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Oasis Petroleum Inc. (OAS)

- NYSE
  • Yesterday, 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
    | 11 Comments
  • 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
    | 11 Comments
  • Wed, Feb. 25, 4:34 PM
    • Oasis Petroleum (NYSE:OAS): Q4 EPS of $0.35 misses by $0.22.
    • Revenue of $299.67M (-10.2% Y/Y) misses by $41.04M.
    • Press Release
    | Comment!
  • Tue, Feb. 24, 5:35 PM
  • Thu, Feb. 19, 9:12 AM
    | 3 Comments
  • Fri, Feb. 13, 12:12 PM
    • Oasis Petroleum (OAS +1.1%) is considering selling its Oasis Midstream Services subsidiary that handles water used for fracking wells, Bloomberg reports.
    • Falling oil prices and a $2.6B debt burden have weighed heavily on OAS shares, making it the fourth-worst performing energy company in the Russell 1000 Index last year.
    | 2 Comments
  • Fri, Feb. 13, 9:15 AM
    | 3 Comments
  • Wed, Feb. 4, 2:58 PM
    • Halliburton (NYSE:HAL), Whiting Petroleum (NYSE:WLL), Hess (NYSE:HES) and other energy companies with a presence in North Dakota have decided, at least for now, not to lay off staff in the state, hoping to be prepared for any prolonged rebound in crude prices.
    • By almost any metric - the jobless rate, payrolls, claims for unemployment benefits - there is little evidence to indicate the state at the center of the U.S. shale oil boom is about to suffer anything resembling a bust.
    • Other large North Dakota producers, including Oasis Petroleum (NYSE:OAS), Statoil (NYSE:STO) and EOG Resources (NYSE:EOG), also have said they have no plans to reduce their workforce.
    • Continental Resources (NYSE:CLR), the state's second largest oil producer, has not commented on staffing levels, but CEO Harold Hamm bragged in a press release yesterday that CLR's North Dakota acreage continues to "provide exceptional results."
    | 11 Comments
  • Mon, Feb. 2, 11:49 AM
    • Sterne Agee's Tim Rezvan analyzed the hedge portfolios of E&P companies who are very much "in the money" and formally aggregated estimated values of hedge portfolios for companies he covers, and his results show the values vary widely across the group.
    • Among the oil-focused producers, Denbury Resources (DNR +8.1%) is far and above all others with a hedge portfolio worth $811M, 33% of current market cap; other standouts include Gastar Exploration (GST +5.5%), Oasis Petroleum (OAS +6.2%), Carrizo Oil & Gas (CRZO +5.4%) and Approach Resources (AREX +9.1%).
    • Rezvan says he expects rhetoric to continue from operators over the next three months on monetizing all or some hedges to raise cash. saying "the question will be if operators go naked on the hedge side in an outright bet on an oil price rebound, or if they simultaneously layer in costless collars around strip pricing."
    | 2 Comments
  • 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
    | 14 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.
    | 38 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
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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.