Thu, Feb. 19, 9:12 AM
Fri, Feb. 13, 9:15 AM| 3 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."
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.
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.
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."
Nov. 28, 2014, 12:45 PM
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%).
Nov. 28, 2014, 9:17 AM| 13 Comments
Nov. 5, 2014, 2:59 PM
- Oasis Petroleum (OAS -4%) is sharply lower after Q3 earnings lag Wall Street expectations by $0.20/share.
- Q3 production rose 39% Y/Y and 5% Q/Q to 45,873 boe/day, but OAS says delays caused by bad weather and other logistical challenges kept it from expanding into its North Dakota holdings as much as it hoped, which it says will result in 15 fewer wells drilled this year than originally planned and produce 47K-49K boe/day in Q4.
- OAS would cut capital spending and limit spending to core wells if crude oil prices stay below $80/bbl for an extended time, CFO Michael Lou says in today's earnings conference call.
Oct. 13, 2014, 5:38 PM
Jul. 22, 2014, 12:56 PM
- Oasis Petroleum (OAS +2.4%) is upgraded to Buy from Hold with a $65 price target, up from $54, at Global Hunter, which sees OAS as a core pure-play Bakken holding that should deliver 30%-plus production growth over the next two years that boasts an adept management team with a history of strong execution.
- The firm believes the Bakken is still undergoing an inflection point in terms of geologic understanding that should continue to drive improvements in drilling and completion techniques, yet OAS shares have underperformed other Bakken operators YTD.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Jun. 30, 2014, 3:49 PM
- Oasis Petroleum's (OAS +2%) price target is raised to $64 from $56 at Topeka Capital, which also reiterates its Buy rating for OAS shares based on improving drilling from the Forman Butte, Indian Hills and Red Bank areas in the Bakken shale.
- With WTI crude oil prices on track to average $103/bbl for the quarter, the firm says it is projecting 2Q14 earnings and cash flow of $0.81 and $2.30, vs. respective consensus of $0.73 and $2.15; it also "conservatively" raises its 2015 and 2016 production outlook by 1.6% and 3.9% for the improved well performance.
Feb. 4, 2014, 12:31 PM
- Investors aren't happy with Oasis Petroleum's (OAS -5.2%) plans to increase spending significantly this year to ramp up production.
- OAS plans to spend $1.43B in 2014, a 40% Y/Y increase, to achieve its goal of producing 46K-50K boe/day from 33,904 boe/day in 2013.
- For the year, OAS expects to complete 205 Bakken wells, up from 136 last year.
Jan. 2, 2014, 2:21 PM
- Some companies that produce oil in the Bakken region are seeing weakness amid lower crude prices and concerns about safety issues of transporting crude oil following the recent rail accident in North Dakota.
- The Pipeline and Hazardous Materials Safety Administration today issued a safety alert noting the type of crude oil being transported from the Bakken region may be more flammable than traditional heavy crude oil.
- Experts have said that unusually large amounts of naturally occurring and highly flammable petroleum products such as propane and ethane may be coming out of the ground with the Bakken crude.
- Among Bakken producers: NOG -5.3%, OAS -5.2%, CLR -4.9%, KOG -4.6%, WLL -3.5%, EOX -3.1%.
OAS vs. ETF Alternatives
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.
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