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Oasis Petroleum Inc. (OAS)

- NYSE
  • Thu, Jan. 15, 10:25 AM
    • North Dakota oil production rose to a new record even as energy companies drilled fewer wells and the rig count dropped to a near five-year low.
    • The state's oil output hit a record 1.19M bbl/day in November, the most recent month available, according to data released yesterday by North Dakota’s Department of Mineral Resources.
    • Despite the new record, the head of the department warned the state’s crude production will peak and decline later this year if oil prices don’t rebound; the current price of North Dakota sweet crude is ~$29.25/bbl, the lowest since Dec. 2008.
    • The latest drilling rig count is 158, the lowest in nearly five years and down from a high of 218 rigs in 2012, but the department says production may not start to drop until the rig count falls to 130 or lower.
    • Gregor McDonald argues that the North Dakota data confirming that Bakken drilling activity has slowed meaningfully has sparked the snapback rally in crude oil prices.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
    • ETFs: USO, OIL, UCO, SCO, BNO, DTO, DBO, UWTI, USL, DWTI, DNO, SZO, OLO, TWTI, OLEM
    | 13 Comments
  • Tue, Jan. 13, 12:47 PM
    • Traders smelling blood - or oil - in the water have piled into shorts against energy E&P companies, with short interest jumping a total of 12% for the final two weeks of 2014, according to Sterne Agee analysts using NYSE data.
    • Oasis Petroleum (NYSE:OAS) led a 45.9% jump in short interest, followed by Pioneer Natural Resources (NYSE:PXD) with a 45.2% increase and Chesapeake Energy (NYSE:CHK) short growth of 31.9%.
    • Sterne Agee energy analyst Tim Rezvan thinks the shorts are on the right side of the oil trade for the foreseeable future, believing a break below $40/bbl "wouldn't be a surprise in the short term."
    • Short positions did not increase for all companies, as short growth fell for Viper Energy Partners (NASDAQ:VNOM), Callon Petroleum (NYSE:CPE), Energen (NYSE:EGN) and PetroQuest Energy (NYSE:PQ), among others.
    | 6 Comments
  • Mon, Jan. 12, 7:22 PM
    • The number of drilling rigs operating in North Dakota's oil fields has dropped to 159, the lowest level since November 2010.
    • The state lost eight rigs overnight, according to state data, a steep one-day drop not seen for years in the second-ranked U.S. oil producer.
    • The drop comes after Continental Resources (NYSE:CLR), Oasis Petroleum (NYSE:OAS) and other companies announced capital spending cuts for 2015, admitting they planned to use fewer rigs this year.
    • Other major North Dakota producers include EOG, WLL, HES, XOM, NOG, EOX and MRO.
    | 35 Comments
  • Mon, Jan. 12, 10:59 AM
    • Oasis Petroleum (OAS -8.8%) CEO Tommy Nusz says he is "happy to have" hedge fund SPO Partners as its largest shareholder, after John Scully's fund bought 2.1M OAS shares across three separate transactions on Jan. 7, 8 and 9.
    • SPO raised its stake in OAS to 11.9% from 9.6% to become the largest shareholder with ~11.5M shares; Paulson & Co. is the second-largest OAS shareholder, with ~9.9M shares.
    | 2 Comments
  • Fri, Jan. 9, 10:56 AM
    • North Dakota needs an oil price of $55/bbl and a fleet of at least 140 rigs to sustain production at the current level of 1.2M bbl/day, according to a presentation from the state's chief mineral resources regulator.
    • Breakeven rates for new wells range from $29 in Dunn county and $30 in McKenzie to $36 in Williams and $41 in Mountrail; these four counties account for 90% of drilling in the state.
    • The number of rigs operating in the state already has fallen to 165, down from 191 in October.
    • The projections confirm North Dakota's oil output will start to fall by year's end unless prices rise from current depressed levels.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
    | 59 Comments
  • Thu, Jan. 8, 3:29 PM
    • News reports about crude oil futures prices plunging through $50/bbl have been plentiful but many U.S. physical crude producers are receiving far less and would be thrilled if they could get $50, Reuters' John Kemp writes.
    • Case in point: Prices received by oil producers in North Dakota's Williston Basin have averaged less than $34/bbl so far this month, according to Plains Marketing, falling by almost two-thirds since June when Plains posted an average price of nearly $92/bbl for Williston Sweet.
    • The recent decline has been almost as rapid and brutal as 2008-09 when Williston prices crashed from $116 to less than $17.
    • Kemp says past experience suggests extreme prices tend be relatively short-lived phenomena and followed by at least a partial correction, and thinks some sort of rebound is likely this time around in the next 2-3 months.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 12 Comments
  • Mon, Jan. 5, 3:42 PM
    • Add Oasis Petroleum (OAS -9.5%) and Southwestern Energy (SWN -3.5%) to the long list of today's energy-related downgrades, as Susquehanna cuts shares to Neutral from Positive while lowering its oil price assumptions for 2015-16 to $60-$70/bbl from its earlier range of $77-$85 as well as its long-term price assumption to $75/bbl.
    • For OAS, "leverage metrics expand significantly based on our new oil price assumptions," the firm writes, and for SWN, the prospects of completing a ~$2B equity deal in a low gas price environment is likely to be a significant headwind.
    • Most of SWN's near-term growth is coming from the northeast Marcellus Shale, where "wider basis differentials are limiting the company's cash flow growth," Susquehanna says.
    | 2 Comments
  • Dec. 19, 2014, 10:37 AM
    • Even some of Wall Street's big boys are taking a beating in the oil sector: Carl Icahn’s holdings of Talisman Energy (NYSE:TLM) have tumbled $230M since late August, and John Paulson’s firm had one of its largest losses of the year on a bet that big oil companies would buy smaller ones.
