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:
- 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.
|
(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
- 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 $640 million. The increase primarily reflects 1)
an adjustment to deflation expectations related to a lower budgeted
crude oil price, 2) improved cycle times in the Delaware Basin resulting in increased spuds
with the two rig program, and 3) increased non-operated spending
and a number of operating wells with higher working interests.
|
Metric
|
|
2Q 2019
Actual
|
|
Prior
Full Year
Guidance
|
|
Updated
Full Year
Guidance
|
|
Production
(MBoepd)
|
|
84.5
|
|
86.0 -
91.0
|
|
86.8 -
88.5
|
|
Differential to NYMEX
WTI ($ 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
- 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 $16
million.
- More details on OMP's performance can be found in OMP's second
quarter 2019 press release issued on August
6, 2019 available on OMP's website at
www.oasismidstream.com.
Operational and Financial Update
The following table presents select operational and financial
data for the periods presented:
|
Quarter
Ended:
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
Production
data:
|
|
|
|
|
|
|
Crude oil
(Bopd)
|
61,224
|
|
66,046
|
|
60,632
|
|
Natural gas
(Mcfpd)
|
139,380
|
|
154,005
|
|
112,830
|
|
Total production
(Boepd)
|
84,454
|
|
91,714
|
|
79,437
|
|
Percent crude
oil
|
72.5%
|
|
72.0%
|
|
76.3%
|
|
Average sales
prices:
|
|
|
|
|
|
|
Crude oil, without
derivative settlements ($ 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:
|
|
https://www.webcaster4.com/Webcast/Page/1052/31143
|
|
Website:
|
|
www.oasispetroleum.com
|
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.
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content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-june-30-2019-earnings-300897557.html
SOURCE Oasis Petroleum Inc.
