) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(3) | Natural gas prices include the value for natural gas and natural gas liquids. |
(4) | For the quarter ended September 30, 2018 and the year ended December 31, 2017, oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised as described in Revision of Prior Period Financial Statements below. |
(5) | Excludes non-cash valuation charges on pipeline imbalances of $3.8 million and $0.6 million for the quarters ended December 31, 2018 and September 30, 2018, respectively, and $4.3 million and a credit of $0.8 million for the years ended December 31, 2018 and 2017, respectively. |
(6) | Cash E&P G&A, a non-GAAP measure, represents G&A expenses less non-cash equity-based compensation expense included in the Company's exploration and production segment. See "Non-GAAP Financial Measures" below for a reconciliation of the Company's E&P G&A to Cash E&P G&A. |
G&A expenses for the fourth quarter of 2018 totaled $30.3 million, and for the year ended December 31, 2018, G&A totaled $121.3 million. Amortization of equity-based compensation, which is included in G&A expenses, was $7.7 million, or $0.95 per Boe, for the fourth quarter of 2018 and $29.3 million, or $0.97 per Boe, for the full year of 2018. G&A expenses for the Company's E&P segment totaled $25.1 million for the fourth quarter of 2018 and $102.5 million for the full year of 2018. Total Cash E&P G&A expenses, excluding non-cash equity-based compensation expenses, were $2.18 per Boe for the fourth quarter of 2018 and $2.48 per Boe for the full year of 2018.
Interest expense was $41.5 million for the fourth quarter of 2018 and $159.1 million for the full year of 2018. Capitalized interest totaled $4.0 million for the fourth quarter of 2018 and $17.2 million for the full year of 2018. Cash Interest (non-GAAP) totaled $40.5 million for the fourth quarter of 2018 and $157.6 million for the full year of 2018. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended December 31, 2018, the Company recorded an income tax expense of $69.5 million, resulting in an effective tax rate of 23.5% as a percentage of its pre-tax income for the quarter. The Company's income tax benefit for the year ended December 31, 2018 was recorded at $5.8 million, or 23.1% of its pre-tax loss.
The Company reported net income attributable to Oasis of $222.0 million in the fourth quarter of 2018. For the full year of 2018, Oasis reported net loss attributable to Oasis of $35.3 million. Excluding certain non-cash items and their tax effect in the fourth quarter of 2018, Adjusted Net Loss Attributable to Oasis (non-GAAP) was $7.3 million, or $0.02 per diluted share, and in the full year of 2018, Adjusted Net Income Attributable to Oasis (non-GAAP) was $79.6 million, or $0.26 per diluted share, respectively. For a definition of Adjusted Net Income (Loss) Attributable to Oasis and a reconciliation of net income (loss) attributable to Oasis to Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP Financial Measures" below.
The Company completed and placed on production 121 gross (85.3 net) operated wells during 2018 and 30 gross (21.7 net) operated wells during the fourth quarter of 2018.
The Company sells a significant amount of its crude oil production through gathering systems connected to multiple pipeline and rail facilities, which allows it to shift volumes between pipeline and rail markets in order to optimize price realizations. For the first three quarters of 2018, the Company's oil price differentials improved to less than $2.00 per barrel discount to WTI. Purchased oil and gas sales, which consist primarily of the sale of crude oil purchased to optimize transportation costs or for blending at the Company's crude oil terminal, increased $418.3 million to $551.8 million for the year ended December 31, 2018 as compared to the year ended December 31, 2017, primarily due to higher volumes purchased and sold driven by increased market opportunities in the Williston Basin and in the Delaware Basin. Purchased oil and gas expenses increased $419.7 million to $554.3 million for the year ended December 31, 2018 as compared to December 31, 2017.
Revision of Prior Period Financial Statements. In connection with the preparation of the Company's consolidated financial statements for the year ended December 31, 2018, the Company identified errors in its previously issued 2017 annual consolidated financial statements and in each of the interim periods within 2018 and 2017. These prior period errors related to the presentation of certain crude oil purchase and sale arrangements. Specifically, although the Company previously presented the transactions on a net basis in oil and gas revenues, the Company was required to present these purchase and sale arrangements on a gross basis in purchased oil and gas expenses and purchased oil and gas sales. In addition, the Company identified certain assets and liabilities related to these arrangements that were reported on a net basis in accounts receivable on the balance sheet, but did not meet all of the criteria for a right of setoff. The correction of these errors had no effect on the reported consolidated net income (loss) attributable to Oasis or earnings (loss) attributable to Oasis per share data for the year ended December 31, 2017 or for any of the interim periods within 2018 and 2017 or to Oasis share of stockholders' equity at December 31, 2017. Based on an analysis of quantitative and qualitative factors, the Company determined the related impact was not material to its consolidated financial statements, and therefore, amendments of previously filed reports are not required.
For the quarter ended December 31, 2017, the Company revised the Consolidated Statements of Operations by increasing purchased oil and gas sales and purchased oil and gas expenses by $30.5 million and $30.4 million, respectively, and decreasing oil and gas revenues by $0.1 million. For the year ended December 31, 2017, the Company revised the Consolidated Statements of Operations by increasing purchased oil and gas sales and purchased oil and gas expenses by $45.6 million and $45.3 million, respectively, and decreasing oil and gas revenues by $0.3 million. For the quarter ended September 30, 2018, the Company revised the Consolidated Statements of Operations by increasing oil and gas revenues, purchased oil and gas sales and purchased oil and gas expenses by $1.6 million, $126.6 million and $128.2 million, respectively. As of December 31, 2017, the Company revised the Consolidated Balance Sheets by increasing both accounts receivable and accrued liabilities by $7.8 million. The amounts presented herein reflect the impact of this revision.
As a result of the errors noted above, the Company has identified a material weakness in its internal control over financial reporting. Accordingly, management will disclose in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that its internal control over financial reporting and its disclosure controls and procedures are not effective as of December 31, 2018 and will receive an adverse opinion on internal control over financial reporting as of December 31, 2018 from PricewaterhouseCoopers LLP. In response to the material weakness identified, management has developed a plan to remediate the material weakness, and has begun working on that remediation plan. In addition, management performed additional analyses and procedures in order to conclude that the Company's consolidated financial statements for the year ended December 31, 2018 are fairly presented, in all material respects, in accordance with generally accepted accounting principles.
Capital Expenditures
The following table depicts the Company's CapEx for the year ended December 31, 2018:
2018 | |||
CapEx ($ in millions) | |||
E&P (excluding acquisitions) | $ | 942.2 | |
Well Services | 7.8 | ||
Other(1) | 24.0 | ||
Total CapEx before acquisitions and midstream | 974.0 | ||
Midstream(2) | 277.6 | ||
Total CapEx before acquisitions | 1,251.6 | ||
Acquisitions | 951.9 | ||
Total CapEx(3) | $ | 2,203.5 | |
__________________ | |
(1) | Other CapEx includes such items as administrative capital and capitalized interest. |
(2) | Midstream CapEx attributable to OMP was $116.6 million for the year ended December 31, 2018. |
(3) | Total CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statements of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows are presented on a cash basis. In addition, for the year ended December 31, 2018, capital expenditures (including acquisitions) reflected in the table above includes consideration paid through the issuance of common stock in connection with the Permian Basin Acquisition. |
Estimated Net Proved Reserves
The Company's estimated net proved reserves and related PV-10 are based on reports prepared by DeGolyer and MacNaughton, independent reserve engineers. The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2018:
December 31, 2018 | ||||||
Net Estimated Reserves | PV-10(1) (in millions) | |||||
Proved Developed | 201.1 | $ | 3,573.6 | |||
Undeveloped | 119.4 | 1,100.7 | ||||
Total Proved | 320.5 | $ | 4,674.3 | |||
__________________ | |
(1) | PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. |
Liquidity and Balance Sheet
As of December 31, 2018, Oasis had cash and cash equivalents of $22.2 million, total elected commitments under the Oasis Credit Facility of $1,350.0 million and a borrowing base under the OMP Credit Facility of $400.0 million. In addition, Oasis had $468.0 million of borrowings and $14.0 million of outstanding letters of credit issued under the Oasis Credit Facility and $318.0 million of borrowings under the OMP Credit Facility, resulting in an unused borrowing base capacity of $950.0 million for both revolving credit facilities as of December 31, 2018.
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX WTI for fixed price swaps and two-way and three-way costless collars. The Company's basis swaps for crude oil will either settle monthly based on the fixed basis differential from NYMEX WTI to Intercontinental Exchange, Inc. Brent crude oil index price ("ICE Brent") or Argus WTI Midland crude oil index price ("Midland") to NYMEX WTI or Argus WTI Houston crude oil index price ("Houston") to NYMEX WTI. The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. The Company's basis swaps for natural gas will settle monthly based on the fixed basis differential from Inside FERC Northern Natural Gas Ventura ("IF NNG Ventura") to NYMEX HH. As of February 26, 2019, the Company had the following outstanding commodity derivative contracts:
Three Months Ending | Six Months Ending | ||||||||||||||
December 31, 2018 | June 30, 2019 | December 31, 2019 | June 30, 2020 | ||||||||||||
Crude oil (Volume in MBopd) | |||||||||||||||
Fixed Price Swaps | |||||||||||||||
Volume | 43.2 | 13.0 | 13.0 | — | |||||||||||
Price | $ | 53.95 | $ | 53.47 | $ | 53.47 | $ | — | |||||||
Collars | |||||||||||||||
Volume | 8.5 | 13.0 | 12.0 | — | |||||||||||
Floor | $ | 62.47 | $ | 57.46 | $ | 58.08 | $ | — | |||||||
Ceiling | $ | 68.40 | $ | 74.49 | $ | 76.05 | $ | — | |||||||
3-way | |||||||||||||||
Volume | — | 12.0 | 12.0 | 3.0 | |||||||||||
Sub-Floor | $ | — | $ | 40.83 | $ | 40.00 | $ | 40.00 | |||||||
Floor | $ | — | $ | 51.25 | $ | 51.57 | $ | 57.24 | |||||||
Ceiling | $ | — | $ | 68.59 | $ | 65.40 | $ | 58.04 | |||||||
Total Crude Oil Volume | 51.7 | 38.0 | 37.0 | 3.0 | |||||||||||
Basis Swaps (NYMEX WTI-ICE Brent) | |||||||||||||||
Volume | 2.0 | 2.0 | — | — | |||||||||||
Price | $ | (9.68) | $ | (9.68) | $ | — | $ | — | |||||||
Basis Swaps (Midland-NYMEX WTI) | |||||||||||||||
Volume | 1.3 | 3.8 | — | — | |||||||||||
Price | $ | (7.50) | $ | (6.77) | $ | — | $ | — | |||||||
Basis Swaps (Houston-NYMEX WTI) | |||||||||||||||
Volume | — | 1.5 | 1.5 | — | |||||||||||
Price | $ | — | $ | 4.55 | $ | 4.55 | $ | — | |||||||
Total Crude Oil Basis Volume | 3.3 | 7.3 | 1.5 | — | |||||||||||
Natural Gas (Volume in MMBtupd) | |||||||||||||||
Fixed Price Swaps | |||||||||||||||
Volume | 41,315 | 30,475 | 20,000 | — | |||||||||||
Price | $ | 3.03 | $ | 3.20 | $ | 2.90 | $ | — | |||||||
Total Natural Gas Volume | 41,315 | 30,475 | 20,000 | — | |||||||||||
Basis Swaps (IF NNG Ventura-NYMEX HH) | |||||||||||||||
Volume | 19,946 | 26,630 | — | — | |||||||||||
Price | $ | 0.01 | $ | 0.05 | $ | — | $ | — | |||||||
Total Natural Gas Basis Volume | 19,946 | 26,630 | — | — | |||||||||||
The December 2018 crude oil derivative contracts settled at a net $10.6 million received in January 2019 and will be included in the Company's first quarter of 2019 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: | Wednesday, February 27, 2019 | |
Time: | 10:00 a.m. Central Time | |
Live Webcast: | ||
OR: | ||
Dial-in: | 888-317-6003 | |
Intl. Dial in: | 412-317-6061 | |
Conference ID: | 8270035 | |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, March 6, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10128589 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
Oasis Petroleum Inc. Financial Statements
OASIS PETROLEUM INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 22,190 | $ | 16,720 | |||
Accounts receivable, net | 387,602 | 371,379 | |||||
Inventory | 33,128 | 19,367 | |||||
Prepaid expenses | 10,997 | 7,631 | |||||
Derivative instruments | 99,930 | 344 | |||||
Intangible assets, net | 125 | — | |||||
Other current assets | 183 | 193 | |||||
Total current assets | 554,155 | 415,634 | |||||
Property, plant and equipment | |||||||
Oil and gas properties (successful efforts method) | 8,912,189 | 7,838,955 | |||||
Other property and equipment | 1,151,772 | 868,746 | |||||
Less: accumulated depreciation, depletion, amortization and impairment | (3,036,852) | (2,534,215) | |||||
Total property, plant and equipment, net | 7,027,109 | 6,173,486 | |||||
Derivative instruments | 6,945 | 9 | |||||
Long-term inventory | 12,260 | 12,200 | |||||
Other assets | 25,673 | 21,600 | |||||
Total assets | $ | 7,626,142 | $ | 6,622,929 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 20,166 | $ | 13,370 | |||
Revenues and production taxes payable | 216,695 | 213,995 | |||||
Accrued liabilities | 331,651 | 244,279 | |||||
Accrued interest payable | 38,040 | 38,963 | |||||
Derivative instruments | 84 | 115,716 | |||||
Advances from joint interest partners | 5,140 | 4,916 | |||||
Other current liabilities | — | 40 | |||||
Total current liabilities | 611,776 | 631,279 | |||||
Long-term debt | 2,735,276 | 2,097,606 | |||||
Deferred income taxes | 300,055 | 305,921 | |||||
Asset retirement obligations | 52,384 | 48,511 | |||||
Derivative instruments | 20 | 19,851 | |||||
Other liabilities | 7,751 | 6,182 | |||||
Total liabilities | 3,707,262 | 3,109,350 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | |||||||
Common stock, $0.01 par value: 900,000,000 and 450,000,000 shares authorized at December 31, 2018 and December 31, 2017, respectively; 320,469,049 shares issued and 318,377,161 shares outstanding at December 31, 2018 and 270,627,014 shares issued and 269,295,466 shares outstanding at December 31, 2017 | 3,157 | 2,668 | |||||
Treasury stock, at cost: 2,091,888 and 1,331,548 shares at December 31, 2018 and December 31, 2017, respectively | (29,025) | (22,179) | |||||
Additional paid-in capital | 3,077,755 | 2,677,217 | |||||
Retained earnings | 682,689 | 717,985 | |||||
Oasis share of stockholders' equity | 3,734,576 | 3,375,691 | |||||
Non-controlling interests | 184,304 | 137,888 | |||||
Total stockholders' equity | 3,918,880 | 3,513,579 | |||||
Total liabilities and stockholders' equity | $ | 7,626,142 | $ | 6,622,929 | |||
OASIS PETROLEUM INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenues | |||||||||||||||
Oil and gas revenues | $ | 371,385 | $ | 330,290 | $ | 1,590,024 | $ | 1,034,634 | |||||||
Purchased oil and gas sales | 183,050 | 61,547 | 551,808 | 133,542 | |||||||||||
Midstream revenues | 30,589 | 23,813 | 119,040 | 72,752 | |||||||||||
Well services revenues | 14,731 | 19,225 | 61,075 | 52,791 | |||||||||||
Total revenues | 599,755 | 434,875 | 2,321,947 | 1,293,719 | |||||||||||
Operating expenses | |||||||||||||||
Lease operating expenses | 56,456 | 43,263 | 193,912 | 177,134 | |||||||||||
Midstream operating expenses | 7,587 | 6,698 | 31,912 | 17,589 | |||||||||||
Well services operating expenses | 8,848 | 13,370 | 41,200 | 37,228 | |||||||||||
Marketing, transportation and gathering expenses | 32,634 | 17,722 | 107,193 | 55,740 | |||||||||||
Purchased oil and gas expenses | 179,865 | 62,043 | 554,307 | 134,615 | |||||||||||
Production taxes | 29,948 | 27,811 | 133,696 | 88,133 | |||||||||||
Depreciation, depletion and amortization | 170,477 | 146,556 | 636,296 | 530,802 | |||||||||||
Exploration expenses | 3,731 | 7,590 | 27,432 | 11,600 | |||||||||||
Impairment | — | 866 | 384,228 | 6,887 | |||||||||||
General and administrative expenses | 30,317 | 24,627 | 121,346 | 91,797 | |||||||||||
Total operating expenses | 519,863 | 350,546 | 2,231,522 | 1,151,525 | |||||||||||
Gain (loss) on sale of properties | (10,236) | 1,774 | 28,587 | 1,774 | |||||||||||
Operating income | 69,656 | 86,103 | 119,012 | 143,968 | |||||||||||
Other income (expense) | |||||||||||||||
Net gain (loss) on derivative instruments | 268,402 | (123,954) | 28,457 | (71,657) | |||||||||||
Interest expense, net of capitalized interest | (41,469) | (36,289) | (159,085) | (146,837) | |||||||||||
Loss on extinguishment of debt | (150) | — | (13,848) | — | |||||||||||
Other income (expense) | (25) | (577) | 121 | (1,332) | |||||||||||
Total other income (expense) | 226,758 | (160,820) | (144,355) | (219,826) | |||||||||||
Income (loss) before income taxes | 296,414 | (74,717) | (25,343) | (75,858) | |||||||||||
Income tax benefit (expense) | (69,548) | 202,834 | 5,843 | 203,304 | |||||||||||
Net income (loss) including non-controlling interests | 226,866 | 128,117 | (19,500) | 127,446 | |||||||||||
Less: Net income attributable to non-controlling interests | 4,889 | 3,500 | 15,796 | 3,650 | |||||||||||
Net income (loss) attributable to Oasis | $ | 221,977 | $ | 124,617 | $ | (35,296) | $ | 123,796 | |||||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.71 | $ | 0.52 | $ | (0.11) | $ | 0.53 | |||||||
Diluted | 0.70 | 0.52 | (0.11) | 0.52 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 313,260 | 240,143 | 307,480 | 234,986 | |||||||||||
Diluted | 315,098 | 241,960 | 307,480 | 237,875 | |||||||||||
OASIS PETROLEUM INC. | |||||||||||||||
SELECTED FINANCIAL AND OPERATIONAL STATS | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating results ($ in thousands): | |||||||||||||||
Revenues | |||||||||||||||
Oil revenues(1) | $ | 321,834 | $ | 289,392 | $ | 1,425,409 | $ | 912,806 | |||||||
Natural gas revenues | 49,551 | 40,898 | 164,615 | 121,828 | |||||||||||
Purchased oil and gas sales(1) | 183,050 | 61,547 | 551,808 | 133,542 | |||||||||||
Midstream revenues | 30,589 | 23,813 | 119,040 | 72,752 | |||||||||||
Well services revenues | 14,731 | 19,225 | 61,075 | 52,791 | |||||||||||
Total revenues | $ | 599,755 | $ | 434,875 | $ | 2,321,947 | $ | 1,293,719 | |||||||
Production data: | |||||||||||||||
Oil (MBbls) | 6,188 | 5,266 | 23,050 | 18,818 | |||||||||||
Natural gas (MMcf) | 11,604 | 8,815 | 42,430 | 31,946 | |||||||||||
Oil equivalents (MBoe) | 8,122 | 6,735 | 30,122 | 24,143 | |||||||||||
Average daily production (Boepd) | 88,288 | 73,207 | 82,525 | 66,144 | |||||||||||
Average sales prices: | |||||||||||||||
Oil, without derivative settlements (per Bbl) | $ | 52.01 | $ | 54.95 | $ | 61.84 | $ | 48.51 | |||||||
Oil, with derivative settlements (per Bbl)(2) | 44.14 | 53.40 | 52.65 | 47.99 | |||||||||||
Natural gas, without derivative settlements (per Mcf)(3) | 4.27 | 4.64 | 3.88 | 3.81 | |||||||||||
Natural gas, with derivative settlements (per Mcf)(2)(3) | 4.02 | 4.72 | 3.84 | 3.86 | |||||||||||
Costs and expenses (per Boe of production): | |||||||||||||||
Lease operating expenses | $ | 6.95 | $ | 6.42 | $ | 6.44 | $ | 7.34 | |||||||
Marketing, transportation and gathering expenses(4) | 3.55 | 2.83 | 3.41 | 2.34 | |||||||||||
Production taxes | 3.69 | 4.13 | 4.44 | 3.65 | |||||||||||
Depreciation, depletion and amortization | 20.99 | 21.76 | 21.12 | 21.99 | |||||||||||
General and administrative expenses | 3.73 | 3.66 | 4.03 | 3.80 | |||||||||||
__________________ | |
(1) | For the quarter and year ended December 31, 2017, oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised. Refer to Revision of Prior Period Financial Statements for further details. |
(2) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(3) | Natural gas prices include the value for natural gas and natural gas liquids. |
(4) | Excludes non-cash valuation charges on pipeline imbalances. |
OASIS PETROLEUM INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) including non-controlling interests | $ | (19,500) | $ | 127,446 | |||
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 636,296 | 530,802 | |||||
Loss on extinguishment of debt | 13,848 | — | |||||
Gain on sale of properties | (28,587) | (1,774) | |||||
Impairment | 384,228 | 6,887 | |||||
Deferred income taxes | (5,866) | (202,884) | |||||
Derivative instruments | (28,457) | 71,657 | |||||
Equity-based compensation expenses | 29,273 | 26,534 | |||||
Deferred financing costs amortization and other | 29,057 | 18,311 | |||||
Working capital and other changes: | |||||||
Change in accounts receivable, net | (23,508) | (166,386) | |||||
Change in inventory | (14,346) | (2,501) | |||||
Change in prepaid expenses | (2,354) | (838) | |||||
Change in other current assets | 10 | 148 | |||||
Change in long-term inventory and other assets | (144) | (12,143) | |||||
Change in accounts payable, interest payable and accrued liabilities | 26,116 | 123,107 | |||||
Change in other current liabilities | (40) | (10,450) | |||||
Change in other liabilities | 395 | (40) | |||||
Net cash provided by operating activities | 996,421 | 507,876 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (1,148,961) | (647,349) | |||||
Acquisitions | (581,650) | (61,874) | |||||
Proceeds from sale of properties | 333,229 | 5,774 | |||||
Costs related to sale of properties | (2,850) | (366) | |||||
Derivative settlements | (213,528) | (8,264) | |||||
Advances from joint interest partners | 224 | (2,681) | |||||
Net cash used in investing activities | (1,613,536) | (714,760) | |||||
Cash flows from financing activities: | |||||||
Proceeds from Revolving Credit Facilities | 3,224,000 | 1,162,000 | |||||
Principal payments on Revolving Credit Facilities | (2,586,000) | (1,377,000) | |||||
Repurchase of senior unsecured notes | (423,340) | — | |||||
Proceeds from issuance of senior unsecured notes | 400,000 | — | |||||
Deferred financing costs | (13,862) | (2,714) | |||||
Proceeds from sale of common stock, net of offering costs | — | 302,191 | |||||
Proceeds from sale of Oasis Midstream common units, net of offering costs | 44,503 | 134,185 | |||||
Purchases of treasury stock | (6,846) | (6,229) | |||||
Distributions to non-controlling interests | (14,114) | — | |||||
Other | (1,756) | (55) | |||||
Net cash provided by financing activities | 622,585 | 212,378 | |||||
Increase in cash and cash equivalents | 5,470 | 5,494 | |||||
Cash and cash equivalents: | |||||||
Beginning of period | 16,720 | 11,226 | |||||
End of period | $ | 22,190 | $ | 16,720 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest, net of capitalized interest | $ | 141,196 | $ | 129,463 | |||
Cash paid for income taxes | 38 | 12 | |||||
Cash received for income tax refunds | 25 | 281 | |||||
Supplemental non-cash transactions: | |||||||
Change in accrued capital expenditures | $ | 68,946 | $ | 83,508 | |||
Change in asset retirement obligations | 3,880 | (789) | |||||
Installment notes from acquisition | — | 4,875 | |||||
Issuance of shares in connection with the Permian Basin Acquisition | 371,220 | — | |||||
Non-GAAP Financial Measures
E&P Cash G&A Reconciliation
E&P Cash G&A is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines E&P Cash G&A as the total general and administrative expenses included in our exploration and production segment less non-cash equity-based compensation expense included in our exploration and production segment. E&P Cash G&A is not a measure of general and administrative expenses as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses included in our exploration and production segment to the non-GAAP financial measure of E&P Cash G&A for the periods presented:
Exploration and Production | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
General and administrative expenses | $ | 25,057 | $ | 19,739 | $ | 102,482 | $ | 77,560 | |||||||
Equity-based compensation expenses | (7,345) | (5,695) | (27,910) | (25,436) | |||||||||||
E&P Cash G&A | $ | 17,712 | $ | 14,044 | $ | 74,572 | $ | 52,124 | |||||||
Cash Interest Reconciliation
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense | $ | 41,469 | $ | 36,289 | $ | 159,085 | $ | 146,837 | |||||||
Capitalized interest | 4,017 | 4,024 | 17,226 | 12,797 | |||||||||||
Amortization of deferred financing costs | (2,079) | (1,779) | (7,590) | (6,907) | |||||||||||
Amortization of debt discount | (2,919) | (2,654) | (11,120) | (10,080) | |||||||||||
Cash Interest | $ | 40,488 | $ | 35,880 | $ | 157,601 | $ | 142,647 | |||||||
Adjusted EBITDA and Free Cash Flow Reconciliations
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) including non-controlling interests | $ | 226,866 | $ | 128,117 | $ | (19,500) | $ | 127,446 | |||||||
(Gain) loss on sale of properties | 10,236 | (1,774) | (28,587) | (1,774) | |||||||||||
Loss on extinguishment of debt | 150 | — | 13,848 | — | |||||||||||
Net (gain) loss on derivative instruments | (268,402) | 123,954 | (28,457) | 71,657 | |||||||||||
Derivative settlements(1) | (51,515) | (7,460) | (213,528) | (8,264) | |||||||||||
Interest expense, net of capitalized interest | 41,469 | 36,289 | 159,085 | 146,837 | |||||||||||
Depreciation, depletion and amortization | 170,477 | 146,556 | 636,296 | 530,802 | |||||||||||
Impairment | — | 866 | 384,228 | 6,887 | |||||||||||
Exploration expenses | 3,731 | 7,590 | 27,432 | 11,600 | |||||||||||
Equity-based compensation expenses | 7,687 | 6,083 | 29,273 | 26,534 | |||||||||||
Income tax (benefit) expense | 69,548 | (202,834) | (5,843) | (203,304) | |||||||||||
Other non-cash adjustments | 3,878 | (1,236) | 4,435 | (745) | |||||||||||
Adjusted EBITDA | 214,125 | 236,151 | 958,682 | 707,676 | |||||||||||
Adjusted EBITDA attributable to non-controlling interests | 7,094 | 3,714 | 21,703 | 3,904 | |||||||||||
Adjusted EBITDA attributable to Oasis | 207,031 | 232,437 | 936,979 | 703,772 | |||||||||||
Cash Interest | (40,488) | (35,880) | (157,601) | (142,647) | |||||||||||
Capital expenditures(2) | (305,348) | (313,060) | (2,203,453) | (836,204) | |||||||||||
Capitalized interest | 4,017 | 4,024 | 17,226 | 12,797 | |||||||||||
Free Cash Flow | $ | (134,788) | $ | (112,479) | $ | (1,406,849) | $ | (262,282) | |||||||
Net cash provided by operating activities | $ | 234,420 | $ | 209,139 | $ | 996,421 | $ | 507,876 | |||||||
Derivative settlements(1) | (51,515) | (7,460) | (213,528) | (8,264) | |||||||||||
Interest expense, net of capitalized interest | 41,469 | 36,289 | 159,085 | 146,837 | |||||||||||
Exploration expenses | 3,731 | 7,590 | 27,432 | 11,600 | |||||||||||
Deferred financing costs amortization and other | (8,983) | (5,645) | (29,057) | (18,311) | |||||||||||
Current tax expense | (4) | (421) | 23 | (421) | |||||||||||
Changes in working capital | (8,871) | (2,105) | 13,871 | 69,104 | |||||||||||
Other non-cash adjustments | 3,878 | (1,236) | 4,435 | (745) | |||||||||||
Adjusted EBITDA | 214,125 | 236,151 | 958,682 | 707,676 | |||||||||||
Adjusted EBITDA attributable to non-controlling interests | 7,094 | 3,714 | 21,703 | 3,904 | |||||||||||
Adjusted EBITDA attributable to Oasis | 207,031 | 232,437 | 936,979 | 703,772 | |||||||||||
Cash Interest | (40,488) | (35,880) | (157,601) | (142,647) | |||||||||||
Capital expenditures(2) | (305,348) | (313,060) | (2,203,453) | (836,204) | |||||||||||
Capitalized interest | 4,017 | 4,024 | 17,226 | 12,797 | |||||||||||
Free Cash Flow | $ | (134,788) | $ | (112,479) | $ | (1,406,849) | $ | (262,282) | |||||||
____________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $1.8 million and $951.9 million for the fourth quarter and full year 2018, respectively, and $48.2 million and $54.0 million for the fourth quarter and full year 2017, respectively. Additionally, CapEx (including acquisitions) reflected in the table includes consideration paid through the issuance of common stock in connection with the Permian Basin Acquisition for the year ended December 31, 2018. |
Segment Adjusted EBITDA Reconciliations
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
Exploration and Production | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Income (loss) before income taxes including non-controlling interests | $ | 256,177 | $ | (107,130) | $ | (167,292) | $ | (179,129) | |||||||
(Gain) loss on sale of properties | 10,226 | (1,774) | (38,188) | (1,774) | |||||||||||
Loss on extinguishment of debt | 150 | — | 13,848 | — | |||||||||||
Net (gain) loss on derivative instruments | (268,402) | 123,954 | (28,457) | 71,657 | |||||||||||
Derivative settlements(1) | (51,515) | (7,460) | (213,528) | (8,264) | |||||||||||
Interest expense, net of capitalized interest | 39,734 | 36,289 | 156,742 | 146,818 | |||||||||||
Depreciation, depletion and amortization | 165,319 | 143,033 | 618,402 | 519,853 | |||||||||||
Impairment | — | 866 | 384,228 | 6,887 | |||||||||||
Exploration expenses | 3,731 | 7,590 | 27,432 | 11,600 | |||||||||||
Equity-based compensation expenses | 7,345 | 5,695 | 27,910 | 25,436 | |||||||||||
Other non-cash adjustments | 3,774 | (1,303) | 4,331 | (812) | |||||||||||
Adjusted EBITDA | $ | 166,539 | $ | 199,760 | $ | 785,428 | $ | 592,272 | |||||||
____________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
Midstream Services | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Income before income taxes including non-controlling interests | $ | 40,248 | $ | 33,294 | $ | 141,001 | $ | 102,340 | |||||||
Loss on sale of properties | 31 | — | 9,622 | — | |||||||||||
Interest expense, net of capitalized interest | 1,735 | — | 2,343 | 19 | |||||||||||
Depreciation, depletion and amortization | 8,380 | 4,625 | 29,282 | 15,999 | |||||||||||
Equity-based compensation expenses | 325 | 357 | 1,547 | 1,461 | |||||||||||
Other non-cash adjustments | — | — | — | — | |||||||||||
Adjusted EBITDA | $ | 50,719 | $ | 38,276 | $ | 183,795 | $ | 119,819 | |||||||
Well Services | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Income before income taxes including non-controlling interests | $ | 5,708 | $ | 5,897 | $ | 31,023 | $ | 15,091 | |||||||
Depreciation, depletion and amortization | 4,138 | 3,522 | 15,698 | 12,939 | |||||||||||
Equity-based compensation expenses | 439 | 249 | 1,588 | 1,264 | |||||||||||
Other non-cash adjustments | 104 | 67 | 104 | 67 | |||||||||||
Adjusted EBITDA | $ | 10,389 | $ | 9,735 | $ | 48,413 | $ | 29,361 | |||||||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment and other similar non-cash and non-recurring charges, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items, excluding net income attributable to non-controlling interests, in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding. Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share is not a measure of diluted earnings (loss) as determined by GAAP.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income (loss) attributable to Oasis | $ | 221,977 | $ | 124,617 | $ | (35,296) | $ | 123,796 | |||||||
Tax reform rate change adjustments | — | (171,900) | — | (171,900) | |||||||||||
(Gain) loss on sale of properties | 10,236 | (1,774) | (28,587) | (1,774) | |||||||||||
Loss on extinguishment of debt | 150 | — | 13,848 | — | |||||||||||
Net (gain) loss on derivative instruments | (268,402) | 123,954 | (28,457) | 71,657 | |||||||||||
Derivative settlements(1) | (51,515) | (7,460) | (213,528) | (8,264) | |||||||||||
Impairment | — | 866 | 384,228 | 6,887 | |||||||||||
Amortization of deferred financing costs | 2,079 | 1,779 | 7,591 | 6,907 | |||||||||||
Amortization of debt discount | 2,919 | 2,654 | 11,120 | 10,080 | |||||||||||
Other non-cash adjustments | 3,878 | (1,236) | 4,435 | (745) | |||||||||||
Tax impact(2) | 71,365 | (44,425) | (35,759) | (31,696) | |||||||||||
Adjusted Net Income (Loss) Attributable to Oasis | $ | (7,313) | $ | 27,075 | $ | 79,595 | $ | 4,948 | |||||||
Diluted earnings (loss) attributable to Oasis per share | $ | 0.70 | $ | 0.52 | $ | (0.11) | $ | 0.52 | |||||||
Tax reform rate change adjustments | — | (0.71) | — | (0.72) | |||||||||||
(Gain) loss on sale of properties | 0.03 | (0.01) | (0.09) | (0.01) | |||||||||||
Loss on extinguishment of debt | — | — | 0.04 | — | |||||||||||
Net (gain) loss on derivative instruments | (0.85) | 0.51 | (0.09) | 0.30 | |||||||||||
Derivative settlements(1) | (0.16) | (0.03) | (0.69) | (0.03) | |||||||||||
Impairment | — | — | 1.24 | 0.03 | |||||||||||
Amortization of deferred financing costs | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
Amortization of debt discount | 0.01 | 0.01 | 0.04 | 0.04 | |||||||||||
Other non-cash adjustments | 0.01 | (0.01) | 0.01 | — | |||||||||||
Tax impact(2) | 0.23 | (0.17) | (0.11) | (0.14) | |||||||||||
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share | $ | (0.02) | $ | 0.12 | $ | 0.26 | $ | 0.02 | |||||||
Diluted weighted average shares outstanding(3) | 313,260 | 241,960 | 310,860 | 237,875 | |||||||||||
Effective tax rate applicable to adjustment items | 23.7 | % | 37.4 | % | 23.7 | % | 37.4 | % | |||||||
____________________ | |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
(2) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. The tax impact was not computed for the tax reform rate change adjustments. |
(3) | The Company included 3,379,000 of unvested stock awards for the year ended December 31, 2018 and 1,817,513 and 2,889,000 of unvested stock awards for the three months ended and the year ended December 31, 2017, respectively, in computing Adjusted Diluted Income Attributable to Oasis Per Share due to the dilutive effect under the treasury stock method. No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three months ended December 31, 2018 because the effect was anti-dilutive due to Adjusted Net Loss Attributable to Oasis. |
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SOURCE Oasis Petroleum Inc.
Article Date
2/26/2019Oasis Petroleum Schedules Fourth Quarter 2018 Conference Call for February 27, 2019
Source: PR Newswire
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Fourth Quarter and Year End 2018 financial and operational results on Tuesday, February 26, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, February 27, 2019 at 10:00 a.m. Central Time to discuss Fourth Quarter and Year End 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, February 27, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 8270035 |
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, March 6, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10128589 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
February 28: | Simmons' 19th Annual Energy Conference – Las Vegas, NV |
March 5: | Raymond James' 40th Annual Institutional Investors Conference – Orlando, FL |
March 6: | Morgan Stanley's Global Energy & Power Conference – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-fourth-quarter-2018-conference-call-for-february-27-2019-300790119.html
SOURCE Oasis Petroleum Inc.
Article Date
2/5/201911/20/2018 - Oasis Midstream Partners LP Completes Acquisition of Additional Interests in Williston Basin Development Companies
Oasis Midstream Partners LP Completes Acquisition of Additional Interests in Williston Basin Development Companies
Source: PR Newswire
HOUSTON, Nov. 20, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") successfully closed the acquisition of additional interests in Bobcat DevCo LLC ("Bobcat DevCo") and Beartooth DevCo LLC ("Beartooth DevCo") from Oasis Petroleum Inc. (NYSE: OAS) ("Oasis"). Closing occurred on Monday, November 19, 2018. The acquisition increased OMP's interest in the Bobcat DevCo to 25% from 10% and increased OMP's interest in the Beartooth DevCo to 70% from 40%.
Additionally, on November 14, 2018, OMP successfully closed its public offering of 2,300,000 common units representing limited partnership interests in the company. Total gross proceeds (before the underwriters' discounts and commissions and estimated offering expenses) were $46,000,000. Both the 2,300,000 common units placed and $46,000,000 in gross proceeds reflect a complete exercise of the underwriter's option to purchase 300,000 units.
Of the total $250 million purchase consideration, $125 million was financed under OMP's revolver. The remaining $125 million was funded through the issuance of 6,250,000 common units, 2,300,000 of which were issued to the public with the remaining 3,950,000 units issued directly to Oasis. Upon closing, Oasis retains 68.5% ownership interest in OMP, including common and subordinated units, with the public owning the remaining 31.5%.
"The closing of Oasis Midstream Partners' acquisition of additional interests in the Bobcat and Beartooth DevCos represents a strong end to an amazing year," said Taylor Reid, Chief Executive Officer of OMP. "This accretive purchase substantially increases OMP's scale while enhancing the coverage outlook. It's been a little over a year since OMP's IPO, and the team has done a fabulous job executing our strategy, growing cash flow, and diversifying our customer base through third-party agreements. Since our IPO, we've increased the 2019 EBITDA outlook almost 70% organically, and the completion of our first drop increases the 2019 EBITDA estimate even further, now more than double our original projections. We're excited about the future at OMP and look forward to delivering for our investors."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the common unit offering. These statements are based on certain assumptions made by the Partnership based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, the Partnership's ability to integrate acquisitions into its existing business, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, the closing of the Acquisition, uncertainties in the estimates of proved reserves and forecasted production results of the Partnership's customers, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Partnership's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Partnership's business and other important factors. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Partnership's actual results and plans could differ materially from those expressed in any forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made and the Partnership undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana.
For further information: Oasis Midstream Partners LP, Bob Bakanauskas, (281) 404-9600, Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-completes-acquisition-of-additional-interests-in-williston-basin-development-companies-300753851.html
SOURCE Oasis Midstream Partners LP
Article Date
11/20/2018Oasis Petroleum Announces the Addition of Paula D. Polito to Its Board of Directors
Source: PR Newswire
HOUSTON, Nov. 2, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today the election of Paula D. Polito to Oasis' Board of Directors. Ms. Polito's election brings the number of directors to seven. Upon joining the Board of Directors on November 1, 2018, Paula was appointed as a member of Oasis' Nominating and Governance Committee.
Paula Polito currently serves as Global Client Strategy Officer and a Group Managing Director at UBS Global Wealth Management. Polito joined UBS in 2009 as the Wealth Management Americas Chief Marketing Officer. Previously, Paula served as Senior VP and Head of Strategic Marketing and Brand Management at Merrill Lynch, and was a member of the Global Wealth Management Executive Committee. Before Merrill Lynch, Paula served as Executive VP of Corporate and Retail Marketing at Fidelity Investments. Prior to Fidelity, she held various positions at advertising agency Hill, Holliday, Connors, Cosmopulos, Inc. Paula spent the first 10 years of her career as a journalist, working as a Producer, News Editor and Managing Editor for WBZ TV in Boston.
For the past four years, Paula has been named one of the "25 Most Powerful Women in Finance" by American Banker. She has received Business Marketing Association's Communicator of the Year award and was named among the "Top 100 Marketers" by Advertising Age.
"Paula is an outstanding addition to the Oasis board of directors," said Mr. Thomas B. Nusz, Chairman and Chief Executive Officer. "She has a long history of understanding global financial markets and helping people navigate them. We believe her ability to think strategically over the long-term, her creativity, and communications experience will greatly benefit our board and our management team. We are looking forward to her unique insight into the investment community as we navigate the ever changing macroeconomic and investment environment."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-announces-the-addition-of-paula-d-polito-to-its-board-of-directors-300743292.html
SOURCE Oasis Petroleum Inc.
Article Date
11/2/2018Oasis Petroleum Announces Reaffirmation and Extension of Its Borrowing Base, Schedules Third Quarter 2018 Conference Call, and Highlights Upcoming Investor Conference Participation
Source: PR Newswire
HOUSTON, Oct. 19, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced that the lenders under its revolving credit agreement completed their regular semi-annual redetermination of the borrowing base, resulting in a reaffirmed borrowing base of $1.6 billion with elected commitments remaining at $1.35 billion. In addition, maturity was extended to five years from the closing date, with a springing maturity 90 days prior to the maturity of the exiting 2022 and 2023 Senior Notes. The interest rate under the Oasis credit agreement ranges from LIBOR plus 150 bps to LIBOR plus 250 bps depending on borrowing base utilization. The next redetermination of the borrowing base is scheduled for April 1, 2019.
Third Quarter 2018 Schedule
Oasis plans to announce its Third Quarter 2018 financial and operational results on Monday, November 5, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Tuesday, November 6, 2018 at 10:00 a.m. Central Time to discuss Third Quarter 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Tuesday, November 6, 2018
Time: 10:00 a.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1052/27747
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 1584359
Website: www.oasispetroleum.com
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, November 13, 2018 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Conference ID: 10124917
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Conference Schedule
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
November 28: Jefferies 8th Annual Energy Conference – Houston, TX
December 5: Capital One Securities 13th Annual Energy Conference – New Orleans, LA
December 5: Wells Fargo's 17th Annual Midstream & Utility Symposium – New York, NY
January 8: Goldman Sachs Annual Energy Conference – Miami, FL
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:SOURCE Oasis Petroleum Inc.
Article Date
10/19/201810/19/2018 - Oasis Midstream Partners Schedules Third Quarter 2018 Conference Call for November 6, 2018
Oasis Midstream Partners Schedules Third Quarter 2018 Conference Call for November 6, 2018
Source: PR Newswire
HOUSTON, Oct. 19, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2018 financial and operational results on Monday, November 5, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Tuesday, November 6, 2018 at 11:30 a.m. Central Time to discuss Third Quarter 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Tuesday, November 6, 2018 |
Time: | 11:30 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 6637480 |
Website: |
A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Tuesday, November 13, 2018 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Conference ID: | 10124920 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
November 28: | Jefferies 8th Annual Energy Conference – Houston, TX |
December 5: | Capital One Securities 13th Annual Energy Conference – New Orleans, LA |
December 5: | Wells Fargo's 17th Annual Midstream & Utility Symposium – New York, NY |
January 8: | Goldman Sachs Annual Energy Conference – Miami, FL |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-third-quarter-2018-conference-call-for-november-6-2018-300734371.html
SOURCE Oasis Midstream Partners LP
Article Date
10/19/2018Oasis Petroleum Inc. Announces Quarter Ended June 30, 2018 Earnings
Source: PR Newswire
HOUSTON, Aug. 6, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended June 30, 2018 and provided an operational update.
Recent Highlights:
"Oasis delivered another strong quarter and has taken steps to position itself for an impressive exit to 2018," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Our full field development activities in the Williston are on plan and we are expanding outside of Wild Basin with impressive results. The team executed on a program to divest non-core assets which improved the balance sheet and allowed us to capture incremental value by drilling our core inventory in the Williston Basin, as evidenced by our increased guidance across the board. The measured approach to our Delaware operational plan has played out as expected, and well results are exceeding expectations. With assets focused on two of the best oil basins in the US, a team with a proven operating track record, and exceptional realizations in the Williston Basin, Oasis expects to be free cash flow positive on its E&P business in 2018 and in 2019."
Financial and Operational Update and Outlook
Operating Guidance Update
The following table presents actual results for the second quarter of 2018 as well as updated full year 2018 guidance for certain operating data:
|
Metric |
2Q 2018 Actual |
Prior Full Year Guidance |
Updated Full Year Guidance | ||
|
Differential to NYMEX WTI ($ per Bbl) |
$2.42 |
$1.50 - $2.00 |
$1.50 - $2.50 | ||
|
LOE ($ per Boe) |
$6.11 |
$6.50 - $7.50 |
$6.00 - $7.00 | ||
|
Marketing, transportation and gathering expenses ("MT&G")($ per Boe)(1) |
$3.19 |
$2.75 - $3.00 |
$2.75 - $3.25 | ||
|
Production taxes (% of oil & gas revenue) |
8.6% |
8.2% - 8.5% |
8.5% - 8.7% | ||
|
General and administrative expenses ("G&A") ($ in millions) |
$28.2 |
$105.0 - $115.0 |
$105.0 - $115.0 | ||
|
CapEx ($ in millions) |
|||||
|
E&P CapEx(2) |
$815.0 - $855.0 |
$900.0 - $930.0 | |||
|
OMS and OWS CapEx(3) |
$290.0 - $305.0 |
$290.0 - $305.0 | |||
|
Other CapEx |
$40.0 |
$40.0 | |||
|
(1) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
(2) |
Updated guidance incorporates increased completions in Williston Basin funded by divestitures. Increased activity reflected in increased production expectations for 2018 and 2019. |
|
(3) |
Prior guidance for OMS and OWS CapEx incorporates Oasis Midstream Partners LP's ("OMP") update provided on June 18, 2018 to fund third party growth opportunities and Oasis volume growth. Full year CapEx guidance includes $100.5 to $108.0 million attributable to OMP. See OMP press release issued on August 6, 2018 for more detail. |
Oasis Midstream Update
Oasis continues to create shareholder value for both its and OMP investors. Oasis owns approximately 69% of OMP and 90% of OMP GP LLC ("OMP GP"), the general partner of OMP. Because Oasis has internally controlled infrastructure through OMP, the Company has numerous competitive advantages in the Williston Basin, which is being highlighted in the current tight gas processing market in North Dakota. OMP is constructing a 200 MMscfpd gas plant in Wild Basin, which remains scheduled to be online in November 2018. This incremental processing capacity is expected to provide Oasis flow assurance for its highly prolific wells in Wild Basin and has allowed OMP to contract third-party volumes as well. OMP provided updated guidance around these and other opportunities in June 2018. OMP announced today that it has updated expected EBITDA in 2018 from $61 to $65 million to $64 to $68 million and in 2019 from $94 to 97 million to $102 to $108 million. OMP expects to organically grow cash distributions per unit by 20% past 2021, which is an extended runway from prior guidance. This growth drives value to Oasis through its ownership stake in both OMP and OMP GP, which owns 100% of OMP's incentive distribution rights.
Operational and Financial Update
The following table presents select operational and financial data for the periods presented:
|
Quarter Ended: | |||||||||||
|
6/30/2018 |
3/31/2018 |
6/30/2017 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
60,632 |
58,713 |
47,795 |
||||||||
|
Natural gas (MMcfpd) |
112,830 |
108,635 |
84,890 |
||||||||
|
Total production (Boepd) |
79,437 |
76,819 |
61,943 |
||||||||
|
Percent Oil |
76.3 |
% |
76.4 |
% |
77.2 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements ($ per Bbl) |
$ |
65.47 |
$ |
61.20 |
$ |
44.61 |
|||||
|
Differential to NYMEX WTI ($ per Bbl) |
2.42 |
1.67 |
3.68 |
||||||||
|
Oil, with derivative settlements ($ per Bbl)(1)(2) |
54.53 |
54.18 |
44.35 |
||||||||
|
Oil derivative settlements - net cash payments ($ in millions)(2) |
(60.4) |
(37.1) |
(1.1) |
||||||||
|
Natural gas, without derivative settlements ($ per Mcf)(3) |
3.38 |
4.12 |
3.19 |
||||||||
|
Natural gas, with derivative settlements ($ per Mcf)(1)(2)(3) |
3.43 |
4.13 |
3.21 |
||||||||
|
Natural gas derivative settlements - net cash receipts ($ in millions)(2) |
0.5 |
0.1 |
0.2 |
||||||||
|
Selected financial data ($ in millions): |
|||||||||||
|
Revenues: |
|||||||||||
|
Oil revenues |
$ |
361.3 |
$ |
323.4 |
$ |
194.0 |
|||||
|
Natural gas revenues |
34.7 |
40.3 |
24.6 |
||||||||
|
Purchased oil and gas sales |
57.6 |
18.0 |
8.1 |
||||||||
|
Midstream revenues |
29.3 |
27.9 |
15.6 |
||||||||
|
Well services revenues |
18.5 |
11.6 |
11.8 |
||||||||
|
Total revenues |
$ |
501.4 |
$ |
421.2 |
$ |
254.1 |
|||||
|
Net cash provided by operating activities |
303.7 |
228.4 |
102.1 |
||||||||
|
Adjusted EBITDA |
241.2 |
232.9 |
141.3 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE |
$ |
44.1 |
$ |
44.8 |
$ |
44.7 |
|||||
|
Midstream operating expenses |
7.7 |
8.0 |
3.3 |
||||||||
|
Well services operating expenses(4) |
13.6 |
7.4 |
9.0 |
||||||||
|
MT&G(5) |
23.1 |
20.8 |
12.2 |
||||||||
|
Non-cash valuation charges |
(0.2) |
0.2 |
(0.2) |
||||||||
|
Purchased oil and gas expenses |
57.2 |
18.0 |
8.0 |
||||||||
|
Production taxes |
34.0 |
31.0 |
19.0 |
||||||||
|
Depreciation, depletion and amortization ("DD&A") |
153.6 |
149.3 |
125.3 |
||||||||
|
Total select operating expenses |
$ |
333.1 |
$ |
279.5 |
$ |
221.3 |
|||||
|
Select operating expenses data: |
|||||||||||
|
LOE ($ per Boe) |
$ |
6.11 |
$ |
6.48 |
$ |
7.92 |
|||||
|
MT&G ($ per Boe)(5) |
3.19 |
3.01 |
2.14 |
||||||||
|
DD&A ($ per Boe) |
21.24 |
21.59 |
22.23 |
||||||||
|
E&P G&A ($ per Boe) |
3.25 |
3.40 |
3.52 |
||||||||
|
Production taxes (% of oil and gas revenue) |
8.6 |
% |
8.5 |
% |
8.7 |
% | |||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. |
|
(2) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
For the three and six months ended June 30, 2017, well services operating expenses have been adjusted to include $0.9 million and $1.6 million, respectively, for certain well services direct field labor compensation expenses which were previously recognized in general and administrative expenses on the Company's Condensed Consolidated Statements of Operations. |
|
(5) |
Excludes non-cash valuation charges on pipeline imbalances. |
G&A totaled $28.2 million in the second quarter of 2018, $22.6 million in the second quarter of 2017 and $27.9 million in the first quarter of 2018. Amortization of equity-based compensation, which is included in G&A, was $7.4 million, or $1.02 per Boe, in the second quarter of 2018 as compared to $7.1 million, or $1.26 per Boe, in the second quarter of 2017 and $6.8 million, or $0.98 per Boe, in the first quarter of 2018. G&A for the Company's E&P segment totaled $23.5 million in the second quarter of 2018, $19.8 million in the second quarter of 2017 and $23.5 million in the first quarter of 2018.
Impairment loss totaled $384.1 million in the second quarter of 2018 primarily due to an impairment loss of $383.4 million associated with the assets held for sale for the Foreman Butte Divestiture to adjust the carrying value to the estimated fair value less selling costs. Impairment loss totaled $3.2 million in the second quarter of 2017 and $0.1 million in the first quarter of 2018.
Interest expense was $40.9 million for the second quarter of 2018 as compared to $36.8 million for the second quarter of 2017 and $37.1 million for the first quarter of 2018. Capitalized interest totaled $4.2 million for the second quarter of 2018, $2.8 million for the second quarter of 2017 and $4.5 million for the first quarter of 2018. Cash Interest totaled $40.5 million for the second quarter of 2018, $35.5 million for the second quarter of 2017 and $37.2 million for the first quarter of 2018. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended June 30, 2018, the Company recorded an income tax benefit of $101.0 million, resulting in a 24.2% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax expense of $0.8 million, resulting in an 18.2% effective tax rate as a percentage of its pre-tax income for the three months ended March 31, 2018.
For the second quarter of 2018, the Company reported net loss of $320.2 million, or $1.02 per diluted share, as compared to a net income of $16.6 million, or $0.07 per diluted share, for the second quarter of 2017. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $31.2 million, or $0.10 per diluted share, in the second quarter of 2018, as compared to Adjusted Net Loss Attributable to Oasis of $11.2 million, or $0.05 per diluted share, in the second quarter of 2017. For a definition of Adjusted Net Income (Loss) Attributable to Oasis and a reconciliation of net income (loss) attributable to Oasis to Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the second quarter of 2018 was $241.2 million, as compared to Adjusted EBITDA of $141.3 million for the second quarter of 2017. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2018 |
2Q 2018 |
YTD - 2Q 2018 | ||||||||||
|
(In millions) | ||||||||||||
|
CapEx: |
||||||||||||
|
E&P |
$ |
176.9 |
$ |
280.0 |
$ |
456.9 |
||||||
|
Well services |
4.3 |
0.9 |
5.2 |
|||||||||
|
Other(1) |
6.3 |
5.4 |
11.7 |
|||||||||
|
Total CapEx before acquisitions and midstream |
187.5 |
286.3 |
473.8 |
|||||||||
|
Midstream(2) |
88.8 |
68.6 |
157.4 |
|||||||||
|
Total CapEx before acquisitions |
276.3 |
354.9 |
631.2 |
|||||||||
|
Acquisitions |
890.9 |
3.6 |
894.5 |
|||||||||
|
Total CapEx(2) |
$ |
1,167.2 |
$ |
358.5 |
$ |
1,525.7 |
||||||
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
Midstream CapEx attributable to OMP was $19.1 million and $68.6 million for the three and six months ended June 30, 2018, respectively. |
|
(3) |
Total CapEx reflected in the table above differs from the amounts for capital expenditures and acquisitions shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. |
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX WTI for fixed price swaps and two-way and three-way costless collars. The Company's basis swaps for crude oil will settle monthly based on the fixed basis differential from NYMEX WTI to Intercontinental Exchange, Inc. Brent crude oil index price ("ICE Brent"). The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. The Company's basis swaps for natural gas will settle monthly based on the fixed basis differential from Northern Natural Gas Ventura to NYMEX HH. As of August 6, 2018, the Company had the following outstanding commodity derivative contracts:
|
Three Months Ending |
Six Months Ending | |||||||||||||||
|
June 30, 2018 |
December 31, 2018 |
June 30, 2019 |
December 31, 2019 | |||||||||||||
|
Crude Oil (Volume in MBblpd) |
||||||||||||||||
|
Fixed Price Swaps |
||||||||||||||||
|
Volume |
44.2 |
41.5 |
13.0 |
13.0 |
||||||||||||
|
Price |
$ |
52.50 |
$ |
53.00 |
$ |
53.47 |
$ |
53.47 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
3.0 |
3.0 |
2.0 |
2.0 |
||||||||||||
|
Floor |
$ |
48.67 |
$ |
48.67 |
$ |
52.50 |
$ |
52.50 |
||||||||
|
Ceiling |
$ |
53.07 |
$ |
53.07 |
$ |
71.25 |
$ |
71.25 |
||||||||
|
3-Way |
||||||||||||||||
|
Volume |
— |
— |
11.0 |
9.0 |
||||||||||||
|
Sub-Floor |
$ |
— |
$ |
— |
$ |
40.91 |
$ |
40.00 |
||||||||
|
Floor |
$ |
— |
$ |
— |
$ |
51.36 |
$ |
50.56 |
||||||||
|
Ceiling |
$ |
— |
$ |
— |
$ |
69.29 |
$ |
67.80 |
||||||||
|
Total Crude Oil Volume |
47.2 |
44.5 |
26.0 |
24.0 |
||||||||||||
|
Basis Swaps |
||||||||||||||||
|
Volume |
— |
1.0 |
1.0 |
— |
||||||||||||
|
Price |
$ |
— |
$ |
(10.50) |
$ |
(10.50) |
$ |
— |
||||||||
|
Total Crude Oil Basis Volume |
— |
1.0 |
1.0 |
— |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Fixed Price Swaps |
||||||||||||||||
|
Volume |
22,657 |
35,000 |
7,475 |
— |
||||||||||||
|
Price |
$ |
3.05 |
$ |
3.02 |
$ |
2.96 |
$ |
— |
||||||||
|
Total Natural Gas Volume |
22,657 |
35,000 |
7,475 |
— |
||||||||||||
|
Basis Swaps |
||||||||||||||||
|
Volume |
— |
6,630 |
10,000 |
— |
||||||||||||
|
Price |
$ |
— |
$ |
(0.06) |
$ |
(0.06) |
$ |
— |
||||||||
|
Total Natural Gas Basis Volume |
— |
6,630 |
10,000 |
— |
||||||||||||
The June 2018 crude oil derivative contracts settled at a net $21.1 million paid in July 2018 and will be included in the Company's third quarter 2018 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, August 7, 2018 | |
|
Time: |
10:00 a.m. Central Time | |
|
Live Webcast: |
https://www.webcaster4.com/Webcast/Page/1052/26757 | |
|
Website: |
www.oasispetroleum.com |
Sell-side analysts wishing to ask a question may use the following dial-in:
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
5291635 |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, August 14, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10122703 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. Condensed Consolidated Balance Sheets (Unaudited) | |||||||
|
June 30, 2018 |
December 31, 2017 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
17,072 |
$ |
16,720 |
|||
|
Accounts receivable, net |
378,080 |
363,580 |
|||||
|
Inventory |
23,222 |
19,367 |
|||||
|
Prepaid expenses |
5,874 |
7,631 |
|||||
|
Derivative instruments |
— |
344 |
|||||
|
Intangible assets, net |
625 |
— |
|||||
|
Other current assets |
82 |
193 |
|||||
|
Total current assets |
424,955 |
407,835 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
8,424,834 |
7,838,955 |
|||||
|
Other property and equipment |
1,024,104 |
868,746 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,691,697) |
(2,534,215) |
|||||
|
Total property, plant and equipment, net |
6,757,241 |
6,173,486 |
|||||
|
Assets held for sale, net |
250,118 |
— |
|||||
|
Derivative instruments |
25 |
9 |
|||||
|
Long-term inventory |
12,505 |
12,200 |
|||||
|
Other assets |
20,491 |
21,600 |
|||||
|
Total assets |
$ |
7,465,335 |
$ |
6,615,130 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
29,988 |
$ |
13,370 |
|||
|
Revenues and production taxes payable |
246,215 |
213,995 |
|||||
|
Accrued liabilities |
320,508 |
236,480 |
|||||
|
Accrued interest payable |
36,971 |
38,963 |
|||||
|
Derivative instruments |
194,810 |
115,716 |
|||||
|
Advances from joint interest partners |
3,983 |
4,916 |
|||||
|
Other current liabilities |
40 |
40 |
|||||
|
Total current liabilities |
832,515 |
623,480 |
|||||
|
Long-term debt |
2,757,481 |
2,097,606 |
|||||
|
Deferred income taxes |
205,628 |
305,921 |
|||||
|
Asset retirement obligations |
49,743 |
48,511 |
|||||
|
Liabilities held for sale |
4,181 |
— |
|||||
|
Derivative instruments |
35,007 |
19,851 |
|||||
|
Other liabilities |
6,529 |
6,182 |
|||||
|
Total liabilities |
3,891,084 |
3,101,551 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 320,010,534 shares issued and 317,985,056 shares outstanding at June 30, 2018 and 270,627,014 shares issued and 269,295,466 shares outstanding at December 31, 2017 |
3,154 |
2,668 |
|||||
|
Treasury stock, at cost: 2,025,478 and 1,331,548 shares at June 30, 2018 and December 31, 2017, respectively |
(28,243) |
(22,179) |
|||||
|
Additional paid-in capital |
3,062,861 |
2,677,217 |
|||||
|
Retained earnings |
398,371 |
717,985 |
|||||
|
Oasis share of stockholders' equity |
3,436,143 |
3,375,691 |
|||||
|
Non-controlling interests |
138,108 |
137,888 |
|||||
|
Total stockholders' equity |
3,574,251 |
3,513,579 |
|||||
|
Total liabilities and stockholders' equity |
$ |
7,465,335 |
$ |
6,615,130 |
|||
|
Oasis Petroleum Inc. Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
395,921 |
$ |
218,633 |
$ |
759,592 |
$ |
455,885 |
|||||||
|
Purchased oil and gas sales |
57,578 |
8,091 |
75,615 |
35,722 |
|||||||||||
|
Midstream revenues |
29,342 |
15,566 |
57,264 |
30,172 |
|||||||||||
|
Well services revenues |
18,496 |
11,801 |
30,082 |
17,428 |
|||||||||||
|
Total revenues |
501,337 |
254,091 |
922,553 |
539,207 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
44,141 |
44,665 |
88,922 |
88,537 |
|||||||||||
|
Midstream operating expenses |
7,688 |
3,263 |
15,673 |
6,590 |
|||||||||||
|
Well services operating expenses |
13,560 |
9,010 |
20,947 |
13,570 |
|||||||||||
|
Marketing, transportation and gathering expenses |
22,833 |
12,039 |
43,846 |
22,990 |
|||||||||||
|
Purchased oil and gas expenses |
57,165 |
7,980 |
75,163 |
35,982 |
|||||||||||
|
Production taxes |
34,026 |
18,971 |
65,026 |
39,270 |
|||||||||||
|
Depreciation, depletion and amortization |
153,570 |
125,291 |
302,835 |
251,957 |
|||||||||||
|
Exploration expenses |
617 |
1,667 |
1,386 |
3,156 |
|||||||||||
|
Impairment |
384,135 |
3,200 |
384,228 |
5,882 |
|||||||||||
|
General and administrative expenses |
28,230 |
22,626 |
56,170 |
45,802 |
|||||||||||
|
Total operating expenses |
745,965 |
248,712 |
1,054,196 |
513,736 |
|||||||||||
|
Gain on sale of properties |
1,954 |
— |
1,954 |
— |
|||||||||||
|
Operating income (loss) |
(242,674) |
5,379 |
(129,689) |
25,471 |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
(120,285) |
50,532 |
(191,401) |
106,607 |
|||||||||||
|
Interest expense, net of capitalized interest |
(40,910) |
(36,838) |
(78,056) |
(73,159) |
|||||||||||
|
Loss on extinguishment of debt |
(13,651) |
— |
(13,651) |
— |
|||||||||||
|
Other income (expense) |
218 |
(166) |
35 |
(150) |
|||||||||||
|
Total other income (expense) |
(174,628) |
13,528 |
(283,073) |
33,298 |
|||||||||||
|
Income (loss) before income taxes |
(417,302) |
18,907 |
(412,762) |
58,769 |
|||||||||||
|
Income tax benefit (expense) |
101,001 |
(2,339) |
100,173 |
(18,376) |
|||||||||||
|
Net income (loss) including non-controlling interests |
(316,301) |
16,568 |
(312,589) |
40,393 |
|||||||||||
|
Less: Net income attributable to non-controlling interests |
3,903 |
— |
7,025 |
— |
|||||||||||
|
Net income (loss) attributable to Oasis |
$ |
(320,204) |
$ |
16,568 |
$ |
(319,614) |
$ |
40,393 |
|||||||
|
Earnings (loss) attributable to Oasis per share: |
|||||||||||||||
|
Basic |
$ |
(1.02) |
$ |
0.07 |
$ |
(1.06) |
$ |
0.17 |
|||||||
|
Diluted |
(1.02) |
0.07 |
(1.06) |
0.17 |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
313,072 |
233,283 |
301,652 |
233,176 |
|||||||||||
|
Diluted |
313,072 |
234,917 |
301,652 |
236,281 |
|||||||||||
|
Oasis Petroleum Inc. Selected Financial and Operational Statistics (Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil revenues |
$ |
361,255 |
$ |
194,005 |
$ |
684,641 |
$ |
402,599 |
|||||||
|
Natural gas revenues |
34,666 |
24,628 |
74,951 |
53,286 |
|||||||||||
|
Purchased oil and gas sales |
57,578 |
8,091 |
75,615 |
35,722 |
|||||||||||
|
Midstream revenues |
29,342 |
15,566 |
57,264 |
30,172 |
|||||||||||
|
Well services revenues |
18,496 |
11,801 |
30,082 |
17,428 |
|||||||||||
|
Total revenues |
$ |
501,337 |
$ |
254,091 |
$ |
922,553 |
$ |
539,207 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
5,517 |
4,349 |
10,802 |
8,785 |
|||||||||||
|
Natural gas (MMcf) |
10,268 |
7,725 |
20,045 |
15,237 |
|||||||||||
|
Oil equivalents (MBoe) |
7,229 |
5,637 |
14,142 |
11,324 |
|||||||||||
|
Average daily production (Boe per day) |
79,437 |
61,943 |
78,135 |
62,564 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
65.47 |
$ |
44.61 |
$ |
63.38 |
$ |
45.83 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1) |
54.53 |
44.35 |
54.36 |
44.79 |
|||||||||||
|
Natural gas, without derivative settlements (per Mcf)(2) |
3.38 |
3.19 |
3.74 |
3.50 |
|||||||||||
|
Natural gas, with derivative settlements (per Mcf)(1)(2) |
3.43 |
3.21 |
3.77 |
3.51 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
6.11 |
$ |
7.92 |
$ |
6.29 |
$ |
7.82 |
|||||||
|
MT&G(3) |
3.19 |
2.17 |
3.10 |
1.97 |
|||||||||||
|
Production taxes |
4.71 |
3.37 |
4.60 |
3.47 |
|||||||||||
|
Depreciation, depletion and amortization |
21.24 |
22.23 |
21.41 |
22.25 |
|||||||||||
|
G&A(4) |
3.91 |
4.01 |
3.97 |
4.04 |
|||||||||||
|
E&P G&A |
3.25 |
3.52 |
3.32 |
3.53 |
|||||||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
(4) |
For the three and six months ended June 30, 2018, well services operating expenses have been adjusted to include $0.9 million and $1.6 million, respectively, for certain well services direct field labor compensation expenses which were previously recognized in general and administrative expenses on the Company's Condensed Consolidated Statements of Operations. |
|
Oasis Petroleum Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
|
Six Months Ended June 30, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net income (loss) including non-controlling interests |
$ |
(312,589) |
$ |
40,393 |
|||
|
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
302,835 |
251,957 |
|||||
|
Loss on extinguishment of debt |
13,651 |
— |
|||||
|
Gain on sale of properties |
(1,954) |
— |
|||||
|
Impairment |
384,228 |
5,882 |
|||||
|
Deferred income taxes |
(100,293) |
18,376 |
|||||
|
Derivative instruments |
191,401 |
(106,607) |
|||||
|
Equity-based compensation expenses |
14,130 |
13,823 |
|||||
|
Deferred financing costs amortization and other |
10,518 |
8,871 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable, net |
(5,866) |
(13,743) |
|||||
|
Change in inventory |
(4,721) |
(1,007) |
|||||
|
Change in prepaid expenses |
573 |
(264) |
|||||
|
Change in other current assets |
111 |
280 |
|||||
|
Change in long-term inventory and other assets |
(381) |
(8,768) |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
40,849 |
11,158 |
|||||
|
Change in other current liabilities |
— |
(10,490) |
|||||
|
Change in other liabilities |
(476) |
— |
|||||
|
Net cash provided by operating activities |
532,016 |
209,861 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(536,959) |
(252,461) |
|||||
|
Acquisitions |
(524,255) |
— |
|||||
|
Proceeds from sale of properties |
2,236 |
4,000 |
|||||
|
Derivative settlements |
(96,823) |
(8,899) |
|||||
|
Advances from joint interest partners |
(933) |
(1,781) |
|||||
|
Net cash used in investing activities |
(1,156,734) |
(259,141) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from Revolving Credit Facilities |
1,933,000 |
484,000 |
|||||
|
Principal payments on Revolving Credit Facilities |
(1,265,000) |
(429,000) |
|||||
|
Repurchase of senior unsecured notes |
(423,143) |
— |
|||||
|
Proceeds from issuance of senior unsecured notes |
400,000 |
— |
|||||
|
Deferred financing costs |
(6,790) |
— |
|||||
|
Purchases of treasury stock |
(6,064) |
(5,451) |
|||||
|
Distributions to non-controlling interests |
(6,846) |
— |
|||||
|
Other |
(87) |
(55) |
|||||
|
Net cash provided by financing activities |
625,070 |
49,494 |
|||||
|
Increase in cash and cash equivalents |
352 |
214 |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
16,720 |
11,226 |
|||||
|
End of period |
$ |
17,072 |
$ |
11,440 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
90,040 |
$ |
19,017 |
|||
|
Change in asset retirement obligations |
5,407 |
1,759 |
|||||
|
Issuance of shares in connection with the Permian Basin Acquisition |
371,220 |
— |
|||||
|
Installment notes from acquisition |
— |
4,875 |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
40,910 |
$ |
36,838 |
$ |
78,056 |
$ |
73,159 |
|||||||
|
Capitalized interest |
4,227 |
2,816 |
8,678 |
5,636 |
|||||||||||
|
Amortization of deferred financing costs |
(1,937) |
(1,709) |
(3,698) |
(3,399) |
|||||||||||
|
Amortization of debt discount |
(2,731) |
(2,480) |
(5,349) |
(4,835) |
|||||||||||
|
Cash Interest |
$ |
40,469 |
$ |
35,465 |
$ |
77,687 |
$ |
70,561 |
|||||||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Net income (loss) including non-controlling interests |
$ |
(316,301) |
$ |
16,568 |
$ |
(312,589) |
$ |
40,393 |
||||||||
|
Gain on sale of properties |
(1,954) |
— |
(1,954) |
— |
||||||||||||
|
Loss on extinguishment of debt |
13,651 |
— |
13,651 |
— |
||||||||||||
|
Net (gain) loss on derivative instruments |
120,285 |
(50,532) |
191,401 |
(106,607) |
||||||||||||
|
Derivative settlements(1) |
(59,849) |
(939) |
(96,823) |
(8,899) |
||||||||||||
|
Interest expense, net of capitalized interest |
40,910 |
36,838 |
78,056 |
73,159 |
||||||||||||
|
Depreciation, depletion and amortization |
153,570 |
125,291 |
302,835 |
251,957 |
||||||||||||
|
Impairment |
384,135 |
3,200 |
384,228 |
5,882 |
||||||||||||
|
Exploration expenses |
617 |
1,667 |
1,386 |
3,156 |
||||||||||||
|
Equity-based compensation expenses |
7,376 |
7,115 |
14,130 |
13,823 |
||||||||||||
|
Income tax (benefit) expense |
(101,001) |
2,339 |
(100,173) |
18,376 |
||||||||||||
|
Other non-cash adjustments |
(226) |
(213) |
(17) |
699 |
||||||||||||
|
Adjusted EBITDA |
241,213 |
141,334 |
474,131 |
291,939 |
||||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
5,148 |
— |
9,452 |
— |
||||||||||||
|
Adjusted EBITDA attributable to Oasis |
236,065 |
141,334 |
464,679 |
291,939 |
||||||||||||
|
Cash Interest |
(40,469) |
(35,465) |
(77,687) |
(70,561) |
||||||||||||
|
Capital expenditures(2) |
(358,534) |
(172,975) |
(1,525,762) |
(282,770) |
||||||||||||
|
Capitalized interest |
4,227 |
2,816 |
8,678 |
5,636 |
||||||||||||
|
Free Cash Flow |
$ |
(158,711) |
$ |
(64,290) |
$ |
(1,130,092) |
$ |
(55,756) |
||||||||
|
Net cash provided by operating activities |
$ |
303,657 |
$ |
102,062 |
$ |
532,016 |
$ |
209,861 |
||||||||
|
Derivative settlements(1) |
(59,849) |
(939) |
(96,823) |
(8,899) |
||||||||||||
|
Interest expense, net of capitalized interest |
40,910 |
36,838 |
78,056 |
73,159 |
||||||||||||
|
Exploration expenses |
617 |
1,667 |
1,386 |
3,156 |
||||||||||||
|
Deferred financing costs amortization and other |
(5,043) |
(3,931) |
(10,518) |
(8,871) |
||||||||||||
|
Current tax expense |
120 |
— |
120 |
— |
||||||||||||
|
Changes in working capital |
(38,973) |
5,850 |
(30,089) |
22,834 |
||||||||||||
|
Other non-cash adjustments |
(226) |
(213) |
(17) |
699 |
||||||||||||
|
Adjusted EBITDA |
241,213 |
141,334 |
474,131 |
291,939 |
||||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
5,148 |
— |
9,452 |
— |
||||||||||||
|
Adjusted EBITDA attributable to Oasis |
236,065 |
141,334 |
464,679 |
291,939 |
||||||||||||
|
Cash Interest |
(40,469) |
(35,465) |
(77,687) |
(70,561) |
||||||||||||
|
Capital expenditures(2) |
(358,534) |
(172,975) |
(1,525,762) |
(282,770) |
||||||||||||
|
Capitalized interest |
4,227 |
2,816 |
8,678 |
5,636 |
||||||||||||
|
Free Cash Flow |
$ |
(158,711) |
$ |
(64,290) |
$ |
(1,130,092) |
$ |
(55,756) |
||||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in our condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. Acquisitions totaled $3.5 million and $2.2 million for the three months ended June 30, 2018 and 2017, respectively, and $894.5 million and $4.8 million for the six months ended June 30, 2018 and 2017, respectively. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for our three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | ||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Income (loss) before income taxes including non-controlling interests |
$ |
(454,662) |
$ |
(3,900) |
$ |
(482,847) |
$ |
16,836 |
||||||||
|
Gain on sale of properties |
(1,954) |
— |
(1,954) |
— |
||||||||||||
|
Loss on extinguishment of debt |
13,651 |
— |
13,651 |
— |
||||||||||||
|
Net (gain) loss on derivative instruments |
120,285 |
(50,532) |
191,401 |
(106,607) |
||||||||||||
|
Derivative settlements(1) |
(59,849) |
(939) |
(96,823) |
(8,899) |
||||||||||||
|
Interest expense, net of capitalized interest |
40,727 |
36,838 |
77,611 |
73,159 |
||||||||||||
|
Depreciation, depletion and amortization |
149,250 |
122,785 |
294,454 |
247,193 |
||||||||||||
|
Impairment |
384,135 |
3,200 |
384,228 |
5,882 |
||||||||||||
|
Exploration expenses |
617 |
1,667 |
1,386 |
3,156 |
||||||||||||
|
Equity-based compensation expenses |
7,012 |
6,897 |
13,463 |
13,395 |
||||||||||||
|
Other non-cash adjustments |
(226) |
(213) |
(17) |
699 |
||||||||||||
|
Adjusted EBITDA |
$ |
198,986 |
$ |
115,803 |
$ |
394,553 |
$ |
244,814 |
||||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Midstream Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes including non-controlling interests |
$ |
37,815 |
$ |
23,106 |
$ |
69,796 |
$ |
43,867 |
|||||||
|
Interest expense, net of capitalized interest |
183 |
— |
445 |
— |
|||||||||||
|
Depreciation, depletion and amortization |
6,900 |
3,753 |
13,529 |
7,211 |
|||||||||||
|
Equity-based compensation expenses |
409 |
365 |
780 |
713 |
|||||||||||
|
Adjusted EBITDA |
$ |
45,307 |
$ |
27,224 |
$ |
84,550 |
$ |
51,791 |
|||||||
|
Well Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes including non-controlling interests |
$ |
8,051 |
$ |
1,950 |
$ |
16,158 |
$ |
(1,637) |
|||||||
|
Depreciation, depletion and amortization |
3,930 |
3,057 |
7,619 |
6,222 |
|||||||||||
|
Equity-based compensation expenses |
409 |
338 |
795 |
734 |
|||||||||||
|
Adjusted EBITDA |
$ |
12,390 |
$ |
5,345 |
$ |
24,572 |
$ |
5,319 |
|||||||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) attributable to Oasis |
$ |
(320,204) |
$ |
16,568 |
$ |
(319,614) |
$ |
40,393 |
|||||||
|
Gain on sale of properties |
(1,954) |
— |
(1,954) |
— |
|||||||||||
|
Loss on extinguishment of debt |
13,651 |
— |
13,651 |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
120,285 |
(50,532) |
191,401 |
(106,607) |
|||||||||||
|
Derivative settlements(1) |
(59,849) |
(939) |
(96,823) |
(8,899) |
|||||||||||
|
Impairment |
384,135 |
3,200 |
384,228 |
5,882 |
|||||||||||
|
Amortization of deferred financing costs |
1,937 |
1,709 |
3,698 |
3,399 |
|||||||||||
|
Amortization of debt discount |
2,731 |
2,480 |
5,349 |
4,835 |
|||||||||||
|
Other non-cash adjustments |
(226) |
(213) |
(17) |
699 |
|||||||||||
|
Tax impact(2) |
(109,356) |
16,575 |
(118,571) |
37,679 |
|||||||||||
|
Adjusted Net Income (Loss) Attributable to Oasis |
$ |
31,150 |
$ |
(11,152) |
$ |
61,348 |
$ |
(22,619) |
|||||||
|
Diluted earnings (loss) attributable to Oasis per share |
$ |
(1.02) |
$ |
0.07 |
$ |
(1.06) |
$ |
0.20 |
|||||||
|
Gain on sale of properties |
(0.01) |
— |
(0.01) |
— |
|||||||||||
|
Loss on extinguishment of debt |
0.04 |
— |
0.04 |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
0.38 |
(0.22) |
0.63 |
(0.46) |
|||||||||||
|
Derivative settlements(1) |
(0.19) |
— |
(0.32) |
(0.04) |
|||||||||||
|
Impairment |
1.23 |
0.01 |
1.26 |
0.03 |
|||||||||||
|
Amortization of deferred financing costs |
0.01 |
0.01 |
0.01 |
0.01 |
|||||||||||
|
Amortization of debt discount |
0.01 |
0.01 |
0.02 |
0.02 |
|||||||||||
|
Other non-cash adjustments |
— |
— |
— |
— |
|||||||||||
|
Tax impact(2) |
(0.35) |
0.07 |
(0.37) |
0.16 |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share |
$ |
0.10 |
$ |
(0.05) |
$ |
0.20 |
$ |
(0.08) |
|||||||
|
Diluted weighted average shares outstanding(3) |
315,664 |
233,283 |
304,859 |
233,176 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
23.7 |
% |
37.4 |
% |
23.7 |
% |
37.4 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
|
(3) |
No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three and six months ended June 30, 2017 because the effect was anti-dilutive due to Adjusted Net Loss. For the three and six months ended June 30, 2018, the Company included 2,592,000 and 3,207,000 of unvested stock awards in computing Adjusted Diluted Income Attributable to Oasis Per Share for the three and six months ended June 30, 2018, respectively, due to the dilutive effect under the treasury stock method. |
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-june-30-2018-earnings-300692621.html
SOURCE Oasis Petroleum Inc.
Article Date
8/6/2018Oasis Petroleum Inc. Announces Early Results Of Cash Tender Offers For Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, May 14, 2018 /PRNewswire/ -- Oasis Petroleum Inc. ("Oasis") (NYSE: OAS) announced today the results to date of its previously announced cash tender offers (the "Tender Offers") for Oasis's outstanding 7.25% Senior Notes due 2019 (the "2019 Notes"), 6.5% Senior Notes due 2021 (the "2021 Notes"), 6.875% Senior Notes due 2022 (the "2022 Notes") and 6.875% Senior Notes due 2023 (the "2023 Notes" and, collectively with the 2019 Notes, 2021 Notes and 2022 Notes, the "Notes"), upon the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated April 30, 2018 (the "Offer to Purchase and Consent Solicitation"). In conjunction with certain of the Tender Offers, Oasis also commenced solicitations (each a "Consent Solicitation" and, collectively, the "Consent Solicitations") of consents (each a "Consent" and, collectively, the "Consents") from holders of the 2019 Notes, the 2021 Notes and the 2022 Notes to amend certain provisions (the "Proposed Amendments") of the applicable indentures governing the notes of such series.
According to information received from Global Bondholder Services Corporation, the tender agent and information agent for the Tender Offers, as of 5:00 p.m., New York time, on May 11, 2018 (the "Early Tender Date"), Oasis had received valid tenders from holders of Notes (with Consents that were delivered, if applicable) that were not validly withdrawn (or Consents revoked) as set forth in the table below.
|
Title of Notes |
CUSIP Number(1) |
Aggregate Principal Amount Outstanding Prior to Tender Offers |
Aggregate Principal Amount of Notes Tendered |
Acceptance Priority Level |
Tender Offer Consideration (2) |
Early Tender Premium (2) |
Total Consideration (2)(3) |
|
7.25% Senior Notes due 2019 |
674215AC2 |
$54,275,000 |
$31,301,000 (4)(5) |
1 |
$973.75 |
$30.00 |
$1,003.75 |
|
6.50% Senior Notes due 2021 |
674215AD0 |
$395,501,000 |
$323,666,000 (4)(5) |
2 |
$995.00 |
$30.00 |
$1,025.00 |
|
6.875% Senior Notes due 2022 |
674215AG3 |
$937,080,000 |
$666,555,000(4) |
3 |
$1,004.38 |
$30.00 |
$1,034.38 |
|
6.875% Senior Notes due 2023* |
674215AE8 |
$366,094,000 |
$191,045,000 |
4 |
$1,000.50 |
$30.00 |
$1,030.50 |
|
* |
The 2023 Notes do not have a related Consent Solicitation. |
|
(1) |
No representation is made as to the correctness or accuracy of the CUSIP Numbers listed above in the Offer to Purchase and Consent Solicitation or the accompanying Letter of Transmittal and Consent or printed on the Notes. They are provided solely for the convenience of holders of the Notes. |
|
(2) |
Per $1,000 principal amount of Notes validly tendered (and not validly withdrawn) and accepted for purchase by Oasis. |
|
(3) |
Includes the Early Tender Premium (as defined in the Offer to Purchase and Consent Solicitation) for Notes validly tendered prior to the Early Tender Date (and not validly withdrawn) and accepted for purchase by Oasis. |
|
(4) |
Includes the related Consents. |
|
(5) |
The Requisite Consent (as defined in the Offer to Purchase and Consent Solicitation) was received for this series of Notes. |
The Tender Offers and the Consent Solicitations will expire at 11:59 p.m., New York City time, at the end of the day on May 25, 2018, unless extended or earlier terminated by Oasis (such date and time, as it may be extended, the "Expiration Date"). No tenders of Notes or deliveries of related Consents submitted after the Expiration Date will be valid. The deadline for holders to validly withdraw tenders of Notes (or revoke Consents) has passed. Accordingly, Notes that were already tendered (with Consents that were delivered, if applicable) at or before the Early Tender Date may not be withdrawn or revoked, except as required by applicable law.
Because the aggregate principal amount of the Notes tendered at or prior to the Early Tender Date would result in an Aggregate Purchase Price (as defined in the Offer to Purchase and Consent Solicitation) that exceeds $400 million, or the Aggregate Maximum Tender Amount (as defined in the Offer to Purchase and Consent Solicitation), the Notes that were validly tendered and not validly withdrawn at or prior to the Early Tender Date will be prorated and accepted for purchase, and Oasis will not accept for purchase any additional Notes tendered after the Early Tender Date. Subject to the satisfaction or waiver of all remaining conditions to the Tender Offers described in the Offer to Purchase and Consent Solicitation having been either satisfied or waived by Oasis, Oasis intends to accept for purchase (i) all tendered 2019 Notes, (ii) all tendered 2021 Notes, (iii) $35.6 million of tendered 2022 Notes, based on a proration factor of approximately 5.4%, and (iv) no 2023 Notes.
Notes will be purchased on the "Early Settlement Date," which is currently expected to occur later today. The Financing Condition (as defined in the Offer to Purchase and Consent Solicitation) with respect to the Tender Offers is expected to be satisfied later today upon the closing of Oasis's previously announced offering of $400 million in aggregate principal amount of 6.25% Senior Notes due 2026 (the "Debt Financing").
In addition, the Requisite Consents (as defined in the Offer to Purchase and Consent Solicitation) to effect the Proposed Amendments (as defined in the Offer to Purchase and Consent Solicitation) with respect to the 2019 Notes and 2021 Notes have been received. Accordingly, Oasis expects that later today, Oasis, the subsidiary guarantors party to the applicable Indenture governing such Notes and the Trustee will execute and deliver a supplement to each such Indenture (the "Supplemental Indentures") with respect to the Proposed Amendments. The Supplemental Indentures will become effective upon execution, but will provide that the Proposed Amendments will not become operative unless Oasis accepts the 2019 Notes and 2021 Notes satisfying the Requisite Consents required for purchase in the applicable Tender Offer. As a result of the proration of the 2022 Notes, the Consents delivered related to the 2022 Notes will be null and void, and accordingly the Indentures related to the 2022 Notes will remain in effect in its present form.
Oasis intends later today to give notice that it will redeem all of its outstanding 2019 Notes not tendered in the Tender Offers at a redemption price of 100% of the principal amount of such 2019 Notes, plus accrued interest to the redemption date. The redemption of the remaining 2019 Notes is scheduled to occur on May 29, 2018.
Full details of the terms and conditions of the Tender Offers and the Consent Solicitations are described in the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent, which were sent by Oasis to holders of the Notes. Holders of the Notes are encouraged to read these documents as they contain important information regarding the Tender Offers and the Consent Solicitations.
Oasis has retained Wells Fargo Securities, LLC and Citigroup Global Markets Inc. to act as the lead dealer managers for the Tender Offers and the lead solicitation agents for the Consent Solicitations. Questions or requests for assistance regarding the terms of the Tender Offers and the Consent Solicitations should be directed to Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or Citigroup Global Markets Inc. at (800) 558-3745 (toll-free). Requests for the Offer to Purchase and Consent Solicitation and other documents relating to the Tender Offers and the Consent Solicitations may be directed to Global Bondholder Services Corporation, the tender agent and information agent for the Tender Offers, at (866) 470-3700 or by email at contact@gbsc-usa.com.
None of Oasis, its board of directors or officers, the dealer managers, the solicitation agents, the tender agent and information agent or the trustees with respect to the Notes or any of their respective affiliates is making any recommendation as to whether holders should tender any Notes in response to the Tender Offers or deliver any Consents pursuant to the Consent Solicitations. Holders must make their own decision as to whether to tender their Notes and, if applicable, to deliver their Consents, and, if so, the principal amount of Notes as to which action is to be taken.
The Tender Offers and the Consent Solicitations are only being made pursuant to the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent. This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes in the Tender Offers. The Tender Offers and the Consent Solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers and the Consent Solicitations are required to be made by a licensed broker or dealer, the Tender Offers and the Consent Solicitations will be deemed to be made on behalf of Oasis by the dealer managers and solicitation agents, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
Forward-Looking Disclosure Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Oasis expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the Tender Offers and the Consents Solicitations and the intended use of proceeds or other aspects of the Debt Financing. These statements are based on certain assumptions made by Oasis based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Oasis, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as Oasis's ability to access them, the proximity to and capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Oasis's business and other important factors that could cause actual results to differ materially from those projected as described in Oasis's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and Oasis undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-early-results-of-cash-tender-offers-for-senior-notes-300647445.html
SOURCE Oasis Petroleum Inc.
Article Date
5/14/2018Oasis Petroleum Inc. Announces Quarter Ended March 31, 2018 Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, May 7, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended March 31, 2018 and provided an operational update.
Recent Highlights:
"Oasis delivered a formidable start to the year by growing volumes to 76,800 Boe per day in the first quarter while maintaining top tier capital efficiency and recycle ratio," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Our strong start to the year enables the company to stand by its projection of being free cash flow positive on our E&P business for the year, while continuing to grow volumes 15% to 20% year over year. Internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points. This combination resulted in reduced downtime and per barrel operating costs in spite of abnormally difficult winter conditions. Also, our access to liquid marketing points as a result of strategic investments in our integrated midstream infrastructure continue to help us realize improved price differentials. We closed the Permian Basin Acquisition on February 14, 2018 and we have now taken over operations. Expansion of our service partnerships developed in the Williston Basin has helped us secure critical services at market competitive prices. Continued positive results of our wells and offsets give us confidence in our plan. Our completion cadence is on track, if not a little ahead, and we have secured a second rig for the Permian which should spud by the end of May. We have increased our full year guidance to 81.0 to 84.0 MBoepd and expect production in the second quarter of 2018 to be 76.0 to 80.5 MBoepd, with the Williston being between 72.5 and 76.5 MBoepd and the Delaware being around 3.5 to 4.0 MBoepd."
Operating Guidance Update
The following table presents actual results for the first quarter of 2018 as well as updated full year 2018 guidance for certain operating data:
|
Metric |
1Q 2018 Actual |
Prior |
Updated | ||
|
Production (MBoepd) |
76.8 |
80.0 - 83.0 |
81.0 - 84.0 | ||
|
Differential to WTI ($ per Bbl) |
$1.67 |
$1.50 - $2.00 |
$1.50 - $2.00 | ||
|
LOE ($ per Boe) |
$6.48 |
$7.00 - $7.50 |
$6.50 - $7.50 | ||
|
Marketing, transportation and gathering expenses ("MT&G") ($ per Boe)(1) |
$3.01 |
$2.75 - $3.00 |
$2.75 - $3.00 | ||
|
Production taxes (% of oil & gas revenue) |
8.5% |
8.1% - 8.4% |
8.2% - 8.5% | ||
|
General and administrative expenses ("G&A") ($ in millions) |
$27.9 |
$105.0 - $115.0 |
$105.0 - $115.0 | ||
|
CapEx ($ in millions) |
|||||
|
E&P CapEx |
$176.9 |
$815.0 - $855.0 |
$815.0 - $855.0 | ||
|
OMS and OWS CapEx |
$93.1 |
$235.0 - $275.0 |
$235.0 - $275.0 | ||
|
Other CapEx |
$6.3 |
$40.0 |
$40.0 |
|
(1) |
Excludes non-cash valuation charges on pipeline imbalances. |
Operational and Financial Update
The following table presents select operational and financial data for the periods presented:
|
Quarter Ended: | |||||||||||
|
3/31/2018 |
12/31/2017 |
3/31/2017 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
58,713 |
57,238 |
49,281 |
||||||||
|
Natural gas (MMcfpd) |
108,635 |
95,812 |
83,470 |
||||||||
|
Total production (Boepd) |
76,819 |
73,207 |
63,192 |
||||||||
|
Percent Oil |
76.4 |
% |
78.2 |
% |
78.0 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements ($ per Bbl) |
$ |
61.20 |
$ |
54.97 |
$ |
47.03 |
|||||
|
Differential to WTI ($ per Bbl) |
1.67 |
0.50 |
4.88 |
||||||||
|
Oil, with derivative settlements ($ per Bbl)(1)(2) |
54.18 |
53.41 |
45.24 |
||||||||
|
Oil derivative settlements - net cash payments ($ in millions)(2) |
(37.1) |
(8.2) |
(8.0) |
||||||||
|
Natural gas, without derivative settlements ($ per Mcf)(3) |
4.12 |
4.64 |
3.81 |
||||||||
|
Natural gas, with derivative settlements ($ per Mcf)(1)(2)(3) |
4.13 |
4.72 |
3.82 |
||||||||
|
Natural gas derivative settlements - net cash receipts ($ in millions)(2) |
0.1 |
0.7 |
— |
||||||||
|
Selected financial data ($ in millions): |
|||||||||||
|
Revenues: |
|||||||||||
|
Oil revenues |
$ |
323.4 |
$ |
289.5 |
$ |
208.6 |
|||||
|
Natural gas revenues |
40.3 |
40.9 |
28.7 |
||||||||
|
Purchased oil and gas sales |
18.0 |
31.1 |
27.6 |
||||||||
|
Midstream revenues |
27.9 |
23.8 |
14.6 |
||||||||
|
Well services revenues |
11.6 |
19.2 |
5.6 |
||||||||
|
Total revenues |
$ |
421.2 |
$ |
404.5 |
$ |
285.1 |
|||||
|
Net cash provided by operating activities |
228.4 |
209.1 |
107.8 |
||||||||
|
Adjusted EBITDA |
232.9 |
236.2 |
150.6 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE |
$ |
44.8 |
$ |
43.3 |
$ |
43.9 |
|||||
|
Midstream operating expenses |
8.0 |
6.7 |
3.3 |
||||||||
|
Well services operating expenses(5) |
7.4 |
13.4 |
4.6 |
||||||||
|
MT&G(4) |
20.8 |
19.0 |
10.1 |
||||||||
|
Non-cash valuation charges |
0.2 |
(1.3) |
0.9 |
||||||||
|
Purchased oil and gas expenses |
18.0 |
31.6 |
28.0 |
||||||||
|
Production taxes |
31.0 |
27.8 |
20.3 |
||||||||
|
Depreciation, depletion and amortization ("DD&A") |
149.3 |
146.6 |
126.7 |
||||||||
|
Total select operating expenses |
$ |
279.5 |
$ |
287.1 |
$ |
237.8 |
|||||
|
Select operating expenses data: |
|||||||||||
|
LOE ($ per Boe) |
$ |
6.48 |
$ |
6.42 |
$ |
7.71 |
|||||
|
MT&G ($ per Boe)(4) |
3.01 |
2.83 |
1.77 |
||||||||
|
DD&A ($ per Boe) |
21.59 |
21.76 |
22.27 |
||||||||
|
E&P G&A ($ per Boe) |
3.40 |
2.93 |
3.54 |
||||||||
|
Production taxes (% of oil and gas revenue) |
8.5 |
% |
8.4 |
% |
8.6 |
% | |||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. |
|
(2) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
(5) |
For the three months ended March 31, 2017, well services operating expenses have been adjusted to include $0.7 million for certain well services direct field labor compensation expenses which were previously recognized in general and administrative expenses on the Company's Condensed Consolidated Statements of Operations. |
G&A totaled $27.9 million in the first quarter of 2018, $23.2 million in the first quarter of 2017 and $24.6 million in the fourth quarter of 2017. Amortization of equity-based compensation, which is included in G&A, was $6.8 million, or $0.98 per Boe, in the first quarter of 2018 as compared to $6.7 million, or $1.18 per Boe, in the first quarter of 2017 and $6.1 million, or $0.90 per Boe, in the fourth quarter of 2017. G&A for the Company's E&P segment totaled $23.5 million in the first quarter of 2018, $20.1 million in the first quarter of 2017 and $19.7 million in the fourth quarter of 2017.
Interest expense was $37.1 million for the first quarter of 2018 as compared to $36.3 million for the first quarter of 2017 and $36.3 million for the fourth quarter of 2017. Capitalized interest totaled $4.5 million for the first quarter of 2018, $2.8 million for the first quarter of 2017 and $4.0 million for the fourth quarter of 2017. Cash Interest totaled $37.2 million for the first quarter of 2018, $35.1 million for the first quarter of 2017 and $35.9 million for the fourth quarter of 2017. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended March 31, 2018, the Company recorded an income tax expense of $0.8 million, resulting in an 18.2% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax benefit of $202.8 million, resulting in a 271.5% effective tax rate as a percentage of its pre-tax loss for the three months ended December 31, 2017.
For the first quarter of 2018, the Company reported net income of $0.6 million, or $0.00 per diluted share, as compared to a net income of $23.8 million, or $0.10 per diluted share, for the first quarter of 2017. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $30.2 million, or $0.10 per diluted share, in the first quarter of 2018, as compared to Adjusted Net Loss Attributable to Oasis of $11.5 million, or $0.05 per diluted share, in the first quarter of 2017. For a definition of Adjusted Net Income (Loss) Attributable to Oasis and a reconciliation of net income (loss) attributable to Oasis to Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the first quarter of 2018 was $232.9 million, as compared to Adjusted EBITDA of $150.6 million for the first quarter of 2017. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2018 | |||
|
CapEx ($ in millions): |
|||
|
E&P |
$ |
176.9 |
|
|
Well services |
4.3 |
||
|
Other(1) |
6.3 |
||
|
Total CapEx before acquisitions and midstream |
187.5 |
||
|
Midstream |
88.8 |
||
|
Total CapEx before acquisitions |
276.3 |
||
|
Acquisitions |
890.9 |
||
|
Total CapEx(2) |
$ |
1,167.2 |
|
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. | |||||||||
|
(2) |
Total CapEx reflected in the table above differs from the amounts for capital expenditures and acquisitions shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. | |||||||||
The Company's CapEx totaled $1,167.2 million for the three months ended March 31, 2018, of which $890.9 million was related to acquisitions. Excluding acquisitions, Oasis continues to expect total CapEx to be approximately $1,090 million and $1,170 million for the full year 2018.
Hedging Activity
As of May 7, 2018, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:
|
Three Months Ending |
Six Months Ending | |||||||||||||||
|
June 30, 2018 |
December 31, 2018 |
June 30, 2019 |
December 31, 2019 | |||||||||||||
|
Crude oil (Volume in MBblpd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
45.3 |
41.5 |
13.0 |
13.0 |
||||||||||||
|
Price |
$ |
52.80 |
$ |
53.00 |
$ |
53.47 |
$ |
53.47 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
3.0 |
3.0 |
1.0 |
1.0 |
||||||||||||
|
Floor |
$ |
48.67 |
$ |
48.67 |
$ |
50.00 |
$ |
50.00 |
||||||||
|
Ceiling |
$ |
53.07 |
$ |
53.07 |
$ |
71.00 |
$ |
71.00 |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
— |
— |
10.0 |
9.0 |
||||||||||||
|
Sub-Floor |
$ |
— |
$ |
— |
$ |
40.50 |
$ |
40.00 |
||||||||
|
Floor |
$ |
— |
$ |
— |
$ |
51.00 |
$ |
50.56 |
||||||||
|
Ceiling |
$ |
— |
$ |
— |
$ |
68.56 |
$ |
67.80 |
||||||||
|
Total Crude Oil Volume |
48.3 |
44.5 |
24.0 |
23.0 |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
23,000 |
29,000 |
3,000 |
— |
||||||||||||
|
Price |
$ |
3.05 |
$ |
3.02 |
$ |
2.93 |
$ |
— |
||||||||
|
Total Natural Gas Volume |
23,000 |
29,000 |
3,000 |
— |
||||||||||||
The March 2018 crude oil derivative contracts settled at a net $15.0 million paid in April 2018 and will be included in the Company's second quarter 2018 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, May 8, 2018 | |
|
Time: |
10:00 a.m. Central Time | |
|
Live Webcast: |
https://www.webcaster4.com/Webcast/Page/1052/25387 | |
|
OR: |
||
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
3184311 | |
|
Website: |
www.oasispetroleum.com |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, May 15, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10119291 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheets | |||||||
|
(Unaudited) | |||||||
|
March 31, 2018 |
December 31, 2017 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
17,735 |
$ |
16,720 |
|||
|
Accounts receivable, net |
370,978 |
363,580 |
|||||
|
Inventory |
23,039 |
19,367 |
|||||
|
Prepaid expenses |
5,954 |
7,631 |
|||||
|
Derivative instruments |
— |
344 |
|||||
|
Intangible assets, net |
958 |
— |
|||||
|
Other current assets |
193 |
193 |
|||||
|
Total current assets |
418,857 |
407,835 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
8,911,096 |
7,838,955 |
|||||
|
Other property and equipment |
963,871 |
868,746 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,688,361) |
(2,534,215) |
|||||
|
Total property, plant and equipment, net |
7,186,606 |
6,173,486 |
|||||
|
Derivative instruments |
— |
9 |
|||||
|
Long-term inventory |
12,506 |
12,200 |
|||||
|
Other assets |
20,961 |
21,600 |
|||||
|
Total assets |
$ |
7,638,930 |
$ |
6,615,130 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
16,127 |
$ |
13,370 |
|||
|
Revenues and production taxes payable |
245,198 |
213,995 |
|||||
|
Accrued liabilities |
233,422 |
236,480 |
|||||
|
Accrued interest payable |
20,681 |
38,963 |
|||||
|
Derivative instruments |
149,657 |
115,716 |
|||||
|
Advances from joint interest partners |
4,888 |
4,916 |
|||||
|
Other current liabilities |
40 |
40 |
|||||
|
Total current liabilities |
670,013 |
623,480 |
|||||
|
Long-term debt |
2,696,534 |
2,097,606 |
|||||
|
Deferred income taxes |
306,749 |
305,921 |
|||||
|
Asset retirement obligations |
51,955 |
48,511 |
|||||
|
Derivative instruments |
19,699 |
19,851 |
|||||
|
Other liabilities |
7,822 |
6,182 |
|||||
|
Total liabilities |
3,752,772 |
3,101,551 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 319,384,813 shares issued and 317,363,008 shares outstanding at March 31, 2018 and 270,627,014 shares issued and 269,295,466 shares outstanding at December 31, 2017 |
3,154 |
2,668 |
|||||
|
Treasury stock, at cost: 2,021,805 and 1,331,548 shares at March 31, 2018 and December 31, 2017, respectively |
(28,200) |
(22,179) |
|||||
|
Additional paid-in capital |
3,055,003 |
2,677,217 |
|||||
|
Retained earnings |
718,575 |
717,985 |
|||||
|
Oasis share of stockholders' equity |
3,748,532 |
3,375,691 |
|||||
|
Non-controlling interests |
137,626 |
137,888 |
|||||
|
Total stockholders' equity |
3,886,158 |
3,513,579 |
|||||
|
Total liabilities and stockholders' equity |
$ |
7,638,930 |
$ |
6,615,130 |
|||
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statements of Operations | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands, except per share data) | |||||||
|
Revenues |
|||||||
|
Oil and gas revenues |
$ |
363,671 |
$ |
237,252 |
|||
|
Purchased oil and gas sales |
18,037 |
27,631 |
|||||
|
Midstream revenues |
27,922 |
14,606 |
|||||
|
Well services revenues |
11,586 |
5,627 |
|||||
|
Total revenues |
421,216 |
285,116 |
|||||
|
Operating expenses |
|||||||
|
Lease operating expenses |
44,781 |
43,872 |
|||||
|
Midstream operating expenses |
7,985 |
3,327 |
|||||
|
Well services operating expenses |
7,387 |
4,560 |
|||||
|
Marketing, transportation and gathering expenses |
21,013 |
10,951 |
|||||
|
Purchased oil and gas expenses |
17,998 |
28,002 |
|||||
|
Production taxes |
31,000 |
20,299 |
|||||
|
Depreciation, depletion and amortization |
149,265 |
126,666 |
|||||
|
Exploration expenses |
769 |
1,489 |
|||||
|
Impairment |
93 |
2,682 |
|||||
|
General and administrative expenses |
27,940 |
23,176 |
|||||
|
Total operating expenses |
308,231 |
265,024 |
|||||
|
Operating income |
112,985 |
20,092 |
|||||
|
Other income (expense) |
|||||||
|
Net gain (loss) on derivative instruments |
(71,116) |
56,075 |
|||||
|
Interest expense, net of capitalized interest |
(37,146) |
(36,321) |
|||||
|
Other income (expense) |
(183) |
16 |
|||||
|
Total other income (expense) |
(108,445) |
19,770 |
|||||
|
Income before income taxes |
4,540 |
39,862 |
|||||
|
Income tax expense |
(828) |
(16,037) |
|||||
|
Net income including non-controlling interests |
3,712 |
23,825 |
|||||
|
Less: Net income attributable to non-controlling interests |
3,122 |
— |
|||||
|
Net income attributable to Oasis |
$ |
590 |
$ |
23,825 |
|||
|
Earnings attributable to Oasis per share: |
|||||||
|
Basic |
$ |
0.00 |
$ |
0.10 |
|||
|
Diluted |
0.00 |
0.10 |
|||||
|
Weighted average shares outstanding: |
|||||||
|
Basic |
290,105 |
233,068 |
|||||
|
Diluted |
291,738 |
237,900 |
|||||
|
Oasis Petroleum Inc. | |||||||
|
Selected Financial and Operational Statistics | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
Operating results (in thousands): |
|||||||
|
Revenues |
|||||||
|
Oil revenues |
$ |
323,386 |
$ |
208,594 |
|||
|
Natural gas revenues |
40,285 |
28,658 |
|||||
|
Purchased oil and gas sales |
18,037 |
27,631 |
|||||
|
Midstream revenues |
27,922 |
14,606 |
|||||
|
Well services revenues |
11,586 |
5,627 |
|||||
|
Total revenues |
$ |
421,216 |
$ |
285,116 |
|||
|
Production data: |
|||||||
|
Oil (MBbls) |
5,284 |
4,435 |
|||||
|
Natural gas (MMcf) |
9,777 |
7,512 |
|||||
|
Oil equivalents (MBoe) |
6,914 |
5,687 |
|||||
|
Average daily production (Boe per day) |
76,819 |
63,192 |
|||||
|
Average sales prices: |
|||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
61.20 |
$ |
47.03 |
|||
|
Oil, with derivative settlements (per Bbl)(1) |
54.18 |
45.24 |
|||||
|
Natural gas, without derivative settlements (per Mcf)(2) |
4.12 |
3.81 |
|||||
|
Natural gas, with derivative settlements (per Mcf)(1)(2) |
4.13 |
3.82 |
|||||
|
Costs and expenses (per Boe of production): |
|||||||
|
Lease operating expenses |
$ |
6.48 |
$ |
7.71 |
|||
|
MT&G(3) |
3.01 |
1.77 |
|||||
|
Production taxes |
4.48 |
3.57 |
|||||
|
Depreciation, depletion and amortization |
21.59 |
22.27 |
|||||
|
G&A(4) |
4.04 |
4.08 |
|||||
|
E&P G&A |
3.40 |
3.54 |
|||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||||||
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. | |||||||||
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. | |||||||||
|
(4) |
For the three months ended March 31, 2017, well services operating expenses have been adjusted to include $0.7 million for certain well services direct field labor compensation expenses which were previously recognized in general and administrative expenses on our Condensed Consolidated Statements of Operations. | |||||||||
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statements of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net income including non-controlling interests |
$ |
3,712 |
$ |
23,825 |
|||
|
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
149,265 |
126,666 |
|||||
|
Impairment |
93 |
2,682 |
|||||
|
Deferred income taxes |
828 |
16,037 |
|||||
|
Derivative instruments |
71,116 |
(56,075) |
|||||
|
Equity-based compensation expenses |
6,754 |
6,708 |
|||||
|
Deferred financing costs amortization and other |
5,475 |
4,940 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable, net |
(5,708) |
(22,478) |
|||||
|
Change in inventory |
(3,672) |
(3,679) |
|||||
|
Change in prepaid expenses |
492 |
282 |
|||||
|
Change in other current assets |
— |
(110) |
|||||
|
Change in long-term inventory and other assets |
(315) |
(4) |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
(244) |
6,060 |
|||||
|
Change in other current liabilities |
— |
2,945 |
|||||
|
Change in other liabilities |
563 |
— |
|||||
|
Net cash provided by operating activities |
228,359 |
107,799 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(254,838) |
(96,047) |
|||||
|
Acquisitions |
(520,728) |
— |
|||||
|
Derivative settlements |
(36,974) |
(7,960) |
|||||
|
Advances from joint interest partners |
(28) |
(759) |
|||||
|
Net cash used in investing activities |
(812,568) |
(104,766) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from Revolving Credit Facilities |
1,470,000 |
246,000 |
|||||
|
Principal payments on Revolving Credit Facilities |
(875,000) |
(241,000) |
|||||
|
Deferred financing costs |
(215) |
— |
|||||
|
Purchases of treasury stock |
(6,021) |
(5,419) |
|||||
|
Distributions to non-controlling interests |
(3,450) |
— |
|||||
|
Other |
(90) |
(55) |
|||||
|
Net cash provided by (used in) financing activities |
585,224 |
(474) |
|||||
|
Increase in cash and cash equivalents |
1,015 |
2,559 |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
16,720 |
11,226 |
|||||
|
End of period |
$ |
17,735 |
$ |
13,785 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
12,855 |
$ |
8,396 |
|||
|
Change in asset retirement obligations |
3,453 |
787 |
|||||
|
Issuance of shares in connection with the Permian Basin Acquisition |
371,220 |
— |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Interest expense |
$ |
37,146 |
$ |
36,321 |
|||
|
Capitalized interest |
4,451 |
2,820 |
|||||
|
Amortization of deferred financing costs |
(1,761) |
(1,690) |
|||||
|
Amortization of debt discount |
(2,618) |
(2,355) |
|||||
|
Cash Interest |
$ |
37,218 |
$ |
35,096 |
|||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Net income including non-controlling interests |
$ |
3,712 |
$ |
23,825 |
|||
|
Net (gain) loss on derivative instruments |
71,116 |
(56,075) |
|||||
|
Derivative settlements(1) |
(36,974) |
(7,960) |
|||||
|
Interest expense, net of capitalized interest |
37,146 |
36,321 |
|||||
|
Depreciation, depletion and amortization |
149,265 |
126,666 |
|||||
|
Impairment |
93 |
2,682 |
|||||
|
Exploration expenses |
769 |
1,489 |
|||||
|
Equity-based compensation expenses |
6,754 |
6,708 |
|||||
|
Income tax expense |
828 |
16,037 |
|||||
|
Other non-cash adjustments |
209 |
912 |
|||||
|
Adjusted EBITDA |
232,918 |
150,605 |
|||||
|
Adjusted EBITDA attributable to non-controlling interests |
3,911 |
— |
|||||
|
Adjusted EBITDA attributable to Oasis |
229,007 |
150,605 |
|||||
|
Cash Interest |
(37,218) |
(35,096) |
|||||
|
Capital expenditures(2) |
(1,167,228) |
(109,795) |
|||||
|
Capitalized interest |
4,451 |
2,820 |
|||||
|
Free Cash Flow |
$ |
(970,988) |
$ |
8,534 |
|||
|
Net cash provided by operating activities |
$ |
228,359 |
$ |
107,799 |
|||
|
Derivative settlements(1) |
(36,974) |
(7,960) |
|||||
|
Interest expense, net of capitalized interest |
37,146 |
36,321 |
|||||
|
Exploration expenses |
769 |
1,489 |
|||||
|
Deferred financing costs amortization and other |
(5,475) |
(4,940) |
|||||
|
Changes in working capital |
8,884 |
16,984 |
|||||
|
Other non-cash adjustments |
209 |
912 |
|||||
|
Adjusted EBITDA |
232,918 |
150,605 |
|||||
|
Adjusted EBITDA attributable to non-controlling interests |
3,911 |
— |
|||||
|
Adjusted EBITDA attributable to Oasis |
229,007 |
150,605 |
|||||
|
Cash Interest |
(37,218) |
(35,096) |
|||||
|
Capital expenditures(2) |
(1,167,228) |
(109,795) |
|||||
|
Capitalized interest |
4,451 |
2,820 |
|||||
|
Free Cash Flow |
$ |
(970,988) |
$ |
8,534 |
|||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in our condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. Acquisitions totaled $891.0 million and $2.6 million for the three months ended March 31, 2018 and 2017, respectively. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for our three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Income (loss) before income taxes including non-controlling interests |
$ |
(28,184) |
$ |
20,736 |
|||
|
Gain on extinguishment of debt |
— |
(56,075) |
|||||
|
Net loss on derivative instruments |
71,116 |
— |
|||||
|
Derivative settlements(1) |
(36,974) |
(7,960) |
|||||
|
Interest expense, net of capitalized interest |
36,884 |
36,321 |
|||||
|
Depreciation, depletion and amortization |
145,203 |
124,409 |
|||||
|
Impairment |
93 |
2,682 |
|||||
|
Exploration expenses |
769 |
1,489 |
|||||
|
Equity-based compensation expenses |
6,454 |
6,499 |
|||||
|
Other non-cash adjustments |
209 |
912 |
|||||
|
Adjusted EBITDA |
$ |
195,570 |
$ |
129,013 |
|||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Midstream Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Income before income taxes including non-controlling interests |
$ |
31,979 |
$ |
20,761 |
|||
|
Interest expense, net of capitalized interest |
262 |
— |
|||||
|
Depreciation, depletion and amortization |
6,629 |
3,458 |
|||||
|
Equity-based compensation expenses |
370 |
348 |
|||||
|
Adjusted EBITDA |
$ |
39,240 |
$ |
24,567 |
|||
|
Well Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
(In thousands) | |||||||
|
Income (loss) before income taxes including non-controlling interests |
$ |
8,107 |
$ |
(3,588) |
|||
|
Depreciation, depletion and amortization |
3,690 |
3,164 |
|||||
|
Equity-based compensation expenses |
385 |
396 |
|||||
|
Adjusted EBITDA |
$ |
12,182 |
$ |
(28) |
|||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
|
Three Months Ended March 31, | ||||||||
|
2018 |
2017 | |||||||
|
(In thousands, except per share data) | ||||||||
|
Net income attributable to Oasis |
$ |
590 |
$ |
23,825 |
||||
|
Net (gain) loss on derivative instruments |
71,116 |
(56,075) |
||||||
|
Derivative settlements(1) |
(36,974) |
(7,960) |
||||||
|
Impairment |
93 |
2,682 |
||||||
|
Amortization of deferred financing costs |
1,761 |
1,690 |
||||||
|
Amortization of debt discount |
2,618 |
2,355 |
||||||
|
Other non-cash adjustments |
209 |
912 |
||||||
|
Tax impact(2) |
(9,217) |
21,103 |
||||||
|
Adjusted Net Income (Loss) Attributable to Oasis |
$ |
30,196 |
$ |
(11,468) |
||||
|
Diluted earnings attributable to Oasis per share |
$ |
0.00 |
$ |
0.10 |
||||
|
Net (gain) loss on derivative instruments |
0.24 |
(0.24) |
||||||
|
Derivative settlements(1) |
(0.13) |
(0.03) |
||||||
|
Impairment |
0.00 |
0.01 |
||||||
|
Amortization of deferred financing costs |
0.01 |
0.01 |
||||||
|
Amortization of debt discount |
0.01 |
0.01 |
||||||
|
Other non-cash adjustments |
0.00 |
0.00 |
||||||
|
Tax impact(2) |
(0.03) |
0.09 |
||||||
|
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share |
$ |
0.10 |
$ |
(0.05) |
||||
|
Diluted weighted average shares outstanding(3) |
291,738 |
233,068 |
||||||
|
Effective tax rate applicable to adjustment items |
23.7 |
% |
37.4 |
% | ||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||||||
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. | |||||||||
|
(3) |
No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three months ended March 31, 2017 because the effect was anti-dilutive due to adjusted net loss. | |||||||||
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-march-31-2018-earnings-300644042.html
SOURCE Oasis Petroleum Inc.
