HOUSTON, Aug. 2, 2017
/PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the
"Company") today announced financial results for the quarter ended
June 30, 2017 and provided an operational update.
Highlights include:
- Completed and placed on production 15 gross (10.8 net) operated
wells in the Williston Basin in the second quarter of 2017, 60% of
which were completed in June.
- Produced over 66,000 barrels of oil equivalent per day
("Boepd") in July 2017, up from
61,943 Boepd produced in the second quarter of 2017.
- Expect to complete 48 gross operated wells and produce between
67,500 and 69,500 Boepd in the second half of 2017 and continue to
expect to hit exit rate of 72,000 Boepd.
"Oasis is well positioned to execute our plan for the second
half of 2017, as we integrate our second internal frac spread and
efficiently increase completion activity," said Taylor L. Reid, Oasis' Director, President, and
Chief Operating Officer. "Our completion design innovation across
our core acreage position, including Wild Basin, Indian Hills, and
Alger, continues to deliver
uplifts in production, and our wells remain highly economic in
the current commodity price environment."
"The next six months represent the heart of our 2017 program and
will lay the groundwork for everything to come in 2018 and beyond,"
added Thomas B. Nusz, Oasis'
Chairman and Chief Executive Officer. "The quality of the asset
base we have built and the strength of the team we have assembled
to develop it give me great conviction around the future success of
Oasis. We are confident in our ability to execute and to manage our
business prudently in what continues to be a constantly changing
market."
Operational and Financial Update
Select operational and financial statistics are in the following
table:
|
Quarter
Ended:
|
|
6/30/2017
|
|
3/31/2017
|
|
6/30/2016
|
Production
data:
|
|
|
|
|
|
Oil (Bopd)
|
47,795
|
|
|
49,281
|
|
|
41,176
|
|
Natural gas
(Mcfpd)
|
84,890
|
|
|
83,470
|
|
|
49,983
|
|
Total production
(Boepd)
|
61,943
|
|
|
63,192
|
|
|
49,507
|
|
Percent
Oil
|
77
|
%
|
|
78
|
%
|
|
83
|
%
|
Average sales
prices:
|
|
|
|
|
|
Oil, without
derivative settlements (per Bbl)
|
$
|
44.61
|
|
|
$
|
47.03
|
|
|
$
|
40.81
|
|
Differential to NYMEX
West Texas Intermediate crude oil index prices ("WTI") (per
Bbl)
|
3.68
|
|
|
4.88
|
|
|
4.85
|
|
Natural gas (per
Mcf)(1)
|
3.19
|
|
|
3.81
|
|
|
1.42
|
|
Revenues ($ in
millions):
|
|
|
|
|
|
Oil
|
$
|
194.0
|
|
|
$
|
208.6
|
|
|
$
|
152.9
|
|
Natural
gas
|
24.6
|
|
|
28.7
|
|
|
6.4
|
|
Bulk oil
sales
|
8.1
|
|
|
27.6
|
|
|
—
|
|
Midstream services
("OMS")
|
15.6
|
|
|
14.6
|
|
|
6.9
|
|
Well services
("OWS")
|
11.8
|
|
|
5.6
|
|
|
12.8
|
|
Total
revenues
|
$
|
254.1
|
|
|
$
|
285.1
|
|
|
$
|
179.0
|
|
OMS and OWS
operating expenses ($ in millions):
|
|
|
|
|
|
OMS
|
$
|
3.3
|
|
|
$
|
3.3
|
|
|
$
|
1.7
|
|
OWS
|
8.1
|
|
|
3.9
|
|
|
7.1
|
|
Select operating
expenses:
|
|
|
|
|
|
LOE ($ per
Boe)
|
$
|
7.92
|
|
|
$
|
7.71
|
|
|
$
|
7.00
|
|
MT&G ($ per Boe)(2)
|
2.17
|
|
|
1.77
|
|
|
1.55
|
|
DD&A ($ per
Boe)
|
22.23
|
|
|
22.27
|
|
|
27.19
|
|
Exploration and
production ("E&P") general and administrative expenses
("G&A") ($ per Boe)
|
3.52
|
|
|
3.54
|
|
|
3.93
|
|
Production taxes (%
of oil and gas revenues)
|
8.7
|
%
|
|
8.6
|
%
|
|
9.0
|
%
|
|
|
|
|
|
|
(1)
|
Natural gas prices
include the value for natural gas and natural gas
liquids.
|
(2)
|
Excludes non-cash
valuation charges on pipeline imbalances.
|
Second quarter production was adversely impacted by additional
workover activity and a completion schedule weighted towards the
end of the quarter. Oasis invested incremental dollars on
workovers during the latter part of the quarter, which coupled with
late quarter completions, drove July production to over 66,000
Boepd.
G&A totaled $23.5 million in
the second quarter of 2017, $21.9
million in the second quarter of 2016 and $23.8 million in the first quarter of 2017.
Amortization of stock-based compensation, which is included in
G&A, was $7.1 million, or
$1.26 per Boe, in the second quarter
of 2017 as compared to $6.2 million,
or $1.39 per Boe, in the second
quarter of 2016 and $6.7 million, or
$1.18 per Boe, in the first quarter
of 2017. G&A for the Company's E&P segment totaled
$19.8 million in the second quarter
of 2017, $17.7 million in the second
quarter of 2016 and $20.1 million in
the first quarter of 2017.
Interest expense was $36.8 million
for the second quarter of 2017 compared to $35.0 million for the second quarter of 2016 and
$36.3 million for the first quarter
of 2017. Capitalized interest totaled $2.8
million for the second quarter of 2017, $4.8 million for the second quarter of 2016 and
$2.8 million for the first quarter of
2017. Cash Interest totaled $35.5
million for the second quarter of 2017, $37.8 million for the second quarter of 2016 and
$35.1 million for the first quarter
of 2017. For a definition of Cash Interest and a reconciliation of
interest expense to Cash Interest, see "Non-GAAP Financial
Measures" below.
For the three months ended June 30, 2017, the Company
recorded an income tax expense of $2.3
million, resulting in a 12.4% effective tax rate as a
percentage of its pre-tax income for the quarter. The Company
recorded an income tax expense of $16.0
million, resulting in a 40.2% effective tax rate as a
percentage of its pre-tax income for the three months ended
March 31, 2017.
For the second quarter of 2017, the Company reported net income
of $16.6 million, or $0.07 per diluted share, as
compared to a net loss of $89.9 million,
or $0.51 per diluted share, for the second quarter of
2016. Excluding certain non-cash items and their tax effect,
Adjusted Net Loss (non-GAAP) was $11.2 million, or $0.05
per diluted share, in the second quarter of 2017, compared to
Adjusted Net Loss of $19.4 million,
or $0.11 per diluted share, in the
second quarter of 2016. For a definition of Adjusted Net
Income (Loss) and a reconciliation of net income (loss) to Adjusted
Net Income (Loss), see "Non-GAAP Financial Measures" below.
Adjusted EBITDA for the second quarter of 2017 was $141.3 million, compared to Adjusted EBITDA of
$132.2 million for the second quarter
of 2016. For a definition of Adjusted EBITDA and a reconciliation
of net income (loss) and net cash provided by (used in) operating
activities to Adjusted EBITDA, see "Non-GAAP Financial Measures"
below.
Capital Expenditures
The following table depicts the Company's total CapEx by
category:
|
1Q
2017
|
|
2Q
2017
|
|
YTD
2017
|
CapEx ($ in
thousands):
|
|
|
|
|
|
E&P
|
$
|
90,780
|
|
|
$
|
100,822
|
|
|
$
|
191,602
|
|
OMS
|
13,144
|
|
|
53,777
|
|
|
66,921
|
|
OWS
|
—
|
|
|
268
|
|
|
268
|
|
Other(1)
|
5,871
|
|
|
18,108
|
|
|
23,979
|
|
Total
CapEx(2)
|
$
|
109,795
|
|
|
$
|
172,975
|
|
|
$
|
282,770
|
|
|
|
|
|
|
|
(1)
|
Other CapEx includes
asset acquisitions, primarily related to midstream assets, of $17.2
million for the six months ended June 30, 2017 and other items,
such as administrative capital and capitalized interest.
|
(2)
|
CapEx reflected in
the table above differs from the amounts shown in the statement of
cash flows in the Company's condensed consolidated financial
statements because amounts reflected in the table above include
changes in accrued liabilities from the previous reporting period
for capital expenditures, while the amounts presented in the
statement of cash flows are presented on a cash basis.
|
Hedging Activity
As of August 1, 2017, the Company had the following
outstanding commodity derivative contracts, which settle monthly
and are priced off of WTI for crude oil and NYMEX Henry Hub for
natural gas:
Crude oil (Volume in
Mbopd)
|
|
1H17
|
|
2H17
|
|
1H18
|
|
2H18
|
Swaps
|
|
|
|
|
|
|
|
|
Volume
|
|
19.3
|
|
|
22.7
|
|
|
22.0
|
|
|
20.0
|
|
Price
|
|
$
|
49.20
|
|
|
$
|
49.90
|
|
|
$
|
51.17
|
|
|
$
|
51.11
|
|
Collars
|
|
|
|
|
|
|
|
|
Volume
|
|
8.0
|
|
|
8.0
|
|
|
1.0
|
|
|
1.0
|
|
Floor
|
|
$
|
46.25
|
|
|
$
|
46.25
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
Ceiling
|
|
$
|
54.37
|
|
|
$
|
54.37
|
|
|
$
|
55.70
|
|
|
$
|
55.70
|
|
3-way
|
|
|
|
|
|
|
|
|
Volume
|
|
6.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
Sub-Floor
|
|
$
|
31.67
|
|
|
$
|
31.67
|
|
|
—
|
|
|
—
|
|
Floor
|
|
$
|
45.83
|
|
|
$
|
45.83
|
|
|
—
|
|
|
—
|
|
Ceiling
|
|
$
|
59.94
|
|
|
$
|
59.94
|
|
|
—
|
|
|
—
|
|
Total Crude Oil
Volume
|
|
33.3
|
|
|
36.7
|
|
|
23.0
|
|
|
21.0
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (Volume
in MMBtupd)
|
|
|
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
|
|
|
Volume
|
|
16.5
|
|
|
20.0
|
|
|
15.0
|
|
|
15.0
|
|
Price
|
|
$
|
3.31
|
|
|
$
|
3.32
|
|
|
$
|
3.04
|
|
|
$
|
3.04
|
|
The June 2017 crude oil derivative
contracts settled at a net $3.3
million received in July 2017
and will be included in the Company's third quarter 2017 derivative
settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to
listen to the conference call:
Date:
|
|
Thursday, August 3,
2017
|
Time:
|
|
10:00 a.m. Central
Time
|
Dial-in:
|
|
888-317-6003
|
Intl. Dial
in:
|
|
412-317-6061
|
Conference ID:
|
|
3753112
|
Website:
|
|
www.oasispetroleum.com
|
A recording of the conference call will be available beginning
at 12:00 p.m. Central Time on the day
of the call and will be available until Thursday, August 10, 2017 by dialing:
Replay
dial-in:
|
|
877-344-7529
|
Intl.
replay:
|
|
412-317-0088
|
Replay
code:
|
|
10110100
|
The conference call will also be available for replay for
approximately 30 days at www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that the Company expects, believes or anticipates will or may occur
in the future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include the expectations of
plans, strategies, objectives and anticipated financial and
operating results of the Company, including the Company's drilling
program, production, derivative instruments, capital expenditure
levels and other guidance included in this press release. These
statements are based on certain assumptions made by the Company
based on management's experience and perception of historical
trends, current conditions, anticipated future developments and
other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These include, but are not
limited to, changes in oil and natural gas prices, weather and
environmental conditions, the timing of planned capital
expenditures, availability of acquisitions, uncertainties in
estimating proved reserves and forecasting production results,
operational factors affecting the commencement or maintenance of
producing wells, the condition of the capital markets generally, as
well as the Company's ability to access them, the proximity to and
capacity of transportation facilities, and uncertainties regarding
environmental regulations or litigation and other legal or
regulatory developments affecting the Company's business and other
important factors that could cause actual results to differ
materially from those projected as described in the Company's
reports filed with the SEC.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company
focused on the acquisition and development of unconventional oil
and natural gas resources, primarily operating in the Williston
Basin. For more information, please visit the Company's website at
www.oasispetroleum.com.
Oasis Petroleum
Inc.
|
Condensed
Consolidated Balance Sheet
|
(Unaudited)
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(In thousands, except share data)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
11,440
|
|
|
$
|
11,226
|
|
Accounts receivable,
net
|
218,302
|
|
|
204,335
|
|
Inventory
|
17,942
|
|
|
10,648
|
|
Prepaid
expenses
|
10,610
|
|
|
7,623
|
|
Derivative
instruments
|
31,851
|
|
|
362
|
|
Other current
assets
|
62
|
|
|
4,355
|
|
Total current
assets
|
290,207
|
|
|
238,549
|
|
Property, plant and
equipment
|
|
|
|
Oil and gas
properties (successful efforts method)
|
7,488,075
|
|
|
7,296,568
|
|
Other property and
equipment
|
695,592
|
|
|
618,790
|
|
Less: accumulated
depreciation, depletion, amortization and impairment
|
(2,252,653)
|
|
|
(1,995,791)
|
|
Total property, plant
and equipment, net
|
5,931,014
|
|
|
5,919,567
|
|
Derivative
instruments
|
11,834
|
|
|
—
|
|
Long-term
inventory
|
8,762
|
|
|
—
|
|
Other
assets
|
19,904
|
|
|
20,516
|
|
Total
assets
|
$
|
6,261,721
|
|
|
$
|
6,178,632
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
12,257
|
|
|
$
|
4,645
|
|
Revenues and
production taxes payable
|
143,715
|
|
|
139,737
|
|
Accrued
liabilities
|
139,766
|
|
|
119,173
|
|
Accrued interest
payable
|
39,128
|
|
|
39,004
|
|
Derivative
instruments
|
—
|
|
|
60,469
|
|
Advances from joint
interest partners
|
5,816
|
|
|
7,597
|
|
Other current
liabilities
|
—
|
|
|
10,490
|
|
Total current
liabilities
|
340,682
|
|
|
381,115
|
|
Long-term
debt
|
2,359,683
|
|
|
2,297,214
|
|
Deferred income
taxes
|
527,181
|
|
|
513,529
|
|
Asset retirement
obligations
|
51,059
|
|
|
48,985
|
|
Derivative
instruments
|
—
|
|
|
11,714
|
|
Other
liabilities
|
5,506
|
|
|
2,918
|
|
Total
liabilities
|
3,284,111
|
|
|
3,255,475
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock, $0.01
par value: 450,000,000 shares authorized; 238,642,598 shares issued
and 237,410,395 shares outstanding at June 30, 2017 and 237,201,064
shares issued and 236,344,172 shares outstanding at December 31,
2016
|
2,345
|
|
|
2,331
|
|
Treasury stock, at
cost: 1,232,203 and 856,892 shares at June 30, 2017 and December
31, 2016, respectively
|
(21,401)
|
|
|
(15,950)
|
|
Additional paid-in
capital
|
2,362,084
|
|
|
2,345,271
|
|
Retained
earnings
|
634,582
|
|
|
591,505
|
|
Total stockholders'
equity
|
2,977,610
|
|
|
2,923,157
|
|
Total liabilities and
stockholders' equity
|
$
|
6,261,721
|
|
|
$
|
6,178,632
|
|
Oasis Petroleum
Inc.
