U.S. Markets closed

Oasis Petroleum (OAS) Reports Wider-Than-Expected Q3 Loss

Zacks Equity Research

Oasis Petroleum Inc. OAS incurred third-quarter 2019 adjusted loss per share of 5 cents, wider than the Zacks Consensus Estimate of a loss of a cent. The bottom line also deteriorated from the year-ago income of 8 cents a share. The loss can be attributed to weaker year-over-year commodity price realizations.

The company’s total operating revenues of $482.7 million in the third quarter marginally missing the Zacks Consensus Estimate of $487 million. Moreover, the top line declined from the year-ago figure of $674.7 million.

Production & Price Realizations

Production of oil and natural gas was up 3.8% from the year-ago level to 88.7 thousand oil-equivalent barrels per day (MBOE/d) comprising 70.8% oil. Oasis Petroleum’s production of oil and natural gas was 62.8 thousand barrels per day (down 4.6% year over year) and 155,391 thousand cubic feet per day (up 32.6%), respectively.

The average realized crude oil price during the third quarter was $55.12 per barrel, reflecting a 19.3% decrease from the prior-year realization of $68.33. Moreover, the average realized natural gas price was $1.81 per thousand cubic feet, down 51.3% from the year-earlier period.

Total Expenses

Total operating expenses in the quarter declined 11.1% year over year to $473.5 million, primarily owing to lower commodity purchase costs. Notably, purchased oil and gas expenses were $78.7 million compared with $174.3 million in the corresponding quarter of last year.

The company’s lease operating expenses decreased to $6.16 per barrel of oil equivalent (Boe) from the year-ago figure of $6.18 per Boe.

Financial Position

Capital spending (before acquisitions) totaled $187.2 million in the quarter. Oasis Petroleum recorded $250.9 million in net cash flow from operations, higher than the year-ago period’s $229.9 million.
The company posted a positive free cash flow of 16.9 million in the quarter under review.

As of Sep 30, the Bakken-focused operator with a market capitalization of almost $1 billion had $19.4 million in cash and cash equivalents. The company had a long-term debt of $2.8 billion, representing a debt-to-capitalization ratio of 41.7%.

Oasis Petroleum Inc. Price, Consensus and EPS Surprise

Oasis Petroleum Inc. Price, Consensus and EPS Surprise

Oasis Petroleum Inc. price-consensus-eps-surprise-chart | Oasis Petroleum Inc. Quote


Oasis Petroleum expects full-year capital spending from the midstream segment within $212-$222 million, lower than the previous guided range of $219-$230 million. The company’s E&P and other capex view for 2019 is intact within $620-$640 million. It further projects its annual G&A outlook in the band of $125-$131 million.

Fourth-quarter output is anticipated within 83.3-85.3 MBOE/d (70.5% oil).

Zacks Rank & Key Picks

Oasis Petroleum currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Murphy U.S.A. Inc. MUSA, NuStar Energy L.P. NS and World Fuel Services Corporation INT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NuStar Energy L.P. (NS) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
World Fuel Services Corporation (INT) : Free Stock Analysis Report
Oasis Petroleum Inc. (OAS) : Free Stock Analysis Report
To read this article on Zacks.com click here.