Article Date
5/7/2018Oasis Petroleum Inc. Announces Cash Tender Offers for Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 30, 2018 /PRNewswire/ -- Oasis Petroleum Inc. ("Oasis") (NYSE: OAS) announced today that it has commenced cash tender offers (the "Tender Offers") for up to an aggregate principal amount that will not result in an Aggregate Purchase Price (as defined below) that exceeds $400 million (subject to increase or decrease by Oasis, the "Aggregate Maximum Tender Amount") of Oasis's outstanding 7.25% Senior Notes due 2019 (the "2019 Notes"), of which $54,275,000 principal amount is currently outstanding, 6.5% Senior Notes due 2021 (the "2021 Notes"), of which $395,501,000 principal amount is currently outstanding, 6.875% Senior Notes due 2022 (the "2022 Notes"), of which $937,080,000 principal amount is currently outstanding, and 6.875% Senior Notes due 2023 (the "2023 Notes"), of which $366,094,000 principal amount is currently outstanding (collectively, the "Notes"). Information related to the Notes and the Tender Offers is listed in the table below. Oasis refers to the aggregate amount that all holders of Notes are entitled to receive, excluding Accrued Interest (as defined below), for their Notes that are validly tendered and accepted for purchase by Oasis as the "Aggregate Purchase Price."
In conjunction with certain of the Tender Offers, Oasis has also commenced solicitations (each a "Consent Solicitation" and, collectively, the "Consent Solicitations") of consents (each a "Consent" and, collectively, the "Consents") from holders of the 2019 Notes, the 2021 Notes and the 2022 Notes to amend certain provisions (the "Proposed Amendments") of the applicable indentures governing the Notes of such series. The Proposed Amendments would amend the indenture with respect to the applicable series of Notes to, among other things, eliminate substantially all of the restrictive covenants and certain events of default under such Indenture and modify certain notice requirements for redemption of the applicable series of Notes issued under such indenture.
If there is a Consent Solicitation with respect to a series of Notes, holders may not tender such Notes without delivering their Consents pursuant to the related Consent Solicitation and may not deliver Consents without tendering their Notes pursuant to the related Tender Offer.
The terms and conditions of the Tender Offers are described in an Offer to Purchase and Consent Solicitation Statement, dated April 30, 2018 (the "Offer to Purchase and Consent Solicitation"), and the accompanying Letter of Transmittal and Consent. The amounts of each series of Notes to be purchased may be prorated as set forth in the Offer to Purchase and Consent Solicitation.
|
Title of Notes |
CUSIP |
Aggregate |
Acceptance |
Tender Offer |
Early |
Total |
|
7.25% Senior Notes due 2019 |
674215AC2 |
$54,275,000 |
1 |
$973.75 |
$30.00 |
$1,003.75 |
|
6.50% Senior Notes due 2021 |
674215AD0 |
$395,501,000 |
2 |
$995.00 |
$30.00 |
$1,025.00 |
|
6.875% Senior Notes due 2022 |
674215AG3 |
$937,080,000 |
3 |
$1,004.38 |
$30.00 |
$1,034.38 |
|
6.875% Senior Notes due 2023* |
674215AE8 |
$366,094,000 |
4 |
$1,000.50 |
$30.00 |
$1,030.50 |
|
* |
The 2023 Notes do not have a related Consent Solicitation. |
|
(1) |
No representation is made as to the correctness or accuracy of the CUSIP Numbers listed above in the Offer to Purchase and Consent Solicitation or the accompanying Letter of Transmittal and Consent or printed on the Notes. They are provided solely for the convenience of holders of the Notes. |
|
(2) |
Per $1,000 principal amount of Notes validly tendered (and not validly withdrawn) and accepted for purchase by Oasis. |
|
(3) |
Includes the Early Tender Premium (as defined below) for Notes validly tendered prior to the Early Tender Date (as defined below) (and not validly withdrawn) and accepted for purchase by Oasis. |
The order of priority for the purchase of the Notes (the "Acceptance Priority Levels") is shown in the table above, with 1 being the highest Acceptance Priority Level and 4 being the lowest Acceptance Priority Level. The Tender Offers and the Consent Solicitations will expire at 11:59 p.m., New York City time, at the end of the day on May 25, 2018, unless extended or earlier terminated by Oasis (such date and time, as it may be extended, the "Expiration Date"). No tenders of Notes or deliveries of related Consents submitted after the Expiration Date will be valid.
Subject to the terms and conditions of the Tender Offers and the Consent Solicitations, the consideration for each $1,000 principal amount of Notes validly tendered (and not validly withdrawn) and accepted for purchase by Oasis pursuant to the Tender Offers will be the tender offer consideration for such series of Notes set forth in the table above (with respect to each series of Notes, the "Tender Offer Consideration"). Holders of Notes that are validly tendered (with Consents that have been validly delivered, if applicable) and not validly withdrawn (or Consents revoked) at or prior to 5:00 p.m., New York City time, on May 11, 2018 (such date and time, as it may be extended, the "Early Tender Date") and accepted for purchase by Oasis pursuant to the Tender Offers will receive the applicable Tender Offer Consideration for such series, plus the applicable early tender premium for such series of Notes set forth in the table above (with respect to each series of Notes, the "Early Tender Premium" and, together with the applicable Tender Offer Consideration, the "Total Consideration"), subject to the terms and conditions of the Tender Offers and the Consent Solicitations. Holders of Notes validly tendering their Notes (and validly delivering their Consents, if applicable) after the Early Tender Date will not be eligible to receive the Early Tender Premium.
All Notes validly tendered and accepted for purchase by Oasis pursuant to the Tender Offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such Notes from the last interest payment date with respect to those Notes to, but not including, the applicable Settlement Date (as defined below) ("Accrued Interest").
Tendered Notes may be validly withdrawn from the Tender Offers, and delivered Consents may be revoked, at or prior to 5:00 p.m., New York City time, on May 11, 2018, unless extended by Oasis (such date and time, as it may be extended, the "Withdrawal Deadline"). Holders who validly tender their Notes (and validly deliver any related Consents) after the Withdrawal Deadline, but prior to the Expiration Date, may not validly withdraw their tendered Notes (or validly revoke their Consents).
Oasis reserves the right, but is under no obligation, to increase or decrease the Aggregate Maximum Tender Amount at any time without extending the Early Tender Date or the Withdrawal Deadline for any Tender Offer or otherwise reinstating withdrawal or revocation rights of holders, subject to applicable law, which could result in Oasis purchasing a greater or lesser amount of Notes in the Tender Offers.
Oasis reserves the right, but is under no obligation, at any point following the Early Tender Date and before the Expiration Date, subject to the satisfaction or waiver of the conditions to the Tender Offers and the Consent Solicitations, to accept for purchase any Notes validly tendered (with Consents that have been validly delivered, if applicable) and not validly withdrawn (or Consents revoked) at or prior to the Early Tender Date (the settlement date of such purchase being the "Early Settlement Date"), subject to the Aggregate Maximum Tender Amount, the Acceptance Priority Levels and proration. The Early Settlement Date will be determined at Oasis's option and is currently expected to occur on May 14, 2018, the first business day after the Early Tender Date, subject to all conditions to the Tender Offers and the Consent Solicitations having been either satisfied or waived by Oasis. On such Early Settlement Date, Oasis will accept Notes validly tendered (with Consents that have been validly delivered, if applicable) and not validly withdrawn (or Consents revoked) at or prior to the Early Tender Date, subject to the Aggregate Maximum Tender Amount, the Acceptance Priority Levels and proration. Oasis will purchase any remaining Notes that have been validly tendered (with Consents that have been validly delivered, if applicable) and not validly withdrawn (or Consents revoked) at or prior to the Expiration Date and that Oasis chooses to accept for purchase, subject to all conditions to the Tender Offers and the Consent Solicitations having been either satisfied or waived by Oasis, promptly following the Expiration Date (the settlement date of such purchase being the "Final Settlement Date"; the Final Settlement Date and the Early Settlement Date each being a "Settlement Date"), subject to the Aggregate Maximum Tender Amount, the Acceptance Priority Levels and proration. The Final Settlement Date is expected to occur on May 29, 2018, the first business day following the Expiration Date, assuming that the conditions to the Tender Offers and the Consent Solicitations are satisfied or waived and Notes having an aggregate purchase price equal to the Aggregate Maximum Tender Amount are not purchased on the Early Settlement Date. Notes accepted on the Final Settlement Date, if any, will be accepted subject to the Aggregate Maximum Tender Amount, the Acceptance Priority Levels and proration.
Subject to the Aggregate Maximum Tender Amount and proration, Oasis will accept Notes for purchase as follows: (1) with respect to Notes tendered at or before the Early Tender Date, all Notes tendered at or before the Early Tender Date having a higher Acceptance Priority Level will be accepted before any Notes tendered at or before the Early Tender Date having a lower Priority Acceptance Level are accepted and (2) with respect to Notes tendered after the Early Tender Date, all Notes validly tendered after the Early Tender Date having a higher Acceptance Priority Level will be accepted before any Notes tendered after the Early Tender Date having a lower Acceptance Priority Level are accepted. For the avoidance of doubt, if the Tender Offers are not fully subscribed as of the Early Tender Date, Notes tendered at or before the Early Tender Date will be accepted for purchase in priority to other Notes tendered after the Early Tender Date, even if Notes tendered after the Early Tender Date have a higher Acceptance Priority Level than Notes tendered prior to the Early Tender Date.
Acceptance for tenders of any Notes may be subject to proration if the aggregate principal amount for any series of Notes validly tendered and not validly withdrawn would result in an Aggregate Purchase Price for such Notes that exceeds the Aggregate Maximum Tender Amount. In the event of any proration of a series of Notes, if there is a Consent Solicitation with respect to such series of Notes, the Consents delivered with respect to such series of Notes shall be null and void. If the aggregate principal amount of Notes validly tendered at or before the Early Tender Date results in an Aggregate Purchase Price that exceeds the Aggregate Maximum Tender Amount, Oasis will not accept for purchase any Notes tendered after the Early Tender Date unless the Aggregate Maximum Tender Amount is increased.
None of the Tender Offers is conditioned upon the tender of a minimum amount of Notes, the consummation of any other Tender Offer in respect of any other series of Notes or obtaining any Requisite Consent (as defined below). The adoption of the Proposed Amendments with respect to any Indenture or series of Notes is not conditioned upon the consummation of any other Consent Solicitation or adoption of the Proposed Amendments in respect of any other Indenture or series of Notes or obtaining any Requisite Consent with respect to any other Indenture or series of Notes. However, the Tender Offers are subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the Offer to Purchase and Consent Solicitation, including Oasis's completion of its concurrently announced unregistered offering of senior notes providing gross proceeds of at least $400 million to Oasis (the "Debt Financing").
Oasis expects to use the net proceeds from the Debt Financing, together with cash on hand, to fund its payments of the Tender Offer Consideration, the Total Consideration and fees and expenses (including Accrued Interest) payable in connection with the Tender Offers.
Oasis intends to execute a supplement to each Indenture (each, a "Supplemental Indenture") with the applicable trustee with respect to the Proposed Amendments to the applicable Indenture if the requisite consents to effect such Proposed Amendments (the "Requisite Consents") are received, as described in the Offer to Purchase and Consent Solicitation. Assuming that the Requisite Consents are received, it is expected that a Supplemental Indenture will be entered into promptly following the later of the receipt of such Requisite Consents and the Withdrawal Deadline.
Each Supplemental Indenture will become effective upon execution but will provide that the Proposed Amendments will not become operative unless Oasis accepts the applicable Notes satisfying the Requisite Consent required for purchase in the applicable Tender Offer. In the event of any proration of a series of Notes, if there is a Consent Solicitation with respect to such series of Notes, the Consents delivered with respect to such series of Notes shall be null and void. Additionally, if a Tender Offer or the related Consent Solicitation is terminated or withdrawn, the related Indenture will remain in effect in its present form unless the Requisite Consents with respect to the Proposed Amendments to such Indenture are otherwise obtained. The Proposed Amendments constitute a single proposal with respect to each applicable series of Notes, and a consenting holder of Notes must deliver a Consent to the Proposed Amendments as an entirety and may not consent selectively with respect to certain of the Proposed Amendments.
Oasis may amend, extend or, subject to certain conditions and applicable law, terminate each Tender Offer or Consent Solicitation at any time in its sole discretion.
Full details of the terms and conditions of the Tender Offers and the Consent Solicitations are described in the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent, which are being sent by Oasis to holders of the Notes. Holders of the Notes are encouraged to read these documents as they contain important information regarding the Tender Offers and the Consent Solicitations.
Oasis has retained Wells Fargo Securities, LLC and Citigroup Global Markets Inc. to act as the lead dealer managers for the Tender Offers and the lead solicitation agents for the Consent Solicitations. Questions or requests for assistance regarding the terms of the Tender Offers and the Consent Solicitations should be directed to Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or Citigroup Global Markets Inc. at (800) 558-3745 (toll-free). Requests for the Offer to Purchase and Consent Solicitation and other documents relating to the Tender Offers and the Consent Solicitations may be directed to Global Bondholder Services Corporation, the tender agent and information agent for the Tender Offers, at (866) 470-3700 (toll-free) or by email at contact@gbsc-usa.com.
None of Oasis, its board of directors or officers, the dealer managers, the solicitation agents, the tender agent and information agent or the trustees with respect to the Notes or any of their respective affiliates is making any recommendation as to whether holders should tender any Notes in response to the Tender Offers or deliver any Consents pursuant to the Consent Solicitations. Holders must make their own decision as to whether to tender their Notes and, if applicable, to deliver their Consents, and, if so, the principal amount of Notes as to which action is to be taken.
The Tender Offers and the Consent Solicitations are only being made pursuant to the Offer to Purchase and Consent Solicitation and the accompanying Letter of Transmittal and Consent. This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes in the Tender Offers. The Tender Offers and the Consent Solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers and the Consent Solicitations are required to be made by a licensed broker or dealer, the Tender Offers and the Consent Solicitations will be deemed to be made on behalf of Oasis by the dealer managers and solicitation agents, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities issued in connection with any notes offering, nor shall there be any sale of the securities issued in such an offering in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers of any such securities will be made in the United States only by means of a private offering memorandum pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
Forward-Looking Disclosure Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Oasis expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the Tender Offers and the Consents Solicitations and the intended use of proceeds or other aspects of the Debt Financing. These statements are based on certain assumptions made by Oasis based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Oasis, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as Oasis's ability to access them, the proximity to and capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Oasis's business and other important factors that could cause actual results to differ materially from those projected as described in Oasis's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and Oasis undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-cash-tender-offers-for-senior-notes-300638673.html
SOURCE Oasis Petroleum Inc.
Article Date
4/30/2018Oasis Petroleum Inc. Announces $400 Million Offering of Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 30, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that, subject to market conditions, it intends to offer $400 million in aggregate principal amount of senior unsecured notes due 2026 in a private placement to eligible purchasers.
Oasis intends to use the net proceeds of this offering to fund tender offers (the "Tender Offers") to purchase for cash, subject to certain conditions, up to $400 million in aggregate purchase price, excluding accrued and unpaid interest, of its outstanding 7.25% senior notes due 2019, 6.5% senior notes due 2021, 6.875% senior notes due 2022 and 6.875% senior notes due 2023 (collectively, the "Tender Notes"). The Tender Offers are being made pursuant to an Offer to Purchase and Consent Solicitation Statement dated April 30, 2018. To the extent that the Tender Offers are not completed or the net proceeds of this offering exceed the amount needed to fund the Tender Offers, Oasis may use the remaining net proceeds from this offering for general corporate purposes, which may include redemptions or repurchases of the Tender Notes, reducing borrowings under its revolving credit facility, repaying other indebtedness, working capital or funding capital expenditures and acquisitions. This offering is not contingent on the consummation of the Tender Offers or the tender of any minimum amount of Tender Notes in the Tender Offers.
The notes to be offered have not been registered under the Securities Act of 1933, as amended, (the "Securities Act"), or any state securities laws; and unless so registered, the securities may not be offered or sold in the United States absent an applicable exemption from, or a transaction not subject to, registration requirements of the Securities Act and applicable state securities laws. The notes are being offered and sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.
This press release is being issued pursuant to Rule 135c under the Securities Act and is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the notes offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-400-million-offering-of-senior-notes-300638672.html
SOURCE Oasis Petroleum Inc.
Article Date
4/30/2018Oasis Petroleum Inc. Announces Financial, Operational and Guidance Updates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 30, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today select preliminary unaudited financial results for the first quarter of 2018. Management has prepared, and is responsible for, the preliminary financial data presented below, which is based on the most current information available. The Company's normal financial reporting processes with respect to the preliminary financial data have not been fully completed, and PricewaterhouseCoopers LLP has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto.
This summary is not intended to be a comprehensive statement of the Company's financial results for the quarter ended March 31, 2018 pursuant to GAAP. The operating results for an interim period, including the preliminary financial data provided below, may not give a true indication of the results to be expected for a full year or any future period. The assumptions and estimates underlying the preliminary financial information are inherently uncertain and, although the Company considers them reasonable as of the date hereof, they are subject to a wide variety of risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information.
During the first quarter of 2018, Oasis produced volumes at the high end of its guidance range of 75,000 to 77,000 barrels of oil equivalent per day ("Boepd"), delivering 76,819 Boepd, of which 76.4% was oil. Oasis produced 74,425 Boepd and 2,394 Boepd during the first quarter of 2018 in the Williston Basin and the Delaware Basin, respectively. Volumes in the Delaware Basin averaged 3,652 Boepd since closing the acquisition. During the first quarter of 2018, NYMEX West Texas Intermediate Crude oil index ("WTI") price averaged $62.87 per barrel, and Oasis expects to realize between $61.15 and $61.25 per barrel of oil, without derivative settlements. For the first quarter of 2018, Oasis expects to realize $4.05 to $4.15 per Mcf for natural gas, which is without derivative settlements and includes the value for natural gas and natural gas liquids.
The following table provides Oasis's preliminary expense and capital expenditures estimates for the quarter ended March 31, 2018:
|
Metric |
Range |
|
|
Lease operating expenses ($ per Boe) |
$6.45 to $6.55 |
|
|
Marketing, transportation and gathering expenses ($ per Boe) (1) |
$2.95 to $3.05 |
|
|
General and administrative expenses ($MM) |
$27.8 to $28.1 |
|
|
Production taxes (% of oil and gas revenue) |
8.50% to 8.55% |
|
|
Midstream and well services - revenues less operating expenses ($MM) (2) |
$24.0 to $24.2 |
|
|
Capital Expenditures ($MM) |
||
|
E&P |
$176.0 to $177.5 |
|
|
Well services |
$4.0 to $4.5 |
|
|
Other |
$6.0 to $6.5 |
|
|
Midstream |
$88.0 to $89.0 |
|
|
Total capital expenditures before acquisitions |
$274.0 to $277.5 |
|
|
Acquisitions |
$890.0 to $892.0 |
|
|
Total capital expenditures |
$1,164.0 to $1,169.5 |
|
1) |
Excludes non-cash valuation charges on pipeline imbalances and purchased oil and gas expenses. |
|
2) |
Represents midstream revenues and well services revenues less midstream operating expenses and well services operating expenses, excluding all intercompany revenues and expenses for work performed by the midstream services and well services business segments for Oasis's working interests that are eliminated in consolidation and are therefore not included in midstream services and well services revenues and expenses. |
Capital expenditures for the quarter were in line with Oasis's first quarter 2018 budget, and the Company is reiterating its original guidance for all full year metrics that were provided in February 2018.
At March 31, 2018, the Company had $626.0 million of loans and $14.0 million of outstanding letters of credit issued under the its revolving credit facility, resulting in an unused borrowing base committed capacity of $710.0 million. On April 19, 2018, the lenders under the Company's revolving credit facility completed their regular semi-annual redetermination of the borrowing base scheduled for April 1, 2018, resulting in the borrowing base and the aggregate elected commitment being reaffirmed at $1,600.0 million and $1,350.0 million, respectively. The next redetermination of the borrowing base under the Company's revolving credit facility is scheduled for October 1, 2018. At March 31, 2018, the Company had $117.0 million of borrowings outstanding under the Oasis Midstream Partners LP revolving credit facility. Additionally, Oasis had $17.7 million of cash and cash equivalents on the balance sheet as of March 31, 2018.
As of April 27, 2018, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:
|
Three months |
Six months ending | ||||||||||||||||||
|
Crude oil (Volume in MBblpd) |
June 30, 2018 |
December 31, |
June 30, |
December 31, | |||||||||||||||
|
Swaps |
|||||||||||||||||||
|
Volume |
45.3 |
41.5 |
13.0 |
13.0 |
|||||||||||||||
|
Price |
$ |
52.80 |
52.90 |
$ |
53.47 |
$ |
53.47 |
||||||||||||
|
Collars |
|||||||||||||||||||
|
Volume |
3.0 |
3.0 |
1.0 |
1.0 |
|||||||||||||||
|
Floor |
$ |
48.67 |
$ |
48.67 |
$ |
50.00 |
$ |
50.00 |
|||||||||||
|
Ceiling |
$ |
53.07 |
$ |
53.07 |
$ |
71.00 |
$ |
71.00 |
|||||||||||
|
3-way |
|||||||||||||||||||
|
Volume |
— |
— |
8.0 |
8.0 |
|||||||||||||||
|
Sub-Floor |
$ |
— |
$ |
— |
$ |
40.00 |
$ |
40.00 |
|||||||||||
|
Floor |
$ |
— |
$ |
— |
$ |
50.00 |
$ |
50.00 |
|||||||||||
|
Ceiling |
$ |
— |
$ |
— |
$ |
67.54 |
$ |
67.54 |
|||||||||||
|
Total Crude Oil Volume |
48.3 |
44.5 |
22.0 |
22.0 |
|||||||||||||||
|
Natural Gas (Volume in MMBtupd) |
|||||||||||||||||||
|
Swaps |
|||||||||||||||||||
|
Volume |
23,000 |
29,000 |
3,000 |
— |
|||||||||||||||
|
Price |
$ |
3.05 |
$ |
3.02 |
$ |
2.93 |
$ |
— |
|||||||||||
|
Total Natural Gas Volume |
23,000 |
29,000 |
3,000 |
— |
|||||||||||||||
During the first quarter of 2018, Oasis had net cash derivative settlement outflows of approximately $37.0 million.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-financial-operational-and-guidance-updates-300638671.html
SOURCE Oasis Petroleum Inc.
Article Date
4/30/2018Oasis Petroleum Schedules First Quarter 2018 Conference Call for May 8, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 13, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2018 financial and operational results on Monday, May 7, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Tuesday, May 8, 2018 at 10:00 a.m. Central Time to discuss First Quarter 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
|
Date: |
Tuesday, May 8, 2018 |
|
Time: |
10:00 a.m. Central Time |
|
Live Webcast: |
OR:
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
3184311 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, May 15, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10119291 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
|
May 8: |
Morgan Stanley's 2018 E&P Conference – Houston, TX |
|
May 15: |
TPH's 2018 Hotter 'N Hell Conference – Houston, TX |
|
May 15-16: |
Citi's 2018 Global Energy & Utilities Conference – Boston, MA |
|
June 5-6: |
RBC's 2018 Global Energy & Power Conference – New York, NY |
|
June 12-13: |
Wells Fargo's 2018 West Coast Energy Conference – San Francisco, CA |
|
June 18-20: |
J.P. Morgan's 2018 Energy Equity Investor Conference – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-first-quarter-2018-conference-call-for-may-8-2018-300629697.html
SOURCE Oasis Petroleum Inc.
Article Date
4/13/2018Oasis Midstream Partners Announces 2017 K-1 Availability
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, March 9, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that 2017 unitholder tax information is now available online. The mailing of 2017 tax information is expected to begin on March 12, 2018.
OMP investors can access their tax information and Schedule K-1 at www.taxpackagesupport.com/oasis or by visiting the investor relations section of the OMP website at www.oasismidstream.investorroom.com. For additional information, unitholders may call Tax Support toll-free at (833) 608-3510.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Director, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-2017-k-1-availability-300611643.html
SOURCE Oasis Midstream Partners LP
Article Date
3/9/2018Oasis Petroleum Inc. Announces Quarter and Year Ending December 31, 2017 Earnings and Provides an Operational Update and 2018 Outlook
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 27, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2017 and provided its 2018 outlook.
Highlights
"2017 was a tremendous year for Oasis. We successfully grew production 31% while spending within cash flow on the E&P side of the business," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Our Williston Basin position continues to generate top-in-class cash margins, which drives strong corporate level returns. We have supplemented our highly economic Williston Basin asset with the Forge acquisition located in the best part of the Delaware Basin. The depth of our core inventory increased organically in the Bakken and through our accretive Permian acquisition. We now have approximately 18 years of core and extended core inventory at our 2018 completion pace, which is economic at or below a $45 WTI oil price. In 2018 and 2019, we expect this capital efficient inventory to drive 15-20% production growth within cash flow on the E&P business."
"Our well services and midstream businesses continue to be critical complements of our E&P operations. We introduced a second fracturing crew midyear 2017 and successfully completed the IPO of OMP in September," added Nusz. "Oasis funded its Midstream CapEx in 2017 through OMP IPO proceeds of $132.1 million distributed to Oasis and capital spent at OMP of $105.6 million. Our midstream business has numerous highly attractive midstream investment opportunities in 2018, both in the Williston and potentially in the Delaware, all of which we expect will generate strong returns and will be built within 4-5x EBITDA multiples. Oasis plans to invest $235 million to $275 million in Midstream CapEx in 2018, of which $72 million to $90 million will be funded by OMP in 2018, and the balance is expected to be funded over time through OMP via drops."
Inventory and Leasehold Update
Oasis' total inventory increased to 2,578 net locations, of which 1,092 net locations are considered core. Core net undeveloped locations increased by 126%, from 483 net undeveloped locations at December 31, 2016 to 1,092 net undeveloped locations currently. Of the Company's 1,092 core net locations, 585 are in the Williston Basin and 507 are in the Delaware Basin.
Oasis ended the year with a leasehold position of approximately 503,000 net acres in the Williston Basin, and, as of February 14, 2018, with a leasehold position in the Delaware Basin of approximately 22,000 net acres.
2018 Plan
Highlights for 2018 include:
|
Metric |
Range |
|
Production (Boepd) |
|
|
Full Year 2018 |
80,000 to 83,000 |
|
1st Quarter 2018 |
75,000 to 77,000 |
|
Full Year Financial Metrics |
|
|
LOE ($ per Boe) |
$7.00 to $7.50 |
|
Marketing, transportation and gathering ("MT&G") ($ per Boe)(1) |
$2.75 to $3.00 |
|
General and administrative ("G&A") ($ in millions)(2) |
$105 to $115 |
|
Production taxes (% of oil and gas revenue) |
8.1% to 8.4% |
|
2018 CapEx Plan ($ in millions) |
|
|
E&P CapEx |
$815 - $855 |
|
Midstream CapEx |
235 - 275 |
|
Other(3) |
40 |
|
(1) |
Excludes the effect of non-cash valuation charges. | |||||||||
|
(2) |
Includes non-cash amortization of restricted stock of approximately $30 to $32 million. | |||||||||
|
(3) |
Includes capitalized interest, OWS and administrative capital. | |||||||||
Operational and Financial Update
Select operational and financial statistics are included in the following table for the periods presented:
|
Quarter Ended: |
Year Ended: | ||||||||||||||
|
12/31/2017 |
9/30/2017 |
12/31/2017 |
12/31/2016 | ||||||||||||
|
Production data: |
|||||||||||||||
|
Oil (Bopd) |
57,238 |
51,825 |
51,557 |
41,459 |
|||||||||||
|
Natural gas (MMcfpd) |
95,812 |
85,800 |
87,522 |
53,478 |
|||||||||||
|
Total production (Boepd) |
73,207 |
66,125 |
66,144 |
50,372 |
|||||||||||
|
Percent Oil |
78.2 |
% |
78.4 |
% |
77.9 |
% |
82.3 |
% | |||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements ($ per Bbl) |
$ |
54.97 |
$ |
46.35 |
$ |
48.52 |
$ |
38.64 |
|||||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") ($ per Bbl) |
0.50 |
1.82 |
2.60 |
4.76 |
|||||||||||
|
Oil, with derivative settlements ($ per Bbl)(1)(2) |
53.41 |
47.93 |
48.00 |
46.68 |
|||||||||||
|
Oil derivative settlements - net cash receipts (payments) ($ in millions)(2) |
(8.2) |
7.5 |
(9.8) |
122.0 |
|||||||||||
|
Natural gas, without derivative settlements ($ per Mcf)(3) |
4.64 |
3.50 |
3.81 |
1.99 |
|||||||||||
|
Natural gas, with derivative settlements ($ per Mcf)(1)(2)(3) |
4.72 |
3.58 |
3.86 |
1.99 |
|||||||||||
|
Natural gas derivative settlements - net cash receipts ($ in millions)(2) |
0.7 |
0.6 |
1.5 |
— |
|||||||||||
|
Selected financial data ($ in millions): |
|||||||||||||||
|
Revenues: |
|||||||||||||||
|
Oil |
$ |
289.5 |
$ |
221.0 |
$ |
913.1 |
$ |
586.3 |
|||||||
|
Natural gas |
40.9 |
27.6 |
121.8 |
38.9 |
|||||||||||
|
Purchased oil and gas sales |
31.1 |
21.2 |
88.0 |
10.3 |
|||||||||||
|
Midstream revenues |
23.8 |
18.8 |
72.8 |
35.4 |
|||||||||||
|
Well services revenues |
19.2 |
16.1 |
52.8 |
33.8 |
|||||||||||
|
Total revenues |
$ |
404.5 |
$ |
304.7 |
$ |
1,248.5 |
$ |
704.7 |
|||||||
|
Net cash provided by operating activities |
$ |
209.1 |
$ |
88.9 |
$ |
507.9 |
$ |
228.0 |
|||||||
|
Adjusted EBITDA |
$ |
236.2 |
$ |
179.6 |
$ |
707.7 |
$ |
500.3 |
|||||||
|
Select operating expenses: |
|||||||||||||||
|
LOE |
$ |
43.3 |
$ |
45.3 |
$ |
177.1 |
$ |
135.4 |
|||||||
|
Midstream operating expenses |
6.7 |
4.3 |
17.6 |
9.0 |
|||||||||||
|
Well services operating expenses(5) |
13.4 |
10.3 |
37.2 |
20.7 |
|||||||||||
|
MT&G(4) |
19.0 |
15.2 |
56.6 |
29.5 |
|||||||||||
|
Non-cash valuation charges |
(1.3) |
(0.2) |
(0.8) |
0.6 |
|||||||||||
|
Purchased oil and gas expenses |
31.6 |
21.7 |
89.3 |
10.3 |
|||||||||||
|
Production taxes |
27.8 |
21.1 |
88.1 |
56.6 |
|||||||||||
|
Depreciation, depletion and amortization ("DD&A") |
146.6 |
132.3 |
530.8 |
476.3 |
|||||||||||
|
Total select operating expenses |
$ |
287.1 |
$ |
250.0 |
$ |
995.9 |
$ |
738.4 |
|||||||
|
Select operating expenses data: |
|||||||||||||||
|
LOE ($ per Boe) |
$ |
6.42 |
$ |
7.45 |
$ |
7.34 |
$ |
7.35 |
|||||||
|
MT&G ($ per Boe)(4) |
2.83 |
2.50 |
2.34 |
1.60 |
|||||||||||
|
DD&A ($ per Boe) |
21.76 |
21.75 |
21.99 |
25.84 |
|||||||||||
|
E&P G&A ($ per Boe) |
2.93 |
2.93 |
3.21 |
4.28 |
|||||||||||
|
Production taxes (% of oil and gas revenue) |
8.4 |
% |
8.5 |
% |
8.5 |
% |
9.1 |
% | |||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. | |||||||||
|
(2) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||||||
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. | |||||||||
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances and purchased oil and gas expenses. | |||||||||
|
(5) |
For the year ended December 31, 2017, certain well services direct field labor compensation expenses are included in well services operating expenses on our Consolidated Statements of Operations, which were previously recognized in general and administrative expenses on our Consolidated Statements of Operations. For the years ended December 31, 2016 and 2015, well services operating expenses have been adjusted to include $2.9 million and $3.7 million, respectively, which were previously recognized in general and administrative expenses on our Consolidated Statements of Operations. | |||||||||
G&A expenses for the fourth quarter of 2017 totaled $24.6 million, and for the year ended December 31, 2017, G&A totaled $91.8 million. G&A expenses for the Company's E&P segment totaled $19.7 million for the fourth quarter of 2017 and $77.6 million for the full year of 2017. E&P G&A expenses were $2.93 per Boe for the fourth quarter of 2017 and $3.21 per Boe for the full year of 2017. Amortization of equity-based compensation, which is included in G&A expenses, was $6.1 million, or $0.90 per Boe, for the fourth quarter of 2017 and $26.5 million, or $1.10 per Boe, for the full year of 2017.
Interest expense was $36.3 million for the fourth quarter of 2017 and $146.8 million for the full year of 2017. Capitalized interest totaled $4.0 million for the fourth quarter of 2017 and $12.8 million for the full year of 2017. Cash interest totaled $35.9 million for the fourth quarter of 2017 and $142.6 million for the full year of 2017. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended December 31, 2017, the Company recorded an income tax benefit of $202.8 million, resulting in an effective tax rate of 271.5% as a percentage of its pre-tax loss for the quarter. The Company's income tax benefit for the year ended December 31, 2017 was recorded at $203.3 million, or 268.0% of its pre-tax loss. Fourth quarter 2017 results included a benefit of $171.9 million related to the re-measurement of the Company's net deferred tax liabilities due to the recently enacted Tax Cuts and Jobs Act.
The Company reported net income attributable to Oasis of $124.6 million in the fourth quarter of 2017. For the full year of 2017, Oasis reported net income attributable to Oasis of $123.8 million. Excluding certain non-cash items and their tax effect in the fourth quarter of 2017 and the full year of 2017, Adjusted Net Income Attributable to Oasis (non-GAAP) was $27.1 million, or $0.12 per diluted share, and $4.9 million, or $0.02 per diluted share, respectively. For a definition of Adjusted Net Income (Loss) Attributable to Oasis and a reconciliation of net income (loss) attributable to Oasis to Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP Financial Measures" below.
The Company completed and placed on production 88 gross (58.3 net) operated wells during 2017 and 36 gross (22.4 net) during the fourth quarter of 2017.
Capital Expenditures
The following table depicts the Company's CapEx for the year ended December 31, 2017:
|
2017 | |||
|
CapEx ($ in millions) |
|||
|
E&P (excluding acquisitions) |
$ |
517.3 |
|
|
Well Services |
12.5 |
||
|
Other(1) |
17.3 |
||
|
Total CapEx before acquisitions and midstream |
547.1 |
||
|
Midstream |
235.1 |
||
|
Total CapEx before acquisitions |
782.2 |
||
|
Acquisitions |
54.0 |
||
|
Total CapEx(2) |
$ |
836.2 |
|
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. | |||||||||
|
(2) |
CapEx (including acquisitions and midstream) reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statement of cash flows are presented on a cash basis. | |||||||||
Estimated Net Proved Reserves
The Company's estimated net proved reserves and related PV-10 are based on reports prepared by DeGolyer and MacNaughton, independent reserve engineers. The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2017:
|
December 31, 2017 | |||||||
|
Net Estimated |
PV-10(1) (in millions) | ||||||
|
Proved Developed |
200.8 |
$ |
2,600.4 |
||||
|
Undeveloped |
111.4 |
1,083.3 |
|||||
|
Total Proved |
312.2 |
$ |
3,683.7 |
||||
|
(1) |
PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. | ||||||||
Liquidity and Balance Sheet
As of December 31, 2017, Oasis had cash and cash equivalents of $16.7 million. In addition, Oasis had $70.0 million of borrowings and $10.5 million of outstanding letters of credit issued under the Oasis credit facility and $78.0 million of borrowings under the OMP credit facility, resulting in an unused borrowing base capacity of $1,191.5 million for both revolving credit facilities as of December 31, 2017.
On December 13, 2017, the Company completed a public offering resulting in net proceeds of $302.6 million, after deducting underwriting discounts and commissions and offering expenses, which was raised to fund a portion of its acquisition in the Delaware Basin, but was initially used to repay borrowings from the Oasis credit facility. On February 14, 2018, the Company borrowed $502.0 million under the Oasis credit facility to fund cash due at closing of the acquisition.
On February 26, 2018, the Company entered into an amendment to the Oasis credit facility, resulting in the aggregate elected commitment being increased from $1,150.0 million to $1,350.0 million. The next redetermination of the borrowing base for the Oasis credit facility is scheduled for April 1, 2018. The OMP credit facility has a current borrowing capacity of $200.0 million.
Hedging Activity
As of February 27, 2018, the Company had the following outstanding commodity derivative contracts, all of which are priced relative to WTI crude oil index prices and settle monthly:
|
Crude oil (Volume in Mbopd) |
1H18 |
2H18 |
1H19 |
2H19 | ||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
43.5 |
37.0 |
13.0 |
13.0 |
||||||||||||
|
Price |
$ |
52.31 |
$ |
51.45 |
$ |
53.47 |
$ |
53.47 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
3.0 |
3.0 |
— |
— |
||||||||||||
|
Floor |
$ |
48.67 |
$ |
48.67 |
$ |
— |
$ |
— |
||||||||
|
Ceiling |
$ |
53.07 |
$ |
53.07 |
$ |
— |
$ |
— |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
— |
— |
3.0 |
3.0 |
||||||||||||
|
Sub-Floor |
$ |
— |
$ |
— |
$ |
40.00 |
$ |
40.00 |
||||||||
|
Floor |
$ |
— |
$ |
— |
$ |
50.00 |
$ |
50.00 |
||||||||
|
Ceiling |
$ |
— |
$ |
— |
$ |
63.50 |
$ |
63.50 |
||||||||
|
Total Crude Oil Volume |
46.5 |
40.0 |
16.0 |
16.0 |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
22.7 |
23.0 |
— |
— |
||||||||||||
|
Price |
$ |
3.05 |
$ |
3.05 |
$ |
— |
$ |
— |
||||||||
|
Total Natural Gas Volume |
22.7 |
23.0 |
— |
— |
||||||||||||
The December 2017 crude oil derivative contracts settled at $8.1 million and will be included in the Company's first quarter of 2018 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Wednesday, February 28, 2018 | |
|
Time: |
10:00 a.m. Central Time | |
|
Live Webcast: |
||
|
OR: |
||
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
0228614 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, March 7, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10117251 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. Financial Statements | |||||||
|
OASIS PETROLEUM INC. | |||||||
|
CONSOLIDATED BALANCE SHEETS | |||||||
|
(Unaudited) | |||||||
|
December 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
16,720 |
$ |
11,226 |
|||
|
Accounts receivable, net |
363,580 |
204,335 |
|||||
|
Inventory |
19,367 |
10,648 |
|||||
|
Prepaid expenses |
7,631 |
7,623 |
|||||
|
Derivative instruments |
344 |
362 |
|||||
|
Other current assets |
193 |
4,355 |
|||||
|
Total current assets |
407,835 |
238,549 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
7,838,955 |
7,296,568 |
|||||
|
Other property and equipment |
868,746 |
618,790 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,534,215) |
(1,995,791) |
|||||
|
Total property, plant and equipment, net |
6,173,486 |
5,919,567 |
|||||
|
Derivative instruments |
9 |
— |
|||||
|
Long-term inventory |
12,200 |
— |
|||||
|
Other assets |
21,600 |
20,516 |
|||||
|
Total assets |
$ |
6,615,130 |
$ |
6,178,632 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
13,370 |
$ |
4,645 |
|||
|
Revenues and production taxes payable |
213,995 |
139,737 |
|||||
|
Accrued liabilities |
236,480 |
119,173 |
|||||
|
Accrued interest payable |
38,963 |
39,004 |
|||||
|
Derivative instruments |
115,716 |
60,469 |
|||||
|
Advances from joint interest partners |
4,916 |
7,597 |
|||||
|
Other current liabilities |
40 |
10,490 |
|||||
|
Total current liabilities |
623,480 |
381,115 |
|||||
|
Long-term debt |
2,097,606 |
2,297,214 |
|||||
|
Deferred income taxes |
305,921 |
513,529 |
|||||
|
Asset retirement obligations |
48,511 |
48,985 |
|||||
|
Derivative instruments |
19,851 |
11,714 |
|||||
|
Other liabilities |
6,182 |
2,918 |
|||||
|
Total liabilities |
3,101,551 |
3,255,475 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 270,627,014 shares issued and 269,295,466 shares outstanding at December 31, 2017 and 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016 |
2,668 |
2,331 |
|||||
|
Treasury stock, at cost: 1,331,548 and 856,892 shares at December 31, 2017 and December 31, 2016, respectively |
(22,179) |
(15,950) |
|||||
|
Additional paid-in capital |
2,677,217 |
2,345,271 |
|||||
|
Retained earnings |
717,985 |
591,505 |
|||||
|
Oasis share of stockholders' equity |
3,375,691 |
2,923,157 |
|||||
|
Non-controlling interests |
137,888 |
— |
|||||
|
Total stockholders' equity |
3,513,579 |
2,923,157 |
|||||
|
Total liabilities and stockholders' equity |
$ |
6,615,130 |
$ |
6,178,632 |
|||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil and gas revenues |
$ |
330,359 |
$ |
192,265 |
$ |
1,034,892 |
$ |
625,233 |
||||||||
|
Purchased oil and gas sales |
31,072 |
8,405 |
87,989 |
10,272 |
||||||||||||
|
Midstream revenues |
23,813 |
13,026 |
72,752 |
35,406 |
||||||||||||
|
Well services revenues |
19,225 |
4,295 |
52,791 |
33,754 |
||||||||||||
|
Total revenues |
404,469 |
217,991 |
1,248,424 |
704,665 |
||||||||||||
|
Operating expenses |
||||||||||||||||
|
Lease operating expenses |
43,263 |
37,161 |
177,134 |
135,444 |
||||||||||||
|
Midstream operating expenses |
6,698 |
2,908 |
17,589 |
9,003 |
||||||||||||
|
Well services operating expenses |
13,370 |
2,569 |
37,228 |
20,675 |
||||||||||||
|
Marketing, transportation and gathering expenses |
17,722 |
8,062 |
55,740 |
30,108 |
||||||||||||
|
Purchased oil and gas expenses |
31,637 |
8,405 |
89,320 |
10,258 |
||||||||||||
|
Production taxes |
27,811 |
16,807 |
88,133 |
56,565 |
||||||||||||
|
Depreciation, depletion and amortization |
146,556 |
119,446 |
530,802 |
476,331 |
||||||||||||
|
Exploration expenses |
7,590 |
593 |
11,600 |
1,785 |
||||||||||||
|
Impairment |
866 |
717 |
6,887 |
4,684 |
||||||||||||
|
General and administrative expenses |
24,627 |
23,027 |
91,797 |
89,342 |
||||||||||||
|
Total operating expenses |
320,140 |
219,695 |
1,106,230 |
834,195 |
||||||||||||
|
Gain (loss) on sale of properties |
1,774 |
2 |
1,774 |
(1,303) |
||||||||||||
|
Operating income (loss) |
86,103 |
(1,702) |
143,968 |
(130,833) |
||||||||||||
|
Other income (expense) |
||||||||||||||||
|
Net loss on derivative instruments |
(123,954) |
(49,693) |
(71,657) |
(105,317) |
||||||||||||
|
Interest expense, net of capitalized interest |
(36,289) |
(34,861) |
(146,837) |
(140,305) |
||||||||||||
|
Gain (loss) on extinguishment of debt |
— |
(124) |
— |
4,741 |
||||||||||||
|
Other income (expense) |
(577) |
(28) |
(1,332) |
160 |
||||||||||||
|
Total other expense |
(160,820) |
(84,706) |
(219,826) |
(240,721) |
||||||||||||
|
Loss before income taxes |
(74,717) |
(86,408) |
(75,858) |
(371,554) |
||||||||||||
|
Income tax benefit |
202,834 |
31,720 |
203,304 |
128,538 |
||||||||||||
|
Net income (loss) including non-controlling interests |
128,117 |
(54,688) |
127,446 |
(243,016) |
||||||||||||
|
Less: Net income attributable to non-controlling interests |
3,500 |
— |
3,650 |
— |
||||||||||||
|
Net income (loss) attributable to Oasis |
$ |
124,617 |
$ |
(54,688) |
$ |
123,796 |
$ |
(243,016) |
||||||||
|
Earnings (loss) per share: |
||||||||||||||||
|
Basic |
$ |
0.52 |
$ |
(0.25) |
$ |
0.53 |
$ |
(1.32) |
||||||||
|
Diluted |
0.52 |
(0.25) |
0.52 |
(1.32) |
||||||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
240,143 |
217,332 |
234,986 |
183,615 |
||||||||||||
|
Diluted |
241,960 |
217,332 |
237,875 |
183,615 |
||||||||||||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
SELECTED FINANCIAL AND OPERATIONAL STATS | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
Operating results ($ in thousands): |
||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil |
$ |
289,461 |
$ |
175,107 |
$ |
913,064 |
$ |
586,308 |
||||||||
|
Natural gas |
40,898 |
17,158 |
121,828 |
38,925 |
||||||||||||
|
Purchased oil and gas sales |
31,072 |
8,405 |
87,989 |
10,272 |
||||||||||||
|
Midstream revenues |
23,813 |
13,026 |
72,752 |
35,406 |
||||||||||||
|
Well services revenues |
19,225 |
4,295 |
52,791 |
33,754 |
||||||||||||
|
Total revenues |
$ |
404,469 |
$ |
217,991 |
$ |
1,248,424 |
$ |
704,665 |
||||||||
|
Production data: |
||||||||||||||||
|
Oil (MBbls) |
5,266 |
3,929 |
18,818 |
15,174 |
||||||||||||
|
Natural gas (MMcf) |
8,815 |
5,764 |
31,946 |
19,573 |
||||||||||||
|
Oil equivalents (MBoe) |
6,735 |
4,890 |
24,143 |
18,436 |
||||||||||||
|
Average daily production (Boepd) |
73,207 |
53,150 |
66,144 |
50,372 |
||||||||||||
|
Average sales prices: |
||||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
54.97 |
$ |
44.57 |
$ |
48.52 |
$ |
38.64 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1) |
53.41 |
46.20 |
48.00 |
46.68 |
||||||||||||
|
Natural gas, without derivative settlements (per Mcf)(2) |
4.64 |
2.98 |
3.81 |
1.99 |
||||||||||||
|
Natural gas, with derivative settlements (per Mcf)(1)(2) |
4.72 |
2.98 |
3.86 |
1.99 |
||||||||||||
|
Costs and expenses (per Boe of production): |
||||||||||||||||
|
Lease operating expenses |
$ |
6.42 |
$ |
7.60 |
$ |
7.34 |
$ |
7.35 |
||||||||
|
Marketing, transportation and gathering expenses(3) |
2.83 |
1.66 |
2.34 |
1.60 |
||||||||||||
|
Production taxes |
4.13 |
3.44 |
3.65 |
3.07 |
||||||||||||
|
Depreciation, depletion and amortization |
21.76 |
24.43 |
21.99 |
25.84 |
||||||||||||
|
General and administrative expenses(4) |
3.66 |
4.71 |
3.80 |
4.85 |
||||||||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||||
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. | ||||||||
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances and purchased oil and gas expenses. | ||||||||
|
(4) |
For the year ended December 31, 2017, certain well services direct field labor compensation expenses are included in well services operating expenses on our Consolidated Statements of Operations, which were previously recognized in general and administrative expenses on our Consolidated Statements of Operations. For the years ended December 31, 2016 and 2015, well services operating expenses have been adjusted to include $2.9 million and $3.7 million, respectively, which were previously recognized in general and administrative expenses on our Consolidated Statements of Operations. | ||||||||
|
OASIS PETROLEUM INC. | |||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
(Unaudited) | |||||||
|
Year Ended December 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net income (loss) including non-controlling interests |
$ |
127,446 |
$ |
(243,016) |
|||
|
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
530,802 |
476,331 |
|||||
|
Gain on extinguishment of debt |
— |
(4,741) |
|||||
|
(Gain) loss on sale of properties |
(1,774) |
1,303 |
|||||
|
Impairment |
6,887 |
4,684 |
|||||
|
Deferred income taxes |
(202,884) |
(128,538) |
|||||
|
Derivative instruments |
71,657 |
105,317 |
|||||
|
Equity-based compensation expenses |
26,534 |
24,103 |
|||||
|
Deferred financing costs amortization and other |
18,311 |
14,334 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable, net |
(158,587) |
(11,923) |
|||||
|
Change in inventory |
(2,501) |
254 |
|||||
|
Change in prepaid expenses |
(838) |
(295) |
|||||
|
Change in other current assets |
148 |
(305) |
|||||
|
Change in long-term inventory and other assets |
(12,143) |
(151) |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
115,308 |
(13,839) |
|||||
|
Change in other current liabilities |
(10,450) |
4,490 |
|||||
|
Change in other liabilities |
(40) |
10 |
|||||
|
Net cash provided by operating activities |
507,876 |
228,018 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(647,349) |
(426,256) |
|||||
|
Acquisitions |
(61,874) |
(781,522) |
|||||
|
Proceeds from sale of properties |
5,774 |
12,333 |
|||||
|
Costs related to sale of properties |
(366) |
(310) |
|||||
|
Derivative settlements |
(8,264) |
121,977 |
|||||
|
Advances from joint interest partners |
(2,681) |
2,950 |
|||||
|
Net cash used in investing activities |
(714,760) |
(1,070,828) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from Revolving Credit Facilities |
1,162,000 |
1,407,000 |
|||||
|
Principal payments on Revolving Credit Facilities |
(1,377,000) |
(1,182,000) |
|||||
|
Repurchase of senior unsecured notes |
— |
(435,907) |
|||||
|
Proceeds from issuance of senior unsecured convertible notes |
— |
300,000 |
|||||
|
Deferred financing costs |
(2,714) |
(9,127) |
|||||
|
Proceeds from sale of common stock |
302,191 |
766,670 |
|||||
|
Proceeds from sale of Oasis Midstream common units, net of offering costs |
134,185 |
— |
|||||
|
Purchases of treasury stock |
(6,229) |
(2,330) |
|||||
|
Other |
(55) |
— |
|||||
|
Net cash provided by financing activities |
212,378 |
844,306 |
|||||
|
Increase in cash and cash equivalents |
5,494 |
1,496 |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
11,226 |
9,730 |
|||||
|
End of period |
$ |
16,720 |
$ |
11,226 |
|||
|
Supplemental cash flow information: |
|||||||
|
Cash paid for interest, net of capitalized interest |
$ |
154,980 |
$ |
138,248 |
|||
|
Cash paid for taxes |
12 |
— |
|||||
|
Cash received for income tax refunds |
281 |
5 |
|||||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
83,508 |
$ |
(43,415) |
|||
|
Change in asset retirement obligations |
(789) |
3,810 |
|||||
|
Note receivable from divestiture |
— |
4,000 |
|||||
|
Installment notes from acquisition |
4,875 |
— |
|||||
Non-GAAP Financial Measures
Cash Interest Reconciliation
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
36,289 |
$ |
34,861 |
$ |
146,837 |
$ |
140,305 |
|||||||
|
Capitalized interest |
4,024 |
3,165 |
12,797 |
16,848 |
|||||||||||
|
Amortization of deferred financing costs |
(1,779) |
(1,715) |
(6,907) |
(9,757) |
|||||||||||
|
Amortization of debt discount |
(2,654) |
(2,409) |
(10,080) |
(2,709) |
|||||||||||
|
Cash Interest |
$ |
35,880 |
$ |
33,902 |
$ |
142,647 |
$ |
144,687 |
|||||||
Adjusted EBITDA and Free Cash Flow Reconciliations
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net income (loss) including non-controlling interests |
$ |
128,117 |
$ |
(54,688) |
$ |
127,446 |
$ |
(243,016) |
|||||||
|
(Gain) loss on sale of properties |
(1,774) |
(2) |
(1,774) |
1,303 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
124 |
— |
(4,741) |
|||||||||||
|
Net loss on derivative instruments |
123,954 |
49,693 |
71,657 |
105,317 |
|||||||||||
|
Derivative settlements(1) |
(7,460) |
6,401 |
(8,264) |
121,977 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,289 |
34,861 |
146,837 |
140,305 |
|||||||||||
|
Depreciation, depletion and amortization |
146,556 |
119,446 |
530,802 |
476,331 |
|||||||||||
|
Impairment |
866 |
717 |
6,887 |
4,684 |
|||||||||||
|
Exploration expenses |
7,590 |
593 |
11,600 |
1,785 |
|||||||||||
|
Equity-based compensation expenses |
6,083 |
5,342 |
26,534 |
24,103 |
|||||||||||
|
Income tax benefit |
(202,834) |
(31,720) |
(203,304) |
(128,538) |
|||||||||||
|
Other non-cash adjustments |
(1,236) |
93 |
(745) |
790 |
|||||||||||
|
Adjusted EBITDA |
236,151 |
130,860 |
707,676 |
500,300 |
|||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
3,714 |
— |
3,904 |
— |
|||||||||||
|
Adjusted EBITDA attributable to Oasis |
232,437 |
130,860 |
703,772 |
500,300 |
|||||||||||
|
Cash Interest |
(35,880) |
(33,902) |
(142,647) |
(144,687) |
|||||||||||
|
Capital expenditures(2) |
(313,060) |
(883,831) |
(836,204) |
(1,181,527) |
|||||||||||
|
Capitalized interest |
4,024 |
3,165 |
12,797 |
16,848 |
|||||||||||
|
Free Cash Flow |
$ |
(112,479) |
$ |
(783,708) |
$ |
(262,282) |
$ |
(809,066) |
|||||||
|
Net cash provided by operating activities |
$ |
209,139 |
$ |
104,599 |
$ |
507,876 |
$ |
228,018 |
|||||||
|
Derivative settlements(1) |
(7,460) |
6,401 |
(8,264) |
121,977 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,289 |
34,861 |
146,837 |
140,305 |
|||||||||||
|
Exploration expenses |
7,590 |
593 |
11,600 |
1,785 |
|||||||||||
|
Deferred financing costs amortization and other |
(5,645) |
(4,160) |
(18,311) |
(14,334) |
|||||||||||
|
Current tax expense |
(421) |
— |
(421) |
— |
|||||||||||
|
Changes in working capital |
(2,105) |
(11,527) |
69,104 |
21,759 |
|||||||||||
|
Other non-cash adjustments |
(1,236) |
93 |
(745) |
790 |
|||||||||||
|
Adjusted EBITDA |
236,151 |
130,860 |
707,676 |
500,300 |
|||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
3,714 |
— |
3,904 |
— |
|||||||||||
|
Adjusted EBITDA attributable to Oasis |
232,437 |
130,860 |
703,772 |
500,300 |
|||||||||||
|
Cash Interest |
(35,880) |
(33,902) |
(142,647) |
(144,687) |
|||||||||||
|
Capital expenditures(2) |
(313,060) |
(883,831) |
(836,204) |
(1,181,527) |
|||||||||||
|
Capitalized interest |
4,024 |
3,165 |
12,797 |
16,848 |
|||||||||||
|
Free Cash Flow |
$ |
(112,479) |
$ |
(783,708) |
$ |
(262,282) |
$ |
(809,066) |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||||||
|
(2) |
CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $48.2 million and $54.0 million for the fourth quarter and full year 2017, respectively, and $768.0 million and $781.5 million for the fourth quarter and full year 2016, respectively. | |||||||||
Segment Adjusted EBITDA Reconciliations
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Loss before income taxes including non-controlling interests |
$ |
(107,130) |
$ |
(105,395) |
$ |
(179,129) |
$ |
(436,469) |
|||||||
|
(Gain) loss on sale of properties |
(1,774) |
(2) |
(1,774) |
1,661 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
124 |
— |
(4,741) |
|||||||||||
|
Net loss on derivative instruments |
123,954 |
49,693 |
71,657 |
105,317 |
|||||||||||
|
Derivative settlements(1) |
(7,460) |
6,401 |
(8,264) |
121,977 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,289 |
34,861 |
146,818 |
140,305 |
|||||||||||
|
Depreciation, depletion and amortization |
143,033 |
117,346 |
519,853 |
467,894 |
|||||||||||
|
Impairment |
866 |
717 |
6,887 |
2,253 |
|||||||||||
|
Exploration expenses |
7,590 |
593 |
11,600 |
1,785 |
|||||||||||
|
Equity-based compensation expenses |
5,695 |
5,152 |
25,436 |
23,346 |
|||||||||||
|
Other non-cash adjustments |
(1,303) |
21 |
(812) |
718 |
|||||||||||
|
Adjusted EBITDA |
$ |
199,760 |
$ |
109,511 |
$ |
592,272 |
$ |
424,046 |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||||||
|
Midstream Services | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes including non-controlling interests |
$ |
33,294 |
$ |
19,132 |
$ |
102,340 |
$ |
68,394 |
|||||||
|
Gain on sale of properties |
— |
— |
— |
(358) |
|||||||||||
|
Interest expense, net of capitalized interest |
— |
— |
19 |
— |
|||||||||||
|
Depreciation, depletion and amortization |
4,625 |
3,200 |
15,999 |
8,525 |
|||||||||||
|
Impairment |
— |
— |
— |
2,431 |
|||||||||||
|
Equity-based compensation expenses |
357 |
249 |
1,461 |
911 |
|||||||||||
|
Other non-cash adjustments |
— |
10 |
— |
10 |
|||||||||||
|
Adjusted EBITDA |
$ |
38,276 |
$ |
22,591 |
$ |
119,819 |
$ |
79,913 |
|||||||
|
Well Services | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes including non-controlling interests |
$ |
5,897 |
$ |
10 |
$ |
15,091 |
$ |
3,471 |
|||||||
|
Depreciation, depletion and amortization |
3,522 |
3,287 |
12,939 |
14,892 |
|||||||||||
|
Equity-based compensation expenses |
249 |
262 |
1,264 |
1,515 |
|||||||||||
|
Other non-cash adjustments |
67 |
62 |
67 |
62 |
|||||||||||
|
Adjusted EBITDA |
$ |
9,735 |
$ |
3,621 |
$ |
29,361 |
$ |
19,940 |
|||||||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items, excluding net income attributable to non-controlling interests, in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) attributable to Oasis |
$ |
124,617 |
$ |
(54,688) |
$ |
123,796 |
$ |
(243,016) |
|||||||
|
Tax reform rate change adjustments |
(171,900) |
— |
(171,900) |
— |
|||||||||||
|
(Gain) loss on sale of properties |
(1,774) |
(2) |
(1,774) |
1,303 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
124 |
— |
(4,741) |
|||||||||||
|
Net loss on derivative instruments |
123,954 |
49,693 |
71,657 |
105,317 |
|||||||||||
|
Derivative settlements(1) |
(7,460) |
6,401 |
(8,264) |
121,977 |
|||||||||||
|
Impairment |
866 |
717 |
6,887 |
4,684 |
|||||||||||
|
Amortization of deferred financing costs(2) |
1,779 |
1,715 |
6,907 |
9,757 |
|||||||||||
|
Amortization of debt discount |
2,654 |
2,409 |
10,080 |
2,709 |
|||||||||||
|
Other non-cash adjustments |
(1,236) |
93 |
(745) |
790 |
|||||||||||
|
Tax impact(3) |
(44,425) |
(22,882) |
(31,696) |
(90,480) |
|||||||||||
|
Adjusted Net Income (Loss) Attributable to Oasis |
$ |
27,075 |
$ |
(16,420) |
$ |
4,948 |
$ |
(91,700) |
|||||||
|
Diluted earnings (loss) attributable to Oasis per share |
$ |
0.52 |
$ |
(0.25) |
$ |
0.52 |
$ |
(1.32) |
|||||||
|
Tax reform rate change adjustments |
(0.71) |
— |
(0.72) |
— |
|||||||||||
|
(Gain) loss on sale of properties |
(0.01) |
— |
(0.01) |
0.01 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
— |
— |
(0.03) |
|||||||||||
|
Net loss on derivative instruments |
0.51 |
0.23 |
0.30 |
0.57 |
|||||||||||
|
Derivative settlements(1) |
(0.03) |
0.03 |
(0.03) |
0.66 |
|||||||||||
|
Impairment |
— |
— |
0.03 |
0.03 |
|||||||||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.01 |
0.03 |
0.05 |
|||||||||||
|
Amortization of debt discount |
0.01 |
0.01 |
0.04 |
0.01 |
|||||||||||
|
Other non-cash adjustments |
(0.01) |
— |
— |
— |
|||||||||||
|
Tax impact(3) |
(0.17) |
(0.11) |
(0.14) |
(0.48) |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share |
$ |
0.12 |
$ |
(0.08) |
$ |
0.02 |
$ |
(0.50) |
|||||||
|
Diluted weighted average shares outstanding |
241,960 |
217,332 |
237,875 |
183,615 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||||
|
(2) |
As of December 31, 2016, Adjusted Net Income (Loss) Attributable to Oasis includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs is included in interest expense on the Company's Consolidated Statements of Operations. | ||||||||
|
(3) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. The tax impact was not computed for the tax reform rate change adjustments. | ||||||||
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-and-year-ending-december-31-2017-earnings-and-provides-an-operational-update-and-2018-outlook-300605367.html
SOURCE Oasis Petroleum Inc.
