HOUSTON, Nov. 7, 2016
/PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or
the "Company") today announced financial results for the quarter
ended September 30, 2016 and provided an operational
update.
Highlights include:
- Produced 48,509 Boepd in the third quarter of 2016.
- Total capital expenditures ("CapEx") were $78.5 million and $297.7
million for the three and nine months ended September 30, 2016, respectively, in line with
the Company's 2016 CapEx plan.
- Net cash provided by operating activities was $123.4 million for the three months ended
September 30, 2016. Adjusted EBITDA
for the Company was $104.4 million in
the third quarter of 2016. For a definition of Adjusted EBITDA and
a reconciliation of net income (loss) and net cash provided by
(used in) operating activities to Adjusted EBITDA, see "Non-GAAP
Financial Measures" below.
"Oasis continues to increase shareholder value by further
improving capital efficiency and acquiring assets that allow us to
best leverage our operating expertise," said Thomas B. Nusz, Oasis' Chairman and Chief
Executive Officer. "With well costs of $5.2 million and Wild Basin type curves of 1,550
Mboe, we are positioned to grow volumes considerably across 2017
and 2018."
Operational and Financial Update
Select operational and financial statistics are in the following
table:
|
Quarter
Ended:
|
|
9/30/2016
|
|
6/30/2016
|
|
9/30/2015
|
Production
data:
|
|
|
|
|
|
Oil (Bopd)
|
39,439
|
|
|
41,176
|
|
|
44,318
|
|
Natural gas
(MMcfpd)
|
54,421
|
|
|
49,983
|
|
|
37,366
|
|
Total production
(Boepd)
|
48,509
|
|
|
49,507
|
|
|
50,546
|
|
Percent
Oil
|
81
|
%
|
|
83
|
%
|
|
88
|
%
|
Average sales
prices:
|
|
|
|
|
|
Oil, without
derivative settlements (per Bbl)(1)
|
$
|
40.54
|
|
|
$
|
40.81
|
|
|
$
|
41.61
|
|
Differential to NYMEX
West Texas Intermediate crude oil index prices ("WTI") (per
Bbl)
|
4.39
|
|
|
4.85
|
|
|
4.82
|
|
Oil, with derivative
settlements (per Bbl)(1)(2)(3)
|
43.79
|
|
|
48.94
|
|
|
60.77
|
|
Derivative
settlements - net cash receipts (in
millions)(3)
|
11.8
|
|
|
30.5
|
|
|
78.1
|
|
Natural gas (per
Mcf)(4)
|
1.84
|
|
|
1.42
|
|
|
1.63
|
|
Revenues ($ in
millions):
|
|
|
|
|
|
Oil
|
$
|
149.0
|
|
|
$
|
152.9
|
|
|
$
|
169.7
|
|
Natural
gas
|
9.2
|
|
|
6.4
|
|
|
5.6
|
|
Well services
("OWS")
|
10.6
|
|
|
12.8
|
|
|
15.4
|
|
Midstream services
("OMS")
|
8.5
|
|
|
6.9
|
|
|
6.6
|
|
Total
revenues
|
$
|
177.3
|
|
|
$
|
179.0
|
|
|
$
|
197.2
|
|
OWS and OMS
operating expenses ($ in millions):
|
|
|
|
|
|
OWS
|
$
|
5.5
|
|
|
$
|
7.1
|
|
|
$
|
8.5
|
|
OMS
|
2.6
|
|
|
1.7
|
|
|
1.5
|
|
Select operating
expenses:
|
|
|
|
|
|
LOE ($ per
Boe)
|
$
|
8.00
|
|
|
$
|
7.00
|
|
|
$
|
7.67
|
|
MT&G ($ per
Boe)(5)
|
1.58
|
|
|
1.55
|
|
|
1.63
|
|
DD&A ($ per
Boe)
|
25.08
|
|
|
27.19
|
|
|
26.61
|
|
Exploration and
production ("E&P") general and administrative expenses
("G&A") ($ per Boe)
|
4.31
|
|
|
3.93
|
|
|
4.07
|
|
Production taxes (%
of oil and gas revenue)
|
9.3
|
%
|
|
9.0
|
%
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
___________________
|
(1)
|
For the three months
ended September 30, 2016, average sales prices for oil are
calculated using total oil revenues, excluding bulk oil sales
of $1.9 million, divided by oil production.
|
(2)
|
Realized prices
include gains or losses on cash settlements for commodity
derivatives, which do not qualify for and were not designated as
hedging instruments for accounting purposes.
|
(3)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(4)
|
Natural gas prices
include the value for natural gas and natural gas
liquids.
|
(5)
|
Excludes non-cash
valuation charges on pipeline imbalances and bulk oil
purchases.
|
G&A totaled $22.8 million in
the third quarter of 2016, $22.4
million in the third quarter of 2015 and $21.9 million in the second quarter of 2016.
