HOUSTON, Feb. 22, 2017 /PRNewswire/ -- Oasis
Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today
announced financial and operational results for the quarter and
year ended December 31, 2016 and provided its 2017
outlook.
Highlights
- Average daily production was 50,372 barrels of oil equivalent
per day ("Boepd") in 2016 and 53,150 for the fourth quarter of
2016, despite challenging weather conditions in December.
Production immediately resumed to estimated year-end 2016 exit
levels of 62,000 Boepd during the first week of January 2017, as the harsh weather subsided.
- Core inventory increased by 27%, from 607 gross undeveloped
locations at December 31, 2015 to 770
gross undeveloped locations at December, 31 2016. Additionally,
extended core inventory increased to 844 gross undeveloped
locations as of December 31,
2016.
- Due to increased well performance and updated activity plans,
the Company is revising its 2017 and 2018 year-end exit rate
guidance to 72,000 Boepd and over 83,000 Boepd, respectively.
Production growth in 2017 and 2018 is expected to be within cash
flow.
- Closed on an accretive acquisition of approximately 55,000 net
acres on December 1, 2016 in the
Williston Basin for a purchase price of $765.8 million, subject to further customary
post-close purchase price adjustments.
- Completed and brought online the Company's natural gas
processing plant and other midstream infrastructure in Wild Basin.
Oasis Midstream Services ("OMS") continues to play a strategic role
in the Company's ability to drive operational efficiencies, lower
costs structures, and maintain volumes during periods of
challenging weather conditions.
- Increased net proved oil and natural gas reserves at
December 31, 2016 by 40% to 305.1
MMBoe, which included an increase of almost 30% in net proved
developed reserves and more than 60% in net proved undeveloped
reserves year over year.
- Net cash provided by operating activities was $228.0 million for the year ended December 31, 2016 and $104.6 million for the fourth quarter of 2016.
Adjusted EBITDA, a non-GAAP financial measure, was $500.3 million for the year ended December 31, 2016 and $130.9 million for the fourth quarter of 2016.
For a definition of Adjusted EBITDA and a reconciliation of
Adjusted EBITDA to net loss and net cash provided by operating
activities, see "Non-GAAP Financial Measures" below.
"Oasis continues to deliver industry leading performance across
a top tier acreage position among oil resource plays in
North America," said Thomas B. Nusz, Oasis' Chairman and Chief
Executive Officer. "Despite the challenging commodity environment
for most of 2016, the team drove down well costs and operating
expenses while making significant strides on well performance. The
net result has brought our capital efficiency to all-time
records. With that momentum, we are increasing activity in
2017, as we already have one third-party completion crew working
outside of Wild Basin, completing DUCs in the core.
Additionally, we continue to expect to bring on two additional rigs
in the middle of the year and another rig early in 2018. Under our
current plan, we believe we can be free cash flow positive at
current strip pricing in both 2017 and 2018."
Mr. Nusz added, "In the fourth quarter of 2016 we completed
three 10 million pound slickwater wells in Wild Basin and now have
eight months of data on a 20 million pound slickwater job that we
brought online in June. We continue to see encouraging early
time results from these latest completion tests and from tests done
by our peers. Early data implies EUR increases of 25% or greater
above our previous 4 million pound slickwater well designs.
Accordingly, our completion plan for 2017 is migrating towards
higher sand loadings and assumes an average frac size of
approximately 10 million pounds of sand across approximately 50
stages."
"We have also continued to realize operational efficiencies as
we develop our midstream infrastructure," said Taylor Reid, Oasis' President and Chief
Operating Officer. "Our Wild Basin project came online in the
fourth quarter and has been a major contributor to the success of
the company. We plan to continue developing the infrastructure in
2017, including the acceleration of certain projects. We also plan
to build additional midstream capacity in our other systems outside
of Wild Basin, as we accelerate activity. Accordingly, we plan to
spend $110 million on infrastructure
capital in 2017. Our investment in OMS is accretive to our
shareholders and is expected to increase OMS EBITDA to $155 million annualized by the fourth quarter of
2017."
Inventory and Leasehold Update
Oasis' total inventory increased to 3,073 gross locations, of
which 770 locations are considered core, as of December 31, 2016. Core inventory increased by
27%, from 607 gross undeveloped locations at December 31, 2015 to 770 gross undeveloped
locations at December, 31 2016. Additionally, extended core
inventory increased to 844 gross undeveloped locations as of
December 31, 2016. The Company had 83
gross operated wells awaiting completion at December 31, 2016.
Oasis ended the year with a leasehold position of 517,801 total
net acres in the Williston Basin, primarily targeting the Bakken
and Three Forks formations. In addition, the Company increased its
acreage that is held by production to 484,321 net acres as of
December 31, 2016.
2017 Plan
Highlights for 2017 include:
- $605 million total CapEx
budget
- Completing 76 gross (51.7 net) operated wells in 2017
- Increasing rig count from two rigs in Wild Basin to four rigs
running across the core
- Investing $110 million in OMS
capital, focused on Wild Basin gathering systems, and connecting
wells that come online outside of Wild Basin
Metric
|
2017
Range
|
Production (Boepd) -
full year 2017
|
65,500 to
70,500
|
Full Year Financial
Metrics
|
|
LOE ($ per
Boe)
|
$6.75 to
$7.75
|
Marketing,
transportation and gathering ("MT&G") ($ per
Boe)(1)
|
$1.90 to
$2.20
|
General and
administrative ("G&A") ($ in millions)(2)
|
$95 to
$100
|
Production taxes (%
of oil and gas revenue)
|
8.7% to
9.0%
|
CapEx Budget ($ in
millions)
|
|
Drilling and
completion
|
$410
|
Midstream
|
$110
|
Other(3)
|
$85
|
|
|
(1)
|
Excludes the effect
of non-cash valuation charges.
|
(2)
|
Includes non-cash
amortization of restricted stock of $28 to $30 million.
|
(3)
|
Includes other
exploration and production ("E&P") CapEx, capitalized interest,
OWS and administrative capital.
|
Due to increased well performance and updated activity plans,
the Company is revising its 2017 and 2018 year-end exit rate
guidance to 72,000 Boepd and over 83,000 Boepd, respectively.