Article Date
2/27/20182/15/2018 - Oasis Midstream Partners Schedules Fourth Quarter 2017 Conference Call for February 28, 2018
Oasis Midstream Partners Schedules Fourth Quarter 2017 Conference Call for February 28, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 15, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Fourth Quarter 2017 financial and operational results on Tuesday, February 27, 2018 after the close of trading on the NYSE. Additionally, the Partnership will host a webcast and conference call on Wednesday, February 28, 2018 at 11:30 a.m. Central Time to discuss Fourth Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
|
Date: |
Wednesday, February 28, 2018 |
|
Time: |
11:30 a.m. Central Time |
|
Live Webcast: |
OR:
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
6026365 |
|
Website: |
A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Wednesday, March 7, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10117253 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream and Oasis Petroleum plan to participate in the following conferences and investor events:
|
March 5-6: |
Raymond James' 2018 Institutional Investors Conference – Orlando, FL |
|
March 13: |
Evercore ISI's 2018 Energy Summit – Houston, TX |
|
April 9: |
Mizuho's 2018 Energy Summit – Napa, CA |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Director, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-fourth-quarter-2017-conference-call-for-february-28-2018-300599892.html
SOURCE Oasis Midstream Partners LP
Article Date
2/15/2018Oasis Petroleum Schedules Fourth Quarter 2017 Conference Call for February 28, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 15, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Fourth Quarter and Year End 2017 financial and operational results on Tuesday, February 27, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, February 28, 2018 at 10:00 a.m. Central Time to discuss Fourth Quarter and Year End 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
|
Date: |
Wednesday, February 28, 2018 |
|
Time: |
10:00 a.m. Central Time |
|
Live Webcast: |
|
|
OR: |
|
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
0228614 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, March 7, 2018 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10117251 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
|
March 5-6: |
Raymond James' 2018 Institutional Investors Conference – Orlando, FL |
|
March 13: |
Evercore ISI's 2018 Energy Summit – Houston, TX |
|
April 9: |
Mizuho's 2018 Energy Summit – Napa, CA |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-schedules-fourth-quarter-2017-conference-call-for-february-28-2018-300599887.html
SOURCE Oasis Petroleum Inc.
Article Date
2/15/20182/2/2018 - Oasis Midstream Partners Announces Third Quarter 2017 and Fourth Quarter 2017 Distributions
Oasis Midstream Partners Announces Third Quarter 2017 and Fourth Quarter 2017 Distributions
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 2, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that the Board of Directors of OMP GP LLC, the general partner of the Partnership, declared the initial quarterly cash distribution of $0.3750 per unit for the quarter ending December 31, 2017. The Board of Directors also declared the third quarter distribution of $0.0245 per unit for the six days ending September 30, 2017. The third quarter distribution has been prorated from the closing of the Partnership's initial public offering on September 25, 2017. Both distributions equate to the minimum quarterly distribution of $0.3750 per unit on a full-quarter basis. Both distributions will be payable on February 26, 2018 to unitholders of record as of February 16, 2018.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Partnership, including the Partnership's capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Partnership based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, the Partnership's ability to integrate acquisitions into its existing business, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in the estimates of proved reserves and forecasted production results of the Partnership's customers, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Partnership's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Partnership's business and other important factors. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Partnership's actual results and plans could differ materially from those expressed in any forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made and the Partnership undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Qualified Notice
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Petroleum Inc.
Taylor Mason, (281) 404-9600
Manager, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-third-quarter-2017-and-fourth-quarter-2017-distributions-300592785.html
SOURCE Oasis Midstream Partners LP
Article Date
2/2/2018Oasis Petroleum Inc. Announces Passing of Director Ted Collins, Jr.
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Jan. 30, 2018 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that Ted Collins, Jr., a member of the Company's Board of Directors, passed away unexpectedly on January 28, 2018. Mr. Collins was appointed to the Company's Board of Directors in February 2011 and served on the Company's Audit and Nominating and Governance Committees.
Thomas B. Nusz, Chairman and CEO of Oasis, stated: "We are deeply saddened to announce Ted's passing. On behalf of the Board of Directors and the entire Oasis team, we want to extend our heartfelt condolences to Ted's family. Ted was a dear friend, a gentleman, and a valued member of the Oasis family. We will miss him."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the composition of the board of directors and its committees. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-passing-of-director-ted-collins-jr-300590670.html
SOURCE Oasis Petroleum Inc.
Article Date
1/30/2018Oasis Petroleum Inc. Announces Pricing of Public Offering of Common Stock
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Dec. 11, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has priced an underwritten public offering of 32,000,000 shares of common stock for total gross proceeds (before the underwriters' discounts and commissions and estimated offering expenses) of approximately $321.9 million. The Company intends to use the net proceeds from this offering to fund a portion of the previously announced acquisition of assets in the Permian Basin from Forge Energy, LLC (the "Acquisition"). The offering is not conditioned on the consummation of the Acquisition, and if the Acquisition does not occur, the net proceeds will be used for general corporate purposes, which may include funding a portion of the Company's 2018 capital budget. Oasis granted the underwriters a 30-day option to purchase up to 4,800,000 additional shares of common stock. The offering is expected to close December 13, 2017.
Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 14, 2017. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriters will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting Goldman Sachs & Co. LLC, attention Prospectus Department, 200 West Street, New York, New York 10282, telephone: 866-471-2526, email: prospectus-ny@ny.email.gs.com; or Credit Suisse, attention Prospectus Department, Eleven Madison Avenue, Level 1B, New York, NY 10010, telephone: 800-221-1037, email: newyork.prospectus@credit-suisse.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the common stock offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, the closing of the Acquisition, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-pricing-of-public-offering-of-common-stock-300569816.html
SOURCE Oasis Petroleum Inc.
Article Date
12/12/2017Oasis Petroleum Inc. Announces Public Offering of Common Stock
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Dec. 11, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has commenced an underwritten public offering of 32,000,000 shares of common stock. Oasis expects to grant the underwriters a 30-day option to purchase up to 4,800,000 additional shares of common stock. The Company intends to use the net proceeds from this offering to fund a portion of the previously announced acquisition of assets in the Permian Basin from Forge Energy, LLC (the "Acquisition"). The offering is not conditioned on the consummation of the Acquisition, and if the Acquisition does not occur, the net proceeds will be used for general corporate purposes, which may include funding a portion of the Company's 2018 capital budget.
Goldman Sachs & Co. LLC and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 14, 2017. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriters will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting Goldman Sachs & Co. LLC, attention Prospectus Department, 200 West Street, New York, New York 10282, telephone: 866-471-2526, email: prospectus-ny@ny.email.gs.com; or Credit Suisse, attention Prospectus Department, Eleven Madison Avenue, Level 1B, New York, NY 10010, telephone: 800-221-1037, email: newyork.prospectus@credit-suisse.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the common stock offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, the closing of the Acquisition, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston and Delaware Basins.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-public-offering-of-common-stock-300569712.html
SOURCE Oasis Petroleum Inc.
Article Date
12/11/2017Oasis Petroleum Announces Delaware Basin Acquisition and Provides Operational Updates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Dec. 11, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced it has entered into a definitive purchase and sale agreement with Forge Energy, LLC (the "Seller") to acquire 20,300 net acres in the Delaware Basin (the "Permian Assets") for approximately $946 million, consisting of approximately $483 million in cash and 46 million shares of the Company's common stock (the "OAS Shares") valued at approximately $463 million as of the close of trading on December 8, 2017 (the "Acquisition"). The Acquisition will be funded through a combination of the OAS Shares issued to the Seller, a draw on the Company's revolving credit facility, and/or capital markets transactions, depending on market conditions. Additionally, Oasis expects to divest non-core Williston Basin acreage up to $500 million in 2018.
The Acquisition has an effective date of December 1, 2017 and is expected to close in February 2018, at which time the owners of the Seller will receive full consideration less a deposit paid. The transaction is subject to customary closing adjustments and conditions.
Tommy Nusz, Oasis's Chairman and Chief Executive Officer, commented "This accretive transaction more than doubles Oasis's core net inventory and represents a unique opportunity to acquire a highly complementary asset to Oasis's premier Williston Basin acreage that positions the Company to further capitalize on its operational strengths. Our leading track record of efficient full field development in the Williston Basin positions Oasis to succeed as we expand operations into the Delaware Basin. Our new Permian Assets deliver a consolidated position in the deepest and highest pressured part of the Delaware in the heart of the oil window. The Seller and offset operators have materially de-risked this position with recent well performance across the Wolfcamp and Bone Spring formations, giving us additional confidence in asset quality and well performance. This transaction further improves the capital efficiency of our development program, while providing an opportunity to divest and realize value for quality assets that fall deeper in our development program. We are excited for this new chapter, and also remain committed to our current capital-disciplined and returns-focused execution plan in the Williston Basin. As we execute our combined program in 2018, we expect to be free cash flow positive on our E&P business running a $55 WTI oil price."
Acquisition Highlights
Recent Results and Updated Guidance
Oasis production for October was approximately 70,000 Boe per day, and November operational production exceeded 72,000 Boe per day, already surpassing the planned 2017 exit rate. In light of the increased production, guidance for the fourth quarter of 2017 is increased from 69,000 – 72,000 Boe per day, to 71,000 – 73,000 Boe per dayOasis expects to continue to run five rigs in the Williston Basin, and will assume one rig currently run by the Seller in the Delaware Basin. Additionally, Oasis expects lease operating expenses in the fourth quarter of 2017 to range between $7.00 and $7.50 per Boe and differentials to range between $0.50 and $1.00 per Boe. Oasis continues to expect production in the Williston Basin to exceed 83,000 Boe per day exiting 2018, not accounting for volumes to be divested through planned asset sales, and expects production to grow to over 5,000 Boe per day in the Delaware Basin exiting 2018. As of November 30, 2017, Oasis had $333.0 million drawn and $10.5 million in letters of credit outstanding under its $1.6 billion borrowing base and $2.1 million in cash.
Conference Call
Oasis will host a live webcast and conference call on Monday, December 11, 2017 at 6:15 p.m. Central Time to discuss the acquisition. A presentation will be posted to the website.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Monday, December 11, 2017
Time: 6:15 p.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1052/23840
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 0296989
Website: www.oasispetroleum.com
A recording of the conference call will be available beginning at 8:30 p.m. Central Time on the day after the call and will be available until Monday, December 18, 2017 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Conference ID: 10115040
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the agreement to acquire the Seller's Permian Assets and its anticipated closing, financing for the proposed Acquisition and statements regarding the Permian Assets being acquired. In addition, this press release contains statements regarding the Company's drilling and production results for the fourth quarter of 2017. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, future actual performance of the Company and the Permian Assets being acquired, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of financing, the closing of the Acquisition, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-announces-delaware-basin-acquisition-and-provides-operational-updates-300569710.html
SOURCE Oasis Petroleum Inc.
Article Date
12/11/2017Oasis Petroleum Inc. Announces Quarter Ended September 30, 2017 Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Nov. 7, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2017 and provided an operational update.
Recent Highlights:
"Oasis successfully delivered on production growth during the quarter in line with guidance, completed its IPO of OMP, and launched its second frac crew," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "The team delivered another great quarter and has positioned Oasis to exit the year with 72 MBoepd of production. Well performance across our core acreage position, including Wild Basin, Indian Hills, and Alger, continues to deliver impressive results, and our wells remain highly economic in the current commodity price environment. The team has also further reduced operating costs while driving improved differentials benefiting from our integrated midstream infrastructure."
Gas Plant II Update
Oil and gas production from Oasis' Wild Basin wells continues to exceed expectations, primarily due to higher frac intensity in the core areas of the Williston Basin. The initial gas to oil ratio ("GOR") is generally higher in the core of the Williston Basin, including parts of McKenzie County, compared to the entire basin. The combined effect of these factors has resulted in record gas production levels in the Williston Basin and particularly in McKenzie County where much of the drilling since 2015 has occurred, which now produces approximately half of the gas production in North Dakota. Due to the increased production of gas in the Williston Basin, there is a need for incremental processing capacity in the basin.
Gas production in Wild Basin has already surpassed original design expectations for OMP's 80 MMscfpd gas plant, which is held by OMP's wholly-owned development company ("DevCo"), Bighorn DevCo LLC ("Bighorn DevCo"), and recently has averaged gross gas production in Wild Basin of approximately 100 MMscfpd. Oasis initially evaluated options to process the incremental gas that is being produced in and around Wild Basin and subsequently began the front end engineering and design process for a second gas plant and began ordering long lead time items. Oasis recently made the decision to proceed with the construction of Gas Plant II, and on November 6, 2017, Oasis agreed to assign the project to OMP. In exchange for the assignment of Gas Plant II into Bighorn DevCo, OMP agreed to reimburse Oasis for 100% of the capital spent-to-date and will fund 100% of the remaining project capital. OMP funded the reimbursement under its revolving credit facility and will have full rights to all cash flows generated from both gas plants held by Bighorn DevCo. For the nine months ended September 30, 2017, Oasis invested $57.0 million in Gas Plant II, and on November 6,2017, assigned $66.7 million of asset value to OMP, which included capital spent in October 2017. OMP expects to invest approximately $140.0 million for the entire Gas Plant II project and anticipates operations will begin in late 2018.
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
9/30/2017 |
6/30/2017 |
9/30/2016 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
51,825 |
47,795 |
39,439 |
||||||||
|
Natural gas (Mcfpd) |
85,800 |
84,890 |
54,421 |
||||||||
|
Total production (Boepd) |
66,125 |
61,943 |
48,509 |
||||||||
|
Percent Oil |
78 |
% |
77 |
% |
81 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
46.35 |
$ |
44.61 |
$ |
40.54 |
|||||
|
Differential to WTI (per Bbl) |
1.82 |
3.68 |
4.39 |
||||||||
|
Natural gas (per Mcf)(1) |
3.50 |
3.19 |
1.84 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
221.0 |
$ |
194.0 |
$ |
147.1 |
|||||
|
Natural gas |
27.6 |
24.6 |
9.2 |
||||||||
|
Bulk oil sales |
21.2 |
8.1 |
1.9 |
||||||||
|
Midstream revenues |
18.8 |
15.6 |
8.5 |
||||||||
|
Well services revenues |
16.1 |
11.8 |
10.6 |
||||||||
|
Total revenues |
$ |
304.7 |
$ |
254.1 |
$ |
177.3 |
|||||
|
Midstream and well services operating expenses ($ in millions): |
|||||||||||
|
Midstream operating expenses |
$ |
4.3 |
$ |
3.3 |
$ |
2.6 |
|||||
|
Well services operating expenses |
9.1 |
8.1 |
5.5 |
||||||||
|
Select exploration and production (E&P) operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
7.45 |
$ |
7.92 |
$ |
8.00 |
|||||
|
MT&G ($ per Boe)(2) |
2.50 |
2.14 |
1.58 |
||||||||
|
DD&A ($ per Boe) |
21.75 |
22.23 |
25.08 |
||||||||
|
E&P general and administrative expenses ("G&A") ($ per Boe) |
2.93 |
3.52 |
4.31 |
||||||||
|
Production taxes (% of oil and gas revenues)(3) |
8.5 |
% |
8.7 |
% |
9.4 |
% | |||||
___________________
|
(1) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(2) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
(3) |
Prior to the first quarter of 2017, oil and gas revenues included bulk oil sales related to blending at the Company's crude oil terminal on the Company's Condensed Consolidated Statements of Operations. Prior periods have been adjusted retrospectively to reflect these revenues in bulk oil sales on the Company's Condensed Consolidated Statements of Operations. |
G&A totaled $22.5 million in the third quarter of 2017, $22.8 million in the third quarter of 2016 and $23.5 million in the second quarter of 2017. Amortization of equity-based compensation, which is included in G&A, was $6.6 million, or $1.09 per Boe, in the third quarter of 2017 as compared to $5.8 million, or $1.30 per Boe, in the third quarter of 2016 and $7.1 million, or $1.26 per Boe, in the second quarter of 2017. G&A for the Company's E&P segment totaled $17.8 million in the third quarter of 2017, $19.2 million in the third quarter of 2016 and $19.8 million in the second quarter of 2017.
Interest expense was $37.4 million for the third quarter of 2017 compared to $31.7 million for the third quarter of 2016 and $36.8 million for the second quarter of 2017. Capitalized interest totaled $3.1 million for the third quarter of 2017, $4.4 million for the third quarter of 2016 and $2.8 million for the second quarter of 2017. Cash Interest totaled $36.2 million for the third quarter of 2017, $33.7 million for the third quarter of 2016 and $35.5 million for the second quarter of 2017. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended September 30, 2017, the Company recorded an income tax benefit of $18.8 million, resulting in a 31.5% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax expense of $2.3 million, resulting in a 12.4% effective tax rate as a percentage of its pre-tax income for the three months ended June 30, 2017.
For the third quarter of 2017, the Company reported net loss of $41.1 million, or $0.18 per diluted share, as compared to a net loss of $33.9 million, or $0.19 per diluted share, for the third quarter of 2016. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $0.5 million, or $0.00 per diluted share, in the third quarter of 2017, compared to Adjusted Net Loss Attributable to Oasis of $29.3 million, or $0.17 per diluted share, in the third quarter of 2016. For a definition of Adjusted Net Income (Loss) Attributable to Oasis and a reconciliation of net income (loss) to Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the third quarter of 2017 was $179.6 million, compared to Adjusted EBITDA of $104.4 million for the third quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2017 |
2Q 2017 |
3Q 2017 |
YTD 2017 | ||||||||||||
|
CapEx ($ in millions): |
|||||||||||||||
|
E&P |
$ |
90.8 |
$ |
100.8 |
$ |
149.9 |
$ |
341.5 |
|||||||
|
Midstream |
13.1 |
66.1 |
79.6 |
158.9 |
|||||||||||
|
Well services |
— |
0.3 |
5.1 |
5.4 |
|||||||||||
|
Other(1) |
5.9 |
5.8 |
5.7 |
17.3 |
|||||||||||
|
Total CapEx(2) |
$ |
109.8 |
$ |
173.0 |
$ |
240.3 |
$ |
523.1 |
|||||||
___________________
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
The Company's CapEx totaled $523.1 million for the nine months ended September 30, 2017, of which $57.0 million was reimbursed by OMP with the assignment of Gas Plant II. Additionally, the Company acquired a freshwater intake facility from the Missouri River and a freshwater distribution system that it is expanding to service a portion of the Company's completion activity in Wild Basin (the "Freshwater Project"). The Freshwater Project costs for the nine months ended September 30, 2017, including the acquisition, have totaled approximately $23.0 million. At the time of the OMP IPO, the Freshwater Project was included in Beartooth DevCo LLC, which is 60% owned by Oasis. Excluding the Gas Plant II and the Freshwater Project, CapEx would have totaled $443.0 million for the nine months ended September 30, 2017, which is in line with the Company's CapEx plan for the nine months ended September 30, 2017. Excluding the Gas Plant II and the Freshwater Project for the full year 2017 CapEx, Oasis continues to expect adjusted CapEx to be approximately $620.0 million, which includes $15.0 million for activating the second frac spread for OWS.
Updated Guidance
Oasis is providing an update to its outlook for the full year 2017 in the following table:
|
Updated FY17 |
Prior FY17 | |||||||||||||||
|
Metric |
Low |
High |
Low |
High | ||||||||||||
|
Production (MBoepd) |
65.1 |
65.8 |
65.1 |
66.1 |
||||||||||||
|
Differentials ($ per Bbl) |
$ |
2.80 |
$ |
3.00 |
$ |
3.00 |
$ |
4.00 |
||||||||
|
MT&G ($ per Boe) |
$ |
2.20 |
$ |
2.30 |
$ |
1.90 |
$ |
2.20 |
||||||||
|
LOE ($ per Boe) |
$ |
7.50 |
$ |
7.70 |
$ |
6.75 |
$ |
7.75 |
||||||||
|
G&A ($ in millions) |
$ |
92.5 |
$ |
97.5 |
$ |
95.0 |
$ |
100.0 |
||||||||
|
Production Taxes (% of oil and gas revenue) |
8.5 |
% |
8.6 |
% |
8.7 |
% |
9.0 |
% | ||||||||
Hedging Activity
As of November 7, 2017, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:
|
Crude oil (Volume in Mbopd) |
2H17 |
1H18 |
2H18 |
1H19 | ||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
14.3 |
37.0 |
35.0 |
7.0 |
||||||||||||
|
Price |
$ |
50.03 |
$ |
50.89 |
$ |
50.84 |
$ |
50.82 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
4.0 |
3.0 |
3.0 |
— |
||||||||||||
|
Floor |
$ |
46.25 |
$ |
48.67 |
$ |
48.67 |
$ |
— |
||||||||
|
Ceiling |
$ |
54.37 |
$ |
53.07 |
$ |
53.07 |
$ |
— |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
3.0 |
— |
— |
— |
||||||||||||
|
Sub-Floor |
$ |
31.67 |
$ |
— |
$ |
— |
$ |
— |
||||||||
|
Floor |
$ |
45.83 |
$ |
— |
$ |
— |
$ |
— |
||||||||
|
Ceiling |
$ |
59.94 |
$ |
— |
$ |
— |
$ |
— |
||||||||
|
Total Crude Oil Volume |
21.3 |
40.0 |
38.0 |
7.0 |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
11.0 |
19.0 |
19.0 |
— |
||||||||||||
|
Price |
$ |
3.30 |
$ |
3.05 |
$ |
3.05 |
$ |
— |
||||||||
|
Total Natural Gas Volume |
11.0 |
19.0 |
19.0 |
— |
||||||||||||
The September 2017 crude oil derivative contracts settled at a net $0.1 million paid in October 2017 and will be included in the Company's fourth quarter 2017 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Wednesday, November 8, 2017 | |
|
Time: |
10:00 a.m. Central Time | |
|
Live Webcast: |
||
|
OR: |
||
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
2353150 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, November 15, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10113619 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheets | |||||||
|
(Unaudited) | |||||||
|
September 30, 2017 |
December 31, 2016 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
8,488 |
$ |
11,226 |
|||
|
Accounts receivable, net |
285,383 |
204,335 |
|||||
|
Inventory |
17,169 |
10,648 |
|||||
|
Prepaid expenses |
10,647 |
7,623 |
|||||
|
Derivative instruments |
692 |
362 |
|||||
|
Other current assets |
65 |
4,355 |
|||||
|
Total current assets |
322,444 |
238,549 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
7,640,785 |
7,296,568 |
|||||
|
Other property and equipment |
783,542 |
618,790 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,388,709) |
(1,995,791) |
|||||
|
Total property, plant and equipment, net |
6,035,618 |
5,919,567 |
|||||
|
Derivative instruments |
703 |
— |
|||||
|
Long-term inventory |
10,885 |
— |
|||||
|
Other assets |
21,562 |
20,516 |
|||||
|
Total assets |
$ |
6,391,212 |
$ |
6,178,632 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
16,348 |
$ |
4,645 |
|||
|
Revenues and production taxes payable |
169,361 |
139,737 |
|||||
|
Accrued liabilities |
194,157 |
119,173 |
|||||
|
Accrued interest payable |
20,325 |
39,004 |
|||||
|
Derivative instruments |
16,412 |
60,469 |
|||||
|
Advances from joint interest partners |
5,095 |
7,597 |
|||||
|
Other current liabilities |
— |
10,490 |
|||||
|
Total current liabilities |
421,698 |
381,115 |
|||||
|
Long-term debt |
2,340,613 |
2,297,214 |
|||||
|
Deferred income taxes |
508,335 |
513,529 |
|||||
|
Asset retirement obligations |
52,413 |
48,985 |
|||||
|
Derivative instruments |
3,703 |
11,714 |
|||||
|
Other liabilities |
5,805 |
2,918 |
|||||
|
Total liabilities |
3,332,567 |
3,255,475 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 238,639,488 shares issued and 237,312,881 shares outstanding at September 30, 2017 and 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016 |
2,348 |
2,331 |
|||||
|
Treasury stock, at cost: 1,326,607 and 856,892 shares at September 30, 2017 and December 31, 2016, respectively |
(22,132) |
(15,950) |
|||||
|
Additional paid-in capital |
2,369,098 |
2,345,271 |
|||||
|
Retained earnings |
593,368 |
591,505 |
|||||
|
Oasis share of stockholders' equity |
2,942,682 |
2,923,157 |
|||||
|
Non-controlling interests |
115,963 |
— |
|||||
|
Total stockholders' equity |
3,058,645 |
2,923,157 |
|||||
|
Total liabilities and stockholders' equity |
$ |
6,391,212 |
$ |
6,178,632 |
|||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Condensed Consolidated Statements of Operations | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
248,648 |
$ |
156,316 |
$ |
704,533 |
$ |
432,968 |
|||||||
|
Bulk oil sales |
21,195 |
1,867 |
56,917 |
1,867 |
|||||||||||
|
Midstream revenues |
18,767 |
8,487 |
48,939 |
22,380 |
|||||||||||
|
Well services revenues |
16,138 |
10,641 |
33,566 |
29,459 |
|||||||||||
|
Total revenues |
304,748 |
177,311 |
843,955 |
486,674 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
45,334 |
35,696 |
133,871 |
98,283 |
|||||||||||
|
Midstream operating expenses |
4,301 |
2,617 |
10,891 |
6,095 |
|||||||||||
|
Well services operating expenses |
9,125 |
5,548 |
21,115 |
15,334 |
|||||||||||
|
Marketing, transportation and gathering expenses |
15,028 |
7,003 |
38,018 |
22,046 |
|||||||||||
|
Bulk oil purchases |
21,701 |
1,853 |
57,683 |
1,853 |
|||||||||||
|
Production taxes |
21,052 |
14,638 |
60,322 |
39,758 |
|||||||||||
|
Depreciation, depletion and amortization |
132,289 |
111,948 |
384,246 |
356,885 |
|||||||||||
|
Exploration expenses |
854 |
489 |
4,010 |
1,192 |
|||||||||||
|
Impairment |
139 |
382 |
6,021 |
3,967 |
|||||||||||
|
General and administrative expenses |
22,531 |
22,845 |
69,913 |
69,087 |
|||||||||||
|
Total operating expenses |
272,354 |
203,019 |
786,090 |
614,500 |
|||||||||||
|
Gain (loss) on sale of properties |
— |
6 |
— |
(1,305) |
|||||||||||
|
Operating income (loss) |
32,394 |
(25,702) |
57,865 |
(129,131) |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
(54,310) |
20,847 |
52,297 |
(55,624) |
|||||||||||
|
Interest expense, net of capitalized interest |
(37,389) |
(31,726) |
(110,548) |
(105,444) |
|||||||||||
|
Gain (loss) on extinguishment of debt |
— |
(13,793) |
— |
4,865 |
|||||||||||
|
Other income (expense) |
(605) |
(259) |
(755) |
188 |
|||||||||||
|
Total other expense |
(92,304) |
(24,931) |
(59,006) |
(156,015) |
|||||||||||
|
Loss before income taxes |
(59,910) |
(50,633) |
(1,141) |
(285,146) |
|||||||||||
|
Income tax benefit |
18,846 |
16,691 |
470 |
96,818 |
|||||||||||
|
Net loss including non-controlling interests |
(41,064) |
(33,942) |
(671) |
(188,328) |
|||||||||||
|
Less: Net income attributable to non-controlling interests |
150 |
— |
150 |
— |
|||||||||||
|
Net loss attributable to Oasis |
$ |
(41,214) |
$ |
(33,942) |
$ |
(821) |
$ |
(188,328) |
|||||||
|
Earnings (loss) attributable to Oasis per share: |
|||||||||||||||
|
Basic |
$ |
(0.18) |
$ |
(0.19) |
$ |
0.00 |
$ |
(1.09) |
|||||||
|
Diluted |
(0.18) |
(0.19) |
0.00 |
(1.09) |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
233,389 |
177,120 |
233,248 |
172,360 |
|||||||||||
|
Diluted |
233,389 |
177,120 |
233,248 |
172,360 |
|||||||||||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Selected Financial and Operational Statistics | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil |
$ |
221,004 |
$ |
147,095 |
$ |
623,603 |
$ |
411,201 |
|||||||
|
Natural gas |
27,644 |
9,221 |
80,930 |
21,767 |
|||||||||||
|
Bulk oil sales |
21,195 |
1,867 |
56,917 |
1,867 |
|||||||||||
|
Midstream |
18,767 |
8,487 |
48,939 |
22,380 |
|||||||||||
|
Well services |
16,138 |
10,641 |
33,566 |
29,459 |
|||||||||||
|
Total revenues |
$ |
304,748 |
$ |
177,311 |
$ |
843,955 |
$ |
486,674 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
4,768 |
3,628 |
13,552 |
11,245 |
|||||||||||
|
Natural gas (MMcf) |
7,894 |
5,007 |
23,131 |
13,809 |
|||||||||||
|
Oil equivalents (MBoe) |
6,083 |
4,463 |
17,408 |
13,547 |
|||||||||||
|
Average daily production (Boe per day) |
66,125 |
48,509 |
63,764 |
49,440 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
46.35 |
$ |
40.54 |
$ |
46.02 |
$ |
36.57 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1) |
43.50 |
43.79 |
41.70 |
46.85 |
|||||||||||
|
Natural gas (per Mcf)(2) |
3.50 |
1.84 |
3.50 |
1.58 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
7.45 |
$ |
8.00 |
$ |
7.69 |
$ |
7.26 |
|||||||
|
Marketing, transportation and gathering expenses(3) |
2.50 |
1.58 |
2.16 |
1.58 |
|||||||||||
|
Production taxes |
3.46 |
3.28 |
3.47 |
2.93 |
|||||||||||
|
Depreciation, depletion and amortization |
21.75 |
25.08 |
22.07 |
26.35 |
|||||||||||
|
General and administrative expenses ("G&A") |
3.70 |
5.12 |
4.02 |
5.10 |
|||||||||||
|
Exploration and production G&A |
2.93 |
4.31 |
3.32 |
4.28 |
|||||||||||
___________________
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statements of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Nine Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net loss including non-controlling interests |
$ |
(671) |
$ |
(188,328) |
|||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
384,246 |
356,885 |
|||||
|
Gain on extinguishment of debt |
— |
(4,865) |
|||||
|
Loss on sale of properties |
— |
1,305 |
|||||
|
Impairment |
6,021 |
3,967 |
|||||
|
Deferred income taxes |
(470) |
(96,818) |
|||||
|
Derivative instruments |
(52,297) |
55,624 |
|||||
|
Equity-based compensation expenses |
20,451 |
18,761 |
|||||
|
Deferred financing costs amortization and other |
12,666 |
10,174 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
(81,022) |
11,349 |
|||||
|
Change in inventory |
(235) |
2,559 |
|||||
|
Change in prepaid expenses |
823 |
1,168 |
|||||
|
Change in other current assets |
276 |
(240) |
|||||
|
Change in long-term inventory and other assets |
(12,843) |
(148) |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
32,282 |
(41,991) |
|||||
|
Change in other current liabilities |
(10,490) |
(6,000) |
|||||
|
Change in other liabilities |
— |
17 |
|||||
|
Net cash provided by operating activities |
298,737 |
123,419 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(443,649) |
(340,314) |
|||||
|
Proceeds from sale of properties |
4,000 |
12,333 |
|||||
|
Costs related to sale of properties |
— |
(310) |
|||||
|
Derivative settlements |
(804) |
115,576 |
|||||
|
Advances from joint interest partners |
(2,502) |
544 |
|||||
|
Net cash used in investing activities |
(442,955) |
(212,171) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
764,000 |
835,000 |
|||||
|
Principal payments on revolving credit facility |
(732,000) |
(778,000) |
|||||
|
Repurchase of senior unsecured notes |
— |
(435,907) |
|||||
|
Proceeds from issuance of senior unsecured convertible notes |
— |
300,000 |
|||||
|
Deferred financing costs |
(96) |
(8,811) |
|||||
|
Proceeds from sale of common stock |
— |
182,791 |
|||||
|
Proceeds from sale of OMP common units, net of offering costs |
115,813 |
— |
|||||
|
Purchases of treasury stock |
(6,182) |
(2,275) |
|||||
|
Other |
(55) |
— |
|||||
|
Net cash provided by financing activities |
141,480 |
92,798 |
|||||
|
Increase (decrease) in cash and cash equivalents |
(2,738) |
4,046 |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
11,226 |
9,730 |
|||||
|
End of period |
$ |
8,488 |
$ |
13,776 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
63,499 |
$ |
(49,177) |
|||
|
Change in asset retirement obligations |
3,112 |
(8,083) |
|||||
|
Notes payable from acquisition |
4,875 |
— |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
37,389 |
$ |
31,726 |
$ |
110,548 |
$ |
105,444 |
|||||||
|
Capitalized interest |
3,137 |
4,380 |
8,773 |
13,683 |
|||||||||||
|
Amortization of deferred financing costs |
(1,729) |
(2,095) |
(5,128) |
(8,042) |
|||||||||||
|
Amortization of debt discount |
(2,591) |
(300) |
(7,426) |
(300) |
|||||||||||
|
Cash Interest |
$ |
36,206 |
$ |
33,711 |
$ |
106,767 |
$ |
110,785 |
|||||||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net loss including non-controlling interests |
$ |
(41,064) |
$ |
(33,942) |
$ |
(671) |
$ |
(188,328) |
|||||||
|
(Gain) loss on sale of properties |
— |
(6) |
— |
1,305 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
13,793 |
— |
(4,865) |
|||||||||||
|
Net (gain) loss on derivative instruments |
54,310 |
(20,847) |
(52,297) |
55,624 |
|||||||||||
|
Derivative settlements(1) |
8,095 |
11,786 |
(804) |
115,576 |
|||||||||||
|
Interest expense, net of capitalized interest |
37,389 |
31,726 |
110,548 |
105,444 |
|||||||||||
|
Depreciation, depletion and amortization |
132,289 |
111,948 |
384,246 |
356,885 |
|||||||||||
|
Impairment |
139 |
382 |
6,021 |
3,967 |
|||||||||||
|
Exploration expenses |
854 |
489 |
4,010 |
1,192 |
|||||||||||
|
Equity-based compensation expenses |
6,628 |
5,782 |
20,451 |
18,761 |
|||||||||||
|
Income tax benefit |
(18,846) |
(16,691) |
(470) |
(96,818) |
|||||||||||
|
Other non-cash adjustments |
(208) |
(26) |
491 |
697 |
|||||||||||
|
Adjusted EBITDA |
179,586 |
104,394 |
471,525 |
369,440 |
|||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
190 |
— |
190 |
— |
|||||||||||
|
Adjusted EBITDA attributable to Oasis |
179,396 |
104,394 |
471,335 |
369,440 |
|||||||||||
|
Cash Interest |
(36,206) |
(33,711) |
(106,767) |
(110,785) |
|||||||||||
|
Capital expenditures(2) |
(240,373) |
(78,453) |
(523,143) |
(297,696) |
|||||||||||
|
Capitalized interest |
3,137 |
4,380 |
8,773 |
13,683 |
|||||||||||
|
Free Cash Flow |
$ |
(94,046) |
$ |
(3,390) |
$ |
(149,802) |
$ |
(25,358) |
|||||||
|
Net cash provided by operating activities |
$ |
88,876 |
$ |
32,018 |
$ |
298,737 |
$ |
123,419 |
|||||||
|
Derivative settlements(1) |
8,095 |
11,786 |
(804) |
115,576 |
|||||||||||
|
Interest expense, net of capitalized interest |
37,389 |
31,726 |
110,548 |
105,444 |
|||||||||||
|
Exploration expenses |
854 |
489 |
4,010 |
1,192 |
|||||||||||
|
Deferred financing costs amortization and other |
(3,795) |
(3,622) |
(12,666) |
(10,174) |
|||||||||||
|
Changes in working capital |
48,375 |
32,023 |
71,209 |
33,286 |
|||||||||||
|
Other non-cash adjustments |
(208) |
(26) |
491 |
697 |
|||||||||||
|
Adjusted EBITDA |
179,586 |
104,394 |
471,525 |
369,440 |
|||||||||||
|
Adjusted EBITDA attributable to non-controlling interests |
190 |
— |
190 |
— |
|||||||||||
|
Adjusted EBITDA attributable to Oasis |
179,396 |
104,394 |
471,335 |
369,440 |
|||||||||||
|
Cash Interest |
(36,206) |
(33,711) |
(106,767) |
(110,785) |
|||||||||||
|
Capital expenditures(2) |
(240,373) |
(78,453) |
(523,143) |
(297,696) |
|||||||||||
|
Capitalized interest |
3,137 |
4,380 |
8,773 |
13,683 |
|||||||||||
|
Free Cash Flow |
$ |
(94,046) |
$ |
(3,390) |
$ |
(149,802) |
$ |
(25,358) |
|||||||
___________________
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Loss before income taxes including non-controlling interests |
$ |
(88,835) |
$ |
(66,333) |
$ |
(71,999) |
$ |
(331,075) |
|||||||
|
(Gain) loss on sale of properties |
— |
(6) |
— |
1,663 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
13,793 |
— |
(4,865) |
|||||||||||
|
Net (gain) loss on derivative instruments |
54,310 |
(20,847) |
(52,297) |
55,624 |
|||||||||||
|
Derivative settlements(1) |
8,095 |
11,786 |
(804) |
115,576 |
|||||||||||
|
Interest expense, net of capitalized interest |
37,369 |
31,726 |
110,528 |
105,444 |
|||||||||||
|
Depreciation, depletion and amortization |
129,626 |
109,668 |
376,818 |
346,240 |
|||||||||||
|
Impairment |
139 |
382 |
6,021 |
1,536 |
|||||||||||
|
Exploration expenses |
854 |
489 |
4,010 |
1,192 |
|||||||||||
|
Equity-based compensation expenses |
6,344 |
5,570 |
19,741 |
17,495 |
|||||||||||
|
Other non-cash adjustments |
(208) |
(26) |
491 |
697 |
|||||||||||
|
Adjusted EBITDA |
$ |
147,694 |
$ |
86,202 |
$ |
392,509 |
$ |
309,527 |
|||||||
___________________
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Midstream Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes including non-controlling interests |
$ |
25,179 |
$ |
16,065 |
$ |
69,046 |
$ |
49,262 |
|||||||
|
Gain on sale of properties |
— |
— |
— |
(358) |
|||||||||||
|
Interest expense, net of capitalized interest |
20 |
— |
20 |
— |
|||||||||||
|
Depreciation, depletion and amortization |
4,163 |
1,909 |
11,375 |
5,325 |
|||||||||||
|
Impairment |
— |
— |
— |
2,431 |
|||||||||||
|
Equity-based compensation expenses |
392 |
218 |
1,104 |
661 |
|||||||||||
|
Adjusted EBITDA |
$ |
29,754 |
$ |
18,192 |
$ |
81,545 |
$ |
57,321 |
|||||||
|
Well Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes including non-controlling interests |
$ |
10,832 |
$ |
1,577 |
$ |
9,195 |
$ |
3,462 |
|||||||
|
Depreciation, depletion and amortization |
3,196 |
3,478 |
9,417 |
11,605 |
|||||||||||
|
Equity-based compensation expenses |
281 |
354 |
1,015 |
1,253 |
|||||||||||
|
Adjusted EBITDA |
$ |
14,309 |
$ |
5,409 |
$ |
19,627 |
$ |
16,320 |
|||||||
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net loss attributable to Oasis |
$ |
(41,214) |
$ |
(33,942) |
$ |
(821) |
$ |
(188,328) |
|||||||
|
(Gain) loss on sale of properties |
— |
(6) |
— |
1,305 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
13,793 |
— |
(4,865) |
|||||||||||
|
Net (gain) loss on derivative instruments |
54,310 |
(20,847) |
(52,297) |
55,624 |
|||||||||||
|
Derivative settlements(1) |
8,095 |
11,786 |
(804) |
115,576 |
|||||||||||
|
Impairment |
139 |
382 |
6,021 |
3,967 |
|||||||||||
|
Amortization of deferred financing costs |
1,728 |
2,095 |
5,127 |
8,042 |
|||||||||||
|
Amortization of debt discount |
2,591 |
300 |
7,426 |
300 |
|||||||||||
|
Other non-cash adjustments |
(208) |
(26) |
491 |
697 |
|||||||||||
|
Tax impact(2) |
(24,941) |
(2,798) |
12,735 |
(67,598) |
|||||||||||
|
Adjusted Net Income (Loss) Attributable to Oasis |
$ |
500 |
$ |
(29,263) |
$ |
(22,122) |
$ |
(75,280) |
|||||||
|
Diluted loss attributable to Oasis per share |
$ |
(0.18) |
$ |
(0.19) |
$ |
— |
$ |
(1.09) |
|||||||
|
Loss on sale of properties |
— |
— |
— |
0.01 |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
0.08 |
— |
(0.03) |
|||||||||||
|
Net (gain) loss on derivative instruments |
0.23 |
(0.12) |
(0.22) |
0.32 |
|||||||||||
|
Derivative settlements(1) |
0.03 |
0.07 |
— |
0.67 |
|||||||||||
|
Impairment |
— |
— |
0.03 |
0.02 |
|||||||||||
|
Amortization of deferred financing costs |
0.01 |
0.01 |
0.02 |
0.05 |
|||||||||||
|
Amortization of debt discount |
0.01 |
— |
0.03 |
— |
|||||||||||
|
Tax impact(2) |
(0.10) |
(0.02) |
0.05 |
(0.39) |
|||||||||||
|
Non-GAAP Diluted Loss Attributable to Oasis Per Share |
$ |
— |
$ |
(0.17) |
$ |
(0.09) |
$ |
(0.44) |
|||||||
|
Diluted weighted average shares outstanding |
233,389 |
177,120 |
233,248 |
172,360 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
___________________
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-september-30-2017-earnings-300551474.html
SOURCE Oasis Petroleum Inc.
Article Date
11/7/201710/26/2017 - Oasis Midstream Partners to Announce Third Quarter 2017 Results and Upcoming Conferences
Oasis Midstream Partners to Announce Third Quarter 2017 Results and Upcoming Conferences
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Oasis Midstream Partners, LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2017 financial and operational results on Tuesday, November 7, 2017 after the close of trading on the NYSE. Additionally, the Partnership will host a webcast and conference call on Wednesday, November 8, 2017 at 11:30 a.m. Central Time to discuss Third Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
|
Date: |
Wednesday, November 8, 2017 |
|
Time: |
11:30 a.m. Central Time |
|
Live Webcast: |
|
|
OR: |
|
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
1036919 |
|
Website: |
A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Wednesday, November 15, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10113599 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream and Oasis Petroleum plan to participate in the following conferences and investor events:
|
November 16: |
BAML's 2017 Global Energy Conference – Miami, FL |
|
November 28: |
Capital One's Bakken Deep Dive – New York, NY |
|
November 29: |
Jefferies' 2017 Energy Conference – Houston, TX |
|
December 6: |
2017 Wells Fargo Pipeline, MLP and Utility Symposium – New York, NY |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana. For more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Petroleum Inc.
Taylor Mason, (281) 404-9600
Manager, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-to-announce-third-quarter-2017-results-and-upcoming-conferences-300544569.html
SOURCE Oasis Midstream Partners, LP
Article Date
10/26/2017Oasis to Announce Third Quarter 2017 Results and Upcoming Conferences
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Third Quarter 2017 financial and operational results on Tuesday, November 7, 2017 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, November 8, 2017 at 10:00 a.m. Central Time to discuss Third Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
|
Date: |
Wednesday, November 8, 2017 |
|
Time: |
10:00 a.m. Central Time |
|
Live Webcast: |
|
|
OR: |
|
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
2353150 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, November 15, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10113619 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
|
November 16: |
BAML's 2017 Global Energy Conference – Miami, FL |
|
November 28: |
Capital One's Bakken Deep Dive – New York, NY |
|
November 29: |
Jefferies' 2017 Energy Conference – Houston, TX |
|
December 6: |
2017 Wells Fargo Pipeline, MLP and Utility Symposium – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-to-announce-third-quarter-2017-results-and-upcoming-conferences-300544574.html
SOURCE Oasis Petroleum Inc.
Article Date
10/26/2017Oasis Midstream Partners LP Prices Initial Public Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 20, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis Petroleum") today announced the pricing of the Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") initial public offering of 7,500,000 common units representing limited partner interests in the Partnership at a price to the public of $17.00 per common unit, pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission ("SEC"). The Partnership has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 common units. The common units are expected to begin trading on the New York Stock Exchange on September 21, 2017 under the symbol "OMP." The offering is expected to close on September 25, 2017, subject to the satisfaction of customary closing conditions.
Upon conclusion of the offering, the public will own an approximate 27.3% limited partner interest in Oasis Midstream (or approximately 31.4% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum and its affiliates will own the remaining approximately 72.7% limited partner interest in Oasis Midstream (or approximately 68.6% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum will indirectly own the general partner of Oasis Midstream and its incentive distribution rights and will retain a majority of Oasis Midstream's common and subordinated units representing limited partner interests.
Oasis Midstream intends to use the proceeds of approximately $119.9 million (i) to make a $113.9 million distribution to Oasis Petroleum, in whole or in part as reimbursement of pre-formation capital expenditures incurred by Oasis Petroleum, (ii) to pay approximately $4.1 million of offering expenses and structuring fees and (iii) to pay $1.9 million of origination fees and expenses related to its new revolving credit facility. If and to the extent the underwriters exercise their option to purchase additional common units in full, Oasis Midstream intends to use the additional net proceeds of approximately $17.9 million upon such exercise to pay a distribution to Oasis Petroleum.
Morgan Stanley, Citigroup and Wells Fargo Securities are acting as joint book-running managers for the offering.
A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission. This offering will be made only by means of a written prospectus forming part of the effective registration statement. A copy of the prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, may be obtained, when available, from:
|
Morgan Stanley & Co. LLC |
Citigroup Global Markets Inc. |
Wells Fargo Securities, LLC |
|
Attn: Prospectus Department |
c/o Broadridge Financial Solutions |
c/o Equity Syndicate Department |
|
180 Varick Street, 2nd Floor |
1155 Long Island Avenue |
375 Park Avenue |
|
New York, New York 10014 |
Edgewood, New York 11717 |
New York, New York 10152 |
These documents may also be obtained at no charge from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Oasis Midstream
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Oasis Midstream's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although Oasis Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
This release contains certain forward-looking statements that are based on current plans and expectations and are subject to various risks and uncertainties. Oasis Midstream's business and any offering may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond Oasis Midstream's control. These factors include, but are not limited to, changes to business plans as circumstances warrant, and limited partner interests of Oasis Midstream may not ultimately be offered to the public because of, general market conditions or other factors. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the registration statement on Form S-1. Oasis Midstream refers you to that discussion for further information.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit Oasis Petroleum's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-prices-initial-public-offering-300523309.html
SOURCE Oasis Petroleum Inc.
Article Date
9/21/2017Oasis Midstream Partners LP Launches Initial Public Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 11, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis Petroleum") today announced the commencement of the Oasis Midstream Partners LP ("Oasis Midstream") initial public offering of 7,500,000 common units representing limited partner interests, at an anticipated initial public offering price between $19.00 and $21.00 per common unit, pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission ("SEC"). Oasis Midstream also expects to grant the underwriters a 30-day option to purchase up to an additional 1,125,000 common units. Oasis Midstream has been authorized to list its common units on the New York Stock Exchange under the symbol "OMP," subject to official notice of issuance.
The common units being offered represent an approximate 27.3% limited partner interest in Oasis Midstream (or approximately 31.4% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum and its affiliates will own the remaining approximately 72.7% limited partner interest in Oasis Midstream (or approximately 68.6% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum will indirectly own the general partner of Oasis Midstream and the incentive distribution rights.
Morgan Stanley, Citigroup and Wells Fargo Securities are acting as joint book-running managers for the offering.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective.
This offering will be made only by means of a written prospectus. A copy of the preliminary prospectus for the offering may be obtained, when available, from:
|
Morgan Stanley & Co. LLC |
Citigroup Global Markets Inc. |
Wells Fargo Securities, LLC |
|
Attn: Prospectus Department |
c/o Broadridge Financial Solutions |
c/o Equity Syndicate Department |
|
180 Varick Street, 2nd Floor |
1155 Long Island Avenue |
375 Park Avenue |
|
New York, New York 10014 |
Edgewood, New York 11717 |
New York, New York 10152 |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Oasis Midstream
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the oil and natural gas operations of Oasis Petroleum and are strategically positioned to capture volumes from other producers. Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Oasis Midstream's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although Oasis Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
This release contains certain forward-looking statements that are based on current plans and expectations and are subject to various risks and uncertainties. Oasis Midstream's business and any offering may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond Oasis Midstream's control. These factors include, but are not limited to, changes to business plans as circumstances warrant, and limited partner interests of Oasis Midstream may not ultimately be offered to the public because of, general market conditions or other factors. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the Registration Statement on Form S-1. Oasis Midstream refers you to that discussion for further information.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit Oasis Petroleum's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-launches-initial-public-offering-300516851.html
SOURCE Oasis Petroleum Inc.
Article Date
9/11/2017Oasis Petroleum Inc. Announces Quarter Ended June 30, 2017 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Aug. 2, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended June 30, 2017 and provided an operational update.
Highlights include:
"Oasis is well positioned to execute our plan for the second half of 2017, as we integrate our second internal frac spread and efficiently increase completion activity," said Taylor L. Reid, Oasis' Director, President, and Chief Operating Officer. "Our completion design innovation across our core acreage position, including Wild Basin, Indian Hills, and Alger, continues to deliver uplifts in production, and our wells remain highly economic in the current commodity price environment."
"The next six months represent the heart of our 2017 program and will lay the groundwork for everything to come in 2018 and beyond," added Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "The quality of the asset base we have built and the strength of the team we have assembled to develop it give me great conviction around the future success of Oasis. We are confident in our ability to execute and to manage our business prudently in what continues to be a constantly changing market."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
6/30/2017 |
3/31/2017 |
6/30/2016 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
47,795 |
49,281 |
41,176 |
||||||||
|
Natural gas (Mcfpd) |
84,890 |
83,470 |
49,983 |
||||||||
|
Total production (Boepd) |
61,943 |
63,192 |
49,507 |
||||||||
|
Percent Oil |
77 |
% |
78 |
% |
83 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
44.61 |
$ |
47.03 |
$ |
40.81 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
3.68 |
4.88 |
4.85 |
||||||||
|
Natural gas (per Mcf)(1) |
3.19 |
3.81 |
1.42 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
194.0 |
$ |
208.6 |
$ |
152.9 |
|||||
|
Natural gas |
24.6 |
28.7 |
6.4 |
||||||||
|
Bulk oil sales |
8.1 |
27.6 |
— |
||||||||
|
Midstream services ("OMS") |
15.6 |
14.6 |
6.9 |
||||||||
|
Well services ("OWS") |
11.8 |
5.6 |
12.8 |
||||||||
|
Total revenues |
$ |
254.1 |
$ |
285.1 |
$ |
179.0 |
|||||
|
OMS and OWS operating expenses ($ in millions): |
|||||||||||
|
OMS |
$ |
3.3 |
$ |
3.3 |
$ |
1.7 |
|||||
|
OWS |
8.1 |
3.9 |
7.1 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
7.92 |
$ |
7.71 |
$ |
7.00 |
|||||
|
MT&G ($ per Boe)(2) |
2.17 |
1.77 |
1.55 |
||||||||
|
DD&A ($ per Boe) |
22.23 |
22.27 |
27.19 |
||||||||
|
Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
3.52 |
3.54 |
3.93 |
||||||||
|
Production taxes (% of oil and gas revenues) |
8.7 |
% |
8.6 |
% |
9.0 |
% | |||||
|
(1) |
Natural gas prices include the value for natural gas and natural gas liquids. | ||||
|
(2) |
Excludes non-cash valuation charges on pipeline imbalances. | ||||
Second quarter production was adversely impacted by additional workover activity and a completion schedule weighted towards the end of the quarter. Oasis invested incremental dollars on workovers during the latter part of the quarter, which coupled with late quarter completions, drove July production to over 66,000 Boepd.
