HOUSTON, Feb. 25, 2020
/PRNewswire/ -- Oasis Petroleum Inc. (Nasdaq: OAS) ("Oasis" or
the "Company") today announced financial and operational results
for the quarter and year ended December 31,
2019 and provided its 2020 outlook.
"Fourth quarter results demonstrate continued execution and
progress towards reducing leverage," said Thomas B. Nusz, Oasis' Chairman and Chief
Executive Officer. "Volumes exceeded expectations while spending
was lower, driven by a relentless focus on efficiency. A
combination of free cash flow and asset sales led Oasis to reduce
E&P debt by $188 million over the
course of 2019. I'm proud of the Oasis team for rising to the
challenge and driving significant cost savings and efficiencies in
the back half of 2019. These efforts positioned our 2020 plan to be
more capital efficient, especially when we factor in lower well
costs and improved cycle times in the Delaware Basin. Oasis is in a compelling
position to grow modestly while generating free cash flow and
continuing to pay down debt."
2019 Highlights
- Produced 87.4 MBoepd in 4Q19, 2% above the upper range of
November guidance, with oil volumes at 60.1 MBopd, at the top end
of guidance.
- Delivered net cash provided by operating activities of
$892.9 million for YE19 and
$253.0 million for 4Q19 and Adjusted
EBITDA(1) of $1,039.5
million for YE19 and $264.0
million for 4Q19.
- LOE per Boe averaged $6.95 per
Boe in 2019, approximately 7% below original guidance.
- Crude oil differentials were strong over 2019 averaging
$1.68 off of NYMEX WTI.
- E&P CapEx(2) was $598.0
million for 2019, 4-5% below the $620-640 million plan.
- 2019 G&A(3) of $123.5
million was 10% below February
2019 guidance.
- OMP delivered approximately $159
million in net Adjusted EBITDA(4) in 2019, 4%
above original midpoint guidance.
(1) Non-GAAP financial measure. See
"Non-GAAP Financial Measures" below for definitions of all non-GAAP
financial measures included herein and reconciliations to the most
directly comparable measures under United
States generally accepted accounting principles
("GAAP").
(2) E&P CapEx excludes
capitalized interest, midstream CapEx and acquisitions for both
2019 actual and plan.
(3) Full year
2019 G&A excludes one-time litigation contingency expense of
$20 million.
(4) Refer to Oasis Midstream Partners press release
dated February 25, 2020 for
definition of non-GAAP financial measure and
reconciliation.
2020 Plan
Oasis continues to drive towards moderate
growth, free cash generation and debt reduction. The Company
constructed its 2020 plan based on being free cash flow positive at
$50 NYMEX WTI. Total consolidated
CapEx is expected to range between $685 and $715
million with E&P and Other CapEx expected to range
between $575 and $595 million. Oasis is directing approximately
55-65% of its capital to the Williston Basin and approximately
35-45% to the Delaware Basin. The
Company expects approximately 80-90% of its E&P and Other CapEx
to be invested in drilling and completions activities,
including:
- Completing 45 to 55 gross operated wells with a working
interest of approximately 66% in the Williston Basin.
- Completing 20 to 25 gross operated wells with a
working interest of approximately 88% in the Delaware Basin.
- 1Q20 CapEx is expected to approximate 30% of full-year
guidance.
Other highlights of the 2020 plan include:
- 1Q20 total volumes are expected to approximate 78 to 79 MBoepd
with oil cut to approximate 68-69%.
- Expect mid-single-digit year-over-year volume growth (Boe and
oil) from 4Q19 to 4Q20.
- Expect to be E&P free cash flow positive assuming average
NYMEX WTI prices above $50/barrel.
- 85-90% of 1H20 oil production hedged with an average floor of
$55.46.
|
Metric
|
Range
|
|
Production
(MBoepd)(1)
|
|
|
Full Year
2020
|
82.5 -
86.5
|
|
Full Year Financial
Metrics
|
|
|
Differential to NYMEX
WTI ($ per Bbl)
|
$2.50 -
$3.50
|
|
Natural gas realized
price (as a % of Henry Hub)
|
90% - 100%
|
|
LOE ($ per
Boe)
|
$7.00 -
$7.75
|
|
MT&G ($ per
Boe)
|
$4.00 -
$4.25
|
|
E&P Cash G&A
($ in millions)(2)
|
$60 - $65
|
|
Production taxes (% of
oil and gas revenues)
|
8.0% -
8.3%
|
|
2020 CapEx Plan ($ in
millions)
|
|
|
E&P & Other
CapEx(3)
|
$575 -
$595
|
|
Midstream
CapEx
|
110 - 120
|
|
Midstream CapEx
attributable to Oasis (included in Midstream CapEx
above)
|
42 - 45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average oil
production percentage of approximately 69% in 2020.
