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:
- 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.
"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
- 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 $80 million focused on the Williston Basin, as infrastructure in the
Williston Basin is yielding
attractive realized oil and gas pricing. With approximately 95% of
the Company's volumes produced from the Williston Basin during the second quarter of
2018, Oasis is well positioned to capture value during a period of
tightness in takeaway capacity in the Delaware
Basin.
- Oasis announced capacity of 10,000 barrels of oil per day on
the Gray Oak Pipeline system. The Gray Oak Pipeline will provide
crude oil transportation from West
Texas to destinations in the Corpus Christi and Sweeny/Freeport markets. The Company continues to
have a prudent development program in the Delaware Basin that is sculpted to deliver
increased growth once long haul oil pipe is constructed and
in-service.
Operating Guidance Update
The following table presents actual results for the second
quarter of 2018 as well as updated full year 2018 guidance for
certain operating data:
Metric
|
2Q 2018
Actual
|
|
Prior
Full Year
Guidance
|
|
Updated
Full Year
Guidance
|
Differential to NYMEX
WTI ($ 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.