G&A totaled $23.5 million in the second quarter of 2017, $21.9 million in the second quarter of 2016 and $23.8 million in the first quarter of 2017. Amortization of stock-based compensation, which is included in G&A, was $7.1 million, or $1.26 per Boe, in the second quarter of 2017 as compared to $6.2 million, or $1.39 per Boe, in the second quarter of 2016 and $6.7 million, or $1.18 per Boe, in the first quarter of 2017. G&A for the Company's E&P segment totaled $19.8 million in the second quarter of 2017, $17.7 million in the second quarter of 2016 and $20.1 million in the first quarter of 2017.
Interest expense was $36.8 million for the second quarter of 2017 compared to $35.0 million for the second quarter of 2016 and $36.3 million for the first quarter of 2017. Capitalized interest totaled $2.8 million for the second quarter of 2017, $4.8 million for the second quarter of 2016 and $2.8 million for the first quarter of 2017. Cash Interest totaled $35.5 million for the second quarter of 2017, $37.8 million for the second quarter of 2016 and $35.1 million for the first quarter of 2017. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended June 30, 2017, the Company recorded an income tax expense of $2.3 million, resulting in a 12.4% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax expense of $16.0 million, resulting in a 40.2% effective tax rate as a percentage of its pre-tax income for the three months ended March 31, 2017.
For the second quarter of 2017, the Company reported net income of $16.6 million, or $0.07 per diluted share, as compared to a net loss of $89.9 million, or $0.51 per diluted share, for the second quarter of 2016. Excluding certain non-cash items and their tax effect, Adjusted Net Loss (non-GAAP) was $11.2 million, or $0.05 per diluted share, in the second quarter of 2017, compared to Adjusted Net Loss of $19.4 million, or $0.11 per diluted share, in the second quarter of 2016. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income (loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the second quarter of 2017 was $141.3 million, compared to Adjusted EBITDA of $132.2 million for the second quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2017 |
2Q 2017 |
YTD 2017 | |||||||||
|
CapEx ($ in thousands): |
|||||||||||
|
E&P |
$ |
90,780 |
$ |
100,822 |
$ |
191,602 |
|||||
|
OMS |
13,144 |
53,777 |
66,921 |
||||||||
|
OWS |
— |
268 |
268 |
||||||||
|
Other(1) |
5,871 |
18,108 |
23,979 |
||||||||
|
Total CapEx(2) |
$ |
109,795 |
$ |
172,975 |
$ |
282,770 |
|||||
|
(1) |
Other CapEx includes asset acquisitions, primarily related to midstream assets, of $17.2 million for the six months ended June 30, 2017 and other items, such as administrative capital and capitalized interest. | ||||
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. | ||||
Hedging Activity
As of August 1, 2017, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:
|
Crude oil (Volume in Mbopd) |
1H17 |
2H17 |
1H18 |
2H18 | ||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
19.3 |
22.7 |
22.0 |
20.0 |
||||||||||||
|
Price |
$ |
49.20 |
$ |
49.90 |
$ |
51.17 |
$ |
51.11 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
8.0 |
8.0 |
1.0 |
1.0 |
||||||||||||
|
Floor |
$ |
46.25 |
$ |
46.25 |
$ |
50.00 |
$ |
50.00 |
||||||||
|
Ceiling |
$ |
54.37 |
$ |
54.37 |
$ |
55.70 |
$ |
55.70 |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
6.0 |
6.0 |
— |
— |
||||||||||||
|
Sub-Floor |
$ |
31.67 |
$ |
31.67 |
— |
— |
||||||||||
|
Floor |
$ |
45.83 |
$ |
45.83 |
— |
— |
||||||||||
|
Ceiling |
$ |
59.94 |
$ |
59.94 |
— |
— |
||||||||||
|
Total Crude Oil Volume |
33.3 |
36.7 |
23.0 |
21.0 |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
16.5 |
20.0 |
15.0 |
15.0 |
||||||||||||
|
Price |
$ |
3.31 |
$ |
3.32 |
$ |
3.04 |
$ |
3.04 |
||||||||
The June 2017 crude oil derivative contracts settled at a net $3.3 million received in July 2017 and will be included in the Company's third quarter 2017 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, August 3, 2017 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
3753112 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, August 10, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10110100 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheet | |||||||
|
(Unaudited) | |||||||
|
June 30, 2017 |
December 31, 2016 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
11,440 |
$ |
11,226 |
|||
|
Accounts receivable, net |
218,302 |
204,335 |
|||||
|
Inventory |
17,942 |
10,648 |
|||||
|
Prepaid expenses |
10,610 |
7,623 |
|||||
|
Derivative instruments |
31,851 |
362 |
|||||
|
Other current assets |
62 |
4,355 |
|||||
|
Total current assets |
290,207 |
238,549 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
7,488,075 |
7,296,568 |
|||||
|
Other property and equipment |
695,592 |
618,790 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,252,653) |
(1,995,791) |
|||||
|
Total property, plant and equipment, net |
5,931,014 |
5,919,567 |
|||||
|
Derivative instruments |
11,834 |
— |
|||||
|
Long-term inventory |
8,762 |
— |
|||||
|
Other assets |
19,904 |
20,516 |
|||||
|
Total assets |
$ |
6,261,721 |
$ |
6,178,632 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
12,257 |
$ |
4,645 |
|||
|
Revenues and production taxes payable |
143,715 |
139,737 |
|||||
|
Accrued liabilities |
139,766 |
119,173 |
|||||
|
Accrued interest payable |
39,128 |
39,004 |
|||||
|
Derivative instruments |
— |
60,469 |
|||||
|
Advances from joint interest partners |
5,816 |
7,597 |
|||||
|
Other current liabilities |
— |
10,490 |
|||||
|
Total current liabilities |
340,682 |
381,115 |
|||||
|
Long-term debt |
2,359,683 |
2,297,214 |
|||||
|
Deferred income taxes |
527,181 |
513,529 |
|||||
|
Asset retirement obligations |
51,059 |
48,985 |
|||||
|
Derivative instruments |
— |
11,714 |
|||||
|
Other liabilities |
5,506 |
2,918 |
|||||
|
Total liabilities |
3,284,111 |
3,255,475 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 238,642,598 shares issued and 237,410,395 shares outstanding at June 30, 2017 and 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016 |
2,345 |
2,331 |
|||||
|
Treasury stock, at cost: 1,232,203 and 856,892 shares at June 30, 2017 and December 31, 2016, respectively |
(21,401) |
(15,950) |
|||||
|
Additional paid-in capital |
2,362,084 |
2,345,271 |
|||||
|
Retained earnings |
634,582 |
591,505 |
|||||
|
Total stockholders' equity |
2,977,610 |
2,923,157 |
|||||
|
Total liabilities and stockholders' equity |
$ |
6,261,721 |
$ |
6,178,632 |
|||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Condensed Consolidated Statement of Operations | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
218,633 |
$ |
159,337 |
$ |
455,885 |
$ |
276,652 |
|||||||
|
Bulk oil sales |
8,091 |
— |
35,722 |
— |
|||||||||||
|
Midstream revenues |
15,566 |
6,910 |
30,172 |
13,893 |
|||||||||||
|
Well services revenues |
11,801 |
12,833 |
17,428 |
18,818 |
|||||||||||
|
Total revenues |
254,091 |
179,080 |
539,207 |
309,363 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
44,665 |
31,523 |
88,537 |
62,587 |
|||||||||||
|
Midstream operating expenses |
3,263 |
1,740 |
6,590 |
3,478 |
|||||||||||
|
Well services operating expenses |
8,088 |
7,135 |
11,990 |
9,786 |
|||||||||||
|
Marketing, transportation and gathering expenses |
12,039 |
6,491 |
22,990 |
15,043 |
|||||||||||
|
Bulk oil purchases |
7,980 |
— |
35,982 |
— |
|||||||||||
|
Production taxes |
18,971 |
14,367 |
39,270 |
25,120 |
|||||||||||
|
Depreciation, depletion and amortization |
125,291 |
122,488 |
251,957 |
244,937 |
|||||||||||
|
Exploration expenses |
1,667 |
340 |
3,156 |
703 |
|||||||||||
|
Impairment |
3,200 |
23 |
5,882 |
3,585 |
|||||||||||
|
General and administrative expenses |
23,548 |
21,876 |
47,382 |
46,242 |
|||||||||||
|
Total operating expenses |
248,712 |
205,983 |
513,736 |
411,481 |
|||||||||||
|
Loss on sale of properties |
— |
(1,311) |
— |
(1,311) |
|||||||||||
|
Operating income (loss) |
5,379 |
(28,214) |
25,471 |
(103,429) |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
50,532 |
(90,846) |
106,607 |
(76,471) |
|||||||||||
|
Interest expense, net of capitalized interest |
(36,838) |
(34,979) |
(73,159) |
(73,718) |
|||||||||||
|
Gain on extinguishment of debt |
— |
11,642 |
— |
18,658 |
|||||||||||
|
Other income (expense) |
(166) |
(32) |
(150) |
447 |
|||||||||||
|
Total other income (expense) |
13,528 |
(114,215) |
33,298 |
(131,084) |
|||||||||||
|
Income (loss) before income taxes |
18,907 |
(142,429) |
58,769 |
(234,513) |
|||||||||||
|
Income tax benefit (expense) |
(2,339) |
52,498 |
(18,376) |
80,127 |
|||||||||||
|
Net income (loss) |
$ |
16,568 |
$ |
(89,931) |
$ |
40,393 |
$ |
(154,386) |
|||||||
|
Earnings (loss) per share: |
|||||||||||||||
|
Basic |
$ |
0.07 |
$ |
(0.51) |
$ |
0.17 |
$ |
(0.91) |
|||||||
|
Diluted |
0.07 |
(0.51) |
0.17 |
(0.91) |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
233,283 |
176,984 |
233,176 |
169,953 |
|||||||||||
|
Diluted |
234,917 |
176,984 |
236,281 |
169,953 |
|||||||||||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Selected Financial and Operational Statistics | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil |
$ |
194,005 |
$ |
152,900 |
$ |
402,599 |
$ |
264,106 |
|||||||
|
Natural gas |
24,628 |
6,437 |
53,286 |
12,546 |
|||||||||||
|
Bulk oil sales |
8,091 |
— |
35,722 |
— |
|||||||||||
|
Midstream |
15,566 |
6,910 |
30,172 |
13,893 |
|||||||||||
|
Well services |
11,801 |
12,833 |
17,428 |
18,818 |
|||||||||||
|
Total revenues |
$ |
254,091 |
$ |
179,080 |
$ |
539,207 |
$ |
309,363 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
4,349 |
3,747 |
8,785 |
7,617 |
|||||||||||
|
Natural gas (MMcf) |
7,725 |
4,549 |
15,237 |
8,802 |
|||||||||||
|
Oil equivalents (MBoe) |
5,637 |
4,505 |
11,324 |
9,084 |
|||||||||||
|
Average daily production (Boe per day) |
61,943 |
49,507 |
62,564 |
49,911 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
44.61 |
$ |
40.81 |
$ |
45.83 |
$ |
34.67 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1) |
42.56 |
48.94 |
40.72 |
48.30 |
|||||||||||
|
Natural gas (per Mcf)(2) |
3.19 |
1.42 |
3.50 |
1.43 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
7.92 |
$ |
7.00 |
$ |
7.82 |
$ |
6.89 |
|||||||
|
Marketing, transportation and gathering expenses(3) |
2.17 |
1.55 |
1.97 |
1.58 |
|||||||||||
|
Production taxes |
3.37 |
3.19 |
3.47 |
2.77 |
|||||||||||
|
Depreciation, depletion and amortization |
22.23 |
27.19 |
22.25 |
26.96 |
|||||||||||
|
General and administrative expenses ("G&A") |
4.18 |
4.86 |
4.18 |
5.09 |
|||||||||||
|
Exploration and production G&A |
3.52 |
3.93 |
3.53 |
4.27 |
|||||||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. | |||||
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. | |||||
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Six Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net income (loss) |
$ |
40,393 |
$ |
(154,386) |
|||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
251,957 |
244,937 |
|||||
|
Gain on extinguishment of debt |
— |
(18,658) |
|||||
|
Loss on sale of properties |
— |
1,311 |
|||||
|
Impairment |
5,882 |
3,585 |
|||||
|
Deferred income taxes |
18,376 |
(80,127) |
|||||
|
Derivative instruments |
(106,607) |
76,471 |
|||||
|
Stock-based compensation expenses |
13,823 |
12,979 |
|||||
|
Deferred financing costs amortization and other |
8,871 |
6,552 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
(13,743) |
4,297 |
|||||
|
Change in inventory |
(1,007) |
2,054 |
|||||
|
Change in prepaid expenses |
(264) |
1,423 |
|||||
|
Change in other current assets |
280 |
(114) |
|||||
|
Change in long-term inventory and other assets |
(8,768) |
100 |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
11,158 |
(18,034) |
|||||
|
Change in other current liabilities |
(10,490) |
9,001 |
|||||
|
Change in other liabilities |
— |
10 |
|||||
|
Net cash provided by operating activities |
209,861 |
91,401 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(252,461) |
(231,341) |
|||||
|
Proceeds from sale of properties |
4,000 |
11,679 |
|||||
|
Costs related to sale of properties |
— |
(310) |
|||||
|
Derivative settlements |
(8,899) |
103,790 |
|||||
|
Advances from joint interest partners |
(1,781) |
769 |
|||||
|
Net cash used in investing activities |
(259,141) |
(115,413) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
484,000 |
359,000 |
|||||
|
Principal payments on revolving credit facility |
(429,000) |
(462,000) |
|||||
|
Repurchase of senior unsecured notes |
— |
(56,925) |
|||||
|
Deferred financing costs |
— |
(751) |
|||||
|
Proceeds from sale of common stock |
— |
182,953 |
|||||
|
Purchases of treasury stock |
(5,451) |
(1,520) |
|||||
|
Other |
(55) |
— |
|||||
|
Net cash provided by financing activities |
49,494 |
20,757 |
|||||
|
Increase (decrease) in cash and cash equivalents |
214 |
(3,255) |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
11,226 |
9,730 |
|||||
|
End of period |
$ |
11,440 |
$ |
6,475 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
19,017 |
$ |
(17,015) |
|||
|
Change in asset retirement obligations |
1,759 |
(8,785) |
|||||
|
Notes payable from acquisition |
4,875 |
— |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
36,838 |
$ |
34,979 |
$ |
73,159 |
$ |
73,718 |
|||||||
|
Capitalized interest |
2,816 |
4,835 |
5,636 |
9,303 |
|||||||||||
|
Amortization of deferred financing costs |
(1,709) |
(2,030) |
(3,399) |
(5,947) |
|||||||||||
|
Amortization of debt discount |
(2,480) |
— |
(4,835) |
— |
|||||||||||
|
Cash Interest |
$ |
35,465 |
$ |
37,784 |
$ |
70,561 |
$ |
77,074 |
|||||||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net income (loss) |
$ |
16,568 |
$ |
(89,931) |
$ |
40,393 |
$ |
(154,386) |
|||||||
|
Loss on sale of properties |
— |
1,311 |
— |
1,311 |
|||||||||||
|
Gain on extinguishment of debt |
— |
(11,642) |
— |
(18,658) |
|||||||||||
|
Net (gain) loss on derivative instruments |
(50,532) |
90,846 |
(106,607) |
76,471 |
|||||||||||
|
Derivative settlements(1) |
(939) |
30,477 |
(8,899) |
103,790 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,838 |
34,979 |
73,159 |
73,718 |
|||||||||||
|
Depreciation, depletion and amortization |
125,291 |
122,488 |
251,957 |
244,937 |
|||||||||||
|
Impairment |
3,200 |
23 |
5,882 |
3,585 |
|||||||||||
|
Exploration expenses |
1,667 |
340 |
3,156 |
703 |
|||||||||||
|
Stock-based compensation expenses |
7,115 |
6,249 |
13,823 |
12,979 |
|||||||||||
|
Income tax (benefit) expense |
2,339 |
(52,498) |
18,376 |
(80,127) |
|||||||||||
|
Other non-cash adjustments |
(213) |
(484) |
699 |
723 |
|||||||||||
|
Adjusted EBITDA |
141,334 |
132,158 |
291,939 |
265,046 |
|||||||||||
|
Cash interest |
(35,465) |
(37,784) |
(70,561) |
(77,074) |
|||||||||||
|
Capital expenditures(2) |
(172,975) |
(131,288) |
(282,770) |
(219,243) |
|||||||||||
|
Capitalized interest |
2,816 |
4,835 |
5,636 |
9,303 |
|||||||||||
|
Free Cash Flow |
$ |
(64,290) |
$ |
(32,079) |
$ |
(55,756) |
$ |
(21,968) |
|||||||
|
Net cash provided by operating activities |
$ |
102,062 |
$ |
137,452 |
$ |
209,861 |
$ |
91,401 |
|||||||
|
Derivative settlements(1) |
(939) |
30,477 |
(8,899) |
103,790 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,838 |
34,979 |
73,159 |
73,718 |
|||||||||||
|
Exploration expenses |
1,667 |
340 |
3,156 |
703 |
|||||||||||
|
Deferred financing costs amortization and other |
(3,931) |
(1,486) |
(8,871) |
(6,552) |
|||||||||||
|
Changes in working capital |
5,850 |
(69,120) |
22,834 |
1,263 |
|||||||||||
|
Other non-cash adjustments |
(213) |
(484) |
699 |
723 |
|||||||||||
|
Adjusted EBITDA |
141,334 |
132,158 |
291,939 |
265,046 |
|||||||||||
|
Cash interest |
(35,465) |
(37,784) |
(70,561) |
(77,074) |
|||||||||||
|
Capital expenditures(2) |
(172,975) |
(131,288) |
(282,770) |
(219,243) |
|||||||||||
|
Capitalized interest |
2,816 |
4,835 |
5,636 |
9,303 |
|||||||||||
|
Free Cash Flow |
$ |
(64,290) |
$ |
(32,079) |
$ |
(55,756) |
$ |
(21,968) |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. | |||||
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes |
$ |
(3,900) |
$ |
(158,978) |
$ |
16,836 |
$ |
(264,744) |
|||||||
|
Loss on sale of properties |
— |
1,669 |
— |
1,669 |
|||||||||||
|
Gain on extinguishment of debt |
— |
(11,642) |
— |
(18,658) |
|||||||||||
|
Net (gain) loss on derivative instruments |
(50,532) |
90,846 |
(106,607) |
76,471 |
|||||||||||
|
Derivative settlements(1) |
(939) |
30,477 |
(8,899) |
103,790 |
|||||||||||
|
Interest expense, net of capitalized interest |
36,838 |
34,979 |
73,159 |
73,718 |
|||||||||||
|
Depreciation, depletion and amortization |
122,785 |
120,039 |
247,193 |
240,881 |
|||||||||||
|
Impairment |
3,200 |
23 |
5,882 |
1,154 |
|||||||||||
|
Exploration expenses |
1,667 |
340 |
3,156 |
703 |
|||||||||||
|
Stock-based compensation expenses |
6,897 |
6,077 |
13,395 |
12,625 |
|||||||||||
|
Other non-cash adjustments |
(213) |
(484) |
699 |
723 |
|||||||||||
|
Adjusted EBITDA |
$ |
115,803 |
$ |
113,346 |
$ |
244,814 |
$ |
228,332 |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
|
Midstream Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
23,106 |
$ |
18,040 |
$ |
43,867 |
$ |
33,198 |
|||||||
|
Gain on sale of properties |
— |
(358) |
— |
(358) |
|||||||||||
|
Depreciation, depletion and amortization |
3,753 |
1,732 |
7,211 |
3,415 |
|||||||||||
|
Impairment |
— |
— |
— |
2,431 |
|||||||||||
|
Stock-based compensation expenses |
365 |
224 |
713 |
443 |
|||||||||||
|
Adjusted EBITDA |
$ |
27,224 |
$ |
19,638 |
$ |
51,791 |
$ |
39,129 |
|||||||
|
Well Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes |
$ |
1,950 |
$ |
(2,142) |
$ |
(1,637) |
$ |
1,885 |
|||||||
|
Depreciation, depletion and amortization |
3,057 |
3,895 |
6,222 |
8,127 |
|||||||||||
|
Stock-based compensation expenses |
338 |
235 |
734 |
899 |
|||||||||||
|
Adjusted EBITDA |
$ |
5,345 |
$ |
1,988 |
$ |
5,319 |
$ |
10,911 |
|||||||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) |
$ |
16,568 |
$ |
(89,931) |
$ |
40,393 |
$ |
(154,386) |
|||||||
|
Loss on sale of properties |
— |
1,311 |
— |
1,311 |
|||||||||||
|
Gain on extinguishment of debt |
— |
(11,642) |
— |
(18,658) |
|||||||||||
|
Net (gain) loss on derivative instruments |
(50,532) |
90,846 |
(106,607) |
76,471 |
|||||||||||
|
Derivative settlements(1) |
(939) |
30,477 |
(8,899) |
103,790 |
|||||||||||
|
Impairment |
3,200 |
23 |
5,882 |
3,585 |
|||||||||||
|
Amortization of deferred financing costs |
1,709 |
2,030 |
3,399 |
5,947 |
|||||||||||
|
Amortization of debt discount |
2,480 |
— |
4,835 |
— |
|||||||||||
|
Other non-cash adjustments |
(213) |
(484) |
699 |
723 |
|||||||||||
|
Tax impact(2) |
16,575 |
(42,075) |
37,679 |
(64,731) |
|||||||||||
|
Adjusted Net Loss |
$ |
(11,152) |
$ |
(19,445) |
$ |
(22,619) |
$ |
(45,948) |
|||||||
|
Diluted earnings (loss) per share |
$ |
0.07 |
$ |
(0.51) |
$ |
0.17 |
$ |
(0.91) |
|||||||
|
Loss on sale of properties |
— |
0.01 |
— |
0.01 |
|||||||||||
|
Gain on extinguishment of debt |
— |
(0.07) |
— |
(0.11) |
|||||||||||
|
Net (gain) loss on derivative instruments |
(0.22) |
0.51 |
(0.45) |
0.45 |
|||||||||||
|
Derivative settlements(1) |
— |
0.17 |
(0.04) |
0.61 |
|||||||||||
|
Impairment |
0.01 |
— |
0.02 |
0.02 |
|||||||||||
|
Amortization of deferred financing costs |
0.01 |
0.01 |
0.01 |
0.03 |
|||||||||||
|
Amortization of debt discount |
0.01 |
— |
0.02 |
— |
|||||||||||
|
Tax impact(2) |
0.07 |
(0.23) |
0.17 |
(0.37) |
|||||||||||
|
Non-GAAP Diluted Loss Per Share |
$ |
(0.05) |
$ |
(0.11) |
$ |
(0.10) |
$ |
(0.27) |
|||||||
|
Diluted weighted average shares outstanding |
234,917 |
176,984 |
236,281 |
169,953 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. | |||||
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-june-30-2017-earnings-300498752.html
SOURCE Oasis Petroleum Inc.
Article Date
8/2/2017Oasis to Announce Second Quarter 2017 Results and Upcoming Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, July 24, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Second Quarter 2017 financial and operational results on Wednesday, August 2, 2017 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Thursday, August 3, 2017 at 10:00 a.m. Central Time to discuss Second Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, August 3, 2017 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
3753112 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, August 10, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10110100 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
August 23: |
Heikkinen's Energy Conference – Houston, TX |
|
September 27: |
Johnson Rice's 2017 Energy Conference – New Orleans, LA |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-to-announce-second-quarter-2017-results-and-upcoming-conferences-300493169.html
SOURCE Oasis Petroleum Inc.
Article Date
7/24/2017Oasis Petroleum Inc. Announces Quarter Ended March 31, 2017 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 8, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended March 31, 2017 and provided an operational update.
Highlights include:
"It was another great quarter for Oasis as the team began to execute the 2017 plan outlined in February, moving towards bigger completions and increased overall activity," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Oasis completed 13 gross operated wells in the quarter. All but one were completed in Wild Basin, with almost half coming online in late March. Volumes for the first quarter increased by 1,200 Boepd above our December pro forma exit rate of approximately 62,000 Boepd, implying approximately 8% annualized growth rate, within cash flow."
Mr. Nusz added, "In an effort to improve efficiencies and minimize inflation risk, Oasis also made the decision to redeploy its second OWS frac fleet, which will return to service in the second half of this year. As the team optimizes the 2017 program that now includes two OWS fleets supplemented by third party frac spreads, completion activity in 2017 is expected to be more back half weighted. We continue to expect to hit our previously disclosed exit rates for 2017 and 2018."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
3/31/2017 |
12/31/2016 |
3/31/2016 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
49,281 |
42,707 |
42,525 |
||||||||
|
Natural gas (Mcfpd) |
83,470 |
62,657 |
46,740 |
||||||||
|
Total production (Boepd) |
63,192 |
53,150 |
50,315 |
||||||||
|
Percent Oil |
78 |
% |
80 |
% |
85 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
47.03 |
$ |
44.57 |
$ |
28.74 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
4.88 |
4.91 |
4.85 |
||||||||
|
Natural gas (per Mcf)(1) |
3.81 |
2.98 |
1.44 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
208.6 |
$ |
175.1 |
$ |
111.2 |
|||||
|
Natural gas |
28.7 |
17.2 |
6.1 |
||||||||
|
Bulk oil sales |
27.6 |
8.4 |
— |
||||||||
|
Midstream services ("OMS") |
14.6 |
13.0 |
7.0 |
||||||||
|
Well services ("OWS") |
5.6 |
4.3 |
6.0 |
||||||||
|
Total revenues |
$ |
285.1 |
$ |
218.0 |
$ |
130.3 |
|||||
|
OMS and OWS operating expenses ($ in millions): |
|||||||||||
|
OMS |
$ |
3.3 |
$ |
2.9 |
$ |
1.7 |
|||||
|
OWS |
3.9 |
1.7 |
2.7 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
7.71 |
$ |
7.60 |
$ |
6.78 |
|||||
|
MT&G ($ per Boe)(2) |
1.77 |
1.66 |
1.60 |
||||||||
|
DD&A ($ per Boe) |
22.27 |
24.43 |
26.74 |
||||||||
|
Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
3.54 |
4.29 |
4.61 |
||||||||
|
Production taxes (% of oil and gas revenues) |
8.6 |
% |
8.7 |
% |
9.2 |
% | |||||
|
__________________ | |
|
(1) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(2) |
Excludes non-cash valuation charges on pipeline imbalances. |
G&A totaled $23.8 in the first quarter of 2017, $24.4 million in the first quarter of 2016 and $23.9 million in the fourth quarter of 2016. Amortization of stock-based compensation, which is included in G&A, was $6.7 million, or $1.18 per Boe, in the first quarter of 2017 as compared to $6.7 million, or $1.47 per Boe, in the first quarter of 2016 and $5.3 million, or $1.09 per Boe, in the fourth quarter of 2016. G&A for the Company's E&P segment totaled $20.1 million in the first quarter of 2017, $21.1 million in the first quarter of 2016 and $21.0 million in the fourth quarter of 2016.
Interest expense was $36.3 million for the first quarter of 2017 compared to $38.7 million for the first quarter of 2016 and $34.9 million for the fourth quarter of 2016. Capitalized interest totaled $2.8 million for the first quarter of 2017, $4.5 million for the first quarter of 2016 and $3.2 million for the fourth quarter of 2016. Cash Interest totaled $35.1 million for the first quarter of 2017, $39.3 million for the first quarter of 2016 and $33.9 million for the fourth quarter of 2016. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended March 31, 2017, the Company recorded an income tax expense of $16.0 million, resulting in a 40.2% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax benefit of $31.7 million, resulting in a 36.7% effective tax rate as a percentage of its pre-tax loss for the three months ended December 31, 2016.
For the first quarter of 2017, the Company reported net income of $23.8 million, or $0.10 per diluted share, as compared to a net loss of $64.5 million, or $0.40 per diluted share, for the first quarter of 2016. Excluding certain non-cash items and their tax effect, Adjusted Net Loss (non-GAAP) was $11.5 million, or $0.05 per diluted share, in the first quarter of 2017, compared to Adjusted Net Loss of $26.5 million, or $0.16 per diluted share, in the first quarter of 2016. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income (loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the first quarter of 2017 was $150.6 million. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2017 | |||
|
CapEx ($ in thousands): |
|||
|
E&P |
$ |
90,780 |
|
|
OMS |
13,144 |
||
|
OWS |
— |
||
|
Other(1) |
5,871 |
||
|
Total CapEx(2) |
$ |
109,795 |
|
|
__________________ | |
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Hedging Activity
As of May 8, 2017, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:
|
Crude Oil (Volume in Mbopd) |
1H17 |
2H17 |
1H18 |
2H18 | ||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
19.0 |
19.0 |
8.0 |
7.0 |
||||||||||||
|
Price |
$ |
49.19 |
$ |
49.93 |
$ |
53.94 |
$ |
53.95 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
8.0 |
8.0 |
1.0 |
1.0 |
||||||||||||
|
Floor |
$ |
46.25 |
$ |
46.25 |
$ |
50.00 |
$ |
50.00 |
||||||||
|
Ceiling |
$ |
54.37 |
$ |
54.37 |
$ |
55.70 |
$ |
55.70 |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
6.00 |
6.00 |
— |
— |
||||||||||||
|
Sub-Floor |
$ |
31.67 |
$ |
31.67 |
— |
— |
||||||||||
|
Floor |
$ |
45.83 |
$ |
45.83 |
— |
— |
||||||||||
|
Ceiling |
$ |
59.94 |
$ |
59.94 |
— |
— |
||||||||||
|
Total Crude Oil Volume |
33.0 |
33.0 |
9.0 |
8.0 |
||||||||||||
|
Natural Gas (Volume in MMBtupd) |
||||||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
16.0 |
17.0 |
10.0 |
10.0 |
||||||||||||
|
Price |
$ |
3.31 |
$ |
3.30 |
$ |
3.00 |
$ |
3.00 |
||||||||
The March 2017 crude oil derivative contracts settled at a net $0.4 million to be paid in April 2017 and will be included in the Company's second quarter 2017 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, May 9, 2017 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
9246108 | |
|
Website: |
www.oasispetroleum.com |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, May 16, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10105992 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheet | |||||||
|
(Unaudited) | |||||||
|
March 31, 2017 |
December 31, 2016 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
13,785 |
$ |
11,226 |
|||
|
Accounts receivable, net |
226,427 |
204,335 |
|||||
|
Inventory |
14,327 |
10,648 |
|||||
|
Prepaid expenses |
7,176 |
7,623 |
|||||
|
Derivative instruments |
3,026 |
362 |
|||||
|
Other current assets |
4,452 |
4,355 |
|||||
|
Total current assets |
269,193 |
238,549 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
7,390,299 |
7,296,568 |
|||||
|
Other property and equipment |
632,318 |
618,790 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(2,126,136) |
(1,995,791) |
|||||
|
Total property, plant and equipment, net |
5,896,481 |
5,919,567 |
|||||
|
Derivative instruments |
3,815 |
— |
|||||
|
Other assets |
20,139 |
20,516 |
|||||
|
Total assets |
$ |
6,189,628 |
$ |
6,178,632 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
8,837 |
$ |
4,645 |
|||
|
Revenues and production taxes payable |
160,265 |
139,737 |
|||||
|
Accrued liabilities |
128,241 |
119,173 |
|||||
|
Accrued interest payable |
20,268 |
39,004 |
|||||
|
Derivative instruments |
14,627 |
60,469 |
|||||
|
Advances from joint interest partners |
6,838 |
7,597 |
|||||
|
Other current liabilities |
13,435 |
10,490 |
|||||
|
Total current liabilities |
352,511 |
381,115 |
|||||
|
Long-term debt |
2,305,879 |
2,297,214 |
|||||
|
Deferred income taxes |
524,842 |
513,529 |
|||||
|
Asset retirement obligations |
50,088 |
48,985 |
|||||
|
Derivative instruments |
— |
11,714 |
|||||
|
Other liabilities |
2,834 |
2,918 |
|||||
|
Total liabilities |
3,236,154 |
3,255,475 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 shares authorized; 238,691,038 shares issued and 237,461,470 shares outstanding at March 31, 2017 and 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016 |
2,344 |
2,331 |
|||||
|
Treasury stock, at cost: 1,229,568 and 856,892 shares at March 31, 2017 and December 31, 2016, respectively |
(21,369) |
(15,950) |
|||||
|
Additional paid-in capital |
2,354,485 |
2,345,271 |
|||||
|
Retained earnings |
618,014 |
591,505 |
|||||
|
Total stockholders' equity |
2,953,474 |
2,923,157 |
|||||
|
Total liabilities and stockholders' equity |
$ |
6,189,628 |
$ |
6,178,632 |
|||
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Operations | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands, except per share data) | |||||||
|
Revenues |
|||||||
|
Oil and gas revenues |
$ |
237,252 |
$ |
117,315 |
|||
|
Bulk oil sales |
27,631 |
— |
|||||
|
Midstream revenues |
14,606 |
6,983 |
|||||
|
Well services revenues |
5,627 |
5,985 |
|||||
|
Total revenues |
285,116 |
130,283 |
|||||
|
Operating expenses |
|||||||
|
Lease operating expenses |
43,872 |
31,064 |
|||||
|
Midstream operating expenses |
3,327 |
1,738 |
|||||
|
Well services operating expenses |
3,902 |
2,651 |
|||||
|
Marketing, transportation and gathering expenses |
10,951 |
8,552 |
|||||
|
Bulk oil purchases |
28,002 |
— |
|||||
|
Production taxes |
20,299 |
10,753 |
|||||
|
Depreciation, depletion and amortization |
126,666 |
122,449 |
|||||
|
Exploration expenses |
1,489 |
363 |
|||||
|
Impairment |
2,682 |
3,562 |
|||||
|
General and administrative expenses |
23,834 |
24,366 |
|||||
|
Total operating expenses |
265,024 |
205,498 |
|||||
|
Operating income (loss) |
20,092 |
(75,215) |
|||||
|
Other income (expense) |
|||||||
|
Net gain on derivative instruments |
56,075 |
14,375 |
|||||
|
Interest expense, net of capitalized interest |
(36,321) |
(38,739) |
|||||
|
Gain on extinguishment of debt |
— |
7,016 |
|||||
|
Other income |
16 |
479 |
|||||
|
Total other income (expense) |
19,770 |
(16,869) |
|||||
|
Income (loss) before income taxes |
39,862 |
(92,084) |
|||||
|
Income tax benefit (expense) |
(16,037) |
27,629 |
|||||
|
Net income (loss) |
$ |
23,825 |
$ |
(64,455) |
|||
|
Earnings (loss) per share: |
|||||||
|
Basic |
$ |
0.10 |
$ |
(0.40) |
|||
|
Diluted |
0.10 |
(0.40) |
|||||
|
Weighted average shares outstanding: |
|||||||
|
Basic |
233,068 |
162,922 |
|||||
|
Diluted |
237,900 |
162,922 |
|||||
|
Oasis Petroleum Inc. | |||||||
|
Selected Financial and Operational Statistics | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
Operating results (in thousands): |
|||||||
|
Revenues |
|||||||
|
Oil |
$ |
208,594 |
$ |
111,206 |
|||
|
Natural gas |
28,658 |
6,109 |
|||||
|
Bulk oil sales |
27,631 |
— |
|||||
|
Midstream |
14,606 |
6,983 |
|||||
|
Well services |
5,627 |
5,985 |
|||||
|
Total revenues |
$ |
285,116 |
$ |
130,283 |
|||
|
Production data: |
|||||||
|
Oil (MBbls) |
4,435 |
3,870 |
|||||
|
Natural gas (MMcf) |
7,512 |
4,253 |
|||||
|
Oil equivalents (MBoe) |
5,687 |
4,579 |
|||||
|
Average daily production (Boe per day) |
63,192 |
50,315 |
|||||
|
Average sales prices: |
|||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
47.03 |
$ |
28.74 |
|||
|
Oil, with derivative settlements (per Bbl)(1) |
45.15 |
47.68 |
|||||
|
Natural gas (per Mcf)(2) |
3.81 |
1.44 |
|||||
|
Costs and expenses (per Boe of production): |
|||||||
|
Lease operating expenses |
$ |
7.71 |
$ |
6.78 |
|||
|
Marketing, transportation and gathering expenses(3) |
1.77 |
1.60 |
|||||
|
Production taxes |
3.57 |
2.35 |
|||||
|
Depreciation, depletion and amortization |
22.27 |
26.74 |
|||||
|
General and administrative expenses ("G&A") |
4.19 |
5.32 |
|||||
|
Exploration and production G&A |
3.54 |
4.61 |
|||||
|
__________________ | |
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net income (loss) |
$ |
23,825 |
$ |
(64,455) |
|||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|||||||
|
Depreciation, depletion and amortization |
126,666 |
122,449 |
|||||
|
Gain on extinguishment of debt |
— |
(7,016) |
|||||
|
Impairment |
2,682 |
3,562 |
|||||
|
Deferred income taxes |
16,037 |
(27,629) |
|||||
|
Derivative instruments |
(56,075) |
(14,375) |
|||||
|
Stock-based compensation expenses |
6,708 |
6,730 |
|||||
|
Deferred financing costs amortization and other |
4,940 |
5,066 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
(22,478) |
(995) |
|||||
|
Change in inventory |
(3,679) |
349 |
|||||
|
Change in prepaid expenses |
282 |
241 |
|||||
|
Change in other current assets |
(110) |
4 |
|||||
|
Change in other assets |
(4) |
77 |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
6,060 |
(64,056) |
|||||
|
Change in other current liabilities |
2,945 |
(6,000) |
|||||
|
Change in other liabilities |
— |
(3) |
|||||
|
Net cash provided by (used in) operating activities |
107,799 |
(46,051) |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(96,047) |
(103,411) |
|||||
|
Derivative settlements |
(7,960) |
73,313 |
|||||
|
Advances from joint interest partners |
(759) |
(257) |
|||||
|
Net cash used in investing activities |
(104,766) |
(30,355) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
246,000 |
214,000 |
|||||
|
Principal payments on revolving credit facility |
(241,000) |
(287,000) |
|||||
|
Repurchase of senior unsecured notes |
— |
(22,308) |
|||||
|
Deferred financing costs |
— |
(751) |
|||||
|
Proceeds from sale of common stock |
— |
183,164 |
|||||
|
Purchases of treasury stock |
(5,419) |
(1,032) |
|||||
|
Other |
(55) |
— |
|||||
|
Net cash provided by (used in) financing activities |
(474) |
86,073 |
|||||
|
Increase in cash and cash equivalents |
2,559 |
9,667 |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
11,226 |
9,730 |
|||||
|
End of period |
$ |
13,785 |
$ |
19,397 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
8,396 |
$ |
(19,230) |
|||
|
Change in asset retirement obligations |
787 |
1,212 |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Interest expense |
$ |
36,321 |
$ |
38,739 |
|||
|
Capitalized interest |
2,820 |
4,468 |
|||||
|
Amortization of deferred financing costs |
(1,690) |
(3,917) |
|||||
|
Amortization of debt discount |
(2,355) |
— |
|||||
|
Cash Interest |
$ |
35,096 |
$ |
39,290 |
|||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Net income (loss) |
$ |
23,825 |
$ |
(64,455) |
|||
|
Gain on extinguishment of debt |
— |
(7,016) |
|||||
|
Net gain on derivative instruments |
(56,075) |
(14,375) |
|||||
|
Derivative settlements(1) |
(7,960) |
73,313 |
|||||
|
Interest expense, net of capitalized interest |
36,321 |
38,739 |
|||||
|
Depreciation, depletion and amortization |
126,666 |
122,449 |
|||||
|
Impairment |
2,682 |
3,562 |
|||||
|
Exploration expenses |
1,489 |
363 |
|||||
|
Stock-based compensation expenses |
6,708 |
6,730 |
|||||
|
Income tax (benefit) expense |
16,037 |
(27,629) |
|||||
|
Other non-cash adjustments |
912 |
1,207 |
|||||
|
Adjusted EBITDA |
150,605 |
132,888 |
|||||
|
Cash Interest |
(35,096) |
(39,290) |
|||||
|
Capital expenditures(2) |
(109,795) |
(87,955) |
|||||
|
Capitalized interest |
2,820 |
4,468 |
|||||
|
Free Cash Flow |
$ |
8,534 |
$ |
10,111 |
|||
|
Net cash provided by (used in) operating activities |
$ |
107,799 |
$ |
(46,051) |
|||
|
Derivative settlements(1) |
(7,960) |
73,313 |
|||||
|
Interest expense, net of capitalized interest |
36,321 |
38,739 |
|||||
|
Exploration expenses |
1,489 |
363 |
|||||
|
Deferred financing costs amortization and other |
(4,940) |
(5,066) |
|||||
|
Changes in working capital |
16,984 |
70,383 |
|||||
|
Other non-cash adjustments |
912 |
1,207 |
|||||
|
Adjusted EBITDA |
150,605 |
132,888 |
|||||
|
Cash Interest |
(35,096) |
(39,290) |
|||||
|
Capital expenditures(2) |
(109,795) |
(87,955) |
|||||
|
Capitalized interest |
2,820 |
4,468 |
|||||
|
Free Cash Flow |
$ |
8,534 |
$ |
10,111 |
|||
|
__________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Income (loss) before income taxes |
$ |
20,736 |
$ |
(105,764) |
|||
|
Gain on extinguishment of debt |
— |
(7,016) |
|||||
|
Net gain on derivative instruments |
(56,075) |
(14,375) |
|||||
|
Derivative settlements(1) |
(7,960) |
73,313 |
|||||
|
Interest expense, net of capitalized interest |
36,321 |
38,739 |
|||||
|
Depreciation, depletion and amortization |
124,409 |
120,842 |
|||||
|
Impairment |
2,682 |
1,131 |
|||||
|
Exploration expenses |
1,489 |
363 |
|||||
|
Stock-based compensation expenses |
6,499 |
6,547 |
|||||
|
Other non-cash adjustments |
912 |
1,207 |
|||||
|
Adjusted EBITDA |
$ |
129,013 |
$ |
114,987 |
|||
|
__________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Midstream Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Income before income taxes |
$ |
20,761 |
$ |
15,157 |
|||
|
Depreciation, depletion and amortization |
3,458 |
1,684 |
|||||
|
Impairment |
— |
2,431 |
|||||
|
Stock-based compensation expenses |
348 |
219 |
|||||
|
Adjusted EBITDA |
$ |
24,567 |
$ |
19,491 |
|||
|
Well Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands) | |||||||
|
Income (loss) before income taxes |
$ |
(3,588) |
$ |
4,011 |
|||
|
Depreciation, depletion and amortization |
3,164 |
4,248 |
|||||
|
Stock-based compensation expenses |
396 |
664 |
|||||
|
Adjusted EBITDA |
$ |
(28) |
$ |
8,923 |
|||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In thousands, except per share data) | |||||||
|
Net income (loss) |
$ |
23,825 |
$ |
(64,455) |
|||
|
Gain on extinguishment of debt |
— |
(7,016) |
|||||
|
Net gain on derivative instruments |
(56,075) |
(14,375) |
|||||
|
Derivative settlements(1) |
(7,960) |
73,313 |
|||||
|
Impairment |
2,682 |
3,562 |
|||||
|
Amortization of deferred financing costs(2) |
1,690 |
3,917 |
|||||
|
Amortization of debt discount |
2,355 |
— |
|||||
|
Other non-cash adjustments |
912 |
1,207 |
|||||
|
Tax impact(3) |
21,103 |
(22,655) |
|||||
|
Adjusted Net Loss |
$ |
(11,468) |
$ |
(26,502) |
|||
|
Diluted earnings (loss) per share |
$ |
0.10 |
$ |
(0.40) |
|||
|
Gain on extinguishment of debt |
— |
(0.04) |
|||||
|
Net gain on derivative instruments |
(0.24) |
(0.09) |
|||||
|
Derivative settlements(1) |
(0.03) |
0.45 |
|||||
|
Impairment |
0.01 |
0.02 |
|||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.02 |
|||||
|
Amortization of debt discount |
0.01 |
— |
|||||
|
Other non-cash adjustments |
— |
0.01 |
|||||
|
Tax impact(3) |
0.09 |
(0.13) |
|||||
|
Adjusted Diluted Loss Per Share |
$ |
(0.05) |
$ |
(0.16) |
|||
|
Diluted weighted average shares outstanding |
237,900 |
162,922 |
|||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% | |||
|
__________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
As of March 31, 2017, Adjusted Net Income (Loss) includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs is included in interest expense on the Company's Condensed Consolidated Statement of Operations. |
|
(3) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
5/8/20175/8/2017 - Oasis Petroleum Announces Plans for an Initial Public Offering of certain of its Midstream Assets
Oasis Petroleum Announces Plans for an Initial Public Offering of certain of its Midstream Assets
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 8, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE:OAS) ("Oasis" or the "Company") announced today its intention to contribute a portion of its midstream assets to a Master Limited Partnership (MLP) and sell a minority interest in the MLP in an initial public offering. The MLP is intended to support Oasis's strategy to grow its midstream business. The midstream assets that are expected to be contributed to the MLP are located in the Williston Basin area of North Dakota and/or Montana and include a portion of Oasis's (i) crude oil gathering and transportation system, (ii) natural gas gathering and processing system and (iii) water handling systems.
There can be no assurance that there will be an initial public offering of the MLP or any other transaction. Oasis expects to file a registration statement with the Securities and Exchange Commission in the second quarter of 2017. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities. This announcement is being issued pursuant to, and in accordance with, Rule 135 under the Securities Act of 1933.
This announcement contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning Oasis's intention to conduct an initial public offering of interests in the MLP. There can be no assurance that actual results will not differ from the Company's expectations. These statements contain words such as "intend," "will" and "expect" and can be impacted by numerous factors including the risk that the offering may not occur in its expected timeframe or at all, the securities market generally, the market for Oasis's midstream assets, changes in laws including with respect to tax and regulatory matters and other risks. For more information concerning factors that could affect these statements see Oasis's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. We undertake no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof.
SOURCE Oasis Petroleum Inc.
Article Date
5/8/2017Oasis to Announce First Quarter 2017 Results and Upcoming Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, April 25, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2017 financial and operational results on Monday, May 8, 2017 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Tuesday, May 9, 2017 at 10:00 a.m. Central Time to discuss First Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, May 9, 2017 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
9246108 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, March 16, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10105992 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
May 9: |
Morgan Stanley's 2017 E&P and Oil Services Conference – Houston, TX |
|
May 10: |
Citi's 17th 2017 Global Energy & Utilities Conference – Boston, MA |
|
June 6-7: |
RBC's 2017 Global Energy & Power Executive Conference – New York, NY |
|
June 21: |
Wells Fargo's 2017 West Coast Energy Conference – San Francisco, CA |
|
June 21: |
TPH's 2017 Hotter 'N Hell Conference – Houston, TX |
|
June 27-28: |
J.P. Morgan's 2017 Energy Equity Investor Conference – New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
4/26/2017Oasis Petroleum Inc. Announces Quarter and Year Ending December 31, 2016 Earnings and Provides an Operational Update and its 2017 Outlook
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 22, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2016 and provided its 2017 outlook.
Highlights
"Oasis continues to deliver industry leading performance across a top tier acreage position among oil resource plays in North America," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Despite the challenging commodity environment for most of 2016, the team drove down well costs and operating expenses while making significant strides on well performance. The net result has brought our capital efficiency to all-time records. With that momentum, we are increasing activity in 2017, as we already have one third-party completion crew working outside of Wild Basin, completing DUCs in the core. Additionally, we continue to expect to bring on two additional rigs in the middle of the year and another rig early in 2018. Under our current plan, we believe we can be free cash flow positive at current strip pricing in both 2017 and 2018."
Mr. Nusz added, "In the fourth quarter of 2016 we completed three 10 million pound slickwater wells in Wild Basin and now have eight months of data on a 20 million pound slickwater job that we brought online in June. We continue to see encouraging early time results from these latest completion tests and from tests done by our peers. Early data implies EUR increases of 25% or greater above our previous 4 million pound slickwater well designs. Accordingly, our completion plan for 2017 is migrating towards higher sand loadings and assumes an average frac size of approximately 10 million pounds of sand across approximately 50 stages."
"We have also continued to realize operational efficiencies as we develop our midstream infrastructure," said Taylor Reid, Oasis' President and Chief Operating Officer. "Our Wild Basin project came online in the fourth quarter and has been a major contributor to the success of the company. We plan to continue developing the infrastructure in 2017, including the acceleration of certain projects. We also plan to build additional midstream capacity in our other systems outside of Wild Basin, as we accelerate activity. Accordingly, we plan to spend $110 million on infrastructure capital in 2017. Our investment in OMS is accretive to our shareholders and is expected to increase OMS EBITDA to $155 million annualized by the fourth quarter of 2017."
Inventory and Leasehold Update
Oasis' total inventory increased to 3,073 gross locations, of which 770 locations are considered core, as of December 31, 2016. Core inventory increased by 27%, from 607 gross undeveloped locations at December 31, 2015 to 770 gross undeveloped locations at December, 31 2016. Additionally, extended core inventory increased to 844 gross undeveloped locations as of December 31, 2016. The Company had 83 gross operated wells awaiting completion at December 31, 2016.
Oasis ended the year with a leasehold position of 517,801 total net acres in the Williston Basin, primarily targeting the Bakken and Three Forks formations. In addition, the Company increased its acreage that is held by production to 484,321 net acres as of December 31, 2016.
2017 Plan
Highlights for 2017 include:
|
Metric |
2017 Range |
|
Production (Boepd) - full year 2017 |
65,500 to 70,500 |
|
Full Year Financial Metrics |
|
|
LOE ($ per Boe) |
$6.75 to $7.75 |
|
Marketing, transportation and gathering ("MT&G") ($ per Boe)(1) |
$1.90 to $2.20 |
|
General and administrative ("G&A") ($ in millions)(2) |
$95 to $100 |
|
Production taxes (% of oil and gas revenue) |
8.7% to 9.0% |
|
CapEx Budget ($ in millions) |
|
|
Drilling and completion |
$410 |
|
Midstream |
$110 |
|
Other(3) |
$85 |
|
(1) |
Excludes the effect of non-cash valuation charges. |
|
(2) |
Includes non-cash amortization of restricted stock of $28 to $30 million. |
|
(3) |
Includes other exploration and production ("E&P") CapEx, capitalized interest, OWS and administrative capital. |
Due to increased well performance and updated activity plans, the Company is revising its 2017 and 2018 year-end exit rate guidance to 72,000 Boepd and over 83,000 Boepd, respectively. Production growth in 2017 and 2018 is expected to be within cash flow.
Operational and Financial Update
Select operational and financial statistics are included in the following table for the periods presented:
|
Quarter Ended: |
Year Ended: | ||||||||||||||
|
12/31/2016 |
9/30/2016 |
12/31/2016 |
12/31/2015 | ||||||||||||
|
Production data: |
|||||||||||||||
|
Oil (Bopd) |
42,707 |
39,439 |
41,459 |
44,084 |
|||||||||||
|
Natural gas (MMcfpd) |
62,657 |
54,421 |
53,478 |
38,360 |
|||||||||||
|
Total production (Boepd) |
53,150 |
48,509 |
50,372 |
50,477 |
|||||||||||
|
Percent Oil |
80.4 |
% |
81.3 |
% |
82.3 |
% |
87.3 |
% | |||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements ($ per Bbl)(1) |
$ |
44.57 |
$ |
40.54 |
$ |
38.64 |
$ |
43.04 |
|||||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") ($ per Bbl) |
4.91 |
4.39 |
4.76 |
5.72 |
|||||||||||
|
Oil, with derivative settlements ($ per Bbl)(1)(2)(3) |
46.20 |
43.79 |
46.68 |
66.06 |
|||||||||||
|
Derivative settlements - net cash receipts ($ in millions)(3) |
6.4 |
11.8 |
122.0 |
370.4 |
|||||||||||
|
Natural gas ($ per Mcf)(4) |
2.98 |
1.84 |
1.99 |
2.08 |
|||||||||||
|
Selected financial data ($ in millions): |
|||||||||||||||
|
Revenues: |
|||||||||||||||
|
Oil |
$ |
183.5 |
$ |
149.0 |
$ |
596.6 |
$ |
692.5 |
|||||||
|
Natural gas |
17.2 |
9.2 |
38.9 |
29.2 |
|||||||||||
|
Midstream |
13.0 |
8.5 |
35.4 |
23.8 |
|||||||||||
|
Well services |
4.3 |
10.6 |
33.8 |
44.3 |
|||||||||||
|
Total revenues |
$ |
218.0 |
$ |
177.3 |
$ |
704.7 |
$ |
789.8 |
|||||||
|
Net cash provided by operating activities |
$ |
104.6 |
$ |
32.0 |
$ |
228.0 |
$ |
359.8 |
|||||||
|
Adjusted EBITDA |
$ |
130.9 |
$ |
104.4 |
$ |
500.3 |
$ |
820.2 |
|||||||
|
Select operating expenses: |
|||||||||||||||
|
LOE |
$ |
37.2 |
$ |
35.7 |
$ |
135.4 |
$ |
144.5 |
|||||||
|
MT&G(5) |
8.2 |
7.0 |
29.5 |
29.8 |
|||||||||||
|
Bulk purchases |
8.4 |
1.9 |
10.3 |
— |
|||||||||||
|
Non-cash valuation charges |
(0.1) |
— |
0.6 |
1.8 |
|||||||||||
|
Production taxes |
16.8 |
14.6 |
56.6 |
69.6 |
|||||||||||
|
Midstream |
2.9 |
2.6 |
9.0 |
6.2 |
|||||||||||
|
Well services |
1.7 |
5.5 |
17.0 |
21.8 |
|||||||||||
|
Depreciation, depletion and amortization ("DD&A") |
119.4 |
111.9 |
476.3 |
485.3 |
|||||||||||
|
Total select operating expenses |
$ |
194.5 |
$ |
179.2 |
$ |
734.7 |
$ |
759.0 |
|||||||
|
Select operating expenses data: |
|||||||||||||||
|
LOE ($ per Boe) |
$ |
7.60 |
$ |
8.00 |
$ |
7.35 |
$ |
7.84 |
|||||||
|
MT&G ($ per Boe)(5) |
1.66 |
1.58 |
1.60 |
1.62 |
|||||||||||
|
DD&A ($ per Boe) |
24.43 |
25.08 |
25.84 |
26.34 |
|||||||||||
|
E&P G&A ($ per Boe) |
4.29 |
4.31 |
4.28 |
4.50 |
|||||||||||
|
Production taxes (% of oil and gas revenue) |
8.7 |
% |
9.3 |
% |
9.0 |
% |
9.6 |
% | |||||||
|
(1) |
For the three months and year ended December 31, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $8.4 million and $10.3 million, respectively, divided by oil production. |
|
(2) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. |
|
(3) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(4) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(5) |
Excludes non-cash valuation charges and bulk oil purchases. |
G&A expenses for the fourth quarter of 2016 totaled $23.9 million, and for the year ended December 31, 2016, G&A totaled $93.0 million. G&A expenses for the Company's E&P segment totaled $21.0 million in the fourth quarter of 2016 and $79.0 million in the full year of 2016. E&P G&A expenses were $4.29 per Boe in the fourth quarter of 2016 and $4.28 per Boe in the full year of 2016. Amortization of stock-based compensation, which is included in G&A expenses, was $5.3 million, or $1.09 per Boe, in the fourth quarter of 2016 and $24.1 million, or $1.31 per Boe, in the full year of 2016.
Interest expense was $34.9 million for the fourth quarter of 2016 and $140.3 million for the full year of 2016. Interest expense in the fourth quarter and full year of 2016 includes amortization of the debt discount related to the Company's senior unsecured convertible notes issued in September 2016 of $2.4 million and $2.7 million, respectively. Capitalized interest totaled $3.2 million for the fourth quarter of 2016 and $16.8 million for the full year of 2016. Cash interest totaled $33.9 million for the fourth quarter of 2016 and $144.7 million for the full year of 2016. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended December 31, 2016, the Company recorded an income tax benefit of $31.7 million, resulting in an effective tax rate of 36.7% as a percentage of its pre-tax loss for the quarter. The Company's income tax benefit for the year ended December 31, 2016 was recorded at $128.5 million, or 34.6% of its pre-tax loss.
The Company reported net loss of $54.7 million in the fourth quarter of 2016. For the full year of 2016, Oasis reported a net loss of $243.0 million. Excluding certain non-cash items and their tax effect in the fourth quarter of 2016 and full year of 2016, Adjusted Net Loss (non-GAAP) was $16.4 million, or $0.08 per diluted share, and $91.7 million, or $0.50 per diluted share, respectively. For a definition of Adjusted Net Loss and a reconciliation of net loss to Adjusted Net Loss, see "Non-GAAP Financial Measures" below.