Amortization of stock-based compensation, which is included in
G&A, was $5.8 million, or
$1.30 per Boe, in the third quarter
of 2016 as compared to $6.0 million,
or $1.28 per Boe, in the third
quarter of 2015 and $6.2 million, or
$1.39 per Boe, in the second quarter
of 2016. G&A for the Company's E&P segment totaled
$19.2 million in the third quarter of
2016, $18.9 million in the third
quarter of 2015 and $17.7 million in
the second quarter of 2016.
Interest expense was $31.7 million
for the third quarter of 2016 compared to $36.5 million for the third quarter of 2015 and
$35.0 million for the second quarter
of 2016. Capitalized interest totaled $4.4
million for the third quarter of 2016, $5.1 million for the third quarter of 2015 and
$4.8 million for the second quarter
of 2016. Cash Interest totaled $33.7
million for the third quarter of 2016, $40.0 million for the third quarter of 2015 and
$37.8 million for the second quarter
of 2016. For a definition of Cash Interest and a reconciliation of
interest expense to Cash Interest, see "Non-GAAP Financial
Measures" below.
For the three months ended September 30, 2016, the Company
recorded an income tax benefit of $16.7
million, resulting in a 33.0% effective tax rate as a
percentage of its pre-tax loss for the quarter. The Company
recorded an income tax benefit of $52.5
million, resulting in a 36.9% effective tax rate as a
percentage of its pre-tax income for the three months ended
June 30, 2016.
For the third quarter of 2016, the Company reported a net loss
of $33.9 million, or $0.19 per diluted share, as
compared to a net income of $27.1 million,
or $0.20 per diluted share, for the third quarter of
2015. Excluding certain non-cash and non-recurring items and their
tax effect, Adjusted Net Loss (non-GAAP) was $29.3 million,
or $0.17 per diluted share, in the third quarter of 2016,
compared to Adjusted Net Income of $12.5
million, or $0.09 per diluted
share, in the third quarter of 2015. For a definition of
Adjusted Net Income (Loss) and a reconciliation of net income
(loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial
Measures" below.
Adjusted EBITDA for the third quarter of 2016 was $104.4 million. For a definition of Adjusted
EBITDA and a reconciliation of net income (loss) and net cash
provided by (used in) operating activities to Adjusted EBITDA, see
"Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by
category:
|
1Q
2016
|
|
2Q
2016
|
|
3Q
2016
|
|
YTD
2016
|
CapEx ($ in
thousands):
|
|
|
|
|
|
|
|
E&P
|
$
|
47,734
|
|
|
$
|
73,125
|
|
|
$
|
31,333
|
|
|
$
|
152,192
|
|
OMS
|
35,039
|
|
|
52,842
|
|
|
42,085
|
|
|
129,966
|
|
OWS
|
650
|
|
|
—
|
|
|
29
|
|
|
679
|
|
Other(1)
|
4,532
|
|
|
5,320
|
|
|
5,007
|
|
|
14,859
|
|
Total
CapEx(2)
|
$
|
87,955
|
|
|
$
|
131,287
|
|
|
$
|
78,454
|
|
|
$
|
297,696
|
|
___________________
|
(1)
|
Other CapEx includes
such items as administrative capital and capitalized
interest.
|
(2)
|
CapEx reflected in
the table above differs from the amounts shown in the statement of
cash flows in the Company's condensed consolidated financial
statements because amounts reflected in the table above include
changes in accrued liabilities from the previous reporting period
for capital expenditures, while the amounts presented in the
statement of cash flows are presented on a cash basis.
|
Hedging Activity
As of November 7, 2016, the Company had the following
outstanding commodity derivative contracts, all of which are priced
off of WTI and settle monthly:
Volume in
Mbopd
|
|
4Q16
|
|
1H17
|
|
2H17
|
|
1H18
|
|
2H18
|
Swaps
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
33.0
|
|
|
16.0
|
|
|
14.0
|
|
|
4.0
|
|
|
3.0
|
|
Price
|
|
$
|
49.20
|
|
|
$
|
48.57
|
|
|
$
|
49.08
|
|
|
$
|
54.32
|
|
|
$
|
54.45
|
|
Collars
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
—
|
|
|
6.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
Floor
|
|
—
|
|
|
$
|
45.00
|
|
|
$
|
45.00
|
|
|
—
|
|
|
—
|
|
Ceiling
|
|
—
|
|
|
$
|
53.95
|
|
|
$
|
53.95
|
|
|
—
|
|
|
—
|
|
3-way
|
|
|
|
|
|
|
|
|
|
|
Volume
|
|
—
|
|
|
6.0
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
Sub Floor
|
|
—
|
|
|
$
|
31.67
|
|
|
$
|
31.67
|
|
|
—
|
|
|
—
|
|
Floor
|
|
—
|
|
|
$
|
45.83
|
|
|
$
|
45.83
|
|
|
—
|
|
|
—
|
|
Ceiling
|
|
—
|
|
|
$
|
59.94
|
|
|
$
|
59.94
|
|
|
—
|
|
|
—
|
|
Total
Volume
|
|
33.0
|
|
|
28.0
|
|
|
26.0
|
|
|
4.0
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additionally, the Company has swaps priced off of NYMEX Natural
Gas of 6,000 mmbtu/d at a weighted average price of $3.21 in 2017. The September 2016 contracts settled at $3.7 million and will be included in the
Company's fourth quarter 2016 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to
listen to the conference call:
Date:
|
|
Tuesday, November 8,
2016
|
Time:
|
|
10:00 a.m. Central
Time
|
Dial-in:
|
|
888-317-6003
|
Intl. Dial
in:
|
|
412-317-6061
|
Conference ID:
|
|
6611124
|
Website:
|
|
www.oasispetroleum.com
|
A recording of the conference call will be available beginning
at 12:00 p.m. Central Time on the day
of the call and will be available until Tuesday, November 15, 2016 by dialing:
Replay
dial-in:
|
|
877-344-7529
|
Intl.
