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.
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.
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 (Briefing.com).
- 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.
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.
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
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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