The Company completed and placed on production 57 gross (37.6 net) operated wells during 2016 and 12 gross (9.3 net) during the fourth quarter of 2016.
Capital Expenditures
Excluding acquisitions, capital expenditures ("CapEx") were $400.0 million for the year ended December 31, 2016, directly in-line with the Company's guidance throughout the year.
The following table depicts the Company's CapEx for the year ended December 31, 2016:
|
2016 | |||
|
CapEx ($ in millions) |
|||
|
E&P (excluding acquisitions) |
$ |
208.4 |
|
|
Midstream |
170.4 |
||
|
Other(1) |
21.2 |
||
|
Total CapEx before acquisitions |
400.0 |
||
|
Acquisitions |
781.5 |
||
|
Total CapEx(2) |
$ |
1,181.5 |
|
|
(1) |
Other CapEx includes such items as OWS CapEx, administrative capital and capitalized interest. |
|
(2) |
CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Estimated Net Proved Reserves
The Company's estimated net proved reserves and related PV-10 at December 31, 2016 are based on reports prepared by DeGolyer and MacNaughton, independent reserve engineers. In preparing its reports, DeGolyer and MacNaughton evaluated properties representing all of the Company's PV-10 at December 31, 2016 in accordance with rules and regulations of the Securities and Exchange Commission ("SEC") applicable to companies involved in oil and natural gas producing activities (the "2016 Report"). The following reserve information does not give any effect to or reflect Oasis' commodity hedges and utilizes an average WTI oil price of $42.60 per barrel and an average natural gas price of $2.47 per MMBtu. These prices were adjusted by lease for quality, transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the wellhead. All of the Company's estimated proved undeveloped reserves at December 31, 2016 are expected to be developed within the next five years. Oasis' estimated net proved oil and natural gas reserves at December 31, 2016 were 305.1 MMBoe and consisted of 236.6 million barrels ("MMBbls") of oil and 411.1 billion cubic feet ("Bcf") of natural gas. The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2016:
|
December 31, 2016 | |||||||
|
Net Estimated |
PV-10(1) (in millions) | ||||||
|
Proved Developed |
190.6 |
$ |
1,887.1 |
||||
|
Undeveloped |
114.5 |
740.7 |
|||||
|
Total Proved |
305.1 |
$ |
2,627.8 |
||||
|
(1) |
PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. |
Liquidity and Balance Sheet
As of December 31, 2016, Oasis had cash and cash equivalents of $11.2 million. In addition, Oasis had $363.0 million of borrowings and $12.3 million of outstanding letters of credit issued under its revolving credit facility, resulting in an unused borrowing base capacity of $774.7 million as of December 31, 2016.
In 2016, Oasis completed a $300.0 million public offering of senior unsecured convertible notes due 2023 and repurchased an aggregate principal amount of $447.0 million of the Company's outstanding senior unsecured notes, reducing annual cash interest by more than $20 million.
Hedging Activity
As of February 22, 2017, the Company had the following outstanding commodity derivate contracts, all of which are priced relative to WTI crude oil index prices and settle monthly:
|
Volume in Mbopd |
1H17 |
2H17 |
1H18 |
2H18 | ||||||||||||
|
Swaps |
||||||||||||||||
|
Volume |
19.0 |
19.0 |
6.0 |
5.0 |
||||||||||||
|
Price |
$ |
49.19 |
$ |
49.93 |
$ |
53.89 |
$ |
53.88 |
||||||||
|
Collars |
||||||||||||||||
|
Volume |
8.0 |
8.0 |
1.0 |
1.0 |
||||||||||||
|
Floor |
$ |
46.25 |
$ |
46.25 |
$ |
50.00 |
$ |
50.00 |
||||||||
|
Ceiling |
$ |
54.37 |
$ |
54.37 |
$ |
55.70 |
$ |
55.70 |
||||||||
|
3-way |
||||||||||||||||
|
Volume |
6.0 |
6.0 |
— |
— |
||||||||||||
|
Sub Floor |
$ |
31.67 |
$ |
31.67 |
— |
— |
||||||||||
|
Floor |
$ |
45.83 |
$ |
45.83 |
— |
— |
||||||||||
|
Ceiling |
$ |
59.94 |
$ |
59.94 |
— |
— |
||||||||||
|
Total Volume |
33.0 |
33.0 |
7.0 |
6.0 |
||||||||||||
Additionally, the Company has swaps priced off of NYMEX Natural Gas of 15,000 mmbtu/d at a weighted average price of $3.32 in 2017 and 2,000 mmbtu/d at a weighted average price of $2.99 in 2018. The December 2016 crude oil derivative contracts settled at $3.0 million and will be included in the Company's first quarter of 2017 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: Thursday, February 23, 2017
Time: 10:00 a.m. Central Time
Dial-in: 888-317-6003
Intl. Dial in: 412-317-6061
Conference ID: 8389933
Website: www.oasispetroleum.com
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, March 2, 2017 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Replay code: 10100250
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. Financial Statements | ||||||||
|
OASIS PETROLEUM INC. | ||||||||
|
CONSOLIDATED BALANCE SHEET | ||||||||
|
(Unaudited) | ||||||||
|
December 31, | ||||||||
|
2016 |
2015 | |||||||
|
(In thousands, except share data) | ||||||||
|
ASSETS |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ |
11,226 |
$ |
9,730 |
||||
|
Accounts receivable, net |
204,335 |
197,409 |
||||||
|
Inventory |
10,648 |
11,072 |
||||||
|
Prepaid expenses |
7,623 |
7,328 |
||||||
|
Derivative instruments |
362 |
139,697 |
||||||
|
Other current assets |
4,355 |
50 |
||||||
|
Total current assets |
238,549 |
365,286 |
||||||
|
Property, plant and equipment |
||||||||
|
Oil and gas properties (successful efforts method) |
7,296,568 |
6,284,401 |
||||||
|
Other property and equipment |
618,790 |
443,265 |
||||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,995,791) |
(1,509,424) |
||||||
|
Total property, plant and equipment, net |
5,919,567 |
5,218,242 |
||||||
|
Assets held for sale |
— |
26,728 |
||||||
|
Derivative instruments |
— |
15,776 |
||||||
|
Other assets |
20,516 |
23,343 |
||||||
|
Total assets |
$ |
6,178,632 |
$ |
5,649,375 |
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable |
$ |
4,645 |
$ |
9,983 |
||||
|
Revenues and production taxes payable |
139,737 |
132,356 |
||||||
|
Accrued liabilities |
119,173 |
167,669 |
||||||
|
Accrued interest payable |
39,004 |
49,413 |
||||||
|
Derivative instruments |
60,469 |
— |
||||||
|
Advances from joint interest partners |
7,597 |
4,647 |
||||||
|
Other current liabilities |
10,490 |
6,500 |
||||||
|
Total current liabilities |
381,115 |
370,568 |
||||||
|
Long-term debt |
2,297,214 |
2,302,584 |
||||||
|
Deferred income taxes |
513,529 |
608,155 |
||||||
|
Asset retirement obligations |
48,985 |
35,338 |
||||||
|
Liabilities held for sale |
— |
10,228 |
||||||
|
Derivative instruments |
11,714 |
— |
||||||
|
Other liabilities |
2,918 |
3,160 |
||||||
|
Total liabilities |
3,255,475 |
3,330,033 |
||||||
|
Commitments and contingencies |
||||||||
|
Stockholders' equity |
||||||||
|
Common stock, $0.01 par value: 450,000,000 and 300,000,000 shares authorized at December 31, 2016 and 2015, respectively; 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016 and 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 |
2,331 |
1,376 |
||||||
|
Treasury stock, at cost: 856,892 shares and 507,926 shares at December 31, 2016 and 2015, respectively |
(15,950) |
(13,620) |
||||||
|
Additional paid-in-capital |
2,345,271 |
1,497,065 |
||||||
|
Retained earnings |
591,505 |
834,521 |
||||||
|
Total stockholders' equity |
2,923,157 |
2,319,342 |
||||||
|
Total liabilities and stockholders' equity |
$ |
6,178,632 |
$ |
5,649,375 |
||||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil and gas revenues |
$ |
200,670 |
$ |
158,433 |
$ |
635,505 |
$ |
721,672 |
||||||||
|
Midstream revenues |
13,026 |
6,648 |
35,406 |
23,769 |
||||||||||||
|
Well services revenues |
4,295 |
16,986 |
33,754 |
44,294 |
||||||||||||
|
Total revenues |
217,991 |
182,067 |
704,665 |
789,735 |
||||||||||||
|
Operating expenses |
||||||||||||||||
|
Lease operating expenses |
37,161 |
31,925 |
135,444 |
144,481 |
||||||||||||
|
Midstream operating expenses |
2,908 |
1,723 |
9,003 |
6,198 |
||||||||||||
|
Well services operating expenses |
1,675 |
6,938 |
17,009 |
21,833 |
||||||||||||
|
Marketing, transportation and gathering expenses |
16,467 |
8,297 |
40,366 |
31,610 |
||||||||||||
|
Production taxes |
16,807 |
15,669 |
56,565 |
69,584 |
||||||||||||
|
Depreciation, depletion and amortization |
119,446 |
123,892 |
476,331 |
485,322 |
||||||||||||
|
Exploration expenses |
593 |
117 |
1,785 |
2,369 |
||||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
||||||||||||
|
Impairment |
717 |
21,364 |
4,684 |
46,109 |
||||||||||||
|
General and administrative expenses |
23,921 |
25,308 |
93,008 |
92,498 |
||||||||||||
|
Total operating expenses |
219,695 |
235,233 |
834,195 |
903,899 |
||||||||||||
|
Gain (loss) on sale of properties |
2 |
— |
(1,303) |
— |
||||||||||||
|
Operating loss |
(1,702) |
(53,166) |
(130,833) |
(114,164) |
||||||||||||
|
Other income (expense) |
||||||||||||||||
|
Net gain (loss) on derivative instruments |
(49,693) |
99,091 |
(105,317) |
210,376 |
||||||||||||
|
Interest expense, net of capitalized interest |
(34,861) |
(36,946) |
(140,305) |
(149,648) |
||||||||||||
|
Gain (loss) on extinguishment of debt |
(124) |
— |
4,741 |
— |
||||||||||||
|
Other income (expense) |
(28) |
(3,305) |
160 |
(2,935) |
||||||||||||
|
Total other income (expense) |
(84,706) |
58,840 |
(240,721) |
57,793 |
||||||||||||
|
Income (loss) before income taxes |
(86,408) |
5,674 |
(371,554) |
(56,371) |
||||||||||||
|
Income tax benefit (expense) |
31,720 |
(1,706) |
128,538 |
16,123 |
||||||||||||
|
Net income (loss) |
$ |
(54,688) |
$ |
3,968 |
$ |
(243,016) |
$ |
(40,248) |
||||||||
|
Earnings (loss) per share: |
||||||||||||||||
|
Basic |
$ |
(0.25) |
$ |
0.03 |
$ |
(1.32) |
$ |
(0.31) |
||||||||
|
Diluted |
(0.25) |
0.03 |
(1.32) |
(0.31) |
||||||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
217,332 |
137,184 |
183,615 |
130,186 |
||||||||||||
|
Diluted |
217,332 |
137,184 |
183,615 |
130,186 |
||||||||||||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
SELECTED FINANCIAL AND OPERATIONAL STATS | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Operating results ($ in thousands): |
||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil |
$ |
183,512 |
$ |
150,448 |
$ |
596,580 |
$ |
692,497 |
||||||||
|
Natural gas |
17,158 |
7,985 |
38,925 |
29,175 |
||||||||||||
|
Midstream |
13,026 |
6,648 |
35,406 |
23,769 |
||||||||||||
|
Well services |
4,295 |
16,986 |
33,754 |
44,294 |
||||||||||||
|
Total revenues |
$ 217,991 |
$ 182,067 |
$ 704,665 |
$ 789,735 |
||||||||||||
|
Production data: |
||||||||||||||||
|
Oil (MBbls) |
3,929 |
3,983 |
15,174 |
16,091 |
||||||||||||
|
Natural gas (MMcf) |
5,764 |
4,062 |
19,573 |
14,002 |
||||||||||||
|
Oil equivalents (MBoe) |
4,890 |
4,660 |
18,436 |
18,424 |
||||||||||||
|
Average daily production (Boe/d) |
53,150 |
50,652 |
50,372 |
50,477 |
||||||||||||
|
Average sales prices: |
||||||||||||||||
|
Oil, without derivative settlements (per Bbl)(1) |
$ |
44.57 |
$ |
37.77 |
$ |
38.64 |
$ |
43.04 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1)(2) |
46.20 |
57.60 |
46.68 |
66.06 |
||||||||||||
|
Natural gas (per Mcf)(3) |
2.98 |
1.97 |
1.99 |
2.08 |
||||||||||||
|
Costs and expenses (per Boe of production): |
||||||||||||||||
|
Lease operating expenses |
$ |
7.60 |
$ |
6.85 |
$ |
7.35 |
$ |
7.84 |
||||||||
|
Marketing, transportation and gathering expenses(4) |
1.66 |
1.57 |
1.60 |
1.62 |
||||||||||||
|
Production taxes |
3.44 |
3.36 |
3.07 |
3.78 |
||||||||||||
|
Depreciation, depletion and amortization |
24.43 |
26.59 |
25.84 |
26.34 |
||||||||||||
|
General and administrative expenses |
4.89 |
5.43 |
5.04 |
5.02 |
||||||||||||
|
(1) |
For the three months and year ended December 31, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $8.4 million and $10.3 million, respectively, divided by oil production. |
|
(2) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
Excludes non-cash valuation charges and bulk oil purchases. |
|
OASIS PETROLEUM INC. | ||||||||
|
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
|
(Unaudited) | ||||||||
|
Year Ended December 31, | ||||||||
|
2016 |
2015 | |||||||
|
(In thousands) | ||||||||
|
Cash flows from operating activities: |
||||||||
|
Net loss |
$ |
(243,016) |
$ |
(40,248) |
||||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
|
Depreciation, depletion and amortization |
476,331 |
485,322 |
||||||
|
Gain on extinguishment of debt |
(4,741) |
— |
||||||
|
Loss on sale of properties |
1,303 |
— |
||||||
|
Impairment |
4,684 |
46,109 |
||||||
|
Deferred income taxes |
(128,538) |
(16,114) |
||||||
|
Derivative instruments |
105,317 |
(210,376) |
||||||
|
Stock-based compensation expenses |
24,103 |
25,272 |
||||||
|
Deferred financing costs amortization and other |
14,334 |
12,299 |
||||||
|
Working capital and other changes: |
||||||||
|
Change in accounts receivable, net |
(11,923) |
108,461 |
||||||
|
Change in inventory |
254 |
6,873 |
||||||
|
Change in prepaid expenses |
(295) |
1,828 |
||||||
|
Change in other current assets |
(305) |
6,489 |
||||||
|
Change in other assets |
(151) |
(950) |
||||||
|
Change in accounts payable and accrued liabilities |
(13,839) |
(71,617) |
||||||
|
Change in other current liabilities |
4,490 |
6,500 |
||||||
|
Change in other liabilities |
10 |
(33) |
||||||
|
Net cash provided by operating activities |
228,018 |
359,815 |
||||||
|
Cash flows from investing activities: |
||||||||
|
Capital expenditures |
(426,256) |
(819,847) |
||||||
|
Acquisitions of oil and gas properties |
(781,522) |
(28,817) |
||||||
|
Proceeds from sale of properties |
12,333 |
1,075 |
||||||
|
Costs related to sale of properties |
(310) |
— |
||||||
|
Derivative settlements |
121,977 |
370,410 |
||||||
|
Advances from joint interest partners |
2,950 |
(1,969) |
||||||
|
Net cash used in investing activities |
(1,070,828) |
(479,148) |
||||||
|
Cash flows from financing activities: |
||||||||
|
Proceeds from revolving credit facility |
1,407,000 |
630,000 |
||||||
|
Principal payments on revolving credit facility |
(1,182,000) |
(992,000) |
||||||
|
Repurchase of senior unsecured notes |
(435,907) |
— |
||||||
|
Proceeds from issuance of senior unsecured convertible notes |
300,000 |
— |
||||||
|
Deferred financing costs |
(9,127) |
(14,632) |
||||||
|
Proceeds from sale of common stock |
766,670 |
462,833 |
||||||
|
Purchases of treasury stock |
(2,330) |
(2,949) |
||||||
|
Net cash provided by financing activities |
844,306 |
83,252 |
||||||
|
Increase (decrease) in cash and cash equivalents |
1,496 |
(36,081) |
||||||
|
Cash and cash equivalents: |
||||||||
|
Beginning of period |
9,730 |
45,811 |
||||||
|
End of period |
$ |
11,226 |
$ |
9,730 |
||||
|
Supplemental cash flow information: |
||||||||
|
Cash paid for interest, net of capitalized interest |
$ |
138,248 |
$ |
145,333 |
||||
|
Cash received for income tax refunds |
5 |
5,548 |
||||||
|
Supplemental non-cash transactions: |
||||||||
|
Change in accrued capital expenditures |
$ |
(43,415) |
$ |
(260,060) |
||||
|
Change in asset retirement obligations |
3,810 |
3,972 |
||||||
|
Note receivable from divestiture |
4,000 |
— |
||||||
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest Expense |
$ |
34,861 |
$ |
36,946 |
$ |
140,305 |
$ |
149,648 |
|||||||
|
Capitalized interest |
3,165 |
4,752 |
16,848 |
18,582 |
|||||||||||
|
Amortization of deferred financing costs |
(1,715) |
(1,710) |
(9,757) |
(7,238) |
|||||||||||
|
Amortization of debt discount |
(2,409) |
— |
(2,709) |
— |
|||||||||||
|
Cash Interest |
$ |
33,902 |
$ |
39,988 |
$ |
144,687 |
$ |
160,992 |
|||||||
Adjusted EBITDA Reconciliations
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by United States generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net income (loss) |
$ |
(54,688) |
$ |
3,968 |
$ |
(243,016) |
$ |
(40,248) |
|||||||
|
(Gain) loss on sale of properties |
(2) |
— |
1,303 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
124 |
— |
(4,741) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
49,693 |
(99,091) |
105,317 |
(210,376) |
|||||||||||
|
Derivative settlements(1) |
6,401 |
78,974 |
121,977 |
370,410 |
|||||||||||
|
Interest expense, net of capitalized interest |
34,861 |
36,946 |
140,305 |
149,648 |
|||||||||||
|
Depreciation, depletion and amortization |
119,446 |
123,892 |
476,331 |
485,322 |
|||||||||||
|
Impairment |
717 |
21,364 |
4,684 |
46,109 |
|||||||||||
|
Exploration expenses |
593 |
117 |
1,785 |
2,369 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Stock-based compensation expenses |
5,342 |
5,643 |
24,103 |
25,272 |
|||||||||||
|
Income tax (benefit) expense |
(31,720) |
1,706 |
(128,538) |
(16,123) |
|||||||||||
|
Other non-cash adjustments |
93 |
3,174 |
790 |
3,956 |
|||||||||||
|
Adjusted EBITDA |
130,860 |
176,693 |
500,300 |
820,234 |
|||||||||||
|
Cash Interest |
(33,902) |
(39,988) |
(144,687) |
(160,992) |
|||||||||||
|
Capital expenditures(2) |
(883,831) |
(90,433) |
(1,181,527) |
(610,000) |
|||||||||||
|
Capitalized interest |
3,165 |
4,752 |
16,848 |
18,582 |
|||||||||||
|
Free Cash Flow |
$ |
(783,708) |
$ |
51,024 |
$ |
(809,066) |
$ |
67,824 |
|||||||
|
Net cash provided by operating activities |
$ |
104,599 |
$ |
79,478 |
$ |
228,018 |
$ |
359,815 |
|||||||
|
Derivative settlements(1) |
6,401 |
78,974 |
121,977 |
370,410 |
|||||||||||
|
Interest expense, net of capitalized interest |
34,861 |
36,946 |
140,305 |
149,648 |
|||||||||||
|
Exploration expenses |
593 |
117 |
1,785 |
2,369 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Deferred financing costs amortization and other |
(4,160) |
(4,831) |
(14,334) |
(12,299) |
|||||||||||
|
Current tax benefit |
— |
(9) |
— |
(9) |
|||||||||||
|
Changes in working capital |
(11,527) |
(17,156) |
21,759 |
(57,551) |
|||||||||||
|
Other non-cash adjustments |
93 |
3,174 |
790 |
3,956 |
|||||||||||
|
Adjusted EBITDA |
130,860 |
176,693 |
500,300 |
820,234 |
|||||||||||
|
Cash Interest |
(33,902) |
(39,988) |
(144,687) |
(160,992) |
|||||||||||
|
Capital expenditures(2) |
(883,831) |
(90,433) |
(1,181,527) |
(610,000) |
|||||||||||
|
Capitalized interest |
3,165 |
4,752 |
16,848 |
18,582 |
|||||||||||
|
Free Cash Flow |
$ |
(783,708) |
$ |
51,024 |
$ |
(809,066) |
$ |
67,824 |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
CapEx (including acquisitions) reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. Acquisitions totaled $768.0 million and $781.5 million for the fourth quarter and full year 2016, respectively, and $0.1 million and $28.7 million for the fourth quarter and full year 2015, respectively. |
Segment Adjusted EBITDA Reconciliations
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Loss before income taxes |
$ |
(105,395) |
$ |
(14,868) |
$ |
(436,469) |
$ |
(118,970) |
|||||||
|
(Gain) loss on sale of properties |
(2) |
— |
1,661 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
124 |
— |
(4,741) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
49,693 |
(99,091) |
105,317 |
(210,376) |
|||||||||||
|
Derivative settlements(1) |
6,401 |
78,974 |
121,977 |
370,410 |
|||||||||||
|
Interest expense, net of capitalized interest |
34,861 |
36,946 |
140,305 |
149,648 |
|||||||||||
|
Depreciation, depletion and amortization |
117,346 |
122,028 |
467,894 |
479,693 |
|||||||||||
|
Impairment |
717 |
21,364 |
2,253 |
46,109 |
|||||||||||
|
Exploration expenses |
593 |
117 |
1,785 |
2,369 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Stock-based compensation expenses |
5,152 |
5,486 |
23,346 |
24,762 |
|||||||||||
|
Other non-cash adjustments |
21 |
2,937 |
718 |
3,719 |
|||||||||||
|
Adjusted EBITDA |
$ |
109,511 |
$ |
153,893 |
$ |
424,046 |
$ |
751,259 |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Midstream Services | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
19,132 |
$ |
15,828 |
$ |
68,394 |
$ |
59,867 |
|||||||
|
Gain on sale of properties |
— |
— |
(358) |
— |
|||||||||||
|
Depreciation, depletion and amortization |
3,200 |
1,695 |
8,525 |
5,764 |
|||||||||||
|
Impairment |
— |
— |
2,431 |
— |
|||||||||||
|
Stock-based compensation expenses |
249 |
162 |
911 |
692 |
|||||||||||
|
Other non-cash adjustments |
10 |
— |
10 |
— |
|||||||||||
|
Adjusted EBITDA |
$ |
22,591 |
$ |
17,685 |
$ |
79,913 |
$ |
66,323 |
|||||||
|
Well Services | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
10 |
$ |
19,608 |
$ |
3,471 |
$ |
49,197 |
|||||||
|
Depreciation, depletion and amortization |
3,287 |
4,643 |
14,892 |
19,073 |
|||||||||||
|
Stock-based compensation expenses |
262 |
422 |
1,515 |
1,952 |
|||||||||||
|
Other non-cash adjustments |
62 |
237 |
62 |
237 |
|||||||||||
|
Adjusted EBITDA |
$ |
3,621 |
$ |
24,910 |
$ |
19,940 |
$ |
70,459 |
|||||||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) |
$ |
(54,688) |
$ |
3,968 |
$ |
(243,016) |
$ |
(40,248) |
|||||||
|
(Gain) loss on sale of properties |
(2) |
— |
1,303 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
124 |
— |
(4,741) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
49,693 |
(99,091) |
105,317 |
(210,376) |
|||||||||||
|
Derivative settlements(1) |
6,401 |
78,974 |
121,977 |
370,410 |
|||||||||||
|
Impairment |
717 |
21,364 |
4,684 |
46,109 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Amortization of deferred financing costs(2) |
1,715 |
1,710 |
9,757 |
7,238 |
|||||||||||
|
Amortization of debt discount |
2,409 |
— |
2,709 |
— |
|||||||||||
|
Other non-cash adjustments |
93 |
3,174 |
790 |
3,956 |
|||||||||||
|
Tax impact(3) |
(22,882) |
(2,292) |
(90,480) |
(82,697) |
|||||||||||
|
Adjusted Net Income (Loss) |
$ |
(16,420) |
$ |
7,807 |
$ |
(91,700) |
$ |
98,287 |
|||||||
|
Diluted earnings (loss) per share |
$ |
(0.25) |
$ |
0.03 |
$ |
(1.32) |
$ |
(0.31) |
|||||||
|
(Gain) loss on sale of properties |
— |
— |
0.01 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
— |
— |
(0.03) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
0.23 |
(0.72) |
0.57 |
(1.62) |
|||||||||||
|
Derivative settlements(1) |
0.03 |
0.58 |
0.66 |
2.85 |
|||||||||||
|
Impairment |
— |
0.16 |
0.03 |
0.35 |
|||||||||||
|
Rig termination |
— |
— |
— |
0.03 |
|||||||||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.01 |
0.05 |
0.06 |
|||||||||||
|
Amortization of debt discount |
0.01 |
— |
0.01 |
— |
|||||||||||
|
Other non-cash adjustments |
— |
0.02 |
— |
0.03 |
|||||||||||
|
Tax impact(3) |
(0.11) |
(0.02) |
(0.48) |
(0.64) |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Per Share |
$ |
(0.08) |
$ |
0.06 |
$ |
(0.50) |
$ |
0.75 |
|||||||
|
Diluted weighted average shares outstanding |
217,332 |
137,184 |
183,615 |
130,186 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
As of December 31, 2016, Adjusted Net Income (Loss) includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs is included in interest expense on the Company's Consolidated Statement of Operations. |
|
(3) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
2/22/2017Oasis to Announce Fourth Quarter and Year End 2016 Results and Upcoming Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 7, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Fourth Quarter and Year End 2016 financial and operational results on Wednesday, February 22, 2017 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Thursday, February 23, 2017 at 10:00 a.m. Central Time to discuss Fourth Quarter and Year End 2016 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, February 23, 2017 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
8389933 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, March 2, 2017 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10100250 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
March 2: |
Simmons' 17th Annual Energy Conference – Las Vegas, NV |
|
March 6-7: |
Raymond James' 38th Annual Institutional Investors Conference – Orlando, FL |
|
March 7: |
Evercore ISI's Energy/Power Summit – Houston, TX |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
2/7/2017Oasis Petroleum Inc. Announces Quarter Ended September 30, 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Nov. 7, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2016 and provided an operational update.
Highlights include:
"Oasis continues to increase shareholder value by further improving capital efficiency and acquiring assets that allow us to best leverage our operating expertise," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "With well costs of $5.2 million and Wild Basin type curves of 1,550 Mboe, we are positioned to grow volumes considerably across 2017 and 2018."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
39,439 |
41,176 |
44,318 |
||||||||
|
Natural gas (MMcfpd) |
54,421 |
49,983 |
37,366 |
||||||||
|
Total production (Boepd) |
48,509 |
49,507 |
50,546 |
||||||||
|
Percent Oil |
81 |
% |
83 |
% |
88 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl)(1) |
$ |
40.54 |
$ |
40.81 |
$ |
41.61 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
4.39 |
4.85 |
4.82 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1)(2)(3) |
43.79 |
48.94 |
60.77 |
||||||||
|
Derivative settlements - net cash receipts (in millions)(3) |
11.8 |
30.5 |
78.1 |
||||||||
|
Natural gas (per Mcf)(4) |
1.84 |
1.42 |
1.63 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
149.0 |
$ |
152.9 |
$ |
169.7 |
|||||
|
Natural gas |
9.2 |
6.4 |
5.6 |
||||||||
|
Well services ("OWS") |
10.6 |
12.8 |
15.4 |
||||||||
|
Midstream services ("OMS") |
8.5 |
6.9 |
6.6 |
||||||||
|
Total revenues |
$ |
177.3 |
$ |
179.0 |
$ |
197.2 |
|||||
|
OWS and OMS operating expenses ($ in millions): |
|||||||||||
|
OWS |
$ |
5.5 |
$ |
7.1 |
$ |
8.5 |
|||||
|
OMS |
2.6 |
1.7 |
1.5 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
8.00 |
$ |
7.00 |
$ |
7.67 |
|||||
|
MT&G ($ per Boe)(5) |
1.58 |
1.55 |
1.63 |
||||||||
|
DD&A ($ per Boe) |
25.08 |
27.19 |
26.61 |
||||||||
|
Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
4.31 |
3.93 |
4.07 |
||||||||
|
Production taxes (% of oil and gas revenue) |
9.3 |
% |
9.0 |
% |
9.5 |
% | |||||
|
___________________ | |
|
(1) |
For the three months ended September 30, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $1.9 million, divided by oil production. |
|
(2) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. |
|
(3) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(4) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(5) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchases. |
G&A totaled $22.8 million in the third quarter of 2016, $22.4 million in the third quarter of 2015 and $21.9 million in the second quarter of 2016. Amortization of stock-based compensation, which is included in G&A, was $5.8 million, or $1.30 per Boe, in the third quarter of 2016 as compared to $6.0 million, or $1.28 per Boe, in the third quarter of 2015 and $6.2 million, or $1.39 per Boe, in the second quarter of 2016. G&A for the Company's E&P segment totaled $19.2 million in the third quarter of 2016, $18.9 million in the third quarter of 2015 and $17.7 million in the second quarter of 2016.
Interest expense was $31.7 million for the third quarter of 2016 compared to $36.5 million for the third quarter of 2015 and $35.0 million for the second quarter of 2016. Capitalized interest totaled $4.4 million for the third quarter of 2016, $5.1 million for the third quarter of 2015 and $4.8 million for the second quarter of 2016. Cash Interest totaled $33.7 million for the third quarter of 2016, $40.0 million for the third quarter of 2015 and $37.8 million for the second quarter of 2016. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended September 30, 2016, the Company recorded an income tax benefit of $16.7 million, resulting in a 33.0% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax benefit of $52.5 million, resulting in a 36.9% effective tax rate as a percentage of its pre-tax income for the three months ended June 30, 2016.
For the third quarter of 2016, the Company reported a net loss of $33.9 million, or $0.19 per diluted share, as compared to a net income of $27.1 million, or $0.20 per diluted share, for the third quarter of 2015. Excluding certain non-cash and non-recurring items and their tax effect, Adjusted Net Loss (non-GAAP) was $29.3 million, or $0.17 per diluted share, in the third quarter of 2016, compared to Adjusted Net Income of $12.5 million, or $0.09 per diluted share, in the third quarter of 2015. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income (loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below.
Adjusted EBITDA for the third quarter of 2016 was $104.4 million. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2016 |
2Q 2016 |
3Q 2016 |
YTD 2016 | ||||||||||||
|
CapEx ($ in thousands): |
|||||||||||||||
|
E&P |
$ |
47,734 |
$ |
73,125 |
$ |
31,333 |
$ |
152,192 |
|||||||
|
OMS |
35,039 |
52,842 |
42,085 |
129,966 |
|||||||||||
|
OWS |
650 |
— |
29 |
679 |
|||||||||||
|
Other(1) |
4,532 |
5,320 |
5,007 |
14,859 |
|||||||||||
|
Total CapEx(2) |
$ |
87,955 |
$ |
131,287 |
$ |
78,454 |
$ |
297,696 |
|||||||
|
___________________ | |
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Hedging Activity
As of November 7, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced off of WTI and settle monthly:
|
Volume in Mbopd |
4Q16 |
1H17 |
2H17 |
1H18 |
2H18 | |||||||||||||||
|
Swaps |
||||||||||||||||||||
|
Volume |
33.0 |
16.0 |
14.0 |
4.0 |
3.0 |
|||||||||||||||
|
Price |
$ |
49.20 |
$ |
48.57 |
$ |
49.08 |
$ |
54.32 |
$ |
54.45 |
||||||||||
|
Collars |
||||||||||||||||||||
|
Volume |
— |
6.0 |
6.0 |
— |
— |
|||||||||||||||
|
Floor |
— |
$ |
45.00 |
$ |
45.00 |
— |
— |
|||||||||||||
|
Ceiling |
— |
$ |
53.95 |
$ |
53.95 |
— |
— |
|||||||||||||
|
3-way |
||||||||||||||||||||
|
Volume |
— |
6.0 |
6.0 |
— |
— |
|||||||||||||||
|
Sub Floor |
— |
$ |
31.67 |
$ |
31.67 |
— |
— |
|||||||||||||
|
Floor |
— |
$ |
45.83 |
$ |
45.83 |
— |
— |
|||||||||||||
|
Ceiling |
— |
$ |
59.94 |
$ |
59.94 |
— |
— |
|||||||||||||
|
Total Volume |
33.0 |
28.0 |
26.0 |
4.0 |
3.0 |
|||||||||||||||
Additionally, the Company has swaps priced off of NYMEX Natural Gas of 6,000 mmbtu/d at a weighted average price of $3.21 in 2017. The September 2016 contracts settled at $3.7 million and will be included in the Company's fourth quarter 2016 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, November 8, 2016 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
6611124 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, November 15, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10095010 |
The conference call will also be available for replay at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheet | |||||||
|
(Unaudited) | |||||||
|
September 30, 2016 |
December 31, 2015 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
13,776 |
$ |
9,730 |
|||
|
Accounts receivable — oil and gas revenues |
103,128 |
96,495 |
|||||
|
Accounts receivable — joint interest and other |
77,903 |
100,914 |
|||||
|
Inventory |
8,513 |
11,072 |
|||||
|
Prepaid expenses |
6,093 |
7,328 |
|||||
|
Derivative instruments |
9,142 |
139,697 |
|||||
|
Other current assets |
4,290 |
50 |
|||||
|
Total current assets |
222,845 |
365,286 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
6,438,782 |
6,284,401 |
|||||
|
Other property and equipment |
580,171 |
443,265 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,866,280) |
(1,509,424) |
|||||
|
Total property, plant and equipment, net |
5,152,673 |
5,218,242 |
|||||
|
Assets held for sale |
— |
26,728 |
|||||
|
Derivative instruments |
194 |
15,776 |
|||||
|
Other assets |
22,549 |
23,343 |
|||||
|
Total assets |
$ |
5,398,261 |
$ |
5,649,375 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
7,929 |
$ |
9,983 |
|||
|
Revenues and production taxes payable |
141,991 |
132,356 |
|||||
|
Accrued liabilities |
98,926 |
167,669 |
|||||
|
Accrued interest payable |
19,798 |
49,413 |
|||||
|
Derivative instruments |
17,308 |
— |
|||||
|
Advances from joint interest partners |
5,191 |
4,647 |
|||||
|
Other current liabilities |
— |
6,500 |
|||||
|
Total current liabilities |
291,143 |
370,568 |
|||||
|
Long-term debt |
2,125,573 |
2,302,584 |
|||||
|
Deferred income taxes |
546,202 |
608,155 |
|||||
|
Asset retirement obligations |
37,092 |
35,338 |
|||||
|
Liabilities held for sale |
— |
10,228 |
|||||
|
Derivative instruments |
7,755 |
— |
|||||
|
Other liabilities |
2,992 |
3,160 |
|||||
|
Total liabilities |
3,010,757 |
3,330,033 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 and 300,000,000 shares authorized at September 30, 2016 and December 31, 2015, respectively; 182,038,164 shares issued and 181,186,070 shares outstanding at September 30, 2016 and 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 |
1,779 |
1,376 |
|||||
|
Treasury stock, at cost: 852,094 and 507,926 shares at September 30, 2016 and December 31, 2015, respectively |
(15,895) |
(13,620) |
|||||
|
Additional paid-in capital |
1,755,427 |
1,497,065 |
|||||
|
Retained earnings |
646,193 |
834,521 |
|||||
|
Total stockholders' equity |
2,387,504 |
2,319,342 |
|||||
|
Total liabilities and stockholders' equity |
$ |
5,398,261 |
$ |
5,649,375 |
|||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Condensed Consolidated Statement of Operations | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
158,183 |
$ |
175,270 |
$ |
434,835 |
$ |
563,239 |
|||||||
|
Well services and midstream revenues |
19,128 |
21,965 |
51,839 |
44,429 |
|||||||||||
|
Total revenues |
177,311 |
197,235 |
486,674 |
607,668 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
35,696 |
35,670 |
98,283 |
112,556 |
|||||||||||
|
Well services and midstream operating expenses |
8,165 |
10,023 |
21,429 |
19,370 |
|||||||||||
|
Marketing, transportation and gathering expenses |
8,856 |
8,465 |
23,899 |
23,313 |
|||||||||||
|
Production taxes |
14,638 |
16,676 |
39,758 |
53,915 |
|||||||||||
|
Depreciation, depletion and amortization |
111,948 |
123,734 |
356,885 |
361,430 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
General and administrative expenses |
22,845 |
22,358 |
69,087 |
67,190 |
|||||||||||
|
Total operating expenses |
203,019 |
217,333 |
614,500 |
668,838 |
|||||||||||
|
Gain (loss) on sale of properties |
6 |
172 |
(1,305) |
172 |
|||||||||||
|
Operating loss |
(25,702) |
(19,926) |
(129,131) |
(60,998) |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
20,847 |
103,637 |
(55,624) |
111,285 |
|||||||||||
|
Interest expense, net of capitalized interest |
(31,726) |
(36,513) |
(105,444) |
(112,702) |
|||||||||||
|
Gain (loss) on extinguishment of debt |
(13,793) |
— |
4,865 |
— |
|||||||||||
|
Other income (expense) |
(259) |
249 |
188 |
370 |
|||||||||||
|
Total other income (expense) |
(24,931) |
67,373 |
(156,015) |
(1,047) |
|||||||||||
|
Income (loss) before income taxes |
(50,633) |
47,447 |
(285,146) |
(62,045) |
|||||||||||
|
Income tax benefit (expense) |
16,691 |
(20,392) |
96,818 |
17,829 |
|||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
Earnings (loss) per share: |
|||||||||||||||
|
Basic |
$ |
(0.19) |
$ |
0.20 |
$ |
(1.09) |
$ |
(0.35) |
|||||||
|
Diluted |
(0.19) |
0.20 |
(1.09) |
(0.35) |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
Diluted |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Selected Financial and Operational Statistics | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil |
$ |
148,962 |
$ |
169,672 |
$ |
413,068 |
$ |
542,049 |
|||||||
|
Natural gas |
9,221 |
5,598 |
21,767 |
21,190 |
|||||||||||
|
Well services |
10,641 |
15,381 |
29,459 |
27,308 |
|||||||||||
|
Midstream |
8,487 |
6,584 |
22,380 |
17,121 |
|||||||||||
|
Total revenues |
$ |
177,311 |
$ |
197,235 |
$ |
486,674 |
$ |
607,668 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
3,628 |
4,077 |
11,245 |
12,107 |
|||||||||||
|
Natural gas (MMcf) |
5,007 |
3,438 |
13,809 |
9,940 |
|||||||||||
|
Oil equivalents (MBoe) |
4,463 |
4,650 |
13,547 |
13,764 |
|||||||||||
|
Average daily production (Boe per day) |
48,509 |
50,546 |
49,440 |
50,418 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl)(1) |
$ |
40.54 |
$ |
41.61 |
$ |
36.57 |
$ |
44.77 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1)(2) |
43.79 |
60.77 |
46.85 |
68.84 |
|||||||||||
|
Natural gas (per Mcf)(3) |
1.84 |
1.63 |
1.58 |
2.13 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
8.00 |
$ |
7.67 |
$ |
7.26 |
$ |
8.18 |
|||||||
|
Marketing, transportation and gathering expenses(4) |
1.58 |
1.63 |
1.58 |
1.64 |
|||||||||||
|
Production taxes |
3.28 |
3.59 |
2.93 |
3.92 |
|||||||||||
|
Depreciation, depletion and amortization |
25.08 |
26.61 |
26.35 |
26.26 |
|||||||||||
|
General and administrative expenses ("G&A") |
5.12 |
4.81 |
5.10 |
4.88 |
|||||||||||
|
Exploration and production G&A |
4.31 |
4.07 |
4.28 |
4.43 |
|||||||||||
|
___________________ | |
|
(1) |
For both the three and nine months ended September 30, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $1.9 million, divided by oil production. |
|
(2) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchases. |
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Nine Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net loss |
$ |
(188,328) |
$ |
(44,216) |
|||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
356,885 |
361,430 |
|||||
|
Gain on extinguishment of debt |
(4,865) |
— |
|||||
|
(Gain) loss on sale of properties |
1,305 |
(172) |
|||||
|
Impairment |
3,967 |
24,917 |
|||||
|
Deferred income taxes |
(96,818) |
(17,829) |
|||||
|
Derivative instruments |
55,624 |
(111,285) |
|||||
|
Stock-based compensation expenses |
18,761 |
19,629 |
|||||
|
Deferred financing costs amortization and other |
10,174 |
7,468 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
11,349 |
108,309 |
|||||
|
Change in inventory |
2,559 |
8,425 |
|||||
|
Change in prepaid expenses |
1,168 |
638 |
|||||
|
Change in other current assets |
(240) |
5,529 |
|||||
|
Change in other assets |
(148) |
— |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
(41,991) |
(84,133) |
|||||
|
Change in other current liabilities |
(6,000) |
1,655 |
|||||
|
Change in other liabilities |
17 |
(28) |
|||||
|
Net cash provided by operating activities |
123,419 |
280,337 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(340,314) |
(740,633) |
|||||
|
Proceeds from sale of properties |
12,333 |
78 |
|||||
|
Costs related to sale of properties |
(310) |
— |
|||||
|
Derivative settlements |
115,576 |
291,436 |
|||||
|
Advances from joint interest partners |
544 |
(1,239) |
|||||
|
Net cash used in investing activities |
(212,171) |
(450,358) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
835,000 |
618,000 |
|||||
|
Principal payments on revolving credit facility |
(778,000) |
(938,000) |
|||||
|
Repurchase of senior unsecured notes |
(435,907) |
— |
|||||
|
Proceeds from issuance of senior unsecured convertible notes |
300,000 |
— |
|||||
|
Deferred financing costs |
(8,811) |
(3,587) |
|||||
|
Proceeds from sale of common stock |
182,791 |
462,833 |
|||||
|
Purchases of treasury stock |
(2,275) |
(2,771) |
|||||
|
Net cash provided by financing activities |
92,798 |
136,475 |
|||||
|
Increase (decrease) in cash and cash equivalents |
4,046 |
(33,546) |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
9,730 |
45,811 |
|||||
|
End of period |
$ |
13,776 |
$ |
12,265 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
(49,177) |
$ |
(233,913) |
|||
|
Change in asset retirement obligations |
(8,083) |
3,405 |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
31,726 |
$ |
36,513 |
$ |
105,444 |
$ |
112,702 |
|||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Amortization of deferred financing costs |
(2,095) |
(1,570) |
(8,042) |
(5,527) |
|||||||||||
|
Amortization of debt discount |
(300) |
— |
(300) |
— |
|||||||||||
|
Cash Interest |
$ |
33,711 |
$ |
39,997 |
$ |
110,785 |
$ |
121,005 |
|||||||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by United States generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,305 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Depreciation, depletion and amortization |
111,948 |
123,734 |
356,885 |
361,430 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Stock-based compensation expenses |
5,782 |
5,966 |
18,761 |
19,629 |
|||||||||||
|
Income tax (benefit) expense |
(16,691) |
20,392 |
(96,818) |
(17,829) |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
104,394 |
189,241 |
369,440 |
643,541 |
|||||||||||
|
Cash Interest |
(33,711) |
(39,997) |
(110,785) |
(121,005) |
|||||||||||
|
Capital expenditures(2) |
(78,453) |
(78,053) |
(297,696) |
(519,566) |
|||||||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Free Cash Flow |
$ |
(3,390) |
$ |
76,245 |
$ |
(25,358) |
$ |
16,800 |
|||||||
|
Net cash provided by operating activities |
$ |
32,018 |
$ |
50,451 |
$ |
123,419 |
$ |
280,337 |
|||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Deferred financing costs amortization and other |
(3,622) |
(2,409) |
(10,174) |
(7,468) |
|||||||||||
|
Changes in working capital |
32,023 |
25,376 |
33,286 |
(40,395) |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
104,394 |
189,241 |
369,440 |
643,541 |
|||||||||||
|
Cash Interest |
(33,711) |
(39,997) |
(110,785) |
(121,005) |
|||||||||||
|
Capital expenditures(2) |
(78,453) |
(78,053) |
(297,696) |
(519,566) |
|||||||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Free Cash Flow |
$ |
(3,390) |
$ |
76,245 |
$ |
(25,358) |
$ |
16,800 |
|||||||
|
___________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes |
$ |
(66,333) |
$ |
29,070 |
$ |
(331,075) |
$ |
(104,102) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,663 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Depreciation, depletion and amortization |
109,668 |
122,075 |
346,240 |
357,664 |
|||||||||||
|
Impairment |
382 |
80 |
1,536 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Stock-based compensation expenses |
5,570 |
5,761 |
17,495 |
19,276 |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
$ |
86,202 |
$ |
169,000 |
$ |
309,527 |
$ |
597,365 |
|||||||
|
___________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Well Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
1,577 |
$ |
10,950 |
$ |
3,462 |
$ |
29,588 |
|||||||
|
Depreciation, depletion and amortization |
3,478 |
4,904 |
11,605 |
14,430 |
|||||||||||
|
Stock-based compensation expenses |
354 |
544 |
1,253 |
1,530 |
|||||||||||
|
Adjusted EBITDA |
$ |
5,409 |
$ |
16,398 |
$ |
16,320 |
$ |
45,548 |
|||||||
|
Midstream Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
16,065 |
$ |
18,828 |
$ |
49,262 |
$ |
44,039 |
|||||||
|
Gain on sale of properties |
— |
— |
(358) |
— |
|||||||||||
|
Depreciation, depletion and amortization |
1,909 |
1,509 |
5,325 |
4,070 |
|||||||||||
|
Impairment |
— |
— |
2,431 |
— |
|||||||||||
|
Stock-based compensation expenses |
218 |
206 |
661 |
529 |
|||||||||||
|
Adjusted EBITDA |
$ |
18,192 |
$ |
20,543 |
$ |
57,321 |
$ |
48,638 |
|||||||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,305 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Amortization of deferred financing costs(2) |
2,095 |
1,570 |
8,042 |
5,526 |
|||||||||||
|
Amortization of debt discount |
300 |
— |
300 |
— |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Tax impact(3) |
(2,798) |
8,668 |
(67,598) |
(80,447) |
|||||||||||
|
Adjusted Net Income (Loss) |
$ |
(29,263) |
$ |
12,547 |
$ |
(75,280) |
$ |
90,436 |
|||||||
|
Diluted loss per share |
$ |
(0.19) |
$ |
0.20 |
$ |
(1.09) |
$ |
(0.35) |
|||||||
|
(Gain) loss on sale of properties |
— |
— |
0.01 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
0.08 |
— |
(0.03) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(0.12) |
(0.76) |
0.32 |
(0.87) |
|||||||||||
|
Derivative settlements(1) |
0.07 |
0.57 |
0.67 |
2.28 |
|||||||||||
|
Impairment |
— |
— |
0.02 |
0.19 |
|||||||||||
|
Rig termination |
— |
— |
— |
0.03 |
|||||||||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.01 |
0.05 |
0.04 |
|||||||||||
|
Amortization of debt discount |
— |
— |
— |
— |
|||||||||||
|
Other non-cash adjustments |
— |
0.01 |
— |
0.01 |
|||||||||||
|
Tax impact(3) |
(0.02) |
0.06 |
(0.39) |
(0.62) |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Per Share |
$ |
(0.17) |
$ |
0.09 |
$ |
(0.44) |
$ |
0.71 |
|||||||
|
Diluted weighted average shares outstanding |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
|
___________________ | |
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
As of September 30, 2016, Adjusted Net Income (Loss) includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs are included in interest expense on the Company's Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2016 and 2015, the amortization of deferred financing costs included $1.8 million and $0.5 million, respectively, for unamortized deferred financing costs related to the revolving credit facility, which were written off in proportion to the decreases in the borrowing base. |
|
(3) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
11/7/201610/20/2016 - Oasis to Announce Third Quarter 2016 Results
Oasis to Announce Third Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Oct. 20, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Third Quarter 2016 financial and operational results on Monday, November 7, 2016 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Tuesday, November 8, 2016 at 10:00 a.m. Central Time to discuss Third Quarter 2016 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, November 8, 2016 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
6611124 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, November 15, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10095010 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
10/20/2016Oasis Petroleum Inc. Announces Pricing of Upsized Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Oct. 18, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has priced an upsized underwritten public offering of 48,000,000 shares of common stock for total gross proceeds (before the underwriters' discounts and commissions and estimated offering expenses) of approximately $518.4 million. The Company intends to use the net proceeds from this offering to fund a portion of the previously announced acquisition of SM Energy Company's Bakken assets (the "Acquisition"). The offering is not conditioned on the consummation of the Acquisition, and if the Acquisition does not occur, the net proceeds will be used for general corporate purposes, which may include funding a portion of the Company's 2017 capital budget. Oasis granted the underwriters a 30-day option to purchase up to 7,200,000 additional shares of common stock. The offering is expected to close on October 21, 2016.
J.P. Morgan Securities LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 15, 2014. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriters will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting J.P. Morgan via Broadridge Financial Solutions (866-803-9204), 1155 Long Island Avenue, Edgewood, New York 11717, email: prospectus-eq_fi@jpmchase.com; or Goldman, Sachs & Co., attention: Prospectus Department (866-471-2526), 200 West Street, New York, New York 10282, email: prospectus-ny@ny.email.gs.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the common stock offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin.
SOURCE Oasis Petroleum Inc.
Article Date
10/18/2016Oasis Petroleum Inc. Announces Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Oct. 18, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has commenced an underwritten public offering of 40,000,000 shares of common stock. Oasis expects to grant the underwriters a 30-day option to purchase up to 6,000,000 additional shares of common stock. The Company intends to use the net proceeds from this offering to fund a portion of the previously announced acquisition of SM Energy Company's Bakken assets (the "Acquisition"). The offering is not conditioned on the consummation of the Acquisition, and if the Acquisition does not occur, the net proceeds will be used for general corporate purposes, which may include funding a portion of the Company's 2017 capital budget.
J.P. Morgan Securities LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 15, 2014. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriters will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting J.P. Morgan via Broadridge Financial Solutions (866-803-9204), 1155 Long Island Avenue, Edgewood, New York 11717, email: prospectus-eq_fi@jpmchase.com; or Goldman, Sachs & Co., attention: Prospectus Department (866-471-2526), 200 West Street, New York, New York 10282, email: prospectus-ny@ny.email.gs.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the common stock offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin.
SOURCE Oasis Petroleum Inc.
Article Date
10/18/2016Oasis Petroleum Inc. Announces the Acquisition of Approximately 55,000 Net Acres in the Williston Basin and Provides Financial, Operational and Guidance Updates
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Oct. 18, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced:
Third Quarter 2016 Highlights and Update to Full Year 2016 Guidance
"We now have production data results from numerous Bakken and Three Forks wells across multiple DSUs in Wild Basin, including the White unit wells and additional wells completed in 2016," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Production from these wells has exceeded our current type curve for Wild Basin of approximately 1,200 MBoe for Bakken and approximately 1,000 MBoe for Three Forks. Therefore, we are increasing our Wild Basin type curves to approximately 1,550 MBoe for Bakken and to approximately 1,200 MBoe for Three Forks. This type curve is based on our four million pound sand slickwater completion technique. The team continues to test the latest completion technologies. Our confidence is growing that increasing proppant loading and stage counts will continue to improve well performance, as we are seeing production uplift in our own tests as well as tests done by other operators in similar operating areas."
Mr. Nusz added, "We have reduced our current well costs down to $5.2 million from $5.9 million on our four million pound sand slickwater well completion technique. The team has done an incredible job improving upon our efficiency gains, and we believe our team has the ability to drive costs even lower. Lastly, I am pleased to report that our gas processing plant in Wild Basin is now online and operating as planned. This has allowed us to flow wells in Wild Basin into our infrastructure over the last couple weeks, and we expect October 2016 production to average over 50,000 Boepd."
Oasis is providing select preliminary unaudited financial results for the third quarter of 2016 and updates to its full year 2016 guidance. Management has prepared, and is responsible for, the preliminary financial data presented below, which is based on the most current information available. The Company's normal financial reporting processes with respect to the preliminary financial data have not been fully completed, and PricewaterhouseCoopers LLP has not audited, reviewed, compiled or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto. As a result, the Company's actual financial results could be different from this preliminary financial data, and any differences could be material. The following table provides the Company's preliminary estimates for oil prices and differentials and natural gas prices for the third quarter of 2016:
|
3Q16 | |
|
NYMEX West Texas Intermediate Crude oil index price ("WTI") (per Bbl) |
$44.94 |
|
Average sales prices: |
|
|
Oil, without derivative settlements (per Bbl) |
$40.50 - $40.60 |
|
Natural gas (per Mcf) (1) |
$1.80 - $1.90 |
|
1) |
Natural gas price includes the value for natural gas and natural gas liquids. |
During the third quarter of 2016, Oasis produced 48,509 Boepd, of which 81.3% was oil. Oasis had net cash settlement receipts from derivative instruments of $11.8 million in the third quarter of 2016, including receipts from contract settlements in June 2016, July 2016 and August 2016. The Company's derivative instruments do not qualify for and were not designated as hedging instruments for accounting purposes.
The following table provides Oasis' preliminary expense estimates for the third quarter of 2016:
|
Metric |
3Q16 |
|
Lease operating expenses ("LOE") ($ per Boe) |
$7.95 - $8.05 |
|
Marketing, transportation and gathering expenses ("MT&G") ($ per Boe) (1) |
$1.55 - $1.65 |
|
General and administrative expenses ("G&A") ($MM) |
$22.7 - $22.9 |
|
Production taxes (% of oil and gas revenue) |
9.2% - 9.3% |
|
1) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchase. |
The following table provides Oasis' updated production and expense guidance for Full Year 2016 as compared to previously announced guidance:
|
Updated Full Year |
Prior Full Year | |||||||
|
Metric |
Low |
High |
Low |
High | ||||
|
Production (boepd) |
49,300 |
50,000 |
48,500 |
49,500 | ||||
|
Oil (bopd) |
82.0% |
83.0% |
||||||
|
LOE ($ per Boe) |
$7.00 |
$7.50 |
$6.75 |
$7.50 | ||||
|
MT&G ($ per Boe) (1) |
$1.55 |
$1.65 |
$1.70 |
$1.90 | ||||
|
G&A ($MM) |
$88.0 |
$92.0 |
$88.0 |
$92.0 | ||||
|
CapEx ($MM) (2) |
$400MM Budget |
$400MM Budget | ||||||
|
Production taxes (% of oil and gas revenue) |
~9.2% |
~9.0% | ||||||
|
1) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchase. |
|
2) |
Excludes the Williston Basin acquisition. |
Williston Basin Acquisition Summary
On October 17, 2016, Oasis signed a purchase and sale agreement to acquire approximately 55,000 net acres and an estimated 226 gross operated drilling locations in the Williston Basin for approximately $785 million. We have internally estimated that as of December 1, 2016, the properties to be acquired will have an estimated 50.2 MMBoe of proved reserves, 63% of which are considered proved developed producing and 77% of which are oil. The properties to be acquired are expected to produce 12,400 Boe/d in the three months ending December 31, 2016. Oasis expects to operate approximately 75% of the properties based on proved reserves.
"This acquisition is a great opportunity to add acreage and inventory that is a natural fit with our existing core and extended core positions and will increase our gross operated drilling locations in our core acreage by approximately 25%," said Mr. Nusz. "With our continued capital efficiency and best-in-class operations in the Williston Basin, we are well positioned to take full advantage of this complementary asset that we believe will generate substantial shareholder accretion based on our currently anticipated acquisition financing."
The following table provides detail on key operational highlights for Oasis and the acquisition.
|
Oasis |
Acquisition |
Pro Forma | ||||
|
Net acreage (1) |
484,745 |
55,000 |
539,745 | |||
|
Production (Boepd) (2) |
48,509 |
12,400 |
60,909 | |||
|
Gross Core Op Inventory Estimate (3) |
554 |
130 |
684 | |||
|
Net Core Op Inventory Estimate (3) |
333 |
68 |
401 | |||
|
Total Net Core Inventory Estimate (3) |
333 |
92 |
425 |
|
1) |
Oasis Stand-Alone acreage is as of December 31, 2015. |
|
2) |
Oasis Stand-Alone production is based on third quarter 2016 and Acquisition production is based on projected fourth quarter 2016. |
|
3) |
Oasis Stand-Alone inventory is based on year-end 2015 counts, adjusted for wells expected to be completed in 2016. Acquisition inventory is based on similar methodology that Oasis used at year-end 2015 on its own inventory. |
The effective date for the acquisition is October 1, 2016 and the transaction is expected to close on December 1, 2016. The transaction is subject to customary closing conditions. The Purchase Agreement contains various purchase price adjustments to be calculated as of the closing date.