replay:
|
|
412-317-0088
|
Replay
code:
|
|
10095010
|
The conference call will also be available for replay at
www.oasispetroleum.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that the Company expects, believes or anticipates will or may occur
in the future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include the expectations of
plans, strategies, objectives and anticipated financial and
operating results of the Company, including the Company's drilling
program, production, derivative instruments, capital expenditure
levels and other guidance included in this press release. These
statements are based on certain assumptions made by the Company
based on management's experience and perception of historical
trends, current conditions, anticipated future developments and
other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These include, but are not
limited to, changes in oil and natural gas prices, weather and
environmental conditions, the timing of planned capital
expenditures, availability of acquisitions, uncertainties in
estimating proved reserves and forecasting production results,
operational factors affecting the commencement or maintenance of
producing wells, the condition of the capital markets generally, as
well as the Company's ability to access them, the proximity to and
capacity of transportation facilities, and uncertainties regarding
environmental regulations or litigation and other legal or
regulatory developments affecting the Company's business and other
important factors that could cause actual results to differ
materially from those projected as described in the Company's
reports filed with the SEC.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About Oasis Petroleum Inc.
Oasis is an independent exploration and production company
focused on the acquisition and development of unconventional oil
and natural gas resources, primarily operating in the Williston
Basin. For more information, please visit the Company's website at
www.oasispetroleum.com.
Oasis Petroleum
Inc.
|
Condensed
Consolidated Balance Sheet
|
(Unaudited)
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
(In thousands, except share data)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
13,776
|
|
|
$
|
9,730
|
|
Accounts
receivable — oil and gas revenues
|
103,128
|
|
|
96,495
|
|
Accounts
receivable — joint interest and other
|
77,903
|
|
|
100,914
|
|
Inventory
|
8,513
|
|
|
11,072
|
|
Prepaid
expenses
|
6,093
|
|
|
7,328
|
|
Derivative
instruments
|
9,142
|
|
|
139,697
|
|
Other current
assets
|
4,290
|
|
|
50
|
|
Total current
assets
|
222,845
|
|
|
365,286
|
|
Property, plant and
equipment
|
|
|
|
Oil and gas
properties (successful efforts method)
|
6,438,782
|
|
|
6,284,401
|
|
Other property and
equipment
|
580,171
|
|
|
443,265
|
|
Less: accumulated
depreciation, depletion, amortization and impairment
|
(1,866,280)
|
|
|
(1,509,424)
|
|
Total property, plant
and equipment, net
|
5,152,673
|
|
|
5,218,242
|
|
Assets held for
sale
|
—
|
|
|
26,728
|
|
Derivative
instruments
|
194
|
|
|
15,776
|
|
Other
assets
|
22,549
|
|
|
23,343
|
|
Total
assets
|
$
|
5,398,261
|
|
|
$
|
5,649,375
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
7,929
|
|
|
$
|
9,983
|
|
Revenues and
production taxes payable
|
141,991
|
|
|
132,356
|
|
Accrued
liabilities
|
98,926
|
|
|
167,669
|
|
Accrued interest
payable
|
19,798
|
|
|
49,413
|
|
Derivative
instruments
|
17,308
|
|
|
—
|
|
Advances from joint
interest partners
|
5,191
|
|
|
4,647
|
|
Other current
liabilities
|
—
|
|
|
6,500
|
|
Total current
liabilities
|
291,143
|
|
|
370,568
|
|
Long-term
debt
|
2,125,573
|
|
|
2,302,584
|
|
Deferred income
taxes
|
546,202
|
|
|
608,155
|
|
Asset retirement
obligations
|
37,092
|
|
|
35,338
|
|
Liabilities held for
sale
|
—
|
|
|
10,228
|
|
Derivative
instruments
|
7,755
|
|
|
—
|
|
Other
liabilities
|
2,992
|
|
|
3,160
|
|
Total
liabilities
|
3,010,757
|
|
|
3,330,033
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock, $0.01
par value: 450,000,000 and 300,000,000 shares authorized at
September 30, 2016 and December 31, 2015, respectively;
182,038,164 shares issued and 181,186,070 shares outstanding at
September 30, 2016 and 139,583,990 shares issued and 139,076,064
shares outstanding at December 31, 2015
|
1,779
|
|
|
1,376
|
|
Treasury stock, at
cost: 852,094 and 507,926 shares at September 30, 2016 and
December 31, 2015, respectively
|
(15,895)
|
|
|
(13,620)
|
|
Additional paid-in
capital
|
1,755,427
|
|
|
1,497,065
|
|
Retained
earnings
|
646,193
|
|
|
834,521
|
|
Total stockholders'
equity
|
2,387,504
|
|
|
2,319,342
|
|
Total liabilities and
stockholders' equity
|
$
|
5,398,261
|
|
|
$
|
5,649,375
|
|
Oasis Petroleum
Inc.