    • Before TLM agreed to be bought by Repsol, which boosted TLM shares, Icahn's losses stood at more than $540M as recently as Dec. 11, and he still will have lost ~$290M at the deal price; Icahn also holds stakes in hard-hit Chesapeake Energy (NYSE:CHK) and Transocean (NYSE:RIG).
    • Paulson was the biggest shareholder in Whiting Petroleum (NYSE:WLL) and Oasis Petroleum (NYSE:OAS) at the end of Q3, but his strategy could yet pay off, as many analysts expect consolidation in the energy sector as lower oil prices pressure smaller firms.
    • Also caught flat-footed by the oil price pullback was Prosperity Capital’s Mattias Westman, a longtime investor in Russia whose firm has lost more than $1B this year, in part on stakes in Russian energy companies Gazprom (OTCPK:OGZPY) and Lukoil (OTCPK:LUKOY, OTC:LUKOF).
    | 28 Comments
  • Dec. 10, 2014, 8:42 AM
    • Oasis Petroleum (NYSE:OAS) cuts its 2015 capital spending plans nearly in half to $750M-$850M from this year's $1.43B capital budget.
    • OAS says it still expects 5%-10% Y/Y production growth in 2015; for the current quarter, it continues to expect production of 47K-49K boe/day, which would result in aggregate Y/Y growth of ~35%.
    • Says it has a strong 2015 hedge position with $164M of value if WTI crude is $70/bbl and $249M of value at $60/bbl.
    • OAS -1.3% premarket.
    | 8 Comments
  • Dec. 9, 2014, 6:20 PM
    • North Dakota issues strict new oil standards that will require energy companies operating in the state to strip explosive gases from crude oil that shows a high vapor pressure reading, in an effort to make crude-by-rail transport safer.
    • Under the new mandate, North Dakota oil can’t be transported unless it has a vapor pressure reading of 13.7 lbs./sq. in. or lower.
    • The rule, which will take effect on April 1, 2015, is the first major move by regulators to address the role of gaseous, volatile crude oil in railroad accidents which have been linked to several fiery explosions, including one last year in Quebec that killed 47 people.
    • Top Bakken producers: CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 49 Comments
  • Dec. 8, 2014, 3:37 PM
    • Energy stocks are hammered again as oil prices tumble to fresh five-year lows, and Oasis Petroleum (OAS -16.1%), Emerald Oil (EOX -12.7%), Cobalt International Energy (CIE -10.1%) and Canadian Natural Resource (CNQ -4.8%) are slammed more than most as they suffered analyst downgrades today.
    • SunTrust's Ryan Otaman cuts OAS and EOX to Neutral from Buy to account for their large debt loads, while Citi's Robert Morris lowers CIE and CNQ to Neutral from Buy.
    • However, Morris thinks at least some stocks warrant upgrades after precipitous declines, raising Antero Resources (AR -9.1%), Apache (APA -6.1%) and Newfield Exploration (NFX -8.3%) even while acknowledging they probably will not bottom until oil does - a common view among analysts such as Raymond James' Marshall Adkins, who writes that "trying to figure out appropriate oilfield service valuations under a collapsing oil price environments is an exercise in futility."
    | 4 Comments
  • Dec. 6, 2014, 8:25 AM
    • Some investors may be curious to consider battered energy stocks to play a possible recovery; taking the notion that rich folks may know something about where to invest that the rest of us don't, Forbes suggests five energy stocks with large stakes held by billionaire investors and, for good measure, sport current analyst price targets well above where they are currently trading.
    • George Soros owns 8% of Penn Virginia (NYSE:PVA); the analyst consensus price target is $16, and shares are currently trading below $5.
    • Leon Cooperman owns 9% of SandRidge Energy (NYSE:SD); the analyst consensus target is $5.08, which would be more than double today's price.
    • John Paulson owns 9.7% of Oasis Petroleum (NYSE:OAS) and 9.9% of Cobalt Energy (NYSE:CIE); the stocks' respective consensus price target is $44 and $21, both more than twice their current prices.
    • Carl Icahn owns nearly 6% of Talisman Energy (NYSE:TLM); the analyst consensus of $9.36 would be more than double current levels.
    | 46 Comments
  • Nov. 28, 2014, 12:45 PM
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  • Nov. 28, 2014, 10:28 AM
    • Ladenburg Thalman throws in the towel on Oasis Petroleum (OAS -30%), Denbury Resources (DNR -14.9%), Resolute Energy (REN -18.3%) following OPEC's decision yesterday to hold production levels and the resulting tumble in crude oil, with WTI crude -6.4% to $69.95 per barrel.
    • Some others: Bonanza Creek (BCEI -21.5%), Northern Oil & Gas (NOG -16.2%), Warren Resources (WRES -16.3%), Halcon Resources (HK -22%), Triangle Petroleum (TPLM -21%), Emerald Oil (EOX -26.4%), Kodiak Oil & Gas (KOG -19.3%).
    | 7 Comments
  • Nov. 28, 2014, 9:17 AM
    | 13 Comments
  • Nov. 13, 2014, 7:23 PM
    • North Dakota regulators today proposed standards for requiring energy companies to treat the crude they pump from the Bakken Shale to make it less volatile before shipment by pipeline or train.
    • "Our crude oil leaving North Dakota will behave like the gasoline you put in your car," says the head of the state's Department of Mineral Resources, which came up with the recommendations.
    • The new rules would require every barrel of oil produced in the state to undergo some kind of treatment, with the goal that all oil-producing Bakken Shale wells ship crude with a vapor pressure below 13.7 psi, similar to 13.5 psi for most automobile gasoline.
    • Top Bakken producers: CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 20 Comments
OAS vs. ETF Alternatives
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.