Liquidity and Long Term Debt
As of September 30, 2016, Oasis had total cash and cash equivalents of $13.8 million. In addition, Oasis had $195.0 million of borrowings and $12.3 million of outstanding letters of credit issued under its revolving credit facility, resulting in an unused borrowing base capacity of $942.7 million as of September 30, 2016.
On October 14, 2016, the Company entered into an amendment to its Second Amended and Restated Credit Agreement with its bank syndicate in connection with the scheduled redetermination of the Company's borrowing base. Following the redetermination, the borrowing base and elected commitments were reaffirmed at $1,150 million. The next redetermination of the Company's borrowing base is scheduled for April 1, 2017.
On September 28, 2016, the Company completed its tender offers to repurchase certain outstanding senior unsecured notes and on September 29, 2016, the underwriters of the Company's senior convertible notes due 2023 exercised the full over-allotment of $25 million, taking total gross proceeds for the senior convertible notes to $300 million. The Company's long-term debt consists of the following:
|
($ in millions) |
September 30, |
December 31, |
|
Senior secured revolver line of credit |
$195.0 |
$138.0 |
|
Senior unsecured notes (1) |
||
|
7.25% senior unsecured notes due 2019 |
$54.3 |
$400.0 |
|
6.5% senior unsecured notes due 2021 |
$395.5 |
$400.0 |
|
6.875% senior unsecured notes due 2022 |
$937.1 |
$1,000.0 |
|
6.875% senior unsecured notes due 2023 |
$366.1 |
$400.0 |
|
2.625% senior unsecured convertible notes due 2023 |
$300.0 |
- |
|
Total long-term debt |
$2,248.0 |
$2,338.0 |
|
1) |
Excludes deferred financing costs for the senior unsecured notes and the debt discount for the equity component of the 2.625% senior unsecured convertible notes due 2023. |
Hedging Activity
As of October 17, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced off of WTI and settle monthly:
|
Volume in Mbopd |
3Q16 |
4Q16 |
1H17 |
2H17 |
1H18 |
2H18 |
|
Swap |
||||||
|
Volume |
32.0 |
33.0 |
15.0 |
13.0 |
3.0 |
2.0 |
|
Price |
$49.13 |
$49.20 |
$ 48.19 |
$48.68 |
$53.97 |
$53.99 |
|
Collars |
||||||
|
Volume |
- |
- |
5.0 |
5.0 |
- |
- |
|
Floor |
$44.00 |
$44.00 |
||||
|
Ceiling |
$53.14 |
$53.14 |
||||
|
3-way |
||||||
|
Volume |
- |
- |
6.0 |
6.0 |
- |
- |
|
Sub Floor |
$31.67 |
$31.67 |
||||
|
Floor |
$45.83 |
$45.83 |
||||
|
Ceiling |
$59.94 |
$59.94 |
||||
|
Total Volume |
32.0 |
33.0 |
26.0 |
24.0 |
3.0 |
2.0 |
Additionally, the Company has swaps priced off of NYMEX Natural Gas of 6,000 mmbtu/d at a weighted average price of $3.21 in 2017.
Conference Call Details:
Oasis will host a conference call to discuss the acquisition on Tuesday, October 18, 2016 at 10:00 a.m. Central Time. Slides relating to the acquisition that will be covered on the call will be made available on the Company's website.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, October 18, 2016 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
4011650 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, October 25, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10095278 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Energy Conference Participation
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
November 17: |
BAML's 2016 Global Energy Conference – Miami, FL |
|
November 21: |
Jefferies 2016 Energy Conference – Houston, TX |
|
December 8: |
Capital One Securities 2016 Energy Conference – New Orleans, LA |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels, ability to consummate the transactions described in this press release and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, risks relating to our ability to integrate acquired assets with ours and to realize the anticipated benefits from such acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
10/18/2016Oasis Petroleum Inc. Announces the Exercise of the Over-Allotment Option for its Senior Convertible Notes Due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 29, 2016 /PRNewswire/ -- Oasis Petroleum Inc. ("Oasis" or "the Company") (NYSE: OAS) announced today the exercise by the underwriters of the full over-allotment option of $25.0 million aggregate principal amount of its 2.625% senior unsecured convertible notes due 2023 (the "Notes"). The over-allotment option was granted to the underwriters by the Company in connection with the previously consummated offering of $275 million aggregate principal amount of the Notes. Settlement of the sale of additional Notes is expected to occur on September 30, 2016, subject to customary closing conditions. Oasis intends to use the net proceeds from the sale of additional Notes for general corporate purposes, which may include redemptions or repurchases of its existing senior notes.
RBC Capital Markets acted as sole structuring advisor and RBC Capital Markets and Citigroup acted as lead joint book-running managers for the offering, and Deutsche Bank Securities, Goldman, Sachs & Co., J.P. Morgan and Wells Fargo Securities acted as joint book-running managers for the offering. The Notes were offered and sold pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. This offering was made only by means of a prospectus dated July 15, 2014 and related prospectus supplement dated September 14, 2016. A copy of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained from any of the underwriters by contacting:
RBC Capital Markets, LLC
Attention: Prospectus Department
Three World Financial Center, 200 Vesey Street, 8th floor
New York, New York 10281-8098
Telephone: (877) 822-4089
Email: equityprospectus@rbccm.com
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: (800) 831-9146
You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission's website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the Notes offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
9/29/2016Oasis Announces Early Results of Tender Offers and Increase to Maximum Tender Cap
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 27, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) today announced early results of the previously announced cash tender offers (the "Tender Offers") to purchase its outstanding senior notes listed in the table below (collectively, the "Notes") and its increase in the maximum aggregate purchase price (excluding accrued interest) from $275.0 million to $366.8 million (the "Maximum Tender Cap"). Except for such increase, all other terms and conditions of the Tender Offers remain unchanged.
According to information received from D.F. King & Co., Inc. ("D.F. King"), the Tender Agent and Information Agent for the Tender Offers, as of 5:00 p.m., New York City time, on September 26, 2016 (that date and time, the "Early Participation Date"), the Company had received valid tenders from holders of the Notes as outlined in the table below.
|
Title of Notes |
CUSIP |
Principal |
Principal |
Principal |
Total |
|
Fixed-Price Tender Offer |
|||||
|
7.250% Senior Notes due 2019 |
674215AC2 |
$399,000,000 |
$344,725,000 |
$344,725,000 |
$1,016.25 |
|
Dutch Auction Tender Offer |
|||||
|
6.500% Senior Notes due 2021 |
674215AD0 |
$397,697,000 |
$199,161,000 |
$2,196,000 |
$932.50 |
|
6.875% Senior Notes due 2022 |
674215AG3 |
$940,500,000 |
$230,124,000 |
$3,420,000 |
$920.00 |
|
6.875% Senior Notes due 2023 |
674215AE8 |
$378,200,000 |
$209,435,000 |
$12,106,000 |
$932.50 |
|
(1) |
Per $1,000 principal amount of Notes accepted for purchase, including the Early Participation Amount of $30.00 but excluding accrued and unpaid interest. The clearing premium for the Notes in the Dutch auction was $0. As a result, the Total Consideration for the Notes in the Dutch auction is equal to the respective base price for each series of Notes. |
Subject to the satisfaction or waiver of all remaining conditions to the Tender Offers described in the Company's Offer to Purchase, dated September 13, 2016 (as amended to increase the Maximum Tender Cap, the "Offer to Purchase") having been either satisfied or waived by the Company, the Company intends to accept for purchase the principal amount of each series of the Notes indicated in the table above, such that the aggregate purchase price for the Notes equals the Maximum Tender Cap. These Notes will be purchased on the "Early Payment Date," which is expected to occur later today.
Because the Tender Offers have been fully subscribed as of the Early Participation Date, holders who tender Notes after the Early Participation Date will not have any of their Notes accepted for purchase. Any Notes tendered after the Early Participation Date, together with the Notes tendered prior to the Early Participation Date and not accepted for purchase, will be returned to the holders as described in the Offer to Purchase.
Payments for Notes purchased will include accrued and unpaid interest from and including the last interest payment date applicable to the relevant series of Notes up to, but not including, the Early Payment Date. Holders of Notes that were validly tendered (and not validly withdrawn) prior to the Early Participation Date and accepted for purchase pursuant to the Tender Offers will receive the applicable Total Consideration (as set forth in the table above) for such series, which includes the "Early Participation Amount" of $30.00 for each series of Notes as set forth in the Offer to Purchase.
As previously announced, the financing condition to which the Tender Offers were subject has been satisfied. The Tender Offers are subject to the remaining conditions described in the Offer to Purchase. Full details of the terms and conditions of the Tender Offers are set forth in the Offer to Purchase, which is available from D.F. King.
RBC Capital Markets, LLC is acting as Dealer Manager for the Tender Offers, and questions regarding the Tender Offers may be directed to it at (877) 381-2099 (U.S. Toll-Free) or (212) 618-7822 (Collect).
This press release does not constitute a notice of redemption under the optional redemption provisions of the indentures governing the Notes, nor does it constitute an offer to sell, or a solicitation of an offer to buy, any security, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Oasis expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of Oasis, including Oasis' drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by Oasis based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Oasis, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as Oasis' ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Oasis' business and other important factors that could cause actual results to differ materially from those projected as described in Oasis' reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and Oasis undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin.
SOURCE Oasis Petroleum Inc.
Article Date
9/27/20169/14/2016 - Oasis Petroleum Inc. Prices Upsized $275 million Public Offering of Senior Convertible Notes Due 2023
Oasis Petroleum Inc. Prices Upsized $275 million Public Offering of Senior Convertible Notes Due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 14, 2016 /PRNewswire/ -- Oasis Petroleum Inc. ("Oasis" or "the Company") (NYSE: OAS) announced today that it has priced an upsized public offering of $275 million aggregate principal amount of its 2.625% senior unsecured convertible notes due 2023 (the "Notes"). The Notes will be issued at par. Oasis has also granted the underwriters a 30-day option to purchase up to an additional $25.0 million aggregate principal amount of the Notes. The offering is expected to close on September 19, 2016, subject to customary closing conditions. Oasis intends to use the net proceeds from the offering of the Notes, together with additional borrowings under its revolving credit facility, if needed, to fund separately announced tender offers for its existing 7.25% Senior Notes due 2019, 6.5% Senior Notes due 2021, 6.875% Senior Notes due 2022 and 6.875% Senior Notes due 2023 (collectively, the "Senior Notes"). To the extent that the tender offers are not completed, Oasis may use a portion of the net proceeds from the offering of the Notes for general corporate purposes, which may include redemptions or repurchases of the Senior Notes.
The Notes will be senior unsecured obligations of Oasis. The Notes will bear interest at a rate of 2.625% per annum, payable semi-annually on March 15 and September 15 of each year, beginning on March 15, 2017. The Notes will be convertible into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The Notes will mature on September 15, 2023, unless earlier converted, redeemed or repurchased in accordance with their terms prior to such date. Prior to March 15, 2023, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The initial conversion rate will be 76.3650 shares of common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $13.10 per share of common stock). The conversion rate will be subject to adjustment in some events but will not be adjusted for accrued and unpaid interest. On or after September 15, 2020, the Notes may be redeemed at 100% of their principal amount, plus accrued and unpaid interest, if the market price of the Company's common stock exceeds 130% of the conversion price for the Notes for specified periods prior to the redemption date.
RBC Capital Markets is acting as sole structuring advisor and RBC Capital Markets and Citigroup are acting as lead joint book-running managers for the offering, and Deutsche Bank Securities, Goldman, Sachs & Co., J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers for the offering. The Notes are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. This offering is being made only by means of a prospectus dated July 15, 2014 and related prospectus supplement dated September 13, 2016. Before you invest, you should read the preliminary prospectus supplement and accompanying base prospectus in that registration statement for more complete information about this offering. A copy of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained from any of the underwriters by contacting:
RBC Capital Markets, LLC
Attention: Prospectus Department
Three World Financial Center, 200 Vesey Street, 8th floor
New York, New York 10281-8098
Telephone: (877) 822-4089
Email: equityprospectus@rbccm.com
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: (800) 831-9146
You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission's website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the Notes offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
9/14/2016Oasis Announces Tender Offers for Its Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 13, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) announced today that it has commenced tender offers to purchase four series of its outstanding senior notes -- the 7.250% Senior Notes due 2019 (the "2019 Notes"), 6.500% Senior Notes due 2021 (the "2021 Notes"), 6.875% Senior Notes due 2022 (the "2022 Notes") and the 6.875% Senior Notes due 2023 (the "2023 Notes" and, together with the 2019 Notes, the 2021 Notes and the 2022 Notes, the "Notes") -- for aggregate cash consideration of up to $275.0 million (the "Maximum Tender Cap"), exclusive of accrued and unpaid interest on all purchased Notes. Oasis intends to finance these concurrent tender offers in part with the net proceeds from its pending offering of convertible senior notes (the "New Notes"), which was also announced today.
The tender offers consist of the following:
The Notes and some of the payment terms of the Tender Offers are listed in the following table:
|
Title of Notes |
CUSIP Number |
Principal Amount Outstanding |
Total Consideration (Bid Range)(1) |
|
Fixed-Price Tender Offer |
|||
|
7.250% Senior Notes due 2019 |
674215AC2 |
$399,000,000 |
$1,016.25 |
|
Dutch Auction Tender Offer |
|||
|
6.500% Senior Notes due 2021 |
674215AD0 |
$397,697,000 |
$932.50-962.50 |
|
6.875% Senior Notes due 2022 |
674215AG3 |
$940,500,000 |
$920.00-950.00 |
|
6.875% Senior Notes due 2023 |
674215AE8 |
$378,200,000 |
$932.50-962.50 |
|
(1) |
Per $1,000 principal amount of Notes accepted for purchase, including the Early Participation Amount of $30.00. |
The Fixed-Price Offer
The amount of 2019 Notes that is purchased in the Fixed-Price Offer will be based on the Maximum Tender Cap, and is subject to possible prorating as described in the Offer to Purchase described below.
The Dutch Auction Offer
The maximum aggregate cash consideration for the Dutch Auction Offer is equal to the Maximum Tender Cap less the aggregate purchase price of the 2019 Notes purchased in the Fixed-Price Offer (the "Dutch Auction Tender Cap").
Pricing and acceptance in the Dutch Auction Offer will be determined according to the procedures described in the Offer to Purchase. The amounts of each series of Notes that are purchased in the Dutch Auction Offer may be prorated as set forth in the Offer to Purchase. Tenders of Notes pursuant to the Dutch Auction Offer at a premium outside the applicable bid price range will not be accepted and will not be used in calculating the applicable clearing premium.
The Tender Offers
The Tender Offers commenced today and will expire at 11:59 p.m., New York City time, on October 11, 2016 (as such time and date may be extended, the "Expiration Date").
Notes tendered prior to 5:00 p.m., New York City time, on September 26, 2016 (as such time and date may be extended, the "Early Participation Date"), will have priority in acceptance over Notes of any series tendered after the Early Participation Date. Furthermore, holders who validly tender (and do not validly withdraw) their Notes prior to the Early Participation Date will be eligible to receive the Total Consideration listed in the table above, which includes the "Early Participation Amount" of $30 per $1,000 principal amount of Notes accepted for purchase. Holders who validly tender their Notes after the Early Participation Date and prior to the Expiration Date will only be eligible to receive the Total Consideration less the Early Participation Amount. In addition, holders whose Notes are accepted for purchase will receive a cash payment in an amount equal to any accrued and unpaid interest up to, but not including, the applicable payment date.
Following the Early Participation Date and prior to the Expiration Date, Oasis may, but is not obligated to, elect to accept for purchase any Notes validly tendered (and not validly withdrawn) prior to the Early Participation Date (the "Early Payment Date"), subject to the Maximum Tender Cap and the Dutch Auction Tender Cap, as applicable, provided that all conditions to the Tender Offers have been satisfied or waived by Oasis. The Early Payment Date will be determined at Oasis' option and is currently expected to occur on September 27, 2016. If on the Early Payment Date the aggregate principal amount of 2019 Notes accepted for purchase pursuant to the Fixed-Price Offer would result in an aggregate payment amount equal to the Maximum Tender Cap, Oasis will not accept any 2021 Notes, 2022 Notes or 2023 Notes tendered prior to the Early Participation Date, or any Notes of any series tendered thereafter, and all such Notes will be returned to the tendering holders.
The final payment date, if applicable, will occur promptly following the Expiration Date.
Tendered Notes may be withdrawn at any time prior to 5:00 p.m., New York City time, on September 26, 2016, but not afterwards unless otherwise required by law. Oasis reserves the right, but is under no obligation, to increase the Maximum Tender Cap without extending withdrawal rights.
The Tender Offers are subject to the satisfaction or waiver of certain conditions, including the receipt by Oasis of proceeds from the offering of the New Notes on terms reasonably satisfactory to Oasis in an amount sufficient, together with cash on hand and, to the extent necessary, available borrowings under Oasis' revolving credit facility, to fund the Tender Offers.
The Tender Offers are being made pursuant to an Offer to Purchase dated today. Oasis may amend, extend or terminate either Tender Offer in its sole discretion and subject to applicable law.
Requests for copies of the Offer to Purchase may be directed to D.F. King & Co., Inc., the Information Agent, by calling (877) 871-1741 (Toll-Free) or (212) 269-5550 or by emailing oasispetroleum@dfking.com. RBC Capital Markets, LLC is acting as Dealer Manager for the Tender Offers, and questions regarding the Tender Offers may be directed to it at (877) 381-2099 (U.S. Toll-Free) or (212) 618-7822 (Collect).
This press release does not constitute a notice of redemption under the optional redemption provisions of the indentures governing the Notes, nor does it constitute an offer to sell, or a solicitation of an offer to buy, any security, including the New Notes, nor does it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Oasis expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of Oasis, including Oasis' drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by Oasis based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Oasis, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as Oasis' ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Oasis' business and other important factors that could cause actual results to differ materially from those projected as described in Oasis' reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and Oasis undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin.
SOURCE Oasis Petroleum Inc.
Article Date
9/13/20169/13/2016 - Oasis Petroleum Inc. Announces Offering of $250 million of Senior Convertible Notes Due 2023
Oasis Petroleum Inc. Announces Offering of $250 million of Senior Convertible Notes Due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 13, 2016 /PRNewswire/ -- Oasis Petroleum Inc. ("Oasis" or "the Company") (NYSE: OAS) announced today that it intends, subject to market and other conditions, to offer $250 million in aggregate principal amount of a series of senior unsecured convertible notes due 2023 (the "Notes"). Oasis expects to grant the underwriters in the offering a 30-day option to purchase up to an additional $37.5 million aggregate principal amount of the Notes. Oasis intends to use the net proceeds from the offering of the Notes, together with additional borrowings under its revolving credit facility, if needed, to fund separately announced tender offers for its existing 7.25% Senior Notes due 2019, 6.5% Senior Notes due 2021, 6.875% Senior Notes due 2022 and 6.875% Senior Notes due 2023 (collectively, the "Senior Notes"). To the extent that the tender offers are not completed, Oasis may use a portion of the net proceeds from the offering of the Notes for general corporate purposes, which may include redemption or repurchases of the Senior Notes.
The Notes are expected to pay interest semi-annually and will be convertible into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The Notes will mature on September 15, 2023, unless earlier converted, redeemed or repurchased in accordance with their terms prior to such date. Prior to March 15, 2023, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, initial conversion rate and certain other pricing terms of the Notes will be determined at the time the offering is priced by Oasis and the underwriters.
RBC Capital Markets is acting as sole structuring advisor and lead book-running manager for the offering. The Notes are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. This offering is being made only by means of a prospectus dated July 15, 2014 and related prospectus supplement dated September 13, 2016. Before you invest, you should read the preliminary prospectus supplement and accompanying base prospectus in that registration statement for more complete information about this offering. When available, copies of these documents may be obtained from any of the underwriters by contacting:
RBC Capital Markets, LLC
Attention: Prospectus Department
Three World Financial Center, 200 Vesey Street, 8th floor
New York, New York 10281-8098
Telephone: (877) 822-4089
Email: equityprospectus@rbccm.com
You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission's website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the intended use of offering proceeds and other aspects of the Notes offering. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
9/13/2016Oasis Petroleum Inc. Announces Quarter Ended June 30, 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Aug. 3, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended June 30, 2016 and provided an operational update.
Highlights include:
"Oasis delivered another strong quarter with production remaining basically flat for the seventh consecutive quarter in a row," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "We are now increasing our full year production guidance to 48,500 to 49,500 Boepd. We finished our scheduled completion program in Indian Hills during the second quarter and began completing wells in Wild Basin at the end of the quarter. Our infrastructure project in Wild Basin continues to be developed on budget, and we continue to expect the project to be fully operational this fall."
Mr. Nusz added, "The team has further reduced our cost structure, driving down our current well costs from $6.5 million to $5.9 million and LOE from $7.84 per Boe for the year 2015 to $6.89 per Boe for the first six months of 2016. We believe that well costs still have a bias downward through further efficiency gains by the team, and we are lowering our full year LOE guidance to $6.75 to $7.50 per Boe. Our continually improved capital and operational efficiency coupled with our strong well performance in our core acreage continues to improve the trajectory of returns for Oasis. As a result, we now plan to complete 53 gross (34.3 net) wells in 2016, while continuing to operate two rigs and one frac spread and remaining within our original guidance of $200 million of drilling and completion capital. Lastly, we further reduced borrowings under our revolver from $65 million at the end of the first quarter of 2016 to $35 million at the end of the second quarter of 2016."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
6/30/2016 |
3/31/2016 |
6/30/2015 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
41,176 |
42,525 |
44,043 |
||||||||
|
Natural gas (MMcfpd) |
49,983 |
46,740 |
37,306 |
||||||||
|
Total production (Boepd) |
49,507 |
50,315 |
50,261 |
||||||||
|
Percent Oil |
83 |
% |
85 |
% |
88 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
40.81 |
$ |
28.74 |
$ |
52.04 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
4.85 |
4.85 |
5.90 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1)(2) |
48.94 |
47.68 |
78.01 |
||||||||
|
Derivative settlements - net cash receipts (in millions)(2) |
30.5 |
73.3 |
104.1 |
||||||||
|
Natural gas (per Mcf)(3) |
1.42 |
1.44 |
1.63 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
152.9 |
$ |
111.2 |
$ |
208.6 |
|||||
|
Natural gas |
6.4 |
6.1 |
5.5 |
||||||||
|
Well services ("OWS") |
12.8 |
6.0 |
9.2 |
||||||||
|
OMS |
6.9 |
7.0 |
6.7 |
||||||||
|
Total revenues |
$ |
179.0 |
$ |
130.3 |
$ |
230.0 |
|||||
|
OWS and OMS operating expenses ($ in millions): |
|||||||||||
|
OWS |
$ |
7.1 |
$ |
2.7 |
$ |
5.3 |
|||||
|
OMS |
1.7 |
1.7 |
2.1 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
7.00 |
$ |
6.78 |
$ |
8.26 |
|||||
|
MT&G ($ per Boe)(4) |
1.55 |
1.60 |
1.68 |
||||||||
|
DD&A ($ per Boe) |
27.19 |
26.74 |
26.07 |
||||||||
|
Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
3.93 |
4.61 |
4.34 |
||||||||
|
Production taxes (% of oil and gas revenue) |
9.0 |
% |
9.2 |
% |
9.6 |
% | |||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. | ||
|
(2) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. | ||
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances. | ||
G&A totaled $21.9 million in the second quarter of 2016, $21.5 million in the second quarter of 2015 and $24.4 million in the first quarter of 2016. Amortization of stock-based compensation, which is included in G&A, was $6.2 million, or $1.39 per Boe, in the second quarter of 2016 as compared to $6.1 million, or $1.32 per Boe, in the second quarter of 2015 and $6.7 million, or $1.47 per Boe, in the first quarter of 2016. G&A for the Company's E&P segment totaled $17.7 million in the second quarter of 2016, $19.8 million in the second quarter of 2015 and $21.1 million in the first quarter of 2016.
Interest expense was $35.0 million for the second quarter of 2016 compared to $37.4 million for the second quarter of 2015 and $38.7 million for the first quarter of 2016. Capitalized interest totaled $4.8 million for the second quarter of 2016, $4.9 million for the second quarter of 2015 and $4.5 million for the first quarter of 2016. Cash Interest totaled $37.8 million for the second quarter of 2016, $39.9 million for the second quarter of 2015 and $39.3 million for the first quarter of 2016. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended June 30, 2016, the Company recorded an income tax benefit of $52.5 million, resulting in a 36.9% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax benefit of $27.6 million, resulting in a 30.0% effective tax rate as a percentage of its pre-tax income for the three months ended March 31, 2016.
For the second quarter of 2016, the Company reported a net loss of $89.9 million, or $0.51 per diluted share, as compared to a net loss of $53.2 million, or $0.39 per diluted share, for the second quarter of 2015. Excluding certain non-cash and non-recurring items and their tax effect, Adjusted Net Loss (non-GAAP) was $19.4 million, or $0.11 per diluted share, in the second quarter of 2016, compared to Adjusted Net Income of $52.0 million, or $0.38 per diluted share, in the second quarter of 2015. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income (loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below.
Adjusted EBITDA for the second quarter of 2016 was $132.2 million. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2016 |
2Q 2016 |
YTD 2016 | |||||||||
|
CapEx ($ in thousands): |
|||||||||||
|
E&P |
$ |
47,734 |
$ |
73,125 |
$ |
120,859 |
|||||
|
OMS |
35,039 |
52,843 |
87,882 |
||||||||
|
OWS |
650 |
— |
650 |
||||||||
|
Other(1) |
4,532 |
5,320 |
9,852 |
||||||||
|
Total CapEx(2) |
$ |
87,955 |
$ |
131,288 |
$ |
219,243 |
|||||
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Liquidity
In April 2016, the Company repurchased an aggregate principal amount of $46.8 million of its outstanding senior unsecured notes for an aggregate cost of $34.6 million, including accrued interest and fees. For the three months ended June 30, 2016, the Company recognized a pre-tax gain of $11.6 million related to these repurchases, which was net of the $0.5 million write-off of unamortized deferred financing costs.
As of June 30, 2016, Oasis had total cash and cash equivalents of $6.5 million. In addition, Oasis had $35.0 million of borrowings and $14.2 million of outstanding letters of credit issued under its revolving credit facility, resulting in an unused borrowing base capacity of $1,100.8 million as of June 30, 2016.
Hedging Activity
As of August 3, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced off of WTI and settle monthly:
|
Weighted Average Prices ($/Bbl) |
|||||||||||||||
|
Type |
Sub-Floor |
Floor |
Ceiling |
BOPD | |||||||||||
|
2016 Swaps |
|||||||||||||||
|
Second Half (July - Dec) |
$ |
49.15 |
$ |
49.15 |
32,000 |
||||||||||
|
2017 Swaps |
|||||||||||||||
|
Full Year Swaps |
$ |
47.68 |
$ |
47.68 |
10,000 |
||||||||||
|
First Half (Jan - June) |
$ |
45.00 |
$ |
45.00 |
2,000 |
||||||||||
|
2017 Collars |
|||||||||||||||
|
Full Year Two-way Collars |
$ |
40.00 |
$ |
47.58 |
2,000 |
||||||||||
|
Full Year Three-way Collars |
$ |
30.00 |
$ |
45.00 |
$ |
60.11 |
5,000 |
||||||||
The June 2016 contracts settled at $3.2 million and will be included in the Company's third quarter 2016 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, August 4, 2016 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
9978735 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, August 11, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10090445 |
The conference call will also be available for replay at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. Condensed Consolidated Balance Sheet (Unaudited) | |||||||
|
June 30, 2016 |
December 31, 2015 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
6,475 |
$ |
9,730 |
|||
|
Accounts receivable — oil and gas revenues |
109,121 |
96,495 |
|||||
|
Accounts receivable — joint interest and other |
81,291 |
100,914 |
|||||
|
Inventory |
9,018 |
11,072 |
|||||
|
Prepaid expenses |
5,838 |
7,328 |
|||||
|
Derivative instruments |
10,330 |
139,697 |
|||||
|
Other current assets |
4,164 |
50 |
|||||
|
Total current assets |
226,237 |
365,286 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
6,402,648 |
6,284,401 |
|||||
|
Other property and equipment |
536,462 |
443,265 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,752,376) |
(1,509,424) |
|||||
|
Total property, plant and equipment, net |
5,186,734 |
5,218,242 |
|||||
|
Assets held for sale |
— |
26,728 |
|||||
|
Derivative instruments |
64 |
15,776 |
|||||
|
Other assets |
22,504 |
23,343 |
|||||
|
Total assets |
$ |
5,435,539 |
$ |
5,649,375 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
10,357 |
$ |
9,983 |
|||
|
Revenues and production taxes payable |
138,451 |
132,356 |
|||||
|
Accrued liabilities |
128,284 |
167,669 |
|||||
|
Accrued interest payable |
47,671 |
49,413 |
|||||
|
Derivative instruments |
20,891 |
— |
|||||
|
Advances from joint interest partners |
5,416 |
4,647 |
|||||
|
Other current liabilities |
15,001 |
6,500 |
|||||
|
Total current liabilities |
366,071 |
370,568 |
|||||
|
Long-term debt |
2,127,361 |
2,302,584 |
|||||
|
Deferred income taxes |
528,028 |
608,155 |
|||||
|
Asset retirement obligations |
36,390 |
35,338 |
|||||
|
Liabilities held for sale |
— |
10,228 |
|||||
|
Derivative instruments |
14,291 |
— |
|||||
|
Other liabilities |
3,043 |
3,160 |
|||||
|
Total liabilities |
3,075,184 |
3,330,033 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 and 300,000,000 shares authorized at June 30, 2016 and December 31, 2015, respectively; 181,200,581 shares issued and 180,399,060 shares outstanding at June 30, 2016 and 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 |
1,777 |
1,376 |
|||||
|
Treasury stock, at cost: 801,521 and 507,926 shares at June 30, 2016 and December 31, 2015, respectively |
(15,140) |
(13,620) |
|||||
|
Additional paid-in capital |
1,693,583 |
1,497,065 |
|||||
|
Retained earnings |
680,135 |
834,521 |
|||||
|
Total stockholders' equity |
2,360,355 |
2,319,342 |
|||||
|
Total liabilities and stockholders' equity |
$ |
5,435,539 |
$ |
5,649,375 |
|||
|
Oasis Petroleum Inc. Condensed Consolidated Statement of Operations (Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
159,337 |
$ |
214,110 |
$ |
276,652 |
$ |
387,969 |
|||||||
|
Well services and midstream revenues |
19,743 |
15,936 |
32,711 |
22,464 |
|||||||||||
|
Total revenues |
179,080 |
230,046 |
309,363 |
410,433 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
31,523 |
37,761 |
62,587 |
76,886 |
|||||||||||
|
Well services and midstream operating expenses |
8,875 |
7,395 |
13,264 |
9,347 |
|||||||||||
|
Marketing, transportation and gathering expenses |
6,491 |
7,570 |
15,043 |
14,848 |
|||||||||||
|
Production taxes |
14,367 |
20,618 |
25,120 |
37,239 |
|||||||||||
|
Depreciation, depletion and amortization |
122,488 |
119,218 |
244,937 |
237,696 |
|||||||||||
|
Exploration expenses |
340 |
1,082 |
703 |
1,925 |
|||||||||||
|
Rig termination |
— |
2,815 |
— |
3,895 |
|||||||||||
|
Impairment |
23 |
19,516 |
3,585 |
24,837 |
|||||||||||
|
General and administrative expenses |
21,876 |
21,508 |
46,242 |
44,832 |
|||||||||||
|
Total operating expenses |
205,983 |
237,483 |
411,481 |
451,505 |
|||||||||||
|
Loss on sale of properties |
(1,311) |
— |
(1,311) |
— |
|||||||||||
|
Operating loss |
(28,214) |
(7,437) |
(103,429) |
(41,072) |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
(90,846) |
(39,424) |
(76,471) |
7,648 |
|||||||||||
|
Interest expense, net of capitalized interest |
(34,979) |
(37,405) |
(73,718) |
(76,189) |
|||||||||||
|
Gain on extinguishment of debt |
11,642 |
— |
18,658 |
— |
|||||||||||
|
Other income (expense) |
(32) |
191 |
447 |
121 |
|||||||||||
|
Total other income (expense) |
(114,215) |
(76,638) |
(131,084) |
(68,420) |
|||||||||||
|
Loss before income taxes |
(142,429) |
(84,075) |
(234,513) |
(109,492) |
|||||||||||
|
Income tax benefit |
52,498 |
30,845 |
80,127 |
38,221 |
|||||||||||
|
Net loss |
$ |
(89,931) |
$ |
(53,230) |
$ |
(154,386) |
$ |
(71,271) |
|||||||
|
Loss per share: |
|||||||||||||||
|
Basic |
$ |
(0.51) |
$ |
(0.39) |
$ |
(0.91) |
$ |
(0.58) |
|||||||
|
Diluted |
(0.51) |
(0.39) |
(0.91) |
(0.58) |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
176,984 |
136,859 |
169,953 |
123,157 |
|||||||||||
|
Diluted |
176,984 |
136,859 |
169,953 |
123,157 |
|||||||||||
|
Oasis Petroleum Inc. Selected Financial and Operational Statistics (Unaudited) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil |
$ |
152,900 |
$ |
208,564 |
$ |
264,106 |
$ |
372,377 |
|||||||
|
Natural gas |
6,437 |
5,546 |
12,546 |
15,592 |
|||||||||||
|
Well services |
12,833 |
9,219 |
18,818 |
11,927 |
|||||||||||
|
Midstream |
6,910 |
6,717 |
13,893 |
10,537 |
|||||||||||
|
Total revenues |
$ |
179,080 |
$ |
230,046 |
$ |
309,363 |
$ |
410,433 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
3,747 |
4,008 |
7,617 |
8,030 |
|||||||||||
|
Natural gas (MMcf) |
4,549 |
3,395 |
8,802 |
6,502 |
|||||||||||
|
Oil equivalents (MBoe) |
4,505 |
4,574 |
9,084 |
9,114 |
|||||||||||
|
Average daily production (Boe/d) |
49,507 |
50,261 |
49,911 |
50,353 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
40.81 |
$ |
52.04 |
$ |
34.67 |
$ |
46.37 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1) |
48.94 |
78.01 |
48.30 |
72.94 |
|||||||||||
|
Natural gas (per Mcf)(2) |
1.42 |
1.63 |
1.43 |
2.40 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
7.00 |
$ |
8.26 |
$ |
6.89 |
$ |
8.44 |
|||||||
|
Marketing, transportation and gathering expenses(3) |
1.55 |
1.68 |
1.58 |
1.64 |
|||||||||||
|
Production taxes |
3.19 |
4.51 |
2.77 |
4.09 |
|||||||||||
|
Depreciation, depletion and amortization |
27.19 |
26.07 |
26.96 |
26.08 |
|||||||||||
|
General and administrative expenses ("G&A") |
4.86 |
4.70 |
5.09 |
4.92 |
|||||||||||
|
Exploration and production G&A |
3.93 |
4.34 |
4.27 |
4.62 |
|||||||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
Oasis Petroleum Inc. Condensed Consolidated Statement of Cash Flows (Unaudited) | |||||||
|
Six Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net loss |
$ |
(154,386) |
$ |
(71,271) |
|||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
244,937 |
237,696 |
|||||
|
Gain on extinguishment of debt |
(18,658) |
— |
|||||
|
Loss on sale of properties |
1,311 |
— |
|||||
|
Impairment |
3,585 |
24,837 |
|||||
|
Deferred income taxes |
(80,127) |
(38,221) |
|||||
|
Derivative instruments |
76,471 |
(7,648) |
|||||
|
Stock-based compensation expenses |
12,979 |
13,663 |
|||||
|
Deferred financing costs amortization and other |
6,552 |
5,059 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
4,297 |
75,799 |
|||||
|
Change in inventory |
2,054 |
3,685 |
|||||
|
Change in prepaid expenses |
1,423 |
3,394 |
|||||
|
Change in other current assets |
(114) |
5,538 |
|||||
|
Change in other assets |
100 |
— |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
(18,034) |
(22,624) |
|||||
|
Change in other current liabilities |
9,001 |
— |
|||||
|
Change in other liabilities |
10 |
(21) |
|||||
|
Net cash provided by operating activities |
91,401 |
229,886 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(231,341) |
(587,430) |
|||||
|
Proceeds from sale of properties |
11,679 |
— |
|||||
|
Costs related to sale of properties |
(310) |
— |
|||||
|
Derivative settlements |
103,790 |
213,336 |
|||||
|
Advances from joint interest partners |
769 |
(406) |
|||||
|
Net cash used in investing activities |
(115,413) |
(374,500) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
359,000 |
320,000 |
|||||
|
Principal payments on revolving credit facility |
(462,000) |
(665,000) |
|||||
|
Repurchase of senior unsecured notes |
(56,925) |
— |
|||||
|
Deferred financing costs |
(751) |
(3,591) |
|||||
|
Proceeds from sale of common stock |
182,953 |
463,010 |
|||||
|
Purchases of treasury stock |
(1,520) |
(1,932) |
|||||
|
Net cash provided by financing activities |
20,757 |
112,487 |
|||||
|
Decrease in cash and cash equivalents |
(3,255) |
(32,127) |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
9,730 |
45,811 |
|||||
|
End of period |
$ |
6,475 |
$ |
13,684 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
(17,015) |
$ |
(156,368) |
|||
|
Change in asset retirement obligations |
(8,785) |
2,649 |
|||||
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
34,979 |
$ |
37,405 |
$ |
73,718 |
$ |
76,189 |
|||||||
|
Capitalized interest |
4,835 |
4,851 |
9,303 |
8,776 |
|||||||||||
|
Amortization of deferred financing costs |
(2,030) |
(2,368) |
(5,947) |
(3,956) |
|||||||||||
|
Cash Interest |
$ |
37,784 |
$ |
39,888 |
$ |
77,074 |
$ |
81,009 |
|||||||
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by United States generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net loss |
$ |
(89,931) |
$ |
(53,230) |
$ |
(154,386) |
$ |
(71,271) |
|||||||
|
Loss on sale of properties |
1,311 |
— |
1,311 |
— |
|||||||||||
|
Gain on extinguishment of debt |
(11,642) |
— |
(18,658) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
90,846 |
39,424 |
76,471 |
(7,648) |
|||||||||||
|
Derivative settlements(1) |
30,477 |
104,077 |
103,790 |
213,336 |
|||||||||||
|
Interest expense, net of capitalized interest |
34,979 |
37,405 |
73,718 |
76,189 |
|||||||||||
|
Depreciation, depletion and amortization |
122,488 |
119,218 |
244,937 |
237,696 |
|||||||||||
|
Impairment |
23 |
19,516 |
3,585 |
24,837 |
|||||||||||
|
Rig termination |
— |
2,815 |
— |
3,895 |
|||||||||||
|
Exploration expenses |
340 |
1,082 |
703 |
1,925 |
|||||||||||
|
Stock-based compensation expenses |
6,249 |
6,057 |
12,979 |
13,663 |
|||||||||||
|
Income tax benefit |
(52,498) |
(30,845) |
(80,127) |
(38,221) |
|||||||||||
|
Other non-cash adjustments |
(484) |
(97) |
723 |
(101) |
|||||||||||
|
Adjusted EBITDA |
132,158 |
245,422 |
265,046 |
454,300 |
|||||||||||
|
Cash Interest |
(37,784) |
(39,888) |
(77,074) |
(81,009) |
|||||||||||
|
CapEx(2) |
(131,288) |
(170,408) |
(219,243) |
(441,513) |
|||||||||||
|
Capitalized interest |
4,835 |
4,851 |
9,303 |
8,776 |
|||||||||||
|
Free Cash Flow |
$ |
(32,079) |
$ |
39,977 |
$ |
(21,968) |
$ |
(59,446) |
|||||||
|
Net cash provided by operating activities |
$ |
137,452 |
$ |
141,525 |
$ |
91,401 |
$ |
229,886 |
|||||||
|
Derivative settlements(1) |
30,477 |
104,077 |
103,790 |
213,336 |
|||||||||||
|
Interest expense, net of capitalized interest |
34,979 |
37,405 |
73,718 |
76,189 |
|||||||||||
|
Rig termination |
— |
2,815 |
— |
3,895 |
|||||||||||
|
Exploration expenses |
340 |
1,082 |
703 |
1,925 |
|||||||||||
|
Deferred financing costs amortization and other |
(1,486) |
(3,404) |
(6,552) |
(5,059) |
|||||||||||
|
Changes in working capital |
(69,120) |
(37,981) |
1,263 |
(65,771) |
|||||||||||
|
Other non-cash adjustments |
(484) |
(97) |
723 |
(101) |
|||||||||||
|
Adjusted EBITDA |
132,158 |
245,422 |
265,046 |
454,300 |
|||||||||||
|
Cash Interest |
(37,784) |
(39,888) |
(77,074) |
(81,009) |
|||||||||||
|
CapEx(2) |
(131,288) |
(170,408) |
(219,243) |
(441,513) |
|||||||||||
|
Capitalized interest |
4,835 |
4,851 |
9,303 |
8,776 |
|||||||||||
|
Free Cash Flow |
$ |
(32,079) |
$ |
39,977 |
$ |
(21,968) |
$ |
(59,446) |
|||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | ||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||
|
(In thousands) | ||||||||||||||
|
Loss before income taxes |
$ |
(158,978) |
$ |
(99,164) |
$ |
(264,744) |
$ |
(133,172) |
||||||
|
Loss on sale of properties |
1,669 |
— |
1,669 |
— |
||||||||||
|
Gain on extinguishment of debt |
(11,642) |
— |
(18,658) |
— |
||||||||||
|
Net (gain) loss on derivative instruments |
90,846 |
39,424 |
76,471 |
(7,648) |
||||||||||
|
Derivative settlements (1) |
30,477 |
104,077 |
103,790 |
213,336 |
||||||||||
|
Interest expense, net of capitalized interest |
34,979 |
37,405 |
73,718 |
76,189 |
||||||||||
|
Depreciation, depletion and amortization |
120,039 |
118,049 |
240,881 |
235,589 |
||||||||||
|
Impairment |
23 |
19,516 |
1,154 |
24,837 |
||||||||||
|
Rig termination |
— |
2,815 |
— |
3,895 |
||||||||||
|
Exploration expenses |
340 |
1,082 |
703 |
1,925 |
||||||||||
|
Stock-based compensation expenses |
6,077 |
5,973 |
12,625 |
13,515 |
||||||||||
|
Other non-cash adjustments |
(484) |
(97) |
723 |
(101) |
||||||||||
|
Adjusted EBITDA |
$ |
113,346 |
$ |
229,080 |
$ |
228,332 |
$ |
428,365 |
||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Well Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes |
$ |
(2,142) |
$ |
9,030 |
$ |
1,885 |
$ |
18,638 |
|||||||
|
Depreciation, depletion and amortization |
3,895 |
5,008 |
8,127 |
9,526 |
|||||||||||
|
Stock-based compensation expenses |
235 |
443 |
899 |
986 |
|||||||||||
|
Adjusted EBITDA |
$ |
1,988 |
$ |
14,481 |
$ |
10,911 |
$ |
29,150 |
|||||||
|
Midstream Services | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
18,040 |
$ |
15,922 |
$ |
33,198 |
$ |
25,211 |
|||||||
|
Gain on sale of properties |
(358) |
— |
(358) |
— |
|||||||||||
|
Depreciation, depletion and amortization |
1,732 |
1,375 |
3,415 |
2,561 |
|||||||||||
|
Impairment |
— |
— |
2,431 |
— |
|||||||||||
|
Stock-based compensation expenses |
224 |
119 |
443 |
323 |
|||||||||||
|
Adjusted EBITDA |
$ |
19,638 |
$ |
17,416 |
$ |
39,129 |
$ |
28,095 |
|||||||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net loss |
$ |
(89,931) |
$ |
(53,230) |
$ |
(154,386) |
$ |
(71,271) |
|||||||
|
Loss on sale of properties |
1,311 |
— |
1,311 |
— |
|||||||||||
|
Gain on extinguishment of debt |
(11,642) |
— |
(18,658) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
90,846 |
39,424 |
76,471 |
(7,648) |
|||||||||||
|
Derivative settlements(1) |
30,477 |
104,077 |
103,790 |
213,336 |
|||||||||||
|
Impairment |
23 |
19,516 |
3,585 |
24,837 |
|||||||||||
|
Rig termination |
— |
2,815 |
— |
3,895 |
|||||||||||
|
Amortization of deferred financing costs(2) |
2,030 |
2,368 |
5,947 |
3,956 |
|||||||||||
|
Other non-cash adjustments |
(484) |
(97) |
723 |
(101) |
|||||||||||
|
Tax impact(3) |
(42,075) |
(62,871) |
(64,731) |
(89,115) |
|||||||||||
|
Adjusted Net Income (Loss) |
$ |
(19,445) |
$ |
52,002 |
$ |
(45,948) |
$ |
77,889 |
|||||||
|
Diluted loss per share |
$ |
(0.51) |
$ |
(0.39) |
$ |
(0.91) |
$ |
(0.58) |
|||||||
|
Loss on sale of properties |
0.01 |
— |
0.01 |
— |
|||||||||||
|
Gain on extinguishment of debt |
(0.07) |
— |
(0.11) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
0.51 |
0.29 |
0.45 |
(0.06) |
|||||||||||
|
Derivative settlements(1) |
0.17 |
0.76 |
0.61 |
1.73 |
|||||||||||
|
Impairment |
— |
0.14 |
0.02 |
0.20 |
|||||||||||
|
Rig termination |
— |
0.02 |
— |
0.03 |
|||||||||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.02 |
0.03 |
0.03 |
|||||||||||
|
Other non-cash adjustments |
— |
— |
— |
— |
|||||||||||
|
Tax impact(3) |
(0.23) |
(0.46) |
(0.37) |
(0.72) |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Per Share |
$ |
(0.11) |
$ |
0.38 |
$ |
(0.27) |
$ |
0.63 |
|||||||
|
Diluted weighted average shares outstanding |
176,984 |
136,859 |
169,953 |
123,157 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.4 |
% |
37.4 |
% |
37.4 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
As of June 30, 2016, Adjusted Net Income (Loss) includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs are included in interest expense on the Company's Condensed Consolidated Statement of Operations. For the six months ended June 30, 2016 and 2015, the amortization of deferred financing costs included $1.8 million and $0.5 million, respectively, for unamortized deferred financing costs related to the revolving credit facility, which were written off in proportion to the decreases in the borrowing base. |
|
(3) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
8/3/2016Oasis Petroleum Announces the Addition of John E. Hagale to Its Board of Directors
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, July 29, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today the election of Mr. John E. Hagale to Oasis' Board of Directors. Mr. Hagale's election brings the number of directors to eight. Upon joining the Board of Directors on July 27, 2016, Mr. Hagale was appointed as a member of Oasis' Audit Committee and Nominating and Governance Committee.
John E. Hagale has served as our Director since July 2016 and serves on our Audit and Nominating & Governance Committees. Mr. Hagale served as Executive Vice President and Chief Financial Officer of Rosetta Resources Inc. from November 2011 until the completion of the merger of Rosetta with Noble Energy, Inc. in July 2015. Prior to joining Rosetta, Mr. Hagale was Executive Vice President, Chief Financial Officer and Chief Administrative Officer of The Methodist Hospital System from June 2003 through October 2011. He was also employed with Burlington Resources Inc. and its predecessor Burlington Northern Inc. for 15 years where he held a series of executive financial positions with increasing responsibilities, including Executive Vice President and Chief Financial Officer of Burlington. Mr. Hagale began his career with Deloitte Haskins and Sells. Mr. Hagale holds a Bachelor of Business Administration degree in Accounting from the University of Notre Dame. He has more than 30 years of financial and accounting experience and is a certified public accountant. Mr. Hagale currently serves on the Board of Directors of Cobalt International Energy, Inc.
"John Hagale will be a valuable addition to the Oasis Board due to his extensive financial and corporate governance experience combined with his deep oil and gas expertise," said Mr. Thomas B. Nusz, Chairman and Chief Executive Officer. "We are looking forward to benefiting from his leadership and insight as we navigate the current macro environment."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
7/29/20167/21/2016 - Oasis to Announce Second Quarter 2016 Results
Oasis to Announce Second Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, July 21, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its Second Quarter 2016 financial and operational results on Wednesday, August 3, 2016 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Thursday, August 4, 2016 at 10:00 a.m. Central Time to discuss Second Quarter 2016 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, August 4, 2016 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial-in: |
412-317-6061 |
|
Conference ID: |
9978735 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, August 11, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10090445 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
August 24-25: |
Heikkinen's Energy Conference – Houston, TX |
|
August 30: |
Morgan Stanley's Energy Summit - Houston, TX |
|
September 21: |
Johnson Rice's 2016 Energy Conference – New Orleans, LA |
|
September 21: |
Deutsche Bank's Energy Summit - Boston, MA |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
7/21/2016Oasis Petroleum Inc. Announces Quarter Ended March 31, 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 9, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended March 31, 2016 and provided an operational update.
Highlights include:
"The Oasis team continues to deliver strong results as we enter 2016," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "We completed 15 gross operated wells during the quarter in the core of the Williston Basin and produced over 50,000 Boepd. We held operating costs basically flat, quarter over quarter, and we drove well costs down to $6.5 million with further improvements in efficiency and market price reductions. We see a path to an additional 5% to 10% reduction in well costs, and we continue to test completion designs that could further enhance recoveries. Our high intensity wells continue to perform in line with our increased type curves, both in and outside of our core acreage. We continue to expect to bring on wells in Wild Basin in the fall of 2016, as our OMS infrastructure build-out remains on schedule."
Mr. Nusz added, "We were free cash flow positive again in the first quarter of 2016, our fourth in a row, including OMS CapEx of $35 million. This is a significant financial accomplishment supported by our operational execution. As we look forward, we remain focused on solid execution and continuing to improve our capital efficiency, while continuing to retain optionality around activity levels and all capital allocation alternatives."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
3/31/2016 |
12/31/2015 |
3/31/2015 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
42,525 |
43,294 |
44,692 |
||||||||
|
Natural gas (MMcfpd) |
46,740 |
44,151 |
34,525 |
||||||||
|
Total production (Boepd) |
50,315 |
50,652 |
50,446 |
||||||||
|
Percent Oil |
85 |
% |
86 |
% |
89 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
28.74 |
$ |
37.77 |
$ |
40.73 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
4.85 |
4.29 |
7.85 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1)(2) |
47.68 |
57.60 |
67.89 |
||||||||
|
Derivative settlements - net cash receipts (in millions)(2) |
73.3 |
79.0 |
109.3 |
||||||||
|
Natural gas (per Mcf)(3) |
1.44 |
1.97 |
3.23 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
111.2 |
$ |
150.4 |
$ |
163.8 |
|||||
|
Natural gas |
6.1 |
8.0 |
10.0 |
||||||||
|
OWS |
6.0 |
17.0 |
2.7 |
||||||||
|
OMS |
7.0 |
6.6 |
3.8 |
||||||||
|
Total revenues |
$ |
130.3 |
$ |
182.0 |
$ |
180.3 |
|||||
|
OWS and OMS operating expenses ($ in millions): |
|||||||||||
|
OWS |
$ |
2.7 |
$ |
6.9 |
$ |
1.1 |
|||||
|
OMS |
1.7 |
1.7 |
0.9 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
6.78 |
$ |
6.85 |
$ |
8.62 |
|||||
|
MT&G ($ per Boe)(4) |
1.60 |
1.57 |
1.60 |
||||||||
|
DD&A ($ per Boe) |
26.74 |
26.59 |
26.10 |
||||||||
|
Exploration & production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
4.61 |
4.70 |
4.91 |
||||||||
|
Production taxes (% of oil and gas revenue) |
9.2 |
% |
9.9 |
% |
9.6 |
% | |||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. |
|
(2) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances and linefill. |
The Company recorded a non-cash impairment loss of $3.6 million and $9.4 million in the first quarter of 2016 and fourth quarter of 2015, respectively, to adjust the carrying value of its properties held for sale to their estimated fair value less costs to sell.
G&A totaled $24.4 million in the first quarter of 2016, $23.3 million in the first quarter of 2015 and $25.3 million in the fourth quarter of 2015. Amortization of stock-based compensation, which is included in G&A, was $6.7 million, or $1.47 per Boe, in the first quarter of 2016 as compared to $7.6 million, or $1.68 per Boe, in the first quarter of 2015 and $5.6 million, or $1.21 per Boe, in the fourth quarter of 2015. G&A for the Company's E&P segment totaled $21.1 million in the first quarter of 2016, $22.3 million in the first quarter of 2015 and $21.9 million in the fourth quarter of 2015.
Interest expense was $38.7 million for the first quarter of 2016 compared to $38.8 million for the first quarter of 2015 and $36.9 million for the fourth quarter of 2015. Capitalized interest totaled $4.5 million for the first quarter of 2016, $3.9 million for the first quarter of 2015 and $4.8 million for the fourth quarter of 2015. Cash interest, calculated as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs included in interest expense, totaled $39.3 million for the first quarter of 2016, $41.1 million for the first quarter of 2015 and $40.0 million for the fourth quarter of 2015.
For the three months ended March 31, 2016, the Company recorded an income tax benefit of $27.6 million, resulting in a 30.0% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax expense of $1.7 million, resulting in a 30.1% effective tax rate as a percentage of its pre-tax income for the three months ended December 31, 2015.
Adjusted EBITDA for the first quarter of 2016 was $132.9 million. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
For the first quarter of 2016, the Company reported a net loss of $64.5 million, or $0.40 per diluted share, as compared to a net loss of $18.0 million, or $0.17 per diluted share, for the first quarter of 2015. Excluding certain non-cash and non-recurring items and their tax effect, Adjusted Net Loss (non-GAAP) was $29.0 million, or $0.18 per diluted share, in the first quarter of 2016, compared to Adjusted Net Income of $24.8 million, or $0.23 per diluted share, in the first quarter of 2015. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2016 | |||
|
CapEx ($ in thousands): |
|||
|
E&P |
$ |
47,734 |
|
|
OMS |
35,039 |
||
|
OWS |
650 |
||
|
Other(1) |
4,532 |
||
|
Total CapEx(2) |
$ |
87,955 |
|
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Liquidity
In March 2016, the Company repurchased an aggregate principal amount of $29.8 million of its outstanding senior unsecured notes for an aggregate cost of $22.3 million, including accrued interest and fees. For the three months ended March 31, 2016, the Company recognized a pre-tax gain of $7.0 million related to these repurchases, which was net of the $0.5 million write-off of unamortized deferred financing costs.
As of March 31, 2016, Oasis had total cash and cash equivalents of $19.4 million. In addition, Oasis had $65.0 million of borrowings and $14.2 million of outstanding letters of credit issued under its revolving credit facility, resulting in an unused borrowing base capacity of $1,070.8 million as of March 31, 2016.