|
Condensed
Consolidated Statement of Operations
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In thousands, except per share data)
|
Revenues
|
|
|
|
|
|
|
|
Oil and gas
revenues
|
$
|
218,633
|
|
|
$
|
159,337
|
|
|
$
|
455,885
|
|
|
$
|
276,652
|
|
Bulk oil
sales
|
8,091
|
|
|
—
|
|
|
35,722
|
|
|
—
|
|
Midstream
revenues
|
15,566
|
|
|
6,910
|
|
|
30,172
|
|
|
13,893
|
|
Well services
revenues
|
11,801
|
|
|
12,833
|
|
|
17,428
|
|
|
18,818
|
|
Total
revenues
|
254,091
|
|
|
179,080
|
|
|
539,207
|
|
|
309,363
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Lease operating
expenses
|
44,665
|
|
|
31,523
|
|
|
88,537
|
|
|
62,587
|
|
Midstream operating
expenses
|
3,263
|
|
|
1,740
|
|
|
6,590
|
|
|
3,478
|
|
Well services
operating expenses
|
8,088
|
|
|
7,135
|
|
|
11,990
|
|
|
9,786
|
|
Marketing,
transportation and gathering expenses
|
12,039
|
|
|
6,491
|
|
|
22,990
|
|
|
15,043
|
|
Bulk oil
purchases
|
7,980
|
|
|
—
|
|
|
35,982
|
|
|
—
|
|
Production
taxes
|
18,971
|
|
|
14,367
|
|
|
39,270
|
|
|
25,120
|
|
Depreciation,
depletion and amortization
|
125,291
|
|
|
122,488
|
|
|
251,957
|
|
|
244,937
|
|
Exploration
expenses
|
1,667
|
|
|
340
|
|
|
3,156
|
|
|
703
|
|
Impairment
|
3,200
|
|
|
23
|
|
|
5,882
|
|
|
3,585
|
|
General and
administrative expenses
|
23,548
|
|
|
21,876
|
|
|
47,382
|
|
|
46,242
|
|
Total operating
expenses
|
248,712
|
|
|
205,983
|
|
|
513,736
|
|
|
411,481
|
|
Loss on sale of
properties
|
—
|
|
|
(1,311)
|
|
|
—
|
|
|
(1,311)
|
|
Operating income
(loss)
|
5,379
|
|
|
(28,214)
|
|
|
25,471
|
|
|
(103,429)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
50,532
|
|
|
(90,846)
|
|
|
106,607
|
|
|
(76,471)
|
|
Interest expense, net
of capitalized interest
|
(36,838)
|
|
|
(34,979)
|
|
|
(73,159)
|
|
|
(73,718)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
11,642
|
|
|
—
|
|
|
18,658
|
|
Other income
(expense)
|
(166)
|
|
|
(32)
|
|
|
(150)
|
|
|
447
|
|
Total other income
(expense)
|
13,528
|
|
|
(114,215)
|
|
|
33,298
|
|
|
(131,084)
|
|
Income (loss) before
income taxes
|
18,907
|
|
|
(142,429)
|
|
|
58,769
|
|
|
(234,513)
|
|
Income tax benefit
(expense)
|
(2,339)
|
|
|
52,498
|
|
|
(18,376)
|
|
|
80,127
|
|
Net income
(loss)
|
$
|
16,568
|
|
|
$
|
(89,931)
|
|
|
$
|
40,393
|
|
|
$
|
(154,386)
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
|
$
|
(0.51)
|
|
|
$
|
0.17
|
|
|
$
|
(0.91)
|
|
Diluted
|
0.07
|
|
|
(0.51)
|
|
|
0.17
|
|
|
(0.91)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
233,283
|
|
|
176,984
|
|
|
233,176
|
|
|
169,953
|
|
Diluted
|
234,917
|
|
|
176,984
|
|
|
236,281
|
|
|
169,953
|
|
Oasis Petroleum
Inc.