Production growth in 2017 and 2018 is expected to be within cash
flow.
Operational and Financial Update
Select operational and financial statistics are included in the
following table for the periods presented:
|
Quarter
Ended:
|
|
Year
Ended:
|
|
12/31/2016
|
|
9/30/2016
|
|
12/31/2016
|
|
12/31/2015
|
Production
data:
|
|
|
|
|
|
|
|
Oil (Bopd)
|
42,707
|
|
|
39,439
|
|
|
41,459
|
|
|
44,084
|
|
Natural gas
(MMcfpd)
|
62,657
|
|
|
54,421
|
|
|
53,478
|
|
|
38,360
|
|
Total production
(Boepd)
|
53,150
|
|
|
48,509
|
|
|
50,372
|
|
|
50,477
|
|
Percent
Oil
|
80.4
|
%
|
|
81.3
|
%
|
|
82.3
|
%
|
|
87.3
|
%
|
Average sales
prices:
|
|
|
|
|
|
|
|
Oil, without
derivative settlements ($ per Bbl)(1)
|
$
|
44.57
|
|
|
$
|
40.54
|
|
|
$
|
38.64
|
|
|
$
|
43.04
|
|
Differential to NYMEX
West Texas Intermediate crude oil index prices ("WTI") ($ per
Bbl)
|
4.91
|
|
|
4.39
|
|
|
4.76
|
|
|
5.72
|
|
Oil, with derivative
settlements ($ per Bbl)(1)(2)(3)
|
46.20
|
|
|
43.79
|
|
|
46.68
|
|
|
66.06
|
|
Derivative
settlements - net cash receipts ($ in
millions)(3)
|
6.4
|
|
|
11.8
|
|
|
122.0
|
|
|
370.4
|
|
Natural gas ($ per
Mcf)(4)
|
2.98
|
|
|
1.84
|
|
|
1.99
|
|
|
2.08
|
|
Selected financial
data ($ in millions):
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Oil
|
$
|
183.5
|
|
|
$
|
149.0
|
|
|
$
|
596.6
|
|
|
$
|
692.5
|
|
Natural
gas
|
17.2
|
|
|
9.2
|
|
|
38.9
|
|
|
29.2
|
|
Midstream
|
13.0
|
|
|
8.5
|
|
|
35.4
|
|
|
23.8
|
|
Well
services
|
4.3
|
|
|
10.6
|
|
|
33.8
|
|
|
44.3
|
|
Total
revenues
|
$
|
218.0
|
|
|
$
|
177.3
|
|
|
$
|
704.7
|
|
|
$
|
789.8
|
|
Net cash provided
by operating activities
|
$
|
104.6
|
|
|
$
|
32.0
|
|
|
$
|
228.0
|
|
|
$
|
359.8
|
|
Adjusted
EBITDA
|
$
|
130.9
|
|
|
$
|
104.4
|
|
|
$
|
500.3
|
|
|
$
|
820.2
|
|
Select operating
expenses:
|
|
|
|
|
|
|
|
LOE
|
$
|
37.2
|
|
|
$
|
35.7
|
|
|
$
|
135.4
|
|
|
$
|
144.5
|
|
MT&G(5)
|
8.2
|
|
|
7.0
|
|
|
29.5
|
|
|
29.8
|
|
Bulk
purchases
|
8.4
|
|
|
1.9
|
|
|
10.3
|
|
|
—
|
|
Non-cash valuation
charges
|
(0.1)
|
|
|
—
|
|
|
0.6
|
|
|
1.8
|
|
Production
taxes
|
16.8
|
|
|
14.6
|
|
|
56.6
|
|
|
69.6
|
|
Midstream
|
2.9
|
|
|
2.6
|
|
|
9.0
|
|
|
6.2
|
|
Well
services
|
1.7
|
|
|
5.5
|
|
|
17.0
|
|
|
21.8
|
|
Depreciation,
depletion and amortization ("DD&A")
|
119.4
|
|
|
111.9
|
|
|
476.3
|
|
|
485.3
|
|
Total select
operating expenses
|
$
|
194.5
|
|
|
$
|
179.2
|
|
|
$
|
734.7
|
|
|
$
|
759.0
|
|
Select operating
expenses data:
|
|
|
|
|
|
|
|
LOE ($ per
Boe)
|
$
|
7.60
|
|
|
$
|
8.00
|
|
|
$
|
7.35
|
|
|
$
|
7.84
|
|
MT&G ($ per
Boe)(5)
|
1.66
|
|
|
1.58
|
|
|
1.60
|
|
|
1.62
|
|
DD&A ($ per
Boe)
|
24.43
|
|
|
25.08
|
|
|
25.84
|
|
|
26.34
|
|
E&P G&A ($
per Boe)
|
4.29
|
|
|
4.31
|
|
|
4.28
|
|
|
4.50
|
|
Production taxes
(% of oil and gas revenue)
|
8.7
|
%
|
|
9.3
|
%
|
|
9.0
|
%
|
|
9.6
|
%
|
|
|
(1)
|
For the three months
and year ended December 31, 2016, average sales prices for oil are
calculated using total oil revenues, excluding bulk oil sales
of $8.4 million and $10.3 million, respectively, 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 and bulk oil purchases.