|
Condensed
Consolidated Statement of Operations
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In thousands,
except per share data)
|
Revenues
|
|
|
|
|
|
|
|
Oil and gas
revenues
|
$
|
158,183
|
|
|
$
|
175,270
|
|
|
$
|
434,835
|
|
|
$
|
563,239
|
|
Well services and
midstream revenues
|
19,128
|
|
|
21,965
|
|
|
51,839
|
|
|
44,429
|
|
Total
revenues
|
177,311
|
|
|
197,235
|
|
|
486,674
|
|
|
607,668
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Lease operating
expenses
|
35,696
|
|
|
35,670
|
|
|
98,283
|
|
|
112,556
|
|
Well services and
midstream operating expenses
|
8,165
|
|
|
10,023
|
|
|
21,429
|
|
|
19,370
|
|
Marketing,
transportation and gathering expenses
|
8,856
|
|
|
8,465
|
|
|
23,899
|
|
|
23,313
|
|
Production
taxes
|
14,638
|
|
|
16,676
|
|
|
39,758
|
|
|
53,915
|
|
Depreciation,
depletion and amortization
|
111,948
|
|
|
123,734
|
|
|
356,885
|
|
|
361,430
|
|
Exploration
expenses
|
489
|
|
|
327
|
|
|
1,192
|
|
|
2,252
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Impairment
|
382
|
|
|
80
|
|
|
3,967
|
|
|
24,917
|
|
General and
administrative expenses
|
22,845
|
|
|
22,358
|
|
|
69,087
|
|
|
67,190
|
|
Total operating
expenses
|
203,019
|
|
|
217,333
|
|
|
614,500
|
|
|
668,838
|
|
Gain (loss) on sale
of properties
|
6
|
|
|
172
|
|
|
(1,305)
|
|
|
172
|
|
Operating
loss
|
(25,702)
|
|
|
(19,926)
|
|
|
(129,131)
|
|
|
(60,998)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
20,847
|
|
|
103,637
|
|
|
(55,624)
|
|
|
111,285
|
|
Interest expense, net
of capitalized interest
|
(31,726)
|
|
|
(36,513)
|
|
|
(105,444)
|
|
|
(112,702)
|
|
Gain (loss) on
extinguishment of debt
|
(13,793)
|
|
|
—
|
|
|
4,865
|
|
|
—
|
|
Other income
(expense)
|
(259)
|
|
|
249
|
|
|
188
|
|
|
370
|
|
Total other income
(expense)
|
(24,931)
|
|
|
67,373
|
|
|
(156,015)
|
|
|
(1,047)
|
|
Income (loss) before
income taxes
|
(50,633)
|
|
|
47,447
|
|
|
(285,146)
|
|
|
(62,045)
|
|
Income tax benefit
(expense)
|
16,691
|
|
|
(20,392)
|
|
|
96,818
|
|
|
17,829
|
|
Net income
(loss)
|
$
|
(33,942)
|
|
|
$
|
27,055
|
|
|
$
|
(188,328)
|
|
|
$
|
(44,216)
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.19)
|
|
|
$
|
0.20
|
|
|
$
|
(1.09)
|
|
|
$
|
(0.35)
|
|
Diluted
|
(0.19)
|
|
|
0.20
|
|
|
(1.09)
|
|
|
(0.35)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
177,120
|
|
|
137,014
|
|
|
172,360
|
|
|
127,827
|
|
Diluted
|
177,120
|
|
|
137,014
|
|
|
172,360
|
|
|
127,827
|
|
Oasis Petroleum
Inc.