|
|
(2)
|
E&P Cash G&A
represents general and administrative ("G&A") expenses less
non-cash equity-based compensation expenses and other non-cash
charges included in the Company's exploration and production
segment. Total Cash G&A for Oasis estimated at $75 million to
$80 million, which excludes non-cash amortization of equity-based
compensation of approximately $33 million to $35 million. See
"Non-GAAP Financial Measures" below.
|
|
(3)
|
Other CapEx includes
administrative capital and excludes capitalized interest of
approximately $12.5 million.
|
Operational and Financial Update
Select operational
and financial statistics are included in the following table for
the periods presented:
|
4Q19
|
|
3Q19
|
|
YE19
|
|
YE18
|
|
Production
data:
|
|
|
|
|
|
|
|
|
Crude oil
(Bopd)
|
60,108
|
|
|
62,816
|
|
|
62,532
|
|
|
63,151
|
|
|
Natural gas
(Mcfpd)
|
163,762
|
|
|
155,391
|
|
|
153,167
|
|
|
116,246
|
|
|
Total production
(Boepd)
|
87,401
|
|
|
88,715
|
|
|
88,061
|
|
|
82,525
|
|
|
Percent crude
oil
|
68.8
|
%
|
|
70.8
|
%
|
|
71.0
|
%
|
|
76.5
|
%
|
|
Average sales
prices:
|
|
|
|
|
|
|
|
|
Crude oil, without
derivative settlements ($ per Bbl)
|
$
|
53.66
|
|
|
$
|
55.12
|
|
|
$
|
55.27
|
|
|
$
|
61.84
|
|
|
Differential to WTI ($
per Bbl)
|
3.23
|
|
|
1.30
|
|
|
1.68
|
|
|
2.88
|
|
|
Crude oil, with
derivative settlements ($ per Bbl)(1)(2)
|
54.96
|
|
|
56.03
|
|
|
55.89
|
|
|
52.65
|
|
|
Crude oil derivative
settlements - net cash receipts (payments) ($ in
millions)(1)
|
7.2
|
|
|
5.2
|
|
|
14.3
|
|
|
(211.7)
|
|
|
Natural gas, without
derivative settlements ($ per Mcf)(3)
|
2.77
|
|
|
1.81
|
|
|
2.64
|
|
|
3.88
|
|
|
Natural gas, with
derivative settlements ($ per Mcf)(1)(2)(3)
|
2.85
|
|
|
1.95
|
|
|
2.72
|
|
|
3.84
|
|
|
Natural gas derivative
settlements - net cash receipts (payments) ($ in
millions)(2)
|
1.2
|
|
|
1.9
|
|
|
4.8
|
|
|
(1.8)
|
|
|
Selected financial
data ($ in millions):
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Crude oil
revenues
|
$
|
296.8
|
|
|
$
|
318.6
|
|
|
$
|
1,261.4
|
|
|
$
|
1,425.4
|
|
|
Natural gas
revenues
|
41.8
|
|
|
25.9
|
|
|
147.4
|
|
|
164.6
|
|
|
Purchased oil and gas
sales(4)
|
71.6
|
|
|
79.4
|
|
|
408.8
|
|
|
550.3
|
|
|
Midstream
revenues(4)
|
62.6
|
|
|
50.0
|
|
|
212.2
|
|
|
120.5
|
|
|
Well services
revenues
|
11.2
|
|
|
8.9
|
|
|
42.0
|
|
|
61.1
|
|
|
Total
revenues
|
$
|
484.0
|
|
|
$
|
482.8
|
|
|
$
|
2,071.8
|
|
|
$
|
2,321.9
|
|
|
Net cash provided
by operating activities
|
$
|
253.0
|
|
|
$
|
251.0
|
|
|
$
|
892.9
|
|
|
$
|
996.4
|
|
|
Adjusted
EBITDA
|
$
|
264.0
|
|
|
$
|
256.6
|
|
|
$
|
1,039.5
|
|
|
$
|
958.7
|
|
|
Select operating
expenses:
|
|
|
|
|
|
|
|
|
LOE
|
$
|
58.4
|
|
|
$
|
50.3
|
|
|
$
|
223.4
|
|
|
$
|
193.9
|
|
|
Midstream
expenses(4)
|
15.1
|
|
|
13.0
|
|
|
62.1
|
|
|
32.7
|
|
|
Well services
expenses
|
7.2
|
|
|
6.2
|
|
|
28.8
|
|
|
41.2
|
|
|
MT&G
|
32.6
|
|
|
32.7
|
|
|
126.4
|
|
|
102.9
|
|
|
Non-cash valuation
charges
|
0.1
|
|
|
(0.1)
|
|
|
2.4
|
|
|
4.3
|
|
|
Purchased oil and gas
expenses(4)
|
71.0
|
|
|
78.7
|
|
|
409.2
|
|
|
553.5
|
|
|
Production
taxes
|
26.4
|
|
|
28.5
|
|
|
112.6
|
|
|
133.7
|
|
|
Depreciation, depletion
and amortization ("DD&A")
|
209.2
|
|
|
210.8
|
|
|
787.2
|
|
|
636.3
|
|
|
Total select operating
expenses
|
$
|
420.0
|
|
|
$
|
420.1
|
|
|
$
|
1,752.1
|
|
|
$
|
1,698.5
|
|
|
Select operating
expenses data:
|
|
|
|
|
|
|
|
|
LOE ($ per
Boe)
|
$
|
7.26
|
|
|
$
|
6.16
|
|
|
$
|
6.95
|
|
|
$
|
6.44
|
|
|
MT&G ($ per
Boe)
|
4.07
|
|
|
4.00
|
|
|
4.01
|
|
|
3.56
|
|
|
Cash MT&G ($ per
Boe)(5)
|
4.05
|
|
|
4.01
|
|
|
3.93
|
|
|
3.41
|
|
|
DD&A ($ per
Boe)
|
26.01
|
|
|
25.83