|
G&A expenses for the fourth quarter of 2016 totaled
$23.9 million, and for the year ended
December 31, 2016, G&A totaled $93.0 million. G&A expenses for the Company's
E&P segment totaled $21.0 million
in the fourth quarter of 2016 and $79.0
million in the full year of 2016. E&P G&A expenses
were $4.29 per Boe in the fourth
quarter of 2016 and $4.28 per Boe in
the full year of 2016. Amortization of stock-based
compensation, which is included in G&A expenses, was
$5.3 million, or $1.09 per Boe, in the fourth quarter
of 2016 and $24.1 million, or
$1.31 per Boe, in the full year of
2016.
Interest expense was $34.9 million
for the fourth quarter of 2016 and $140.3
million for the full year of 2016. Interest expense in the
fourth quarter and full year of 2016 includes amortization of the
debt discount related to the Company's senior unsecured convertible
notes issued in September 2016 of
$2.4 million and $2.7 million, respectively. Capitalized interest
totaled $3.2 million for the fourth
quarter of 2016 and $16.8 million for
the full year of 2016. Cash interest totaled $33.9 million for the fourth quarter of 2016 and
$144.7 million for the full year 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 December 31, 2016, the Company
recorded an income tax benefit of $31.7
million, resulting in an effective tax rate of 36.7% as a
percentage of its pre-tax loss for the quarter. The Company's
income tax benefit for the year ended December 31, 2016 was
recorded at $128.5 million, or 34.6%
of its pre-tax loss.
The Company reported net loss of $54.7
million in the fourth quarter of 2016. For the full year of
2016, Oasis reported a net loss of $243.0
million. Excluding certain non-cash items and their tax
effect in the fourth quarter of 2016 and full year of 2016,
Adjusted Net Loss (non-GAAP) was $16.4 million,
or $0.08 per diluted share, and $91.7 million, or $0.50 per diluted share, respectively. For a
definition of Adjusted Net Loss and a reconciliation of net loss to
Adjusted Net Loss, see "Non-GAAP Financial Measures" below.
The Company completed and placed on production 57 gross (37.6
net) operated wells during 2016 and 12 gross (9.3 net) during the
fourth quarter of 2016.
Capital Expenditures
Excluding acquisitions, capital expenditures ("CapEx") were
$400.0 million for the year
ended December 31, 2016, directly in-line with the Company's
guidance throughout the year.
The following table depicts the Company's CapEx for the year
ended December 31, 2016:
|
2016
|
CapEx ($ in
millions)
|
|
E&P (excluding
acquisitions)
|
$
|
208.4
|
|
Midstream
|
170.4
|
|
Other(1)
|
21.2
|
|
Total CapEx before
acquisitions
|
400.0
|
|
Acquisitions
|
781.5
|
|
Total
CapEx(2)
|
$
|
1,181.5
|
|
|
|
(1)
|
Other CapEx includes
such items as OWS CapEx, administrative capital and capitalized
interest.
|
(2)
|
CapEx (including
acquisitions) reflected in the table above differs from the amounts
shown in the statement of cash flows in the Company's consolidated
financial statements because amounts reflected in the table above
include changes in accrued liabilities from the previous reporting
period for CapEx, while the amounts presented in the statement of
cash flows are presented on a cash basis.
|
Estimated Net Proved Reserves
The Company's estimated net proved reserves and related PV-10 at
December 31, 2016 are based on reports prepared by DeGolyer
and MacNaughton, independent reserve engineers. In preparing its
reports, DeGolyer and MacNaughton evaluated properties representing
all of the Company's PV-10 at December 31, 2016 in accordance
with rules and regulations of the Securities and Exchange
Commission ("SEC") applicable to companies involved in oil and
natural gas producing activities (the "2016 Report"). The following
reserve information does not give any effect to or reflect Oasis'
commodity hedges and utilizes an average WTI oil price of
$42.60 per barrel and an average
natural gas price of $2.47 per MMBtu.
These prices were adjusted by lease for quality, transportation
fees, geographical differentials, marketing bonuses or deductions
and other factors affecting the price received at the wellhead. All
of the Company's estimated proved undeveloped reserves at
December 31, 2016 are expected to be developed within the next
five years. Oasis' estimated net proved oil and natural gas
reserves at December 31, 2016 were 305.1 MMBoe and consisted
of 236.6 million barrels ("MMBbls") of oil and 411.1 billion cubic
feet ("Bcf") of natural gas. The table below summarizes the
Company's estimated net proved reserves and related PV-10 at
December 31, 2016:
|
|
December 31,
2016
|
|
|
Net Estimated
Reserves (MMBoe)
|
|
PV-10(1) (in millions)
|
Proved
Developed
|
|
190.6
|
|
|
$
|
1,887.1
|
|
Undeveloped
|
|
114.5
|
|
|
740.7
|
|
Total
Proved
|
|
305.1
|
|
|
$
|
2,627.8
|
|
|
|
(1)
|
PV-10 is a non-GAAP
financial measure and generally differs from Standardized Measure,
the most directly comparable GAAP financial measure, because it
does not include the effect of income taxes on discounted future
net cash flows.
|
Liquidity and Balance Sheet
As of December 31, 2016, Oasis had cash and cash
equivalents of $11.2 million. In
addition, Oasis had $363.0 million of
borrowings and $12.3 million of
outstanding letters of credit issued under its revolving credit
facility, resulting in an unused borrowing base capacity of
$774.7 million as of
December 31, 2016.
In 2016, Oasis completed a $300.0
million public offering of senior unsecured convertible
notes due 2023 and repurchased an aggregate principal amount of
$447.0 million of the Company's
outstanding senior unsecured notes, reducing annual cash interest
by more than $20 million.
Hedging Activity
As of February 22, 2017, the Company had the following
outstanding commodity derivate contracts, all of which are priced
relative to WTI crude oil index prices and settle monthly:
Volume in
Mbopd
|
|
1H17
|
|
2H17
|
|
1H18
|
|
2H18
|
Swaps
|
|
|
|
|
|
|
|
|
Volume
|
|
19.0
|
|
|
19.0
|
|
|
6.0
|
|
|
5.0
|
|
Price
|
|
$
|
49.19
|
|
|
$
|
49.93
|
|
|
$
|
53.89
|
|
|
$
|
53.88
|
|
Collars
|
|
|
|
|
|
|
|
|
Volume
|
|
8.0
|
|
|
8.0
|
|
|
1.0
|
|
|
1.0
|
|
Floor
|
|
$
|
46.25
|
|
|
$
|
46.25
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
Ceiling
|
|
$
|
54.37
|
|
|
$
|
54.37
|
|
|
$
|
55.70
|
|
|
$
|
55.70
|
|
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
|
|
|
33.0
|
|
|
7.0
|
|
|
6.0
|
|
Additionally, the Company has swaps priced off of NYMEX Natural
Gas of 15,000 mmbtu/d at a weighted average price of $3.32 in 2017 and 2,000 mmbtu/d at a weighted
average price of $2.99 in 2018. The
December 2016 crude oil derivative
contracts settled at $3.0 million and
will be included in the Company's first quarter of 2017 derivative
settlements.
Conference Call Information
Investors, analysts and
other interested parties are invited to listen to the conference
call:
Date: Thursday, February 23, 2017
Time: 10:00 a.m. Central Time
Dial-in: 888-317-6003
Intl. Dial in: 412-317-6061
Conference ID: 8389933
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 Thursday, March 2, 2017 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Replay code: 10100250
The conference call will also be available for replay for
approximately 30 days 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, derivatives activities, 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 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. Financial Statements
|
|
OASIS PETROLEUM
INC.
|
CONSOLIDATED
BALANCE SHEET
|
(Unaudited)
|
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
(In thousands, except share data)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
11,226
|
|
|
$
|
9,730
|
|
Accounts receivable,
net
|
|
204,335
|
|
|
197,409
|
|
Inventory
|
|
10,648
|
|
|
11,072
|
|
Prepaid
expenses
|
|
7,623
|
|
|
7,328
|
|
Derivative
instruments
|
|
362
|
|
|
139,697
|
|
Other current
assets
|
|
4,355
|
|
|
50
|
|
Total current
assets
|
|
238,549
|
|
|
365,286
|
|
Property, plant and
equipment
|
|
|
|
|
Oil and gas
properties (successful efforts method)
|
|
7,296,568
|
|
|
6,284,401
|
|
Other property and
equipment
|
|
618,790
|
|
|
443,265
|
|
Less: accumulated
depreciation, depletion, amortization and impairment
|
|
(1,995,791)
|
|
|
(1,509,424)
|
|
Total property, plant
and equipment, net
|
|
5,919,567
|
|
|
5,218,242
|
|
Assets held for
sale
|
|
—
|
|
|
26,728
|
|
Derivative
instruments
|
|
—
|
|
|
15,776
|
|
Other
assets
|
|
20,516
|
|
|
23,343
|
|
Total
assets
|
|
$
|
6,178,632
|
|
|
$
|
5,649,375
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
4,645
|
|
|
$
|
9,983
|
|
Revenues and
production taxes payable
|
|
139,737
|
|
|
132,356
|
|
Accrued
liabilities
|
|
119,173
|
|
|
167,669
|
|
Accrued interest
payable
|
|
39,004
|
|
|
49,413
|
|
Derivative
instruments
|
|
60,469
|
|
|
—
|
|
Advances from joint
interest partners
|
|
7,597
|
|
|
4,647
|
|
Other current
liabilities
|
|
10,490
|
|
|
6,500
|
|
Total current
liabilities
|
|
381,115
|
|
|
370,568
|
|
Long-term
debt
|
|
2,297,214
|
|
|
2,302,584
|
|
Deferred income
taxes
|
|
513,529
|
|
|
608,155
|
|
Asset retirement
obligations
|
|
48,985
|
|
|
35,338
|
|
Liabilities held for
sale
|
|
—
|
|
|
10,228
|
|
Derivative
instruments
|
|
11,714
|
|
|
—
|
|
Other
liabilities
|
|
2,918
|
|
|
3,160
|
|
Total
liabilities
|
|
3,255,475
|
|
|
3,330,033
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value: 450,000,000 and 300,000,000 shares authorized at
December 31, 2016 and 2015, respectively; 237,201,064 shares issued
and 236,344,172 shares outstanding at December 31, 2016 and
139,583,990 shares issued and 139,076,064 shares outstanding at
December 31, 2015
|
|
2,331
|
|
|
1,376
|
|
Treasury stock, at
cost: 856,892 shares and 507,926 shares at December 31, 2016
and 2015, respectively
|
|
(15,950)
|
|
|
(13,620)
|
|
Additional
paid-in-capital
|
|
2,345,271
|
|
|
1,497,065
|
|
Retained
earnings
|
|
591,505
|
|
|
834,521
|
|
Total stockholders'
equity
|
|
2,923,157
|
|
|
2,319,342
|
|
Total liabilities and
stockholders' equity
|
|
$
|
6,178,632
|
|
|
$
|
5,649,375
|
|
OASIS PETROLEUM
INC.