|
Selected Financial
and Operational Statistics
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating results
(in thousands):
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Oil
|
$
|
148,962
|
|
|
$
|
169,672
|
|
|
$
|
413,068
|
|
|
$
|
542,049
|
|
Natural
gas
|
9,221
|
|
|
5,598
|
|
|
21,767
|
|
|
21,190
|
|
Well
services
|
10,641
|
|
|
15,381
|
|
|
29,459
|
|
|
27,308
|
|
Midstream
|
8,487
|
|
|
6,584
|
|
|
22,380
|
|
|
17,121
|
|
Total
revenues
|
$
|
177,311
|
|
|
$
|
197,235
|
|
|
$
|
486,674
|
|
|
$
|
607,668
|
|
Production
data:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
3,628
|
|
|
4,077
|
|
|
11,245
|
|
|
12,107
|
|
Natural gas
(MMcf)
|
5,007
|
|
|
3,438
|
|
|
13,809
|
|
|
9,940
|
|
Oil equivalents
(MBoe)
|
4,463
|
|
|
4,650
|
|
|
13,547
|
|
|
13,764
|
|
Average daily
production (Boe per day)
|
48,509
|
|
|
50,546
|
|
|
49,440
|
|
|
50,418
|
|
Average sales
prices:
|
|
|
|
|
|
|
|
Oil, without
derivative settlements (per Bbl)(1)
|
$
|
40.54
|
|
|
$
|
41.61
|
|
|
$
|
36.57
|
|
|
$
|
44.77
|
|
Oil, with derivative
settlements (per Bbl)(1)(2)
|
43.79
|
|
|
60.77
|
|
|
46.85
|
|
|
68.84
|
|
Natural gas (per
Mcf)(3)
|
1.84
|
|
|
1.63
|
|
|
1.58
|
|
|
2.13
|
|
Costs and expenses
(per Boe of production):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
8.00
|
|
|
$
|
7.67
|
|
|
$
|
7.26
|
|
|
$
|
8.18
|
|
Marketing,
transportation and gathering expenses(4)
|
1.58
|
|
|
1.63
|
|
|
1.58
|
|
|
1.64
|
|
Production
taxes
|
3.28
|
|
|
3.59
|
|
|
2.93
|
|
|
3.92
|
|
Depreciation,
depletion and amortization
|
25.08
|
|
|
26.61
|
|
|
26.35
|
|
|
26.26
|
|
General and
administrative expenses ("G&A")
|
5.12
|
|
|
4.81
|
|
|
5.10
|
|
|
4.88
|
|
Exploration and
production G&A
|
4.31
|
|
|
4.07
|
|
|
4.28
|
|
|
4.43
|
|
___________________
|
(1)
|
For both the three
and nine months ended September 30, 2016, average sales prices for
oil are calculated using total oil revenues, excluding bulk oil
sales of $1.9 million, divided by oil production.
|
(2)
|
Realized prices
include gains or losses on cash settlements for commodity
derivatives, which do not qualify for and were not designated as
hedging instruments for accounting purposes. Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(3)
|
Natural gas prices
include the value for natural gas and natural gas
liquids.
|
(4)
|
Excludes non-cash
valuation charges on pipeline imbalances and bulk oil
purchases.
|
Oasis Petroleum
Inc.
|
Condensed
Consolidated Statement of Cash Flows
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(188,328)
|
|
|
$
|
(44,216)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation,
depletion and amortization
|
356,885
|
|
|
361,430
|
|
Gain on
extinguishment of debt
|
(4,865)
|
|
|
—
|
|
(Gain) loss on sale
of properties
|
1,305
|
|
|
(172)
|
|
Impairment
|
3,967
|
|
|
24,917
|
|
Deferred income
taxes
|
(96,818)
|
|
|
(17,829)
|
|
Derivative
instruments
|
55,624
|
|
|
(111,285)
|
|
Stock-based
compensation expenses
|
18,761
|
|
|
19,629
|
|
Deferred financing
costs amortization and other
|
10,174
|
|
|
7,468
|
|
Working capital and
other changes:
|
|
|
|
Change in accounts
receivable
|
11,349
|
|
|
108,309
|
|
Change in
inventory
|
2,559
|
|
|
8,425
|
|
Change in prepaid
expenses
|
1,168
|
|
|
638
|
|
Change in other
current assets
|
(240)
|
|
|
5,529
|
|
Change in other
assets
|
(148)
|
|
|
—
|
|
Change in accounts
payable, interest payable and accrued liabilities
|
(41,991)
|
|
|
(84,133)
|
|
Change in other
current liabilities
|
(6,000)
|
|
|
1,655
|
|
Change in other
liabilities
|
17
|
|
|
(28)
|
|
Net cash provided by
operating activities
|
123,419
|
|
|
280,337
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(340,314)
|
|
|
(740,633)
|
|
Proceeds from sale of
properties
|
12,333
|
|
|
78
|
|
Costs related to sale
of properties
|
(310)
|
|
|
—
|
|
Derivative
settlements
|
115,576
|
|
|
291,436
|
|
Advances from joint
interest partners
|
544
|
|
|
(1,239)
|
|
Net cash used in
investing activities
|
(212,171)
|
|
|
(450,358)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
revolving credit facility
|
835,000
|
|
|
618,000
|
|
Principal payments on
revolving credit facility
|
(778,000)
|
|
|
(938,000)
|
|
Repurchase of senior
unsecured notes
|
(435,907)
|
|
|
—
|
|
Proceeds from
issuance of senior unsecured convertible notes
|
300,000
|
|
|
—
|
|
Deferred financing
costs
|
(8,811)
|
|
|
(3,587)
|
|
Proceeds from sale of
common stock
|
182,791
|
|
|
462,833
|
|
Purchases of treasury