|
Selected Financial
and Operational Statistics
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating results
(in thousands):
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Oil
|
$
|
194,005
|
|
|
$
|
152,900
|
|
|
$
|
402,599
|
|
|
$
|
264,106
|
|
Natural
gas
|
24,628
|
|
|
6,437
|
|
|
53,286
|
|
|
12,546
|
|
Bulk oil
sales
|
8,091
|
|
|
—
|
|
|
35,722
|
|
|
—
|
|
Midstream
|
15,566
|
|
|
6,910
|
|
|
30,172
|
|
|
13,893
|
|
Well
services
|
11,801
|
|
|
12,833
|
|
|
17,428
|
|
|
18,818
|
|
Total
revenues
|
$
|
254,091
|
|
|
$
|
179,080
|
|
|
$
|
539,207
|
|
|
$
|
309,363
|
|
Production
data:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
4,349
|
|
|
3,747
|
|
|
8,785
|
|
|
7,617
|
|
Natural gas
(MMcf)
|
7,725
|
|
|
4,549
|
|
|
15,237
|
|
|
8,802
|
|
Oil equivalents
(MBoe)
|
5,637
|
|
|
4,505
|
|
|
11,324
|
|
|
9,084
|
|
Average daily
production (Boe per day)
|
61,943
|
|
|
49,507
|
|
|
62,564
|
|
|
49,911
|
|
Average sales
prices:
|
|
|
|
|
|
|
|
Oil, without
derivative settlements (per Bbl)
|
$
|
44.61
|
|
|
$
|
40.81
|
|
|
$
|
45.83
|
|
|
$
|
34.67
|
|
Oil, with derivative
settlements (per Bbl)(1)
|
42.56
|
|
|
48.94
|
|
|
40.72
|
|
|
48.30
|
|
Natural gas (per
Mcf)(2)
|
3.19
|
|
|
1.42
|
|
|
3.50
|
|
|
1.43
|
|
Costs and expenses
(per Boe of production):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
7.92
|
|
|
$
|
7.00
|
|
|
$
|
7.82
|
|
|
$
|
6.89
|
|
Marketing,
transportation and gathering expenses(3)
|
2.17
|
|
|
1.55
|
|
|
1.97
|
|
|
1.58
|
|
Production
taxes
|
3.37
|
|
|
3.19
|
|
|
3.47
|
|
|
2.77
|
|
Depreciation,
depletion and amortization
|
22.23
|
|
|
27.19
|
|
|
22.25
|
|
|
26.96
|
|
General and
administrative expenses ("G&A")
|
4.18
|
|
|
4.86
|
|
|
4.18
|
|
|
5.09
|
|
Exploration and
production G&A
|
3.52
|
|
|
3.93
|
|
|
3.53
|
|
|
4.27
|
|
|
|
|
|
|
|
|
(1)
|
Realized prices
include gains or losses on cash settlements for commodity
derivatives, which do not qualify for or were not designated as
hedging instruments for accounting purposes. Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(2)
|
Natural gas prices
include the value for natural gas and natural gas
liquids.
|
(3)
|
Excludes non-cash
valuation charges on pipeline imbalances.
|
Oasis Petroleum
Inc.
|
Condensed
Consolidated Statement of Cash Flows
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
40,393
|
|
|
$
|
(154,386)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
251,957
|
|
|
244,937
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(18,658)
|
|
Loss on sale of
properties
|
—
|
|
|
1,311
|
|
Impairment
|
5,882
|
|
|
3,585
|
|
Deferred income
taxes
|
18,376
|
|
|
(80,127)
|
|
Derivative
instruments
|
(106,607)
|
|
|
76,471
|
|
Stock-based
compensation expenses
|
13,823
|
|
|
12,979
|
|
Deferred financing
costs amortization and other
|
8,871
|
|
|
6,552
|
|
Working capital and
other changes:
|
|
|
|
Change in accounts
receivable
|
(13,743)
|
|
|
4,297
|
|
Change in
inventory
|
(1,007)
|
|
|
2,054
|
|
Change in prepaid
expenses
|
(264)
|
|
|
1,423
|
|
Change in other
current assets
|
280
|
|
|
(114)
|
|
Change in long-term
inventory and other assets
|
(8,768)
|
|
|
100
|
|
Change in accounts
payable, interest payable and accrued liabilities
|
11,158
|
|
|
(18,034)
|
|
Change in other
current liabilities
|
(10,490)
|
|
|
9,001
|
|
Change in other
liabilities
|
—
|
|
|
10
|
|
Net cash provided by
operating activities
|
209,861
|
|
|
91,401
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(252,461)
|
|
|
(231,341)
|
|
Proceeds from sale of
properties
|
4,000
|
|
|
11,679
|
|
Costs related to sale
of properties
|
—
|
|
|
(310)
|
|
Derivative
settlements
|
(8,899)
|
|
|
103,790
|
|
Advances from joint
interest partners
|
(1,781)
|
|
|
769
|
|
Net cash used in
investing activities
|
(259,141)
|
|
|
(115,413)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
revolving credit facility
|
484,000
|
|
|