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In thousands,
except per share data)
|
Revenues
|
|
|
|
|
|
|
|
|
Oil and gas
revenues
|
|
$
|
200,670
|
|
|
$
|
158,433
|
|
|
$
|
635,505
|
|
|
$
|
721,672
|
|
Midstream
revenues
|
|
13,026
|
|
|
6,648
|
|
|
35,406
|
|
|
23,769
|
|
Well services
revenues
|
|
4,295
|
|
|
16,986
|
|
|
33,754
|
|
|
44,294
|
|
Total
revenues
|
|
217,991
|
|
|
182,067
|
|
|
704,665
|
|
|
789,735
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
37,161
|
|
|
31,925
|
|
|
135,444
|
|
|
144,481
|
|
Midstream operating
expenses
|
|
2,908
|
|
|
1,723
|
|
|
9,003
|
|
|
6,198
|
|
Well services
operating expenses
|
|
1,675
|
|
|
6,938
|
|
|
17,009
|
|
|
21,833
|
|
Marketing,
transportation and gathering expenses
|
|
16,467
|
|
|
8,297
|
|
|
40,366
|
|
|
31,610
|
|
Production
taxes
|
|
16,807
|
|
|
15,669
|
|
|
56,565
|
|
|
69,584
|
|
Depreciation,
depletion and amortization
|
|
119,446
|
|
|
123,892
|
|
|
476,331
|
|
|
485,322
|
|
Exploration
expenses
|
|
593
|
|
|
117
|
|
|
1,785
|
|
|
2,369
|
|
Rig
termination
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Impairment
|
|
717
|
|
|
21,364
|
|
|
4,684
|
|
|
46,109
|
|
General and
administrative expenses
|
|
23,921
|
|
|
25,308
|
|
|
93,008
|
|
|
92,498
|
|
Total operating
expenses
|
|
219,695
|
|
|
235,233
|
|
|
834,195
|
|
|
903,899
|
|
Gain (loss) on sale
of properties
|
|
2
|
|
|
—
|
|
|
(1,303)
|
|
|
—
|
|
Operating
loss
|
|
(1,702)
|
|
|
(53,166)
|
|
|
(130,833)
|
|
|
(114,164)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
|
(49,693)
|
|
|
99,091
|
|
|
(105,317)
|
|
|
210,376
|
|
Interest expense, net
of capitalized interest
|
|
(34,861)
|
|
|
(36,946)
|
|
|
(140,305)
|
|
|
(149,648)
|
|
Gain (loss) on
extinguishment of debt
|
|
(124)
|
|
|
—
|
|
|
4,741
|
|
|
—
|
|
Other income
(expense)
|
|
(28)
|
|
|
(3,305)
|
|
|
160
|
|
|
(2,935)
|
|
Total other income
(expense)
|
|
(84,706)
|
|
|
58,840
|
|
|
(240,721)
|
|
|
57,793
|
|
Income (loss) before
income taxes
|
|
(86,408)
|
|
|
5,674
|
|
|
(371,554)
|
|
|
(56,371)
|
|
Income tax benefit
(expense)
|
|
31,720
|
|
|
(1,706)
|
|
|
128,538
|
|
|
16,123
|
|
Net income
(loss)
|
|
$
|
(54,688)
|
|
|
$
|
3,968
|
|
|
$
|
(243,016)
|
|
|
$
|
(40,248)
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.25)
|
|
|
$
|
0.03
|
|
|
$
|
(1.32)
|
|
|
$
|
(0.31)
|
|
Diluted
|
|
(0.25)
|
|
|
0.03
|
|
|
(1.32)
|
|
|
(0.31)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
217,332
|
|
|
137,184
|
|
|
183,615
|
|
|
130,186
|
|
Diluted
|
|
217,332
|
|
|
137,184
|
|
|
183,615
|
|
|
130,186
|
|
OASIS PETROLEUM
INC.