Hedging Activity
As of May 9, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced off of WTI and settle monthly:
|
Weighted Average Prices ($/Bbl) |
|||||||||||||||
|
Type |
Sub-Floor |
Floor |
Ceiling |
BOPD | |||||||||||
|
2016 Swaps |
|||||||||||||||
|
First Half (April - June) |
$ |
52.08 |
$ |
52.08 |
33,000 |
||||||||||
|
Second Half (July - Dec) |
$ |
49.15 |
$ |
49.15 |
32,000 |
||||||||||
|
2017 Swaps |
|||||||||||||||
|
Full Year Swaps |
$ |
47.68 |
$ |
47.68 |
10,000 |
||||||||||
|
First Half (Jan - June) |
$ |
45.00 |
$ |
45.00 |
2,000 |
||||||||||
|
2017 Collars |
|||||||||||||||
|
Full Year Two-way Collars |
$ |
40.00 |
$ |
47.58 |
2,000 |
||||||||||
|
Full Year Three-way Collars |
$ |
30.00 |
$ |
45.00 |
$ |
55.15 |
1,000 |
||||||||
The March 2016 contracts settled at $14.2 million and will be included in the Company's second quarter 2016 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, May 10, 2016 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
5832849 | |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, May 17, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10084066 |
The conference call will also be available for replay at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Balance Sheet | |||||||
|
(Unaudited) | |||||||
|
March 31, 2016 |
December 31, 2015 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
19,397 |
$ |
9,730 |
|||
|
Accounts receivable — oil and gas revenues |
92,684 |
96,495 |
|||||
|
Accounts receivable — joint interest and other |
104,512 |
100,914 |
|||||
|
Inventory |
10,723 |
11,072 |
|||||
|
Prepaid expenses |
7,411 |
7,328 |
|||||
|
Derivative instruments |
91,590 |
139,697 |
|||||
|
Other current assets |
46 |
50 |
|||||
|
Total current assets |
326,363 |
365,286 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
6,327,027 |
6,284,401 |
|||||
|
Other property and equipment |
477,343 |
443,265 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,627,201) |
(1,509,424) |
|||||
|
Total property, plant and equipment, net |
5,177,169 |
5,218,242 |
|||||
|
Assets held for sale |
25,845 |
26,728 |
|||||
|
Derivative instruments |
7,521 |
15,776 |
|||||
|
Other assets |
23,370 |
23,343 |
|||||
|
Total assets |
$ |
5,560,268 |
$ |
5,649,375 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
10,101 |
$ |
9,983 |
|||
|
Revenues and production taxes payable |
115,412 |
132,356 |
|||||
|
Accrued liabilities |
126,765 |
167,669 |
|||||
|
Accrued interest payable |
24,277 |
49,413 |
|||||
|
Derivative instruments |
1,018 |
— |
|||||
|
Advances from joint interest partners |
4,390 |
4,647 |
|||||
|
Other current liabilities |
500 |
6,500 |
|||||
|
Total current liabilities |
282,463 |
370,568 |
|||||
|
Long-term debt |
2,201,938 |
2,302,584 |
|||||
|
Deferred income taxes |
580,526 |
608,155 |
|||||
|
Asset retirement obligations |
36,088 |
35,338 |
|||||
|
Liabilities held for sale |
10,155 |
10,228 |
|||||
|
Derivative instruments |
1,558 |
— |
|||||
|
Other liabilities |
3,091 |
3,160 |
|||||
|
Total liabilities |
3,115,819 |
3,330,033 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 300,000,000 shares authorized; 181,298,001 shares issued and 180,582,855 shares outstanding at March 31, 2016 and 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 |
1,774 |
1,376 |
|||||
|
Treasury stock, at cost: 715,146 and 507,926 shares at March 31, 2016 and December 31, 2015, respectively |
(14,652) |
(13,620) |
|||||
|
Additional paid-in capital |
1,687,261 |
1,497,065 |
|||||
|
Retained earnings |
770,066 |
834,521 |
|||||
|
Total stockholders' equity |
2,444,449 |
2,319,342 |
|||||
|
Total liabilities and stockholders' equity |
$ |
5,560,268 |
$ |
5,649,375 |
|||
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Operations | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands, except per share data) | |||||||
|
Revenues |
|||||||
|
Oil and gas revenues |
$ |
117,315 |
$ |
173,859 |
|||
|
Well services and midstream revenues |
12,968 |
6,528 |
|||||
|
Total revenues |
130,283 |
180,387 |
|||||
|
Operating expenses |
|||||||
|
Lease operating expenses |
31,064 |
39,125 |
|||||
|
Well services and midstream operating expenses |
4,389 |
1,952 |
|||||
|
Marketing, transportation and gathering expenses |
8,552 |
7,278 |
|||||
|
Production taxes |
10,753 |
16,621 |
|||||
|
Depreciation, depletion and amortization |
122,449 |
118,478 |
|||||
|
Exploration expenses |
363 |
843 |
|||||
|
Rig termination |
— |
1,080 |
|||||
|
Impairment |
3,562 |
5,321 |
|||||
|
General and administrative expenses |
24,366 |
23,324 |
|||||
|
Total operating expenses |
205,498 |
214,022 |
|||||
|
Operating loss |
(75,215) |
(33,635) |
|||||
|
Other income (expense) |
|||||||
|
Net gain on derivative instruments |
14,375 |
47,072 |
|||||
|
Interest expense, net of capitalized interest |
(38,739) |
(38,784) |
|||||
|
Gain on extinguishment of debt |
7,016 |
— |
|||||
|
Other income (expense) |
479 |
(70) |
|||||
|
Total other income (expense) |
(16,869) |
8,218 |
|||||
|
Loss before income taxes |
(92,084) |
(25,417) |
|||||
|
Income tax benefit |
27,629 |
7,376 |
|||||
|
Net loss |
$ |
(64,455) |
$ |
(18,041) |
|||
|
Loss per share: |
|||||||
|
Basic |
$ |
(0.40) |
$ |
(0.17) |
|||
|
Diluted |
(0.40) |
(0.17) |
|||||
|
Weighted average shares outstanding: |
|||||||
|
Basic |
162,922 |
109,303 |
|||||
|
Diluted |
162,922 |
109,303 |
|||||
|
Oasis Petroleum Inc. | |||||||
|
Selected Financial and Operational Statistics | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
Operating results (in thousands): |
|||||||
|
Revenues |
|||||||
|
Oil |
$ |
111,206 |
$ |
163,813 |
|||
|
Natural gas |
6,109 |
10,046 |
|||||
|
Well services and midstream |
12,968 |
6,528 |
|||||
|
Total revenues |
$ |
130,283 |
$ |
180,387 |
|||
|
Production data: |
|||||||
|
Oil (MBbls) |
3,870 |
4,022 |
|||||
|
Natural gas (MMcf) |
4,253 |
3,107 |
|||||
|
Oil equivalents (MBoe) |
4,579 |
4,540 |
|||||
|
Average daily production (Boe/d) |
50,315 |
50,446 |
|||||
|
Average sales prices: |
|||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
28.74 |
$ |
40.73 |
|||
|
Oil, with derivative settlements (per Bbl)(1) |
47.68 |
67.89 |
|||||
|
Natural gas (per Mcf)(2) |
1.44 |
3.23 |
|||||
|
Costs and expenses (per Boe of production): |
|||||||
|
Lease operating expenses |
$ |
6.78 |
$ |
8.62 |
|||
|
Marketing, transportation and gathering expenses(3) |
1.60 |
1.60 |
|||||
|
Production taxes |
2.35 |
3.66 |
|||||
|
Depreciation, depletion and amortization |
26.74 |
26.10 |
|||||
|
General and administrative expenses ("G&A") |
5.32 |
5.14 |
|||||
|
Exploration and production G&A |
4.61 |
4.91 |
|||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges on pipeline imbalances. |
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net loss |
$ |
(64,455) |
$ |
(18,041) |
|||
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|||||||
|
Depreciation, depletion and amortization |
122,449 |
118,478 |
|||||
|
Gain on extinguishment of debt |
(7,016) |
— |
|||||
|
Impairment |
3,562 |
5,321 |
|||||
|
Deferred income taxes |
(27,629) |
(7,376) |
|||||
|
Derivative instruments |
(14,375) |
(47,072) |
|||||
|
Stock-based compensation expenses |
6,730 |
7,606 |
|||||
|
Deferred financing costs amortization and other |
5,066 |
1,655 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
(995) |
63,313 |
|||||
|
Change in inventory |
349 |
(602) |
|||||
|
Change in prepaid expenses |
241 |
1,892 |
|||||
|
Change in other current assets |
4 |
5,539 |
|||||
|
Change in other assets |
77 |
— |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
(64,056) |
(42,341) |
|||||
|
Change in other current liabilities |
(6,000) |
— |
|||||
|
Change in other liabilities |
(3) |
(11) |
|||||
|
Net cash provided by (used in) operating activities |
(46,051) |
88,361 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(103,411) |
(359,113) |
|||||
|
Derivative settlements |
73,313 |
109,259 |
|||||
|
Advances from joint interest partners |
(257) |
(828) |
|||||
|
Net cash used in investing activities |
(30,355) |
(250,682) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Repurchase of senior unsecured notes |
(22,308) |
— |
|||||
|
Proceeds from revolving credit facility |
214,000 |
145,000 |
|||||
|
Principal payments on revolving credit facility |
(287,000) |
(480,000) |
|||||
|
Deferred financing costs |
(751) |
— |
|||||
|
Proceeds from sale of common stock |
183,164 |
463,218 |
|||||
|
Purchases of treasury stock |
(1,032) |
(1,520) |
|||||
|
Net cash provided by financing activities |
86,073 |
126,698 |
|||||
|
Increase (decrease) in cash and cash equivalents |
9,667 |
(35,623) |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
9,730 |
45,811 |
|||||
|
End of period |
$ |
19,397 |
$ |
10,188 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
(19,230) |
$ |
(90,189) |
|||
|
Change in asset retirement obligations |
1,212 |
1,413 |
|||||
Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. Adjusted EBITDA is not a measure of net income (loss) or cash flows as determined by United States generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities to the non-GAAP financial measure of Adjusted EBITDA for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Net loss |
$ |
(64,455) |
$ |
(18,041) |
|||
|
Gain of extinguishment of debt |
(7,016) |
— |
|||||
|
Net gain on derivative instruments |
(14,375) |
(47,072) |
|||||
|
Derivative settlements(1) |
73,313 |
109,259 |
|||||
|
Interest expense, net of capitalized interest |
38,739 |
38,784 |
|||||
|
Depreciation, depletion and amortization |
122,449 |
118,478 |
|||||
|
Impairment |
3,562 |
5,321 |
|||||
|
Rig termination |
— |
1,080 |
|||||
|
Exploration expenses |
363 |
843 |
|||||
|
Stock-based compensation expenses |
6,730 |
7,606 |
|||||
|
Income tax benefit |
(27,629) |
(7,376) |
|||||
|
Other non-cash adjustments |
1,207 |
(4) |
|||||
|
Adjusted EBITDA |
$ |
132,888 |
$ |
208,878 |
|||
|
Net cash provided by (used in) operating activities |
$ |
(46,051) |
$ |
88,361 |
|||
|
Derivative settlements(1) |
73,313 |
109,259 |
|||||
|
Interest expense, net of capitalized interest |
38,739 |
38,784 |
|||||
|
Rig termination |
— |
1,080 |
|||||
|
Exploration expenses |
363 |
843 |
|||||
|
Deferred financing costs amortization and other |
(5,066) |
(1,655) |
|||||
|
Changes in working capital |
70,383 |
(27,790) |
|||||
|
Other non-cash adjustments |
1,207 |
(4) |
|||||
|
Adjusted EBITDA |
$ |
132,888 |
$ |
208,878 |
|||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
|
Exploration and Production | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Loss before income taxes |
$ |
(105,764) |
$ |
(34,008) |
|||
|
Gain of extinguishment of debt |
(7,016) |
— |
|||||
|
Net gain on derivative instruments |
(14,375) |
(47,072) |
|||||
|
Derivative settlements (1) |
73,313 |
109,259 |
|||||
|
Interest expense, net of capitalized interest |
38,739 |
38,784 |
|||||
|
Depreciation, depletion and amortization |
120,842 |
117,540 |
|||||
|
Impairment |
1,131 |
5,321 |
|||||
|
Rig termination |
— |
1,080 |
|||||
|
Exploration expenses |
363 |
843 |
|||||
|
Stock-based compensation expenses |
6,547 |
7,542 |
|||||
|
Other non-cash adjustments |
1,207 |
(4) |
|||||
|
Adjusted EBITDA |
$ |
114,987 |
$ |
199,285 |
|||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Well Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Income before income taxes |
$ |
4,011 |
$ |
9,608 |
|||
|
Depreciation, depletion and amortization |
4,248 |
4,518 |
|||||
|
Stock-based compensation expenses |
664 |
543 |
|||||
|
Adjusted EBITDA |
$ |
8,923 |
$ |
14,669 |
|||
|
Midstream Services | |||||||
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Income before income taxes |
$ |
15,157 |
$ |
9,289 |
|||
|
Depreciation, depletion and amortization |
1,684 |
1,186 |
|||||
|
Impairment |
2,431 |
— |
|||||
|
Stock-based compensation expenses |
219 |
204 |
|||||
|
Adjusted EBITDA |
$ |
19,491 |
$ |
10,679 |
|||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) as net income (loss) after adjusting first for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss) is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted Net Income (Loss) and the GAAP financial measure of diluted earnings (loss) per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Per Share for the periods presented:
|
Three Months Ended March 31, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands, except per share data) | |||||||
|
Net loss |
$ |
(64,455) |
$ |
(18,041) |
|||
|
Gain on extinguishment of debt |
(7,016) |
— |
|||||
|
Net gain on derivative instruments |
(14,375) |
(47,072) |
|||||
|
Derivative settlements(1) |
73,313 |
109,259 |
|||||
|
Impairment |
3,562 |
5,321 |
|||||
|
Rig termination |
— |
1,080 |
|||||
|
Other non-cash adjustments |
1,207 |
(4) |
|||||
|
Tax impact(2) |
(21,191) |
(25,719) |
|||||
|
Adjusted Net Income (Loss) |
$ |
(28,955) |
$ |
24,824 |
|||
|
Diluted loss per share |
$ |
(0.40) |
$ |
(0.17) |
|||
|
Gain on extinguishment of debt |
(0.04) |
— |
|||||
|
Net gain on derivative instruments |
(0.09) |
(0.43) |
|||||
|
Derivative settlements(1) |
0.45 |
1.00 |
|||||
|
Impairment |
0.02 |
0.05 |
|||||
|
Rig termination |
— |
0.01 |
|||||
|
Other non-cash adjustments |
0.01 |
— |
|||||
|
Tax impact(2) |
(0.13) |
(0.23) |
|||||
|
Adjusted Diluted Earnings (Loss) Per Share |
$ |
(0.18) |
$ |
0.23 |
|||
|
Diluted weighted average shares outstanding |
162,922 |
109,303 |
|||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.5 |
% | |||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
5/9/20164/20/2016 - Oasis to Announce First Quarter 2016 Results
Oasis to Announce First Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, April 20, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its First Quarter 2016 financial and operational results on Monday, May 9, 2016 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Tuesday, May 10, 2016 at 10:00 a.m. Central Time to discuss First Quarter 2016 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, May 10, 2016 |
|
Time: |
10:00 a.m. Central Time |
|
Dial-in: |
888-317-6003 |
|
Intl. Dial in: |
412-317-6061 |
|
Conference ID: |
5832849 |
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Tuesday, May 17, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
Intl. replay: |
412-317-0088 |
|
Conference ID: |
10084066 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
May 10: |
Morgan Stanley's 2016 E&P and Oil Services Conference- Houston, TX |
|
May 11: |
Citi's 2016 Global Energy & Utilities Conference- Boston, MA |
|
May 24: |
UBS' Global Oil & Gas Conference- Austin, TX |
|
June 6-7: |
RBC's 2016 Global Energy & Power Executive Conference- New York, NY |
|
June 15: |
TPH's 2016 Hotter 'N Hell Conference- Houston, TX |
|
June 21-22: |
Wells Fargo's 2016 West Coast Energy Conference- San Francisco, CA |
|
June 27-28: |
J.P. Morgan's Inaugural Energy Equity Conference 2016- New York, NY |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
4/20/2016Oasis Petroleum Inc. Announces Johnson's Corner Pipeline Open Season
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, April 5, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced that Oasis Midstream Services LLC ("OMS"), a wholly-owned subsidiary of Oasis, is commencing a binding open season for the Johnson's Corner Pipeline Project ("Project"), a new crude oil pipeline to be constructed in McKenzie County, North Dakota. The Project is a 19-mile, 10-inch diameter pipeline connecting the Wild Basin field development with Johnson's Corner. The Project has an anticipated operating capacity of 50,000 barrels per day.
The open season will commence on Friday, April 8, 2016 at 8:00 a.m. Central Daylight Time and will close on Monday, May 9, 2016 at 5:00 p.m. Central Daylight Time. Bona fide prospective shippers that seek information on the committed service to be offered on the pipeline, wish to have access to the open season documents, which consist of an Information Memorandum, Pro Forma Transportation Services Agreement, and a draft Oil Pipeline Tariff terms and conditions, or want to discuss the Project with OMS' representatives, are first required to execute a confidentiality agreement with OMS. The confidentiality agreement and open season documents can be obtained by contacting OMS using the information below:
Greg Hills, Senior VP, Marketing and Midstream
1001 Fannin Street, Suite 1500
Houston, TX 77002
Telephone: (281) 404-9490
ghills@oasispetroleum.com
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels, estimated proved reserves and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Oasis Petroleum Inc.
Article Date
4/5/2016Oasis Petroleum Inc. Announces Quarter and Year Ending December 31, 2015 Earnings and Provides an Operational Update and its 2016 Outlook
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2015 and provided its 2016 outlook.
2015 Highlights
"Given the challenging market backdrop, Oasis continues to focus on protecting its balance sheet while improving operational results," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Oasis was free cash flow positive in 2015, as we lowered drilling and completion capital by 70% and LOE per Boe by 23% year over year. We reduced our high intensity well costs by about 30% from the fourth quarter of 2014 to the second half of 2015, and, at the same time, production performance of our high intensity wells continued to track 30% to in excess of 50% improvement to our base completion type curve in the core. Additionally, our midstream business reported $66.3 million of Adjusted EBITDA in 2015, up from $26.5 million in 2014. The team increased volumes flowing on our gathering lines from 40% exiting 2014 to 75% exiting 2015, significantly improving our cost structure in a low price environment as reflected in our lower per barrel LOE expense."
Mr. Nusz added, "We have set our 2016 drilling and completion CapEx program at $200 million and continue to project that 2016 cash flow from Adjusted EBITDA less cash interest will cover our CapEx plan, excluding midstream, at approximately $35 per barrel WTI. We also now have about 70% of our projected oil volumes hedged at over $51 per barrel WTI in 2016."
2016 Plan
Highlights for 2016 include:
|
2016 Range | |
|
Metric |
|
|
Production (Boepd) |
|
|
Full Year 2016 |
46,000 - 49,000 |
|
Full Year Financial Metrics |
|
|
LOE ($ per Boe) |
$7.75 - $8.50 |
|
Marketing, transportation and gathering ("MT&G") ($ per Boe)(1) |
$1.70 - $1.90 |
|
General and administrative ("G&A") ($ in millions)(2) |
$90 - $95 |
|
Production taxes (% of oil and gas revenue) |
~9.0% |
|
CapEx Budget ($ in millions) |
|
|
Drilling and completion |
$200 |
|
OMS, including Wild Basin infrastructure |
$140 |
|
Other(3) |
$60 |
|
(1) |
Excludes the effect of non-cash valuation charges. |
|
(2) |
Includes non-cash amortization of restricted stock of $24-26 million. Net Oasis Well Services ("OWS") G&A is projected to increase by $7-8 million in 2015 compared to 2014 due to lower working interest in wells being completed, although gross OWS G&A is expected to decrease by approximately $12 million due to less overall activity. |
|
(3) |
Includes $18 million for capitalized interest. Capitalized interest is excluded in the cash flow calculation, as it is included in cash interest. |
Fourth Quarter 2015 and Fiscal Year 2015 Results
The Company's average daily production and revenues are detailed in the following table:
|
Quarter Ended: |
Year Ended: | ||||||||||||||
|
12/31/2015 |
9/30/2015 |
12/31/2015 |
12/31/2014 | ||||||||||||
|
Average daily production (Boepd) |
50,652 |
50,546 |
50,477 |
45,656 |
|||||||||||
|
Percent Oil |
85.5 |
% |
87.7 |
% |
87.3 |
% |
89.3 |
% | |||||||
|
Average oil sales price, without derivative settlements (per Bbl) |
$ |
37.77 |
$ |
41.61 |
$ |
43.04 |
$ |
82.73 |
|||||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") |
4.29 |
4.82 |
5.72 |
9.34 |
|||||||||||
|
Revenues ($ in thousands): |
|||||||||||||||
|
Oil |
$ |
150,448 |
$ |
169,672 |
$ |
692,497 |
$ |
1,231,251 |
|||||||
|
Natural gas |
7,985 |
5,598 |
29,175 |
72,753 |
|||||||||||
|
Well services (OWS) |
16,986 |
15,381 |
44,294 |
74,610 |
|||||||||||
|
Midstream services (OMS) |
6,648 |
6,584 |
23,769 |
11,614 |
|||||||||||
|
Total revenues |
$ |
182,067 |
$ |
197,235 |
$ |
789,735 |
$ |
1,390,228 |
|||||||
Select expenses are detailed in the following table:
|
Quarter Ended: |
Year Ended: | |||||||||||||||
|
12/31/2015 |
9/30/2015 |
12/31/2015 |
12/31/2014 | |||||||||||||
|
Select expenses ($ in thousands): |
||||||||||||||||
|
LOE |
$ |
31,925 |
$ |
35,670 |
$ |
144,481 |
$ |
169,600 |
||||||||
|
MT&G(1) |
7,321 |
7,582 |
29,852 |
26,189 |
||||||||||||
|
Non-cash valuation charges |
976 |
883 |
1,758 |
2,314 |
||||||||||||
|
Production taxes |
15,669 |
16,676 |
69,584 |
127,648 |
||||||||||||
|
Well services (OWS) |
6,938 |
8,498 |
21,833 |
45,605 |
||||||||||||
|
Midstream services (OMS) |
1,723 |
1,525 |
6,198 |
4,647 |
||||||||||||
|
Depreciation, depletion and amortization ("DD&A") |
123,892 |
123,734 |
485,322 |
412,334 |
||||||||||||
|
Total of select expenses |
$ |
188,444 |
$ |
194,568 |
$ |
759,028 |
$ |
788,337 |
||||||||
|
Operating expenses: |
||||||||||||||||
|
LOE ($ per Boe) |
$ |
6.85 |
$ |
7.67 |
$ |
7.84 |
$ |
10.18 |
||||||||
|
MT&G ($ per Boe)(1) |
1.57 |
1.63 |
1.62 |
1.61 |
||||||||||||
|
Production taxes (% of oil and gas revenue) |
9.9 |
% |
9.5 |
% |
9.6 |
% |
9.8 |
% | ||||||||
|
DD&A ($ per Boe) |
$ |
26.59 |
$ |
26.61 |
$ |
26.34 |
$ |
24.74 |
||||||||
|
(1) |
Excludes non-cash valuation charges on pipeline imbalances and linefill. |
Due to lower expected future oil prices, the Company reviewed its proved oil and natural gas properties for impairment as of December 31, 2015 and 2014. As a result, the Company recorded a non-cash impairment loss of $9.4 million in the fourth quarter of 2015 to adjust the carrying value of its proved oil and natural gas properties held for sale to their estimated fair value. For the year ended December 31, 2014, the Company recorded a non-cash impairment loss of $40.0 million for certain legacy wells producing from conventional reservoirs in the Williston Basin. During the fourth quarters of 2015 and 2014, the Company also recorded non-cash impairment charges of $11.7 million and $5.0 million, respectively, for unproved properties due to leases that expired during the period and periodic assessments of unproved properties.
G&A expenses for the fourth quarter of 2015 totaled $25.3 million, and for the year ended December 31, 2015, G&A totaled $92.5 million. The fourth quarter of 2015 included bank fees related to consent solicitations on the Company's senior unsecured notes. G&A expenses for the Company's exploration and production segment totaled $21.9 million in the fourth quarter of 2015 and $83.0 million in the full year of 2015. Exploration and production G&A expenses were $4.70 per Boe in the fourth quarter of 2015 and $4.50 per Boe in the full year of 2015. Amortization of stock-based compensation, which is included in G&A expenses, was $5.6 million, or $1.21 per Boe, in the fourth quarter of 2015 and $25.3 million, or $1.37 per Boe, in the full year of 2015.
As a result of entering into derivative contracts and the effect of the forward strip oil price changes, the Company incurred a $99.1 million net gain on derivative instruments, including net cash settlement receipts from derivatives of $79.0 million, for the fourth quarter of 2015 and a $210.4 million net gain on derivative instruments, including net cash settlement receipts of $370.4 million, for the full year of 2015. The net cash settlement receipts from derivative instruments of $79.0 million in the fourth quarter of 2015 included $25.3 million, $25.5 million and $28.2 million from contract settlements in September 2015, October 2015 and November 2015, respectively. The Company's derivative instruments do not qualify for and were not designated as hedging instruments for accounting purposes.
Interest expense was $36.9 million for the fourth quarter of 2015 and $149.6 million for the full year of 2015. Capitalized interest totaled $4.8 million for the fourth quarter of 2015 and $18.6 million for the full year of 2015. Cash interest, calculated as interest expense plus capitalized interest less amortization of deferring financing costs, totaled $40.0 million for the fourth quarter of 2015 and $161.0 million for the full year of 2015.
For the three months ended December 31, 2015, the Company recorded an income tax expense of $1.7 million, resulting in an effective tax rate of 30.1% as a percentage of its pre-tax income for the quarter. The Company's income tax benefit for the year ended December 31, 2015 was recorded at $16.1 million, or 28.6% of pre-tax net loss.
Adjusted EBITDA for the fourth quarter of 2015 was $176.7 million and adjusted EBITDA for the full year 2015 was $820.2 million.
The Company reported net income of $4.0 million in the fourth quarter of 2015. For the full year 2015, Oasis reported a net loss of $40.2 million. Excluding certain non-cash items and their tax effect in the fourth quarter of 2015 and full year of 2015, Adjusted Net Income (non-GAAP) was $6.7 million, or $0.05 per diluted share, and $93.8 million, or $0.72 per diluted share, respectively. For a definition of Adjusted Net Income and a reconciliation of net income to Adjusted Net Income, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's CapEx for the year ended December 31, 2015:
|
2015 | |||
|
CapEx ($ in thousands) |
|||
|
Exploration and production (E&P) |
$ |
465,698 |
|
|
Midstream services (OMS) |
96,947 |
||
|
Well services (OWS) |
21,711 |
||
|
Other(1) |
25,643 |
||
|
Total CapEx(2) |
$ |
609,999 |
|
|
(1) |
Other CapEx includes such items as administrative capital and capitalized interest. |
|
(2) |
CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include accrued liabilities for CapEx, while the amounts presented in the statement of cash flows are presented on a cash basis. |
Liquidity
On February 2, 2016, Oasis completed a public equity offering of 39.1 million shares, which resulted in net proceeds to the Company of $182.9 million. On February 23, 2016, Oasis completed its spring redetermination of its borrowing base. As a result, the Company's borrowing base was set at $1,150 million. The next redetermination is October 1, 2016. As of December 31, 2015, Oasis had cash and cash equivalents of $9.7 million and $138.0 million of borrowings and $5.2 million of outstanding letters of credit issued under its revolving credit facility. Pro forma for the equity raise and the new borrowing base, Oasis had $1,199.4 million of liquidity as of December 31, 2015.
Hedging Activity
As of February 24, 2016, the Company had the following outstanding commodity derivate contracts, all of which are priced relative to WTI crude oil index prices and settle monthly:
|
Type |
Floor |
Ceiling |
Bopd | ||||||||
|
2016 Swaps |
|||||||||||
|
First Half (Jan - June) |
$ |
54.20 |
$ |
54.20 |
28,000 |
||||||
|
Second Half (July - Dec) |
$ |
50.10 |
$ |
50.10 |
28,000 |
||||||
|
Partial Year (Mar - June) |
$ |
39.35 |
$ |
39.35 |
3,000 |
||||||
|
2017 Hedges |
|||||||||||
|
Full Year Swaps |
$ |
49.25 |
$ |
49.25 |
6,000 |
||||||
|
Full Year Collars |
$ |
40.00 |
$ |
47.58 |
2,000 |
||||||
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
|
Oasis Petroleum Inc. Financial Statements | ||||||||
|
OASIS PETROLEUM INC. | ||||||||
|
CONSOLIDATED BALANCE SHEET | ||||||||
|
(Unaudited) | ||||||||
|
December 31, | ||||||||
|
2015 |
2014 | |||||||
|
(In thousands, except share data) | ||||||||
|
ASSETS |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ |
9,730 |
$ |
45,811 |
||||
|
Accounts receivable — oil and gas revenues |
96,495 |
130,934 |
||||||
|
Accounts receivable — joint interest and other |
100,914 |
175,537 |
||||||
|
Inventory |
11,072 |
21,354 |
||||||
|
Prepaid expenses |
7,328 |
14,273 |
||||||
|
Derivative instruments |
139,697 |
302,159 |
||||||
|
Other current assets |
50 |
6,539 |
||||||
|
Total current assets |
365,286 |
696,607 |
||||||
|
Property, plant and equipment |
||||||||
|
Oil and gas properties (successful efforts method) |
6,284,401 |
5,966,140 |
||||||
|
Other property and equipment |
443,265 |
313,439 |
||||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,509,424) |
(1,092,793) |
||||||
|
Total property, plant and equipment, net |
5,218,242 |
5,186,786 |
||||||
|
Assets held for sale |
26,728 |
— |
||||||
|
Derivative instruments |
15,776 |
13,348 |
||||||
|
Other assets |
23,343 |
12,335 |
||||||
|
Total assets |
$ |
5,649,375 |
$ |
5,909,076 |
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable |
$ |
9,983 |
$ |
20,958 |
||||
|
Revenues and production taxes payable |
132,356 |
209,890 |
||||||
|
Accrued liabilities |
167,669 |
410,379 |
||||||
|
Accrued interest payable |
49,413 |
49,786 |
||||||
|
Deferred income taxes |
— |
97,499 |
||||||
|
Advances from joint interest partners |
4,647 |
6,616 |
||||||
|
Other current liabilities |
6,500 |
— |
||||||
|
Total current liabilities |
370,568 |
795,128 |
||||||
|
Long-term debt |
2,302,584 |
2,670,664 |
||||||
|
Deferred income taxes |
608,155 |
526,770 |
||||||
|
Asset retirement obligations |
35,338 |
42,097 |
||||||
|
Liabilities held for sale |
10,228 |
— |
||||||
|
Other liabilities |
3,160 |
2,116 |
||||||
|
Total liabilities |
3,330,033 |
4,036,775 |
||||||
|
Commitments and contingencies |
||||||||
|
Stockholders' equity |
||||||||
|
Common stock, $0.01 par value: 300,000,000 shares authorized; 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 and 101,627,296 shares issued and 101,341,619 shares outstanding at December 31, 2014 |
1,376 |
1,001 |
||||||
|
Treasury stock, at cost: 507,926 shares and 285,677 shares at December 31, 2015 and 2014, respectively |
(13,620) |
(10,671) |
||||||
|
Additional paid-in-capital |
1,497,065 |
1,007,202 |
||||||
|
Retained earnings |
834,521 |
874,769 |
||||||
|
Total stockholders' equity |
2,319,342 |
1,872,301 |
||||||
|
Total liabilities and stockholders' equity |
$ |
5,649,375 |
$ |
5,909,076 |
||||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
|
(Unaudited) | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
(In thousands, except per share data) | ||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil and gas revenues |
$ |
158,433 |
$ |
273,269 |
$ |
721,672 |
$ |
1,304,004 |
||||||||
|
Well services and midstream revenues |
23,634 |
26,403 |
68,063 |
86,224 |
||||||||||||
|
Total revenues |
182,067 |
299,672 |
789,735 |
1,390,228 |
||||||||||||
|
Operating expenses |
||||||||||||||||
|
Lease operating expenses |
31,925 |
44,697 |
144,481 |
169,600 |
||||||||||||
|
Well services and midstream operating expenses |
8,661 |
15,641 |
28,031 |
50,252 |
||||||||||||
|
Marketing, transportation and gathering expenses |
8,297 |
9,527 |
31,610 |
29,133 |
||||||||||||
|
Production taxes |
15,669 |
26,768 |
69,584 |
127,648 |
||||||||||||
|
Depreciation, depletion and amortization |
123,892 |
116,814 |
485,322 |
412,334 |
||||||||||||
|
Exploration expenses |
117 |
1,109 |
2,369 |
3,064 |
||||||||||||
|
Rig termination |
— |
— |
3,895 |
— |
||||||||||||
|
Impairment of oil and gas properties |
21,364 |
44,995 |
46,109 |
47,238 |
||||||||||||
|
General and administrative expenses |
25,308 |
24,120 |
92,498 |
92,306 |
||||||||||||
|
Total operating expenses |
235,233 |
283,671 |
903,899 |
931,575 |
||||||||||||
|
Gain (loss) on sale of properties |
— |
(77) |
— |
186,999 |
||||||||||||
|
Operating income (loss) |
(53,166) |
15,924 |
(114,164) |
645,652 |
||||||||||||
|
Other income (expense) |
||||||||||||||||
|
Net gain on derivative instruments |
99,091 |
306,758 |
210,376 |
327,011 |
||||||||||||
|
Interest expense, net of capitalized interest |
(36,946) |
(39,822) |
(149,648) |
(158,390) |
||||||||||||
|
Other income (expense) |
(3,305) |
(55) |
(2,935) |
195 |
||||||||||||
|
Total other income (expense) |
58,840 |
266,881 |
57,793 |
168,816 |
||||||||||||
|
Income (loss) before income taxes |
5,674 |
282,805 |
(56,371) |
814,468 |
||||||||||||
|
Income tax benefit (expense) |
(1,706) |
(106,301) |
16,123 |
(307,591) |
||||||||||||
|
Net income (loss) |
$ |
3,968 |
$ |
176,504 |
$ |
(40,248) |
$ |
506,877 |
||||||||
|
Earnings per share: |
||||||||||||||||
|
Basic |
$ |
0.03 |
$ |
1.77 |
$ |
(0.31) |
$ |
5.09 |
||||||||
|
Diluted |
0.03 |
1.77 |
(0.31) |
5.05 |
||||||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
|
Basic |
137,184 |
99,767 |
130,186 |
99,677 |
||||||||||||
|
Diluted |
137,184 |
99,767 |
130,186 |
100,365 |
||||||||||||
|
OASIS PETROLEUM INC. | ||||||||||||||||
|
SELECTED FINANCIAL AND OPERATIONAL STATS | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
Operating results ($ in thousands): |
||||||||||||||||
|
Revenues |
||||||||||||||||
|
Oil |
$ |
150,448 |
$ |
258,913 |
$ |
692,497 |
$ |
1,231,251 |
||||||||
|
Natural gas |
7,985 |
14,356 |
29,175 |
72,753 |
||||||||||||
|
Well services and midstream |
23,634 |
26,403 |
68,063 |
86,224 |
||||||||||||
|
Total revenues |
$ |
182,067 |
$ |
299,672 |
$ |
789,735 |
$ |
1,390,228 |
||||||||
|
Production data: |
||||||||||||||||
|
Oil (MBbls) |
3,983 |
4,123 |
16,091 |
14,883 |
||||||||||||
|
Natural gas (MMcf) |
4,062 |
2,939 |
14,002 |
10,691 |
||||||||||||
|
Oil equivalents (MBoe) |
4,660 |
4,613 |
18,424 |
16,664 |
||||||||||||
|
Average daily production (Boe/d) |
50,652 |
50,143 |
50,477 |
45,656 |
||||||||||||
|
Average sales prices: |
||||||||||||||||
|
Oil, without derivative settlements (per Bbl) |
$ |
37.77 |
$ |
62.79 |
$ |
43.04 |
$ |
82.73 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1) |
57.60 |
70.44 |
66.06 |
83.19 |
||||||||||||
|
Natural gas (per Mcf)(2) |
1.97 |
4.89 |
2.08 |
6.81 |
||||||||||||
|
Costs and expenses (per Boe of production): |
||||||||||||||||
|
Lease operating expenses |
$ |
6.85 |
$ |
9.69 |
$ |
7.84 |
$ |
10.18 |
||||||||
|
Marketing, transportation and gathering expenses(3) |
1.57 |
1.48 |
1.62 |
1.61 |
||||||||||||
|
Production taxes |
3.36 |
5.80 |
3.78 |
7.66 |
||||||||||||
|
Depreciation, depletion and amortization |
26.59 |
25.32 |
26.34 |
24.74 |
||||||||||||
|
General and administrative expenses |
5.43 |
5.23 |
5.02 |
5.54 |
||||||||||||
|
(1) |
Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for and were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on our derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(3) |
Excludes non-cash valuation charges. |
|
OASIS PETROLEUM INC. | ||||||||
|
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
|
(Unaudited) | ||||||||
|
Year Ended December 31, | ||||||||
|
2015 |
2014 | |||||||
|
(In thousands) | ||||||||
|
Cash flows from operating activities: |
||||||||
|
Net income (loss) |
$ |
(40,248) |
$ |
506,877 |
||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
|
Depreciation, depletion and amortization |
485,322 |
412,334 |
||||||
|
Gain on sale of properties |
— |
(186,999) |
||||||
|
Impairment of oil and gas properties |
46,109 |
47,238 |
||||||
|
Deferred income taxes |
(16,114) |
307,457 |
||||||
|
Derivative instruments |
(210,376) |
(327,011) |
||||||
|
Stock-based compensation expenses |
25,272 |
21,302 |
||||||
|
Deferred financing costs amortization and other |
12,299 |
11,028 |
||||||
|
Working capital and other changes: |
||||||||
|
Change in accounts receivable |
108,461 |
16,702 |
||||||
|
Change in inventory |
6,873 |
(3,776) |
||||||
|
Change in prepaid expenses |
1,828 |
(3,199) |
||||||
|
Change in other current assets |
6,489 |
(6,135) |
||||||
|
Change in other assets |
(950) |
114 |
||||||
|
Change in accounts payable and accrued liabilities |
(71,617) |
76,723 |
||||||
|
Change in other current liabilities |
6,500 |
— |
||||||
|
Change in other liabilities |
(33) |
(139) |
||||||
|
Net cash provided by operating activities |
359,815 |
872,516 |
||||||
|
Cash flows from investing activities: |
||||||||
|
Capital expenditures |
(819,847) |
(1,354,281) |
||||||
|
Acquisition of oil and gas properties |
(28,817) |
(46,247) |
||||||
|
Proceeds from sale of properties |
1,075 |
324,852 |
||||||
|
Costs related to sale of properties |
— |
(2,337) |
||||||
|
Derivative settlements |
370,410 |
6,774 |
||||||
|
Advances from joint interest partners |
(1,969) |
(6,213) |
||||||
|
Net cash used in investing activities |
(479,148) |
(1,077,452) |
||||||
|
Cash flows from financing activities: |
||||||||
|
Proceeds from revolving credit facility |
630,000 |
620,000 |
||||||
|
Principal payments on revolving credit facility |
(992,000) |
(455,570) |
||||||
|
Deferred financing costs |
(14,632) |
(99) |
||||||
|
Proceeds from sale of common stock |
462,833 |
— |
||||||
|
Purchases of treasury stock |
(2,949) |
(5,309) |
||||||
|
Other |
— |
(176) |
||||||
|
Net cash provided by financing activities |
83,252 |
158,846 |
||||||
|
Decrease in cash and cash equivalents |
(36,081) |
(46,090) |
||||||
|
Cash and cash equivalents: |
||||||||
|
Beginning of period |
45,811 |
91,901 |
||||||
|
End of period |
$ |
9,730 |
$ |
45,811 |
||||
|
Supplemental cash flow information: |
||||||||
|
Cash paid for interest, net of capitalized interest |
$ |
145,333 |
$ |
150,181 |
||||
|
Cash paid for taxes |
— |
5,329 |
||||||
|
Cash received for income tax refunds |
5,548 |
— |
||||||
|
Supplemental non-cash transactions: |
||||||||
|
Change in accrued capital expenditures |
$ |
(260,060) |
$ |
169,710 |
||||
|
Change in asset retirement obligations |
3,972 |
6,182 |
||||||
Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. Adjusted EBITDA is not a measure of net income or cash flows as determined by United States generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA for the periods presented:
|
Adjusted EBITDA Reconciliations | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Net income (loss) |
$ |
3,968 |
$ |
176,504 |
$ |
(40,248) |
$ |
506,877 |
||||||||
|
Loss (gain) on sale of properties |
— |
77 |
— |
(186,999) |
||||||||||||
|
Net gain on derivative instruments |
(99,091) |
(306,758) |
(210,376) |
(327,011) |
||||||||||||
|
Derivative settlements(1) |
78,974 |
31,547 |
370,410 |
6,774 |
||||||||||||
|
Interest expense, net of capitalized interest |
36,946 |
39,822 |
149,648 |
158,390 |
||||||||||||
|
Depreciation, depletion and amortization |
123,892 |
116,814 |
485,322 |
412,334 |
||||||||||||
|
Impairment of oil and gas properties |
21,364 |
44,995 |
46,109 |
47,238 |
||||||||||||
|
Exploration expenses |
117 |
1,109 |
2,369 |
3,064 |
||||||||||||
|
Rig termination |
— |
— |
3,895 |
— |
||||||||||||
|
Stock-based compensation expenses |
5,643 |
5,547 |
25,272 |
21,302 |
||||||||||||
|
Income tax expense (benefit) |
1,706 |
106,301 |
(16,123) |
307,591 |
||||||||||||
|
Other non-cash adjustments |
3,174 |
3,561 |
3,956 |
3,284 |
||||||||||||
|
Adjusted EBITDA |
$ |
176,693 |
$ |
219,519 |
$ |
820,234 |
$ |
952,844 |
||||||||
|
Net cash provided by operating activities |
$ |
79,478 |
$ |
199,024 |
$ |
359,815 |
$ |
872,516 |
||||||||
|
Derivative settlements(1) |
78,974 |
31,547 |
370,410 |
6,774 |
||||||||||||
|
Interest expense, net of capitalized interest |
36,946 |
39,822 |
149,648 |
158,390 |
||||||||||||
|
Exploration expenses |
117 |
1,109 |
2,369 |
3,064 |
||||||||||||
|
Rig termination |
— |
— |
3,895 |
— |
||||||||||||
|
Deferred financing costs amortization and other |
(4,831) |
(5,819) |
(12,299) |
(11,028) |
||||||||||||
|
Current tax expense |
(9) |
(3,608) |
(9) |
134 |
||||||||||||
|
Changes in working capital |
(17,156) |
(46,117) |
(57,551) |
(80,290) |
||||||||||||
|
Other non-cash adjustments |
3,174 |
3,561 |
3,956 |
3,284 |
||||||||||||
|
Adjusted EBITDA |
$ |
176,693 |
$ |
219,519 |
$ |
820,234 |
$ |
952,844 |
||||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
The following tables present reconciliations of the GAAP financial measure of income before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments for the periods presented:
|
Segment Adjusted EBITDA Reconciliations | ||||||||||||||||
|
Exploration and Production | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Income (loss) before income taxes |
$ |
(14,868) |
$ |
274,934 |
$ |
(118,970) |
$ |
779,591 |
||||||||
|
Loss (gain) on sale of properties |
— |
77 |
— |
(186,999) |
||||||||||||
|
Net gain on derivative instruments |
(99,091) |
(306,758) |
(210,376) |
(327,011) |
||||||||||||
|
Derivative settlements(1) |
78,974 |
31,547 |
370,410 |
6,774 |
||||||||||||
|
Interest expense, net of capitalized interest |
36,946 |
39,822 |
149,648 |
158,390 |
||||||||||||
|
Depreciation, depletion and amortization |
122,028 |
114,705 |
479,693 |
406,960 |
||||||||||||
|
Impairment of oil and gas properties |
21,364 |
44,995 |
46,109 |
47,238 |
||||||||||||
|
Exploration expenses |
117 |
1,109 |
2,369 |
3,064 |
||||||||||||
|
Rig termination |
— |
— |
3,895 |
— |
||||||||||||
|
Stock-based compensation expenses |
5,486 |
5,303 |
24,762 |
20,701 |
||||||||||||
|
Other non-cash adjustments |
2,937 |
2,591 |
3,719 |
2,314 |
||||||||||||
|
Adjusted EBITDA |
$ |
153,893 |
$ |
208,325 |
$ |
751,259 |
$ |
911,022 |
||||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
Well Services | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Income before income taxes |
$ |
19,608 |
$ |
17,741 |
$ |
49,197 |
$ |
70,953 |
||||||||
|
Depreciation, depletion and amortization |
4,643 |
4,362 |
19,073 |
14,080 |
||||||||||||
|
Stock-based compensation expenses |
422 |
475 |
1,952 |
1,658 |
||||||||||||
|
Other non-cash adjustments |
237 |
970 |
237 |
970 |
||||||||||||
|
Adjusted EBITDA |
$ |
24,910 |
$ |
23,548 |
$ |
70,459 |
$ |
87,661 |
||||||||
|
Midstream Services | ||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
(In thousands) | ||||||||||||||||
|
Income before income taxes |
$ |
15,828 |
$ |
6,876 |
$ |
59,867 |
$ |
22,730 |
||||||||
|
Depreciation, depletion and amortization |
1,695 |
1,032 |
5,764 |
3,744 |
||||||||||||
|
Stock-based compensation expenses |
162 |
— |
692 |
— |
||||||||||||
|
Adjusted EBITDA |
$ |
17,685 |
$ |
7,908 |
$ |
66,323 |
$ |
26,474 |
||||||||
Adjusted Net Income and Adjusted Diluted Earnings Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income as net income after adjusting first for (1) the impact of certain non-cash and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment of oil and gas properties, and other similar non-cash and non-recurring charges, and then (2) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those items in the same period. Adjusted Net Income is not a measure of net income as determined by GAAP. The Company defines Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted Net Income and the GAAP financial measure of diluted earnings per share to the non-GAAP financial measure of Adjusted Diluted Earnings Per Share for the periods presented:
|
Adjusted Net Income and Adjusted Diluted Earnings Per Share Reconciliations | |||||||||||||||
|
Three Months Ended |
Year Ended | ||||||||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||||||||
|
Net income (loss) |
$ |
3,968 |
$ |
176,504 |
$ |
(40,248) |
$ |
506,877 |
|||||||
|
Loss (gain) on sale of properties |
— |
77 |
— |
(186,999) |
|||||||||||
|
Net gain on derivative instruments |
(99,091) |
(306,758) |
(210,376) |
(327,011) |
|||||||||||
|
Derivative settlements(1) |
78,974 |
31,547 |
370,410 |
6,774 |
|||||||||||
|
Impairment of oil and gas properties |
21,364 |
44,995 |
46,109 |
47,238 |
|||||||||||
|
Rig termination |
— |
— |
3,895 |
— |
|||||||||||
|
Other non-cash adjustments |
3,174 |
3,561 |
3,956 |
3,284 |
|||||||||||
|
Tax impact(2) |
(1,653) |
85,195 |
(79,991) |
172,482 |
|||||||||||
|
Adjusted Net Income |
$ |
6,736 |
$ |
35,121 |
$ |
93,755 |
$ |
222,645 |
|||||||
|
Diluted earnings per share |
$ |
0.03 |
$ |
1.77 |
$ |
(0.31) |
$ |
5.05 |
|||||||
|
Loss (gain) on sale of properties |
— |
— |
— |
(1.86) |
|||||||||||
|
Net gain on derivative instruments |
(0.72) |
(3.07) |
(1.62) |
(3.26) |
|||||||||||
|
Derivative settlements(1) |
0.58 |
0.32 |
2.85 |
0.07 |
|||||||||||
|
Impairment of oil and gas properties |
0.16 |
0.45 |
0.35 |
0.47 |
|||||||||||
|
Rig termination |
— |
— |
0.03 |
— |
|||||||||||
|
Other non-cash adjustments |
0.02 |
0.04 |
0.03 |
0.03 |
|||||||||||
|
Tax impact(2) |
(0.02) |
0.84 |
(0.61) |
1.72 |
|||||||||||
|
Adjusted Diluted Earnings Per Share |
$ |
0.05 |
$ |
0.35 |
$ |
0.72 |
$ |
2.22 |
|||||||
|
Diluted weighted average shares outstanding |
137,184 |
99,767 |
130,186 |
100,365 |
|||||||||||
|
Effective tax rate applicable to adjustment items |
37.4 |
% |
37.6 |
% |
37.4 |
% |
37.8 |
% | |||||||
|
(1) |
Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
|
(2) |
The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. |
SOURCE Oasis Petroleum Inc.
Article Date
2/24/2016Oasis to Announce Fourth Quarter and Year End 2015 Results and Announces Participation in Upcoming Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 3, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") plans to announce its fourth quarter and year end 2015 financial and operational results on Wednesday, February 24, 2016 after the close of trading on the NYSE. Additionally, the Company will host a conference call on Thursday, February 25, 2016 at 10:00 a.m. Central Time to discuss financial and operational results for the quarter.
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Thursday, February 25, 2016 |
|
|
Time: |
10:00 a.m. Central Time |
|
|
Dial-in: |
888-317-6003 |
|
|
Intl. Dial in: |
412-317-6061 |
|
|
Elite Entry: |
9103348 |
|
|
Website: |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Thursday, March 3, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 |
|
|
Intl. replay: |
412-317-0088 |
|
|
Access code: |
10080516 |
The conference call will also be available for replay at www.oasispetroleum.com.
Additionally, Oasis plans to participate in the following energy conferences and investor events:
|
March 3-4: |
Simmons' 16th Annual Energy Conference – Las Vegas, NV |
|
|
March 7-8: |
Raymond James' 37th Annual Institutional Investors Conference – Orlando, FL |
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
2/3/2016Oasis Petroleum Inc. Announces Pricing of Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Jan. 28, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has priced an underwritten public offering of 34,000,000 shares of common stock for total gross proceeds (before the underwriter's discounts and commissions and estimated offering expenses) of approximately $160 million. Oasis intends to use the net proceeds of this offering for general corporate purposes and to fund a portion of its 2016 capital expenditures. Oasis granted the underwriter a 30-day option to purchase up to 5,100,000 additional shares of common stock. The offering is expected to close on January 28, 2016.
Citigroup is acting as sole book-running manager for the offering. The underwriter has offered the shares of common stock from time to time in one or more transactions in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 15, 2014. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriter will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting:
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY, 11717
1-800-831-9146
email: prospectus@citi.com
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus, which is part of a shelf registration statement that became effective on July 15, 2014.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels, estimated proved reserves and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
1/28/2016Oasis Petroleum Inc. Announces Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Jan. 28, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") announced today that it has commenced an underwritten public offering of 34,000,000 shares of common stock. Oasis expects to grant the underwriter a 30-day option to purchase up to 5,100,000 additional shares of common stock. Oasis intends to use the net proceeds of this offering for general corporate purposes and to fund a portion of its 2016 capital expenditures.
Citigroup is acting as sole book-running manager.
The offering is being made pursuant to an effective shelf registration statement, which has been filed and became effective July 15, 2014. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission's website at www.sec.gov. Alternatively, the underwriter will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting:
|
Citigroup Global Markets Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY, 11717 1-800- 831-9146 email: prospectus@citi.com |
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus, which is part of a shelf registration statement that became effective on July 15, 2014.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels, estimated proved reserves and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
1/28/2016Oasis Petroleum Inc. Announces Select Operational Results, Preliminary Financial Results and Reserve Information for 2015 and Its Preliminary 2016 Outlook
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Jan. 28, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced select 2015 operational results, preliminary financial results and reserve information for 2015, and provided its preliminary 2016 outlook.
2015 Highlights
"Oasis performed exceedingly well in 2015 in the face of a challenging macro environment and was free cash flow positive again in the fourth quarter of 2015," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Our organization has done a great job. Through our high intensity completions we have seen well results continue to improve while, at the same time, well costs have continued to decline with operational improvement and service cost optimization. Production output continues to exceed expectations as a result of solid execution. CapEx was approximately 9% below our $670 million plan for 2015. The momentum on well results and cost structure translates into a lower preliminary capital plan for 2016, including $180 to $230 million for drilling and completions, $45 million for other non-midstream capital, and $20 million for capitalized interest. We also expect to invest approximately $140 million of midstream capital to primarily continue to develop Wild Basin infrastructure. However, the Wild Basin project may be contingent upon securing external funding."
Mr. Nusz added, "We expect our cash flow in 2016 to be supported by production ranging from 46,000 to 50,000 Boepd and, like our CapEx program, will be dependent upon allocation between operational and financial alternatives. We expect 2016 LOE of approximately $7.75 to $8.50 per Boe, and currently have hedges in place on approximately 60% of our estimated 2016 oil volumes at an average WTI price of $53.36. We are projecting that 2016 cash flow from Adjusted EBITDA less cash interest will cover our CapEx plan, excluding midstream, at approximately $35 per barrel WTI."
Increasing Core Inventory
Oasis continues to pursue opportunities to increase core inventory through trades and acquisitions. The Company is in advanced dialogues with numerous parties with non-operated positions inside of Oasis' core operated blocks. Oasis closed on an acquisition in Wild Basin in late 2015 and expects to close on several additional trade opportunities that in aggregate would increase the Company's core acreage by approximately 5,000 net acres. The acquisition and additional working interest enhances the efficiency of the Company's core position and accounts for approximately $90 million of capital included in the preliminary drilling and completion budget in 2015 and 2016.
Select Financial Update for 4Q 2015 and Year End 2015
Oasis is providing select preliminary unaudited financial results for the fourth quarter and fiscal year 2015. Oasis has prepared the preliminary financial data presented below based on the most current information available to management. The Company's normal financial reporting processes with respect to the preliminary financial data have not been fully completed and PricewaterhouseCoopers LLP has not audited, reviewed, compiled or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto. As a result, the Company's actual financial results could be different from this preliminary financial data, and any differences could be material. The following table provides the Company's preliminary estimates for oil prices and differentials and natural gas prices for the fourth quarter of 2015:
|
4Q15 | |
|
WTI (NYMEX) |
$42.07 |
|
Realized Price for Oil |
$37.67 - $37.87 |
|
Oil Differential |
10.0% - 10.5% |
|
Natural Gas ($ per mcf) |
$1.85 - $2.10 |
During the fourth quarter of 2015, Oasis produced 50,652 Boepd, of which 85.5% was oil. Oasis had net cash settlement receipts from derivative instruments of $79.0 million in the fourth quarter of 2015, including receipts from contract settlements in September 2015, October 2015 and November 2015. The Company's derivative instruments do not qualify for and were not designated as hedging instruments for accounting purposes.
The following table provides Oasis' preliminary expense estimates for the fourth quarter of 2015 and full year of 2015 compared to prior guidance:
|
Metric |
4Q15 |
FY15 |
Prior Guidance | ||
|
LOE ($/boe) |
$6.80 to $7.00 |
$7.80 to $7.90 |
$8.00 to $8.50 | ||
|
Marketing, transportation and gathering expenses (1) |
$1.45 to $1.65 |
$1.55 to $1.65 |
$1.50 to $1.80 | ||
|
G&A ($ in millions) |
$25.0 to $26.5 |
$92.2 to $93.7 |
$90 to $95 | ||
|
Production taxes (% of oil and gas revenues) |
9.8% to 10.0% |
9.6% to 9.7% |
9.0% to 10.0% |
|
1) |
Excludes non-cash valuation charges on pipeline imbalances and linefill. |
Additionally, as a result of the current commodity price environment, the Company expects to recognize non-cash impairment charges ranging from $20.0 million to $22.0 million during the fourth quarter of 2015 related to both its proved and unproved oil and natural gas properties. The Company does not currently expect to recognize additional impairment charges related to its proved oil and natural gas properties as of December 31, 2015; however, in future periods, as different commodity prices are applied to Oasis' proved property impairment analyses, the Company may recognize additional impairment charges, and those amounts may be material.
Estimated Net Proved Reserves
The Company's estimated net proved reserves and related PV-10 at December 31, 2015 are based on reports prepared by DeGolyer and MacNaughton, independent reserve engineers. In preparing its reports, DeGolyer and MacNaughton evaluated properties representing all of the Company's PV-10 at December 31, 2015 in accordance with rules and regulations of the Securities and Exchange Commission ("SEC") applicable to companies involved in oil and natural gas producing activities. The following reserve information does not give any effect to or reflect Oasis' commodity hedges and utilizes an average WTI oil price of $50.16 per barrel and an average natural gas price of $2.63 per MMBtu. These prices were adjusted by lease for quality, transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the wellhead. All of the Company's estimated proved undeveloped reserves at December 31, 2015 are expected to be developed within the next five years. Oasis' estimated net proved oil and natural gas reserves at December 31, 2015 were 218.2 MMBoe and consisted of 184.9 million barrels ("MMBbls") of oil and 199.8 billion cubic feet ("Bcf") of natural gas. The table below summarizes the Company's estimated net proved reserves and related PV-10 at December 31, 2015:
|
December 31, 2015 | ||||
|
Net Estimated Reserves (MMBoe) |
PV-10(1) (in millions) | |||
|
Proved Developed |
147.6 |
$1,812.1 | ||
|
Undeveloped |
70.6 |
210.6 | ||
|
Total Proved |
218.2 |
$2,022.7 | ||
|
1) |
PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows. |
Hedging Activity
As of January 28, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced relative to WTI and settle monthly:
|
Type |
Swap Price |
Bopd | ||
|
2016 Swaps |
||||
|
First Half |
$54.20 |
28,000 | ||
|
Second Half |
$51.40 |
25,000 | ||
|
2017 Swaps |
||||
|
Full Year |
$49.25 |
6,000 |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels, estimated proved reserves and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include changes in oil and natural gas prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.
SOURCE Oasis Petroleum Inc.
Article Date
1/28/2016Projects & Assets
Direct Projects
Oasis Johnson's Corner Pipeline Project (subscriber access)Status: (subscriber access)
Related Projects
Bighorn Gas Plant I (subscriber access)
Status: (subscriber access)
Parent Entities:
Oasis Midstream Partners LP
Bighorn DevCo LLC
Bighorn Gas Plant II (subscriber access)
Status: (subscriber access)
Parent Entities:
Oasis Midstream Partners LP
Bighorn DevCo LLC
Oasis Johnson's Corner Pipeline Project (subscriber access)
Status: (subscriber access)
Parent Entities:
Oasis Petroleum Inc.
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