359,000
|
|
Principal payments on
revolving credit facility
|
(429,000)
|
|
|
(462,000)
|
|
Repurchase of senior
unsecured notes
|
—
|
|
|
(56,925)
|
|
Deferred financing
costs
|
—
|
|
|
(751)
|
|
Proceeds from sale of
common stock
|
—
|
|
|
182,953
|
|
Purchases of treasury
stock
|
(5,451)
|
|
|
(1,520)
|
|
Other
|
(55)
|
|
|
—
|
|
Net cash provided by
financing activities
|
49,494
|
|
|
20,757
|
|
Increase (decrease)
in cash and cash equivalents
|
214
|
|
|
(3,255)
|
|
Cash and cash
equivalents:
|
|
|
|
Beginning of
period
|
11,226
|
|
|
9,730
|
|
End of
period
|
$
|
11,440
|
|
|
$
|
6,475
|
|
Supplemental
non-cash transactions:
|
|
|
|
Change in accrued
capital expenditures
|
$
|
19,017
|
|
|
$
|
(17,015)
|
|
Change in asset
retirement obligations
|
1,759
|
|
|
(8,785)
|
|
Notes payable from
acquisition
|
4,875
|
|
|
—
|
|
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that
is used by management and external users of the Company's financial
statements, such as industry analysts, investors, lenders and
rating agencies. The Company defines Cash Interest as interest
expense plus capitalized interest less amortization and write-offs
of deferred financing costs and debt discounts included in interest
expense. Cash Interest is not a measure of interest expense as
determined by United States
generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP
financial measure of interest expense to the non-GAAP financial
measure of Cash Interest for the periods presented:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Interest
expense
|
$
|
36,838
|
|
|
$
|
34,979
|
|
|
$
|
73,159
|
|
|
$
|
73,718
|
|
Capitalized
interest
|
2,816
|
|
|
4,835
|
|
|
5,636
|
|
|
9,303
|
|
Amortization of
deferred financing costs
|
(1,709)
|
|
|
(2,030)
|
|
|
(3,399)
|
|
|
(5,947)
|
|
Amortization of debt
discount
|
(2,480)
|
|
|
—
|
|
|
(4,835)
|
|
|
—
|
|
Cash
Interest
|
$
|
35,465
|
|
|
$
|
37,784
|
|
|
$
|
70,561
|
|
|
$
|
77,074
|
|
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP
financial measures that are used by management and external users
of the Company's financial statements, such as industry analysts,
investors, lenders and rating agencies. The Company defines
Adjusted EBITDA as earnings before interest expense, income taxes,
depreciation, depletion, amortization, exploration expenses and
other similar non-cash charges. The Company defines Free Cash Flow
as Adjusted EBITDA less Cash Interest and CapEx, excluding
capitalized interest. Adjusted EBITDA and Free Cash Flow are not
measures of net income (loss) or cash flows as determined by
GAAP.
The following table presents reconciliations of the GAAP
financial measures of net income (loss) and net cash provided by
(used in) operating activities to the non-GAAP financial measures
of Adjusted EBITDA and Free Cash Flow for the periods
presented:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Net income
(loss)
|
$
|
16,568
|
|
|
$
|
(89,931)
|
|
|
$
|
40,393
|
|
|
$
|
(154,386)
|
|
Loss on sale of
properties
|
—
|
|
|
1,311
|
|
|
—
|
|
|
1,311
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(11,642)
|
|
|
—
|
|
|
(18,658)
|
|
Net (gain) loss on
derivative instruments
|
(50,532)
|
|
|
90,846
|
|
|
(106,607)
|
|
|
76,471
|
|
Derivative
settlements(1)
|
(939)
|
|
|
30,477
|
|
|
(8,899)
|
|
|
103,790
|
|
Interest expense, net
of capitalized interest
|
36,838
|
|
|
34,979
|
|
|
73,159
|
|
|
73,718
|
|
Depreciation,
depletion and amortization
|
125,291
|
|
|
122,488
|
|
|
251,957
|
|
|
244,937
|
|
Impairment
|
3,200
|
|
|
23
|
|
|
5,882
|
|
|
3,585
|
|
Exploration
expenses
|
1,667
|
|
|
340
|
|
|
3,156
|
|
|
703
|
|
Stock-based
compensation expenses
|
7,115
|
|
|
6,249
|
|
|
13,823
|
|
|
12,979
|
|
Income tax (benefit)
expense
|
2,339
|
|
|
(52,498)
|
|
|
18,376
|
|
|
(80,127)
|
|
Other non-cash
adjustments
|
(213)
|
|
|
(484)
|
|
|
699
|
|
|
723
|
|
Adjusted
EBITDA
|
141,334
|
|
|
132,158
|
|
|
291,939
|
|
|
265,046
|
|
Cash
interest
|
(35,465)
|
|
|
(37,784)
|
|
|
(70,561)
|
|
|
(77,074)
|
|
Capital
expenditures(2)
|
(172,975)
|
|
|
(131,288)
|
|
|
(282,770)
|
|
|
(219,243)
|
|
Capitalized
interest
|
2,816
|
|
|
4,835
|
|
|
5,636
|
|
|
9,303
|
|
Free Cash
Flow
|
$
|
(64,290)
|
|
|
$
|
(32,079)
|
|
|
$
|
(55,756)
|
|
|
$
|
(21,968)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
102,062
|
|
|
$
|
137,452
|
|
|
$
|
209,861
|
|
|
$
|
91,401
|
|
Derivative
settlements(1)
|
(939)
|
|
|
30,477
|
|
|
(8,899)
|
|
|
103,790
|
|
Interest expense, net
of capitalized interest
|
36,838
|
|
|
34,979
|
|
|
73,159
|
|
|
73,718
|
|
Exploration
expenses
|
1,667
|
|
|
340
|
|
|
3,156
|
|
|
703
|
|
Deferred financing
costs amortization and other
|
(3,931)
|
|
|
(1,486)
|
|
|
(8,871)
|
|
|
(6,552)
|
|
Changes in working
capital
|
5,850
|
|
|
(69,120)
|
|
|
22,834
|
|
|
1,263
|
|
Other non-cash
adjustments
|
(213)
|
|
|
(484)
|
|
|
699
|
|
|
723
|
|
Adjusted
EBITDA
|
141,334
|
|
|
132,158
|
|
|
291,939
|
|
|
265,046
|
|
Cash
interest
|
(35,465)
|
|
|
(37,784)
|
|
|
(70,561)
|
|
|
(77,074)
|
|
Capital
expenditures(2)
|
(172,975)
|
|
|
(131,288)
|
|
|
(282,770)
|
|
|
(219,243)
|
|
Capitalized
interest
|
2,816
|
|
|
4,835
|
|
|
5,636
|
|
|
9,303
|
|
Free Cash
Flow
|
$
|
(64,290)
|
|
|
$
|
(32,079)
|
|
|
$
|
(55,756)
|
|
|
$
|
(21,968)
|
|
|
|
|
|
|
|
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(2)
|
CapEx reflected in
the table above differs from the amounts shown in the statement of
cash flows in the Company's condensed consolidated financial
statements because amounts reflected in the table above include
changes in accrued liabilities from the previous reporting period
for capital expenditures, while the amounts presented in the
statement of cash flows are presented on a cash basis.
|
The following tables present reconciliations of the GAAP
financial measure of income (loss) before income taxes to the
non-GAAP financial measure of Adjusted EBITDA for the Company's
three reportable business segments on a gross basis for the periods
presented:
Exploration and
Production
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Income (loss)
before income taxes
|
$
|
(3,900)
|
|
|
$
|
(158,978)
|
|
|
$
|
16,836
|
|
|
$
|
(264,744)
|
|
Loss on sale of
properties
|
—
|
|
|
1,669
|
|
|
—
|
|
|
1,669
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(11,642)
|
|
|
—
|
|
|
(18,658)
|
|
Net (gain) loss on
derivative instruments
|
(50,532)
|
|
|
90,846
|
|
|
(106,607)
|
|
|
76,471
|
|
Derivative
settlements(1)
|
(939)
|
|
|
30,477
|
|
|
(8,899)
|
|
|
103,790
|
|
Interest expense, net
of capitalized interest
|
36,838
|
|
|
34,979
|
|
|
73,159
|
|
|
73,718
|
|
Depreciation,
depletion and amortization
|
122,785
|
|
|
120,039
|
|
|
247,193
|
|
|
240,881
|
|
Impairment
|
3,200
|
|
|
23
|
|
|
5,882
|
|
|
1,154
|
|
Exploration
expenses
|
1,667
|
|
|
340
|
|
|
3,156
|
|
|
703
|
|
Stock-based
compensation expenses
|
6,897
|
|
|
6,077
|
|
|
13,395
|
|
|
12,625
|
|
Other non-cash
adjustments
|
(213)
|
|
|
(484)
|
|
|
699
|
|
|
723
|
|
Adjusted
EBITDA
|
$
|
115,803
|
|
|
$
|
113,346
|
|
|
$
|
244,814
|
|
|
$
|
228,332
|
|
|
|
|
|
|
|
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
Midstream
Services
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Income before
income taxes
|
$
|
23,106
|
|
|
$
|
18,040
|
|
|
$
|
43,867
|
|
|
$
|
33,198
|
|
Gain on sale of
properties
|
—
|
|
|
(358)
|
|
|
—
|
|
|
(358)
|
|
Depreciation,
depletion and amortization
|
3,753
|
|
|
1,732
|
|
|
7,211
|
|
|
3,415
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
2,431
|
|
Stock-based
compensation expenses
|
365
|
|
|
224
|
|
|
713
|
|
|
443
|
|
Adjusted
EBITDA
|
$
|
27,224
|
|
|
$
|
19,638
|
|
|
$
|
51,791
|
|
|
$
|
39,129
|
|
Well
Services
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
thousands)
|
Income (loss)
before income taxes