|
SELECTED FINANCIAL
AND OPERATIONAL STATS
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating results
($ in thousands):
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Oil
|
|
$
|
183,512
|
|
|
$
|
150,448
|
|
|
$
|
596,580
|
|
|
$
|
692,497
|
|
Natural
gas
|
|
17,158
|
|
|
7,985
|
|
|
38,925
|
|
|
29,175
|
|
Midstream
|
|
13,026
|
|
|
6,648
|
|
|
35,406
|
|
|
23,769
|
|
Well
services
|
|
4,295
|
|
|
16,986
|
|
|
33,754
|
|
|
44,294
|
|
Total
revenues
|
|
$
217,991
|
|
|
$
182,067
|
|
|
$
704,665
|
|
|
$
789,735
|
|
Production
data:
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
|
3,929
|
|
|
3,983
|
|
|
15,174
|
|
|
16,091
|
|
Natural gas
(MMcf)
|
|
5,764
|
|
|
4,062
|
|
|
19,573
|
|
|
14,002
|
|
Oil equivalents
(MBoe)
|
|
4,890
|
|
|
4,660
|
|
|
18,436
|
|
|
18,424
|
|
Average daily
production (Boe/d)
|
|
53,150
|
|
|
50,652
|
|
|
50,372
|
|
|
50,477
|
|
Average sales
prices:
|
|
|
|
|
|
|
|
|
Oil, without
derivative settlements (per Bbl)(1)
|
|
$
|
44.57
|
|
|
$
|
37.77
|
|
|
$
|
38.64
|
|
|
$
|
43.04
|
|
Oil, with derivative
settlements (per Bbl)(1)(2)
|
|
46.20
|
|
|
57.60
|
|
|
46.68
|
|
|
66.06
|
|
Natural gas (per
Mcf)(3)
|
|
2.98
|
|
|
1.97
|
|
|
1.99
|
|
|
2.08
|
|
Costs and expenses
(per Boe of production):
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
$
|
7.60
|
|
|
$
|
6.85
|
|
|
$
|
7.35
|
|
|
$
|
7.84
|
|
Marketing,
transportation and gathering expenses(4)
|
|
1.66
|
|
|
1.57
|
|
|
1.60
|
|
|
1.62
|
|
Production
taxes
|
|
3.44
|
|
|
3.36
|
|
|
3.07
|
|
|
3.78
|
|
Depreciation,
depletion and amortization
|
|
24.43
|
|
|
26.59
|
|
|
25.84
|
|
|
26.34
|
|
General and
administrative expenses
|
|
4.89
|
|
|
5.43
|
|
|
5.04
|
|
|
5.02
|
|
|
|
(1)
|
For the three months
and year ended December 31, 2016, average sales prices for oil are
calculated using total oil revenues, excluding bulk oil sales
of $8.4 million and $10.3 million, respectively, 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 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 and bulk oil purchases.
|
OASIS PETROLEUM
INC.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(243,016)
|
|
|
$
|
(40,248)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
476,331
|
|
|
485,322
|
|
Gain on
extinguishment of debt
|
|
(4,741)
|
|
|
—
|
|
Loss on sale of
properties
|
|
1,303
|
|
|
—
|
|
Impairment
|
|
4,684
|
|
|
46,109
|
|
Deferred income
taxes
|
|
(128,538)
|
|
|
(16,114)
|
|
Derivative
instruments
|
|
105,317
|
|
|
(210,376)
|
|
Stock-based
compensation expenses
|
|
24,103
|
|
|
25,272
|
|
Deferred financing
costs amortization and other
|
|
14,334
|
|
|
12,299
|
|
Working capital and
other changes:
|
|
|
|
|
Change in accounts
receivable, net
|
|
(11,923)
|
|
|
108,461
|
|
Change in
inventory
|
|
254
|
|
|
6,873
|
|
Change in prepaid
expenses
|
|
(295)
|
|
|
1,828
|
|
Change in other
current assets
|
|
(305)
|
|
|
6,489
|
|
Change in other
assets
|
|
(151)
|
|
|
(950)
|
|
Change in accounts
payable and accrued liabilities
|
|
(13,839)
|
|
|
(71,617)
|
|
Change in other
current liabilities
|
|
4,490
|
|
|
6,500
|
|
Change in other
liabilities
|
|
10
|
|
|
(33)
|
|
Net cash provided by
operating activities
|
|
228,018
|
|
|
359,815
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(426,256)
|
|
|
(819,847)
|
|
Acquisitions of oil
and gas properties
|
|
(781,522)
|
|
|
(28,817)
|
|
Proceeds from sale of
properties
|
|
12,333
|
|
|
1,075
|
|
Costs related to sale
of properties
|
|
(310)
|
|
|
—
|
|
Derivative
settlements
|
|
121,977
|
|
|
370,410
|
|
Advances from joint
interest partners
|
|
2,950
|
|
|
(1,969)
|
|
Net cash used in
investing activities
|
|
(1,070,828)
|
|
|
(479,148)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facility
|
|
1,407,000
|
|
|
630,000
|
|
Principal payments on
revolving credit facility
|
|
(1,182,000)
|
|
|
(992,000)
|
|
Repurchase of senior
unsecured notes
|
|
(435,907)
|
|
|
—
|
|
Proceeds from
issuance of senior unsecured convertible notes
|
|
300,000
|
|
|
—
|
|
Deferred financing
costs
|
|
(9,127)
|
|
|
(14,632)
|
|
Proceeds from sale of
common stock
|
|
766,670
|
|
|
462,833
|
|
Purchases of treasury
stock
|
|
(2,330)
|
|
|
(2,949)
|
|
Net cash provided by
financing activities
|
|
844,306
|
|
|
83,252
|
|
Increase (decrease)
in cash and cash equivalents
|
|
1,496
|
|
|
(36,081)