stock
|
(2,275)
|
|
|
(2,771)
|
|
Net cash provided by
financing activities
|
92,798
|
|
|
136,475
|
|
Increase (decrease)
in cash and cash equivalents
|
4,046
|
|
|
(33,546)
|
|
Cash and cash
equivalents:
|
|
|
|
Beginning of
period
|
9,730
|
|
|
45,811
|
|
End of
period
|
$
|
13,776
|
|
|
$
|
12,265
|
|
Supplemental
non-cash transactions:
|
|
|
|
Change in accrued
capital expenditures
|
$
|
(49,177)
|
|
|
$
|
(233,913)
|
|
Change in asset
retirement obligations
|
(8,083)
|
|
|
3,405
|
|
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that
is used by management and external users of the Company's financial
statements, such as industry analysts, investors, lenders and
rating agencies. The Company defines Cash Interest as interest
expense plus capitalized interest less amortization and write-offs
of deferred financing costs included in interest expense. Cash
Interest is not a measure of interest expense as determined by
United States generally accepted
accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP
financial measure of interest expense to the non-GAAP financial
measure of Cash Interest for the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Interest
expense
|
$
|
31,726
|
|
|
$
|
36,513
|
|
|
$
|
105,444
|
|
|
$
|
112,702
|
|
Capitalized
interest
|
4,380
|
|
|
5,054
|
|
|
13,683
|
|
|
13,830
|
|
Amortization of
deferred financing costs
|
(2,095)
|
|
|
(1,570)
|
|
|
(8,042)
|
|
|
(5,527)
|
|
Amortization of debt
discount
|
(300)
|
|
|
—
|
|
|
(300)
|
|
|
—
|
|
Cash
Interest
|
$
|
33,711
|
|
|
$
|
39,997
|
|
|
$
|
110,785
|
|
|
$
|
121,005
|
|
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP
financial measures that are used by management and external users
of the Company's financial statements, such as industry analysts,
investors, lenders and rating agencies. The Company defines
Adjusted EBITDA as earnings before interest expense, income taxes,
depreciation, depletion, amortization, exploration expenses and
other similar non-cash or non-recurring charges. The Company
defines Free Cash Flow as Adjusted EBITDA less Cash Interest and
CapEx, excluding capitalized interest. Adjusted EBITDA and Free
Cash Flow are not measures of net income (loss) or cash flows as
determined by United States
generally accepted accounting principles, or GAAP.
The following table presents reconciliations of the GAAP
financial measures of net income (loss) and net cash provided by
(used in) operating activities to the non-GAAP financial measures
of Adjusted EBITDA and Free Cash Flow for the periods
presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Net income
(loss)
|
$
|
(33,942)
|
|
|
$
|
27,055
|
|
|
$
|
(188,328)
|
|
|
$
|
(44,216)
|
|
(Gain) loss on sale
of properties
|
(6)
|
|
|
(172)
|
|
|
1,305
|
|
|
(172)
|
|
(Gain) loss on
extinguishment of debt
|
13,793
|
|
|
—
|
|
|
(4,865)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
(20,847)
|
|
|
(103,637)
|
|
|
55,624
|
|
|
(111,285)
|
|
Derivative
settlements(1)
|
11,786
|
|
|
78,100
|
|
|
115,576
|
|
|
291,436
|
|
Interest expense, net
of capitalized interest
|
31,726
|
|
|
36,513
|
|
|
105,444
|
|
|
112,702
|
|
Depreciation,
depletion and amortization
|
111,948
|
|
|
123,734
|
|
|
356,885
|
|
|
361,430
|
|
Impairment
|
382
|
|
|
80
|
|
|
3,967
|
|
|
24,917
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Exploration
expenses
|
489
|
|
|
327
|
|
|
1,192
|
|
|
2,252
|
|
Stock-based
compensation expenses
|
5,782
|
|
|
5,966
|
|
|
18,761
|
|
|
19,629
|
|
Income tax (benefit)
expense
|
(16,691)
|
|
|
20,392
|
|
|
(96,818)
|
|
|
(17,829)
|
|
Other non-cash
adjustments
|
(26)
|
|
|
883
|
|
|
697
|
|
|
782
|
|
Adjusted
EBITDA
|
104,394
|
|
|
189,241
|
|
|
369,440
|
|
|
643,541
|
|
Cash
Interest
|
(33,711)
|
|
|
(39,997)
|
|
|
(110,785)
|
|
|
(121,005)
|
|
Capital
expenditures(2)
|
(78,453)
|
|
|
(78,053)
|
|
|
(297,696)
|
|
|
(519,566)
|
|
Capitalized
interest
|
4,380
|
|
|
5,054
|
|
|
13,683
|
|
|
13,830
|
|
Free Cash
Flow
|
$
|
(3,390)
|
|
|
$
|
76,245
|
|
|
$
|
(25,358)
|
|
|
$
|
16,800
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
32,018
|
|
|
$
|
50,451
|
|
|
$
|
123,419
|
|
|
$
|
280,337
|
|
Derivative
settlements(1)
|
11,786
|
|
|
78,100
|
|
|
115,576
|
|
|
291,436
|
|
Interest expense, net
of capitalized interest
|
31,726
|
|
|
36,513
|
|
|
105,444
|
|
|
112,702
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Exploration
expenses
|
489
|
|
|
327
|
|
|
1,192
|
|
|
2,252
|
|
Deferred financing
