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Oasis Petroleum Inc. (OAS)

  • Wed, May 13, 6:19 PM
    • North Dakota recorded a surprising jump in oil and natural gas production in March, as producers successfully wring efficiencies out of existing operations in an attempt to maintain production even at depressed prices.
    • The state's oil producers pumped nearly 1.2M bbl/day in March, up ~15K from February, while natural gas output rose 14% to 47.2M cf, according to the Department of Mineral Resources.
    • The agency says 189 North Dakota wells were completed in March at locations owned by Exxon Mobil (NYSE:XOM), Hess (NYSE:HES), Continental Resources (NYSE:CLR) and ConocoPhillips (NYSE:COP), as "these four appear to be more in tune with having normal cash flow, and continue to complete their wells in a more aggressive manner."
    • But in a sign of divergent strategies in the state, EOG Resources (NYSE:EOG) and Marathon Oil (NYSE:MRO) continue to delay fracking.
    • Other top Bakken producers include WLL, OAS, NOG and EOX
  • Mon, May 11, 4:59 PM
    • Oil production from seven major U.S. shale plays is expected to fall by 86K bbl/day in June, according to the latest report from the Energy Information Administration.
    • Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47K bbl/day, while production at the Bakken shale play, centered in North Dakota, is expected to drop by 31K bbl/day, the report says.
    • "The data shows that production in the Bakken and Eagle Ford [plays] peaked in March at 1.33M bbl/day and 1.73M bbl/day, respectively," says WTRG Economics energy economist James Williams.
    • Among the top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
    • Among the top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Wed, May 6, 5:15 PM
    • Oasis Petroleum (NYSE:OAS): Q1 EPS of $0.28 beats by $0.02.
    • Revenue of $180.4M (-48.4% Y/Y) misses by $81.65M.
    • Press Release
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  • Wed, Apr. 22, 6:53 PM
    • Nomura came out bullish today on the energy E&P sector - issuing Buy ratings for MRO, PXD, EOG, CLR, APC, NFX, RRC, CNQ, CXO, ECA and SU - even as the firm does not foresee a V-shaped rebound in crude oil prices.
    • Nomura believes core North American shale plays do not represent the economic marginal cost of supply in the world, which runs counter to commonly held views that largely see shale occupying the high end of the cost curve; thus as oil rebounds, so will investment in the shales, which should support prices, the firm says.
    • In such an environment, Nomura says selecting stocks will depend on factors such as ”the reinvestment opportunity set, impact of oilfield technology, continued efficiencies, potential new geologic plays, management acumen and balance sheet strength."
    • The firm is Neutral on DVN, HES, MUR, OAS, UPL, WLL, XEC, COG, COP and SWN; it rates NBL, APA, DNR, CHK and CVE as Reduce.
  • Wed, Apr. 15, 2:56 PM
    • The oil price recovery may not be as strong as expected, Goldman Sachs says as it recommends buying stocks that do not need a V-shaped rebound such as Diamondback Energy (FANG +2.2%), Rice Energy (RICE +5.9%) and RSP Permian (RSPP +3.6%).
    • Goldman expects the $55-$65/bbl WTI crude price level at which producers begin adding rigs ultimately will surprise the market and cause prices to stagnate at sub-$70 levels, so instead of positioning in high beta producers, hoping to capitalize on the sector’s historic 70%-80% correlation with the commodity, the firm recommends gaining exposure to low-cost E&Ps capable of strong growth absent a commodity recovery.
    • Goldman tags stocks that are more dependent on further gains in oil prices, such as Denbury Resources (DNR +7.3%), Oasis Petroleum (OAS +3%) and SandRidge Energy (SD +5.8%), with Sell ratings.
  • Wed, Apr. 1, 3:57 PM
    • Oasis Petroleum (OAS +3.3%) may create an MLP for a $200M North Dakota plant it plans to build over the next two years to process natural gas from the Wild Basin portion of the Bakken Shale, President Taylor Reid says.
    • "We have potential JV partners for that, or we could go down the path of an MLP," Reid says at a conference in Denver.
    • The CEO also says OAS is well positioned to weather low oil prices, helped by the company's unit that fracks wells, meaning OAS is not reliant on Halliburton or peers for that service; for example, OAS plans to frack 80 wells this year using its own two frack crews, saving ~$400K/well, Reid says.
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  • Wed, Mar. 25, 6:08 PM
    • The number of drill rigs in North Dakota’s oil patch has slipped below 100 for the first time in five years thanks to weaker crude oil prices.
    • Only 98 rigs are now drilling in the area, 100 fewer than on the same day a year ago and the lowest since March 2010.
    • North Dakota has been producing ~1.2M bbl/day of oil, and industry officials say ~115 rigs need to be drilling to keep that level of production.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Fri, Mar. 20, 10:33 AM
    • No matter how unfavorable market fundamentals may be to Bakken operators, North Dakota likely will see a big surge in production this June, potentially besting another supply record even if prices continue to crater, according to the director of the state's Department of Mineral Resources.
    • Production is expected to remain at 1.1M-1.2M bbl/day over the next few months before skyrocketing in June by nearly 10%, or an additional 75K-100K bbl/day, propelled by a state-mandated time limit on drilling and the expected trigger of a major oil tax incentive.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Tue, Mar. 17, 7:40 PM
    • Crude oil production at three major U.S. shale oil fields - the Eagle Ford in south Texas, the Bakken in North Dakota, and the Niobrara in Colorado and adjacent states - is projected to fall this month for the first time in six years, the Energy Information Administration says.