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning of
period
|
|
9,730
|
|
|
45,811
|
|
End of
period
|
|
$
|
11,226
|
|
|
$
|
9,730
|
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for
interest, net of capitalized interest
|
|
$
|
138,248
|
|
|
$
|
145,333
|
|
Cash received for
income tax refunds
|
|
5
|
|
|
5,548
|
|
Supplemental
non-cash transactions:
|
|
|
|
|
Change in accrued
capital expenditures
|
|
$
|
(43,415)
|
|
|
$
|
(260,060)
|
|
Change in asset
retirement obligations
|
|
3,810
|
|
|
3,972
|
|
Note receivable from
divestiture
|
|
4,000
|
|
|
—
|
|
Non-GAAP Financial Measures
Cash Interest
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
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Interest
Expense
|
$
|
34,861
|
|
|
$
|
36,946
|
|
|
$
|
140,305
|
|
|
$
|
149,648
|
|
Capitalized
interest
|
3,165
|
|
|
4,752
|
|
|
16,848
|
|
|
18,582
|
|
Amortization of
deferred financing costs
|
(1,715)
|
|
|
(1,710)
|
|
|
(9,757)
|
|
|
(7,238)
|
|
Amortization of debt
discount
|
(2,409)
|
|
|
—
|
|
|
(2,709)
|
|
|
—
|
|
Cash
Interest
|
$
|
33,902
|
|
|
$
|
39,988
|
|
|
$
|
144,687
|
|
|
$
|
160,992
|
|
Adjusted EBITDA Reconciliations
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
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Net income
(loss)
|
$
|
(54,688)
|
|
|
$
|
3,968
|
|
|
$
|
(243,016)
|
|
|
$
|
(40,248)
|
|
(Gain) loss on sale
of properties
|
(2)
|
|
|
—
|
|
|
1,303
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt
|
124
|
|
|
—
|
|
|
(4,741)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
49,693
|
|
|
(99,091)
|
|
|
105,317
|
|
|
(210,376)
|
|
Derivative
settlements(1)
|
6,401
|
|
|
78,974
|
|
|
121,977
|
|
|
370,410
|
|
Interest expense, net
of capitalized interest
|
34,861
|
|
|
36,946
|
|
|
140,305
|
|
|
149,648
|
|
Depreciation,
depletion and amortization
|
119,446
|
|
|
123,892
|
|
|
476,331
|
|
|
485,322
|
|
Impairment
|
717
|
|
|
21,364
|
|
|
4,684
|
|
|
46,109
|
|
Exploration
expenses
|
593
|
|
|
117
|
|
|
1,785
|
|
|
2,369
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Stock-based
compensation expenses
|
5,342
|
|
|
5,643
|
|
|
24,103
|
|
|
25,272
|
|
Income tax (benefit)
expense
|
(31,720)
|
|
|
1,706
|
|
|
(128,538)
|
|
|
(16,123)
|
|
Other non-cash
adjustments
|
93
|
|
|
3,174
|
|
|
790
|
|
|
3,956
|
|
Adjusted
EBITDA
|
130,860
|
|
|
176,693
|
|
|
500,300
|
|
|
820,234
|
|
Cash
Interest
|
(33,902)
|
|
|
(39,988)
|
|
|
(144,687)
|
|
|
(160,992)
|
|
Capital
expenditures(2)
|
(883,831)
|
|
|
(90,433)
|
|
|
(1,181,527)
|
|
|
(610,000)
|
|
Capitalized
interest
|
3,165
|
|
|
4,752
|
|
|
16,848
|
|
|
18,582
|
|
Free Cash
Flow
|
$
|
(783,708)
|
|
|
$
|
51,024
|
|
|
$
|
(809,066)
|
|
|
$
|
67,824
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
104,599
|
|
|
$
|
79,478
|
|
|
$
|
228,018
|
|
|
$
|
359,815
|
|
Derivative
settlements(1)
|
6,401
|
|
|
78,974
|
|
|
121,977
|
|
|
370,410
|
|
Interest expense, net
of capitalized interest
|
34,861
|
|
|
36,946
|
|
|
140,305
|
|
|
149,648
|
|
Exploration
expenses
|
593
|
|
|
117
|
|
|
1,785
|
|
|
2,369
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Deferred financing
costs amortization and other
|
(4,160)
|
|
|
(4,831)
|
|
|
(14,334)
|
|
|
(12,299)
|
|
Current tax
benefit
|
—
|
|
|
(9)
|
|
|
—
|
|
|
(9)
|
|
Changes in working
capital
|
(11,527)
|
|
|
(17,156)
|
|
|
21,759
|
|
|
(57,551)
|
|
Other non-cash
adjustments
|
93
|
|
|
3,174
|
|
|
790
|
|
|
3,956
|
|
Adjusted
EBITDA
|
130,860
|
|
|
176,693
|
|
|
500,300
|
|
|
820,234
|
|
Cash
Interest
|
(33,902)
|
|
|
(39,988)
|
|
|
(144,687)
|
|
|
(160,992)
|
|
Capital
expenditures(2)
|
(883,831)
|
|
|
(90,433)
|
|
|
(1,181,527)
|
|
|
(610,000)
|
|
Capitalized
interest
|
3,165
|
|
|
4,752
|
|
|
16,848
|
|
|
18,582
|
|
Free Cash
Flow
|
$
|
(783,708)
|
|
|
$
|
51,024
|
|
|
$
|
(809,066)
|
|
|
$
|
67,824
|
|
|
|
|
|
|
|
|
(1)
|
Cash settlements
represent the cumulative gains and losses on 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 (including
acquisitions) reflected in the table above differs from the amounts
shown in the statement of cash flows in the Company's 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. Acquisitions
totaled $768.0 million and $781.5 million for the fourth quarter
and full year 2016, respectively, and $0.1 million and $28.7
million for the fourth quarter and full year 2015,
respectively.