costs amortization and other
|
(3,622)
|
|
|
(2,409)
|
|
|
(10,174)
|
|
|
(7,468)
|
|
Changes in working
capital
|
32,023
|
|
|
25,376
|
|
|
33,286
|
|
|
(40,395)
|
|
Other non-cash
adjustments
|
(26)
|
|
|
883
|
|
|
697
|
|
|
782
|
|
Adjusted
EBITDA
|
104,394
|
|
|
189,241
|
|
|
369,440
|
|
|
643,541
|
|
Cash
Interest
|
(33,711)
|
|
|
(39,997)
|
|
|
(110,785)
|
|
|
(121,005)
|
|
Capital
expenditures(2)
|
(78,453)
|
|
|
(78,053)
|
|
|
(297,696)
|
|
|
(519,566)
|
|
Capitalized
interest
|
4,380
|
|
|
5,054
|
|
|
13,683
|
|
|
13,830
|
|
Free Cash
Flow
|
$
|
(3,390)
|
|
|
$
|
76,245
|
|
|
$
|
(25,358)
|
|
|
$
|
16,800
|
|
___________________
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(2)
|
CapEx reflected in
the table above differs from the amounts shown in the statement of
cash flows in the Company's condensed consolidated financial
statements because amounts reflected in the table above include
changes in accrued liabilities from the previous reporting period
for capital expenditures, while the amounts presented in the
statement of cash flows are presented on a cash basis.
|
The following tables present reconciliations of the GAAP
financial measure of income (loss) before income taxes to the
non-GAAP financial measure of Adjusted EBITDA for the Company's
three reportable business segments on a gross basis for the periods
presented:
Exploration and
Production
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Income (loss)
before income taxes
|
$
|
(66,333)
|
|
|
$
|
29,070
|
|
|
$
|
(331,075)
|
|
|
$
|
(104,102)
|
|
(Gain) loss on sale
of properties
|
(6)
|
|
|
(172)
|
|
|
1,663
|
|
|
(172)
|
|
(Gain) loss on
extinguishment of debt
|
13,793
|
|
|
—
|
|
|
(4,865)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
(20,847)
|
|
|
(103,637)
|
|
|
55,624
|
|
|
(111,285)
|
|
Derivative
settlements(1)
|
11,786
|
|
|
78,100
|
|
|
115,576
|
|
|
291,436
|
|
Interest expense, net
of capitalized interest
|
31,726
|
|
|
36,513
|
|
|
105,444
|
|
|
112,702
|
|
Depreciation,
depletion and amortization
|
109,668
|
|
|
122,075
|
|
|
346,240
|
|
|
357,664
|
|
Impairment
|
382
|
|
|
80
|
|
|
1,536
|
|
|
24,917
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Exploration
expenses
|
489
|
|
|
327
|
|
|
1,192
|
|
|
2,252
|
|
Stock-based
compensation expenses
|
5,570
|
|
|
5,761
|
|
|
17,495
|
|
|
19,276
|
|
Other non-cash
adjustments
|
(26)
|
|
|
883
|
|
|
697
|
|
|
782
|
|
Adjusted
EBITDA
|
$
|
86,202
|
|
|
$
|
169,000
|
|
|
$
|
309,527
|
|
|
$
|
597,365
|
|
___________________
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
Well
Services
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Income before
income taxes
|
$
|
1,577
|
|
|
$
|
10,950
|
|
|
$
|
3,462
|
|
|
$
|
29,588
|
|
Depreciation,
depletion and amortization
|
3,478
|
|
|
4,904
|
|
|
11,605
|
|
|
14,430
|
|
Stock-based
compensation expenses
|
354
|
|
|
544
|
|
|
1,253
|
|
|
1,530
|
|
Adjusted
EBITDA
|
$
|
5,409
|
|
|
$
|
16,398
|
|
|
$
|
16,320
|
|
|
$
|
45,548
|
|
Midstream
Services
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Income before
income taxes
|
$
|
16,065
|
|
|
$
|
18,828
|
|
|
$
|
49,262
|
|
|
$
|
44,039
|
|
Gain on sale of
properties
|
—
|
|
|
—
|
|
|
(358)
|
|
|
—
|
|
Depreciation,
depletion and amortization
|
1,909
|
|
|
1,509
|
|
|
5,325
|
|
|
4,070
|
|
Impairment
|
—
|
|
|
—
|
|
|
2,431
|
|
|
—
|
|
Stock-based
compensation expenses
|
218
|
|
|
206
|
|
|
661
|
|
|
529
|
|
Adjusted
EBITDA
|
$
|
18,192
|
|
|
$
|
20,543
|
|
|
$
|
57,321
|
|
|
$
|
48,638
|
|
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss)
Per Share are supplemental non-GAAP financial measures that are
used by management and external users of the Company's financial
statements, such as industry analysts, investors, lenders and
rating agencies. The Company defines Adjusted Net Income (Loss) as
net income (loss) after adjusting first for (1) the impact of
certain non-cash and non-recurring items, including non-cash
changes in the fair value of derivative instruments, impairment,
and other similar non-cash and non-recurring charges, and then
(2) the non-cash and non-recurring items' impact on taxes
based on the Company's effective tax rate applicable to those
adjusting items in the same period. Adjusted Net Income (Loss) is
not a measure of net income (loss) as determined by GAAP. The
Company defines Adjusted Diluted Earnings (Loss) Per Share as
Adjusted Net Income (Loss) divided by diluted weighted average
shares outstanding.
The following table presents reconciliations of the GAAP
financial measure of net income (loss) to the non-GAAP financial
measure of Adjusted Net Income (Loss) and the GAAP financial
measure of diluted earnings (loss) per share to the non-GAAP
financial measure of Adjusted Diluted Earnings (Loss) Per Share for
the periods presented:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In thousands, except per share data)
|
Net income
(loss)
|
$
|
(33,942)
|
|
|
$
|
27,055
|
|
|
$
|
(188,328)
|
|
|
$
|
(44,216)
|
|
(Gain) loss on sale
of properties
|
(6)
|
|
|
(172)
|
|
|
1,305
|
|
|
(172)
|
|
(Gain) loss on
extinguishment of debt
|
13,793
|
|
|
—
|
|
|
(4,865)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
(20,847)
|
|
|
(103,637)
|
|
|
55,624
|
|
|
(111,285)
|
|
Derivative
settlements(1)
|
11,786
|
|
|
78,100
|
|
|
115,576
|
|
|
291,436
|
|
Impairment
|
382
|
|
|
80
|
|
|
3,967
|
|
|
24,917
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Amortization of
deferred financing costs(2)
|
2,095
|
|
|
1,570
|
|
|
8,042
|
|
|
5,526
|
|
Amortization of debt
discount
|
300
|
|
|
—
|
|
|
300
|
|
|
—
|
|
Other non-cash
adjustments
|
(26)
|
|
|
883
|
|
|
697
|
|
|
782
|
|
Tax
impact(3)
|
(2,798)
|
|
|
8,668
|
|
|
(67,598)
|
|
|
(80,447)
|
|
Adjusted Net
Income (Loss)
|
$
|
(29,263)
|
|
|
$
|
12,547
|
|
|
$
|
(75,280)
|
|
|
$
|
90,436
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
$
|
(0.19)
|
|
|
$
|
0.20
|
|
|
$
|
(1.09)
|
|
|
$
|
(0.35)
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt
|
0.08
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
(0.12)
|
|
|
(0.76)
|
|
|
0.32
|
|
|
(0.87)
|
|
Derivative
settlements(1)
|
0.07
|
|
|
0.57
|
|
|
0.67
|
|
|
2.28
|
|
Impairment
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.19
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Amortization of
deferred financing costs(2)
|
0.01
|
|
|
0.01
|
|
|
0.05
|
|
|
0.04
|
|
Amortization of debt
discount
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other non-cash
adjustments
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Tax
impact(3)
|
(0.02)
|
|
|
0.06
|
|
|
(0.39)
|
|
|
(0.62)
|
|
Adjusted Diluted
Earnings (Loss) Per Share
|
$
|
(0.17)
|
|
|
$
|
0.09
|
|
|
$
|
(0.44)
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
177,120
|
|
|
137,014
|
|
|
172,360
|
|
|
127,827
|
|
|
|
|
|
|
|
|
|
Effective tax rate
applicable to adjustment items
|
37.4
|
%
|
|
37.4
|
%
|
|
37.4
|
%
|
|
37.4
|
%
|
___________________
|
(1)
|
Cash settlements
represent the cumulative gains and losses on the Company's
derivative instruments for the periods presented and do not include
a recovery of costs that were paid to acquire or modify the
derivative instruments that were settled.
|
(2)
|
As of September 30,
2016, Adjusted Net Income (Loss) includes the non-cash adjustment
for amortization of deferred financing costs. Comparative periods
have been conformed. The amortization of deferred financing costs
are included in interest expense on the Company's Condensed
Consolidated Statement of Operations. For the nine months ended
September 30, 2016 and 2015, the amortization of deferred financing
costs included $1.8 million and $0.5 million, respectively, for
unamortized deferred financing costs related to the revolving
credit facility, which were written off in proportion to the
decreases in the borrowing base.
|
(3)
|
The tax impact is
computed utilizing the Company's effective tax rate applicable to
the adjustments for certain non-cash and non-recurring
items.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-september-30-2016-earnings-300358668.html
SOURCE Oasis Petroleum Inc.