    • Net production from the three fields is expected to drop by a combined 24K bbl/day, but overall losses likely will be masked by production gains in the Permian Basin in west Texas and other regions.
    • It is one of the first signs that idling hundreds of drilling rigs and billions of dollars in corporate cutbacks are starting to affect the U.S. oil patch, but it also shows that drilling technology and techniques have advanced to the point that productivity gains may be negligible in some shale plays.
    • Top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
    • Top Niobrara producers: NBL, APC, ECA, CHK, EOG, WPX
  • Thu, Mar. 12, 6:32 PM
    • North Dakota says production of crude oil from the Bakken Shale fell in January from all-time highs the previous month, slipping 3.3% 1.19M bbl/day from a record 1.23M bbl/day in December, according to a new report from the state's department of mineral resources.
    • As prices for Bakken sweet crude fell to a six-year low of an average of $31.41/bbl in January, down from $40.74 December, the number of completions of previously drilled wells fell sharply to 47 from 183 in the prior month.
    • The number of active rigs used to drill new wells in North Dakota sank to 111 as of today, the fewest since April 2010 and about half the peak of 218 rigs in May 2012; the state's mineral resources director predicts a bottom 100 rigs, noting that 115 active rigs are needed to maintain stable production.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Sat, Mar. 7, 8:25 AM
    • With U.S. oil steadying at ~$50/bbl in recent weeks, investors are beginning to believe crude prices have found a bottom, and public money is starting to flow back to North American oil producers.
    • Investors have pumped $7.75B YTD into 16 separate stock market equity fund-raises - the biggest surge in at least seven years, and more equity than oil producers issued in all of 2009.
    • "There was a two to three month window when capital markets were closed because everyone was nervous," but now things are turning around, says Tudor Pickering's Michael Rowe.
    • In just the past two weeks, PAA, ECA, NBL, OAS, NFX, GDP, CXO, LPI, AR and TEP have stepped up with equity fund-raises.
  • Thu, Mar. 5, 12:43 PM
    • Oasis Petroleum (OAS -2.3%) is downgraded to Hold from Buy with a $15 price target, lowered from $17, at Canaccord, which says the dilution from its recent equity offering knocks down its net asset value target and takes away any sufficient upside in the stock to warrant a higher rating.
    • The upsized 32M-share offering is dilutive to EPS and cash flow per share, the firm says as it sets new 2015 EPS and CFPS estimates to $0.59 and $4.28 from $0.76 and $5.51 previously.
    • Canaccord still likes OAS as one of the largest players in the Williston Basin, with a large inventory of Bakken and Three Forks locations in many of the best areas of the play.
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  • Wed, Mar. 4, 11:43 AM
    • Oasis Petroleum (OAS -1.3%) shares have moderated their losses following the 32M-share public offering, upsized from the original announcement of 25M shares, that raised $409M in gross proceeds.
    • Topeka Capital lowers its stock price target for OAS to $19 from $22, believing that with the equity overhang lifted, shares should begin to garner increased interest, particularity as oil prices improve, since the company has high leverage to oil (
    • Topeka says the offering was a prudent move that improves OAS's balance sheet to 2.8x net debt/EBITDA by year-end 2015 from 3.4x previously; while OAS still has above-average debt leverage in the sector, it is now better positioned to weather the down cycle in oil prices.
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  • Wed, Mar. 4, 7:56 AM
    • Oasis Petroleum (NYSE:OAS) -4.5% premarket after announcing a public offering of 25M common shares, with an underwriters option to purchase up to another 3.75M shares.
    • OAS says it intends to use the proceeds to repay outstanding borrowings under its credit facility and for general corporate purposes.
  • Mon, Mar. 2, 7:35 PM
    • The crude oil aboard the train that derailed and exploded two weeks ago in West Virginia contained so much combustible gas that it would have been barred from rail transport under safety regulations set to go into effect next month, WSJ reports.
    • The oil’s vapor pressure was 13.9 psi, which exceeds the limit of 13.7 psi that North Dakota is set to impose in April on oil moving by truck or rail from the Bakken Shale.
    • Plains All American Pipeline (NYSE:PAA), which shipped the oil, says it follows regulations governing the shipping and testing of crude; CSX, the railroad that carried the oil, says it had stepped up its inspections of the track along the route.
    • The new information about the West Virginia accident likely will increase regulators’ focus on the makeup of oil being shipped by train; oil from sahle formations is known to contain far more combustible gas than traditional crude oil, which has a vapor pressure of ~6 psi.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Feb. 26, 2:58 PM
    • North Dakota's oil producers have cut the number of active rigs in the state to just 121 from 190 a year ago, according to a new list published by the state’s Department of Mineral Resources.
    • The rig count is now below the threshold of “at least 130” the DMR director had identified last month as needed to sustain output at the current level of slightly more than 1.2M bbl/day.
    • Of the 121 active rigs, 115 are drilling in just four counties at the heart of the Bakken - Dunn, McKenzie, Mountrail and Williams.
    • With the number of rigs in even the core areas down by 30% in just over two months, production likely will begin to plateau or fall in the coming months, Reuters' John Kemp writes.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
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Company Description
Oasis Petroleum Inc is an exploration and production company. The Company acquires and develops unconventional oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin.