Oasis Petroleum’s 1Q16 Earnings: In Line with Estimates
Why Did Oasis Petroleum Stock Rise 9% after 1Q16 Earnings?
Oasis Petroleum’s 1Q16 earnings and revenue
Oasis Petroleum (OAS) reported its 1Q16 earnings on May 9, 2016, after the Market closed. The company announced adjusted revenue of ~$203 million. Wall Street analysts’ consensus estimate for revenue was ~$195 million. OAS’s 1Q16 revenue was ~13% higher than its 1Q15 revenue of ~$180 million.
OAS’s 1Q16 adjusted EPS (earnings per share) was -$0.18, in line with analysts’ consensus estimates of -$0.17. OAS’s 1Q15 EPS was $0.28.
Upstream peers Whiting Petroleum (WLL), PDC Energy (PDCE), and EP Energy (EPE) reported 1Q16 adjusted EPS of -$0.85, -$0.22, and $0.19, respectively. WLL, OAS, and PDCE make up ~1.5% of the iShares US Oil & Gas Exploration & Production ETF (IEO).
Oasis Petroleum’s 2015 earnings and revenue recap
OAS reported adjusted EPS of $0.72 for fiscal 2015. Its EPS in 2014 was $2.22 per share. OAS’s 2015 revenue came in at ~$1.2 billion against ~$1.4 billion in 2014.
Key management comments
Thomas Nusz, Oasis’s chief executive officer, said in the 1Q16 earnings release, “We were free cash flow positive again in the first quarter of 2016, our fourth in a row, including OMS CapEx of $35 million. This is a significant financial accomplishment supported by our operational execution. As we look forward, we remain focused on solid execution and continuing to improve our capital efficiency, while continuing to retain optionality around activity levels and all capital allocation alternatives.”
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