|
|
|
24.49
|
|
|
21.12
|
|
|
E&P G&A ($ per
Boe)(6)
|
2.37
|
|
|
5.68
|
|
|
3.69
|
|
|
3.40
|
|
|
E&P Cash G&A ($
per Boe)(5)
|
1.51
|
|
|
2.22
|
|
|
2.07
|
|
|
2.48
|
|
|
Production taxes (% of
oil and gas revenue)
|
7.8
|
%
|
|
8.3
|
%
|
|
8.0
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Realized prices
include gains or losses on cash settlements for commodity
derivatives, which do not qualify for or were not designated as
hedging instruments for accounting purposes.
|
|
(2)
|
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)
|
For the year ended
December 31, 2018, midstream revenues and midstream expenses have
been adjusted to include $1.5 million and $0.8 million,
respectively, for certain sales and expenses which were previously
recognized in purchased oil and gas sales and purchased oil and gas
expenses, respectively, on the Company's Consolidated
Statements of Operations.
|
|
(5)
|
Cash MT&G, a
non-GAAP financial measure, is defined as marketing, transportation
and gathering expenses excluding non-cash valuation charges on
pipeline imbalances. E&P Cash G&A, a non-GAAP financial
measure, represents G&A expenses less non-cash equity-based
compensation expenses and other non-cash charges included in the
Company's exploration and production segment. See "Non-GAAP
Financial Measures" below for reconciliations to the most directly
comparable measures under GAAP.
|
|
(6)
|
Includes $20.0
million of litigation contingency expenses in 3Q19 and YE19.
Excluding this accrual, E&P G&A per Boe would have been
$3.23 and 3.07 in 3Q19 and YE19, respectively.
|
G&A expenses totaled $25.3
million in 4Q19, and $143.5
million in YE19. Amortization of equity-based compensation,
which is included in G&A expenses, was $7.2 million, or $0.90 per Boe, in 4Q19 and $33.6 million, or $1.05 per Boe, for YE19. G&A expenses for the
Company's E&P segment totaled $19.0
million in 4Q19 and $118.7
million for YE19. E&P Cash G&A expenses (non-GAAP),
excluding non-cash equity-based compensation expenses and other
non-cash charges, were $1.51 per Boe
in 4Q19 and $2.07 per Boe for YE19.
For a definition of E&P Cash G&A expenses and a
reconciliation of E&P G&A to E&P Cash G&A, see
"Non-GAAP Financial Measures" below.
MT&G expenses totaled $32.7
million in 4Q19 and $128.8
million in YE19. Cash MT&G (non-GAAP), which excludes
non-cash valuation charges on pipeline imbalances, totaled
$32.6 million in 4Q19 and
$126.4 million in YE19. Non-cash
valuation charges on pipeline imbalances were $0.1 million and $2.4
million for 4Q19 and YE19, respectively. For a definition of
Cash MT&G and a reconciliation of MT&G to Cash MT&G,
see "Non-GAAP Financial Measures" below.
Interest expense was $44.7 million
in 4Q19 and $176.2 million in YE19.
Capitalized interest totaled $2.5
million in 4Q19 and $12.0
million in YE19. Cash Interest (non-GAAP) totaled
$40.7 million in 4Q19 and
$167.2 million in YE19. For a
definition of Cash Interest and a reconciliation of interest
expense to Cash Interest, see "Non-GAAP Financial Measures"
below.
The Company recorded an income tax benefit of $23.9 million in 4Q19, resulting in an effective
tax rate of 27.1% as a percentage of its pre-tax loss for the
quarter. The Company's income tax benefit for YE19 was recorded at
$32.7 million, or 26.5% of its
pre-tax loss.
The Company reported net loss attributable to Oasis of
$76.4 million and $128.2 million in 4Q19 and YE19, respectively.
Excluding certain non-cash items and their tax effect, Adjusted Net
Loss Attributable to Oasis (non-GAAP) was $5.4 million,
or $0.02 per diluted share, in 4Q19 and Adjusted Net
Income Attributable to Oasis (non