|
Segment Adjusted EBITDA
Reconciliations
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
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Loss before income
taxes
|
$
|
(105,395)
|
|
|
$
|
(14,868)
|
|
|
$
|
(436,469)
|
|
|
$
|
(118,970)
|
|
(Gain) loss on sale
of properties
|
(2)
|
|
|
—
|
|
|
1,661
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt
|
124
|
|
|
—
|
|
|
(4,741)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
49,693
|
|
|
(99,091)
|
|
|
105,317
|
|
|
(210,376)
|
|
Derivative
settlements(1)
|
6,401
|
|
|
78,974
|
|
|
121,977
|
|
|
370,410
|
|
Interest expense, net
of capitalized interest
|
34,861
|
|
|
36,946
|
|
|
140,305
|
|
|
149,648
|
|
Depreciation,
depletion and amortization
|
117,346
|
|
|
122,028
|
|
|
467,894
|
|
|
479,693
|
|
Impairment
|
717
|
|
|
21,364
|
|
|
2,253
|
|
|
46,109
|
|
Exploration
expenses
|
593
|
|
|
117
|
|
|
1,785
|
|
|
2,369
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Stock-based
compensation expenses
|
5,152
|
|
|
5,486
|
|
|
23,346
|
|
|
24,762
|
|
Other non-cash
adjustments
|
21
|
|
|
2,937
|
|
|
718
|
|
|
3,719
|
|
Adjusted
EBITDA
|
$
|
109,511
|
|
|
$
|
153,893
|
|
|
$
|
424,046
|
|
|
$
|
751,259
|
|
|
|
|
|
|
|
|
(1)
|
Cash settlements
represent the cumulative gains and losses on 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.
|
Midstream
Services
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Income before
income taxes
|
$
|
19,132
|
|
|
$
|
15,828
|
|
|
$
|
68,394
|
|
|
$
|
59,867
|
|
Gain on sale of
properties
|
—
|
|
|
—
|
|
|
(358)
|
|
|
—
|
|
Depreciation,
depletion and amortization
|
3,200
|
|
|
1,695
|
|
|
8,525
|
|
|
5,764
|
|
Impairment
|
—
|
|
|
—
|
|
|
2,431
|
|
|
—
|
|
Stock-based
compensation expenses
|
249
|
|
|
162
|
|
|
911
|
|
|
692
|
|
Other non-cash
adjustments
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
22,591
|
|
|
$
|
17,685
|
|
|
$
|
79,913
|
|
|
$
|
66,323
|
|
|
|
Well
Services
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In
thousands)
|
Income before
income taxes
|
$
|
10
|
|
|
$
|
19,608
|
|
|
$
|
3,471
|
|
|
$
|
49,197
|
|
Depreciation,
depletion and amortization
|
3,287
|
|
|
4,643
|
|
|
14,892
|
|
|
19,073
|
|
Stock-based
compensation expenses
|
262
|
|
|
422
|
|
|
1,515
|
|
|
1,952
|
|
Other non-cash
adjustments
|
62
|
|
|
237
|
|
|
62
|
|
|
237
|
|
Adjusted
EBITDA
|
$
|
3,621
|
|
|
$
|
24,910
|
|
|
$
|
19,940
|
|
|
$
|
70,459
|
|
Adjusted Net Income (Loss) and Adjusted
Diluted Earnings (Loss) Per Share
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
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In thousands,
except per share data)
|
Net income
(loss)
|
$
|
(54,688)
|
|
|
$
|
3,968
|
|
|
$
|
(243,016)
|
|
|
$
|
(40,248)
|
|
(Gain) loss on sale
of properties
|
(2)
|
|
|
—
|
|
|
1,303
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt
|
124
|
|
|
—
|
|
|
(4,741)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
49,693
|
|
|
(99,091)
|
|
|
105,317
|
|
|
(210,376)
|
|
Derivative
settlements(1)
|
6,401
|
|
|
78,974
|
|
|
121,977
|
|
|
370,410
|
|
Impairment
|
717
|
|
|
21,364
|
|
|
4,684
|
|
|
46,109
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
3,895
|
|
Amortization of
deferred financing costs(2)
|
1,715
|
|
|
1,710
|
|
|
9,757
|
|
|
7,238
|
|
Amortization of debt
discount
|
2,409
|
|
|
—
|
|
|
2,709
|
|
|
—
|
|
Other non-cash
adjustments
|
93
|
|
|
3,174
|
|
|
790
|
|
|
3,956
|
|
Tax
impact(3)
|
(22,882)
|
|
|
(2,292)
|
|
|
(90,480)
|
|
|
(82,697)
|
|
Adjusted Net
Income (Loss)
|
$
|
(16,420)
|
|
|
$
|
7,807
|
|
|
$
|
(91,700)
|
|
|
$
|
98,287
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.25)
|
|
|
$
|
0.03
|
|
|
$
|
(1.32)
|
|
|
$
|
(0.31)
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
Net (gain) loss on
derivative instruments
|
0.23
|
|
|
(0.72)
|
|
|
0.57
|
|
|
(1.62)
|
|
Derivative
settlements(1)
|
0.03
|
|
|
0.58
|
|
|
0.66
|
|
|
2.85
|
|
Impairment
|
—
|
|
|
0.16
|
|
|
0.03
|
|
|
0.35
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Amortization of
deferred financing costs(2)
|
0.01
|
|
|
0.01
|
|
|
0.05
|
|
|
0.06
|
|
Amortization of debt
discount
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Other non-cash
adjustments
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.03
|
|
Tax
impact(3)
|
(0.11)
|
|
|
(0.02)
|
|
|
(0.48)
|
|
|
(0.64)
|
|
Adjusted Diluted
Earnings (Loss) Per Share
|
$
|
(0.08)
|
|
|
$
|
0.06
|
|
|
$
|
(0.50)
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
217,332
|
|
|
137,184
|
|
|
183,615
|
|
|
130,186
|
|
|
|
|
|
|
|
|
|
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 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 December 31,
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
is included in interest expense on the Company's Consolidated
Statement of Operations.
|
(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-and-year-ending-december-31-2016-earnings-and-provides-an-operational-update-and-its-2017-outlook-300412076.html
SOURCE Oasis Petroleum Inc.