Production | Second Quarter (2Q) Update | Financial Results | Drilling Activity | Drilling Program-Rigs Running

Oasis On Target to Hit 72,000 BOEPD Exit Rate for 2017; Completed 15 Wells

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   |    Wednesday,August 23,2017

[Summary: Oasis reported its Q2 2017 results. Highlights include:

  • 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 BOEPD in July 2017 (up 7% from Q2 2016)
  • 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.]

ORIGINAL RELEASE:

Oasis Petroleum Inc. Announces Quarter Ended June 30, 2017 Earnings

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:

  • 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.

"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 class="prnews_a" href="http://www.oasispetroleum.com/" rel="nofollow" target="_blank">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, 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 a href="http://www.oasispetroleum.com/" rel="nofollow" target="_blank">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 a href="http://www.oasispetroleum.com/" rel="nofollow" target="_blank">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.

 

SOURCE Oasis Petroleum Inc.

For further information: Oasis Petroleum Inc., Taylor Mason, (281) 404-9600, Manager, Corporate Finance & Investor Relations


Search Data From Oasis Petroleum Inc. Latest Presentations


November 08, 2017
Key Slides found in this Presentation
        
Capital & Finance
        Operating Costs (LOE)
        Capital Expenditures
        Capital Structure / Liquidity
        Debt Maturity Schedule
        Net Debt
        Hedging
Data & Charts
        Chart : Area / Stacked
        Type Curve
        Bar Chart
Land & Legal
        Acreage & Land Holdings
        Locations/Inventory
Maps
        Leasehold Map
        Portfolio Map
        All Maps
        Areas of Operations
Midstream
        Gas Gathering
        Pipelines & Facilities
        Crude Oil Gathering
Portfolio & Operations
        Corporate Production Rates
        Drilling - Rig Count
        Production Mix / Split
        Proved Reserves
        Drilling Program
        Drilling Program - DUCS
        Key Wells & Discoveries
        Drilling- Wells Drilled
        Production Rates
Production2
        Cumulative Production
Well Information
        Well EUR
        Well Cost
        Drilling Days
        Frac Design - Frac Stages
        Well Results


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