|
$
|
1,950
|
|
|
$
|
(2,142)
|
|
|
$
|
(1,637)
|
|
|
$
|
1,885
|
|
Depreciation,
depletion and amortization
|
3,057
|
|
|
3,895
|
|
|
6,222
|
|
|
8,127
|
|
Stock-based
compensation expenses
|
338
|
|
|
235
|
|
|
734
|
|
|
899
|
|
Adjusted
EBITDA
|
$
|
5,345
|
|
|
$
|
1,988
|
|
|
$
|
5,319
|
|
|
$
|
10,911
|
|
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss)
Per Share are supplemental non-GAAP financial measures that are
used by management and external users of the Company's financial
statements, such as industry analysts, investors, lenders and
rating agencies. The Company defines Adjusted Net Income (Loss) as
net income (loss) after adjusting first for (1) the impact of
certain non-cash items, including non-cash changes in the fair
value of derivative instruments, impairment, and other similar
non-cash charges, or non-recurring items and then (2) the
non-cash and non-recurring items' impact on taxes based on the
Company's effective tax rate applicable to those adjusting items in
the same period. Adjusted Net Income (Loss) is not a measure of net
income (loss) as determined by GAAP. The Company defines Adjusted
Diluted Earnings (Loss) Per Share as Adjusted Net Income (Loss)
divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP
financial measure of net income (loss) to the non-GAAP financial
measure of Adjusted Net Income (Loss) and the GAAP financial
measure of diluted earnings (loss) per share to the non-GAAP
financial measure of Adjusted Diluted Earnings (Loss) Per Share for
the periods presented:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In thousands, except per share data)
|
Net income
(loss)
|
$
|
16,568
|
|
|
$
|
(89,931)
|
|
|
$
|
40,393
|
|
|
$
|
(154,386)
|
|
Loss on sale of
properties
|
—
|
|
|
1,311
|
|
|
—
|
|
|
1,311
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(11,642)
|
|
|
—
|
|
|
(18,658)
|
|
Net (gain) loss on
derivative instruments
|
(50,532)
|
|
|
90,846
|
|
|
(106,607)
|
|
|
76,471
|
|
Derivative
settlements(1)
|
(939)
|
|
|
30,477
|
|
|
(8,899)
|
|
|
103,790
|
|
Impairment
|
3,200
|
|
|
23
|
|
|
5,882
|
|
|
3,585
|
|
Amortization of
deferred financing costs
|
1,709
|
|
|
2,030
|
|
|
3,399
|
|
|
5,947
|
|
Amortization of debt
discount
|
2,480
|
|
|
—
|
|
|
4,835
|
|
|
—
|
|
Other non-cash
adjustments
|
(213)
|
|
|
(484)
|
|
|
699
|
|
|
723
|
|
Tax
impact(2)
|
16,575
|
|
|
(42,075)
|
|
|
37,679
|
|
|
(64,731)
|
|
Adjusted Net
Loss
|
$
|
(11,152)
|
|
|
$
|
(19,445)
|
|
|
$
|
(22,619)
|
|
|
$
|
(45,948)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.07
|
|
|
$
|
(0.51)
|
|
|
$
|
0.17
|
|
|
$
|
(0.91)
|
|
Loss on sale of
properties
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(0.07)
|
|
|
—
|
|
|
(0.11)
|
|
Net (gain) loss on
derivative instruments
|
(0.22)
|
|
|
0.51
|
|
|
(0.45)
|
|
|
0.45
|
|
Derivative
settlements(1)
|
—
|
|
|
0.17
|
|
|
(0.04)
|
|
|
0.61
|
|
Impairment
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
Amortization of
deferred financing costs
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.03
|
|
Amortization of debt
discount
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Tax
impact(2)
|
0.07
|
|
|
(0.23)
|
|
|
0.17
|
|
|
(0.37)
|
|
Non-GAAP Diluted
Loss Per Share
|
$
|
(0.05)
|
|
|
$
|
(0.11)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.27)
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
234,917
|
|
|
176,984
|
|
|
236,281
|
|
|
169,953
|
|
|
|
|
|
|
|
|
|
Effective tax rate
applicable to adjustment items
|
37.4
|
%
|
|
37.4
|
%
|
|
37.4
|
%
|
|
37.4
|
%
|
|
|
|
|
|
|
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(2)
|
The tax impact is
computed utilizing the Company's effective tax rate applicable to
the adjustments for certain non-cash and non-recurring
items.
|
View original
content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-june-30-2017-earnings-300498752.html
SOURCE Oasis Petroleum Inc.