Oasis Petroleum: 'Organic Sustainability' At $50 Per Barrel As Long As Sweet Spots Last
Richard Zeits • 22 Comments
Richard Zeits • 22 Comments
Tue, Apr. 26, 2:47 PM
- Whiting Petroleum (WLL +3.1%), Bill Barrett (BBG +1.9%) and Oasis Petroleum (OAS +3.3%) are all downgraded to Hold from Buy at Cantor Fitzgerald on valuation, noting that much of the recent rally in E&P stocks is explained by short covering.
- WLL shares are up 217% since Feb. 25, so while maintaining a positive view on the company's prospects in the Williston and DJ basins with the potential for additional liquidity through non-core asset sales, Cantor feels valuation is now full.
- The firm says it has positive view on BBG’s liquidity and portfolio optionality but would not be surprised to see the company come to market with an equity follow-on after the rapid rise in shares, and sees limited upside in OAS after rising 123% since Feb. 11.
- The firm's respective stock price targets for WLL, BBG and OAS are $11, $7.50 and $9.
- Now read Whiting Petroleum valued at $7 to $12 based on $55 to $60 long-term oil
Mon, Apr. 18, 9:20 AM
Fri, Apr. 8, 9:20 AM
Fri, Apr. 1, 9:17 AM
Wed, Mar. 30, 3:30 PM
- Analysts at Seaport Global upgrade seven oil and gas producers, advocating for increased exposure to select names they say should protect investors in the event of a move back toward $50/bbl, while downgrading 11 others.
- Seaport upgrades seven companies to Buy: Continental Resources (CLR +3.4%), Callon Petroleum (CPE +1.4%), Marathon Oil (MRO +1.9%), Oasis Petroleum (OAS +2.8%), Rice Energy (RICE +1.7%), Petroquest Energy (PQ +9.1%) and Lonestar Resources (OTCQX:LNREF +6.6%).
- Downgraded to Sell are Whiting Petroleum (WLL +4.1%), Southwestern Energy (SWN -2.5%), WPX Energy (WPX +0.6%), Laredo Petroleum (LPI -1.1%), Jones Energy (JONE +0.9%), Northern Oil & Gas (NOG +1%), Carrizo Oil & Gas (CRZO +1.6%), Memorial Resource (MRD +2.5%), Matador Resources (MTDR -0.3%), Sanchez Energy (SN +1.6%) and PDC Energy (PDCE -0.9%).
- The firm also favors gaining leverage to the Oklahoma STACK play, thus CLR and Newfield Exploration (NFX +1.9%) have "taken the pole position away" from Permian producers Parsley Energy (PE +1.3%) and Pioneer Natural Resources (PXD +1%).
Thu, Mar. 24, 9:18 AM
Fri, Mar. 18, 9:15 AM
Tue, Mar. 15, 12:28 PM
- Oasis Petroleum (OAS -5.1%) is upgraded to Overweight with a $9 price target, raised from $6, at J.P. Morgan, which believes OAS is well positioned operationally vs. peers and that the company’s enhanced completions in the Bakken generate top-tier returns.
- The firm also downgrades Whiting Petroleum (WLL -10.7%) to Neutral from Overweight with an $8 price target, primarily to reflect valuation after shares have surged 140% from their late-February low.
- J.P. Morgan favors companies that can sustain or quickly re-establish positive operating momentum as the industry begins fighting the decline curve; its top picks are Callon Petroleum (CPE -2.7%), Diamondback Energy (FANG -1%), Newfield Exploration (NFX -2.9%), Parsley Energy (PE -0.4%) and PDC Energy (PDCE -0.9%).
Fri, Mar. 11, 3:53 PM
- EP Energy (EPE -3.1%) is a rare energy loser today as Goldman Sachs downgrades shares to Sell from Neutral with a $4.50 price target, based on a lack of differentiated growth relative to other oil levered companies and a weakening balance sheet, resulting from attractive hedges rolling off at year-end 2016.
- But Goldman, while it forecasts sharply lower U.S. oil prices over the coming weeks, also sees "a path emerging" for a recovery to $55-$60/bbl in 2017 to restart the U.S. shale machine, and raises its coverage outlook for the E&P sector to Attractive from Neutral while recommending investment in "secure shale productivity winners and the next rung stocks.”
- The firm upgrades Carrizo Oil & Gas (CRZO +10.4%) to Buy from Neutral with a $37 price target, expecting CRZO to exit 2017 at a manageable 3.6x net debt/EBITDA with the potential for non-core asset sales to aid in further deleveraging.
- RSP Permian (RSPP +7.9%) also is raised to Buy from Neutral, with a $34 target, as Goldman expects a re-acceleration of drilling activity in 2017 to drive improvement in the company’s leverage metrics and easing investor concerns.
- Oasis Petroleum (OAS +4.4%) is upped to Neutral from Sell with a $7.25 price target, as the firm believes that a cyclical recovery in oil prices would ease investor concerns over the company’s leverage.
- Earlier: Anadarko Petroleum upgraded to Buy at Goldman Sachs
Fri, Mar. 11, 9:17 AM
Mon, Feb. 22, 9:19 AM
Fri, Feb. 12, 9:17 AM
Wed, Feb. 3, 9:19 AM
Thu, Jan. 28, 9:23 AM
- Gainers: NEOS +59%. DNR +17%. BCEI +16%. UA +16%. FB +14%. INO +13%. ATHX +12%. PBR +12%. WLL +11%. MRO +10%. [[PBR-A]] +10%. TRXC +9%. CHK +9%. MLNX +9%. LINE +9%. MT +9%. SDRL +8%. HOG +8%. ETE +8%. STO +8%. CRUS 7%. KMI 7%. BBL 6%. HCA 6%. MJN 6%. CJES 6%. PYPL 6%.
- Losers: NOW -22%. OSIS -22%. EBAY -11%. INVN -10%. URI -10%. INCY -9%. JNPR -10%. OAS -7%.
Thu, Jan. 28, 7:57 AM
- Oasis Petroleum (NYSE:OAS) -7.7% premarket after announcing a public offering of 34M common shares, with an underwriters option to purchase up to an additional 5.1M shares.
- OAS says it plans to use the proceeds for general corporate purposes and to fund part of its 2016 capital spending, which the company now projects at $385M-$435M, ~30% below 2015 levels.
- OAS says its 2015 capex totaled $605M-$615M, below its $670M plan, and that 2015 production rose 11% Y/Y to 50,477 boe/day; Q4 production averaged 50,652 boe/day, which exceeded the high-end of company guidance of 49K boe/day.
Mon, Jan. 25, 9:14 AM
Oasis Petroleum, Inc. operates as an exploration and production company, which focuses on the acquisition and development of unconventional oil and natural gas resources in the Montana and North Dakota. The company currently exploits significant resource potential from the Bakken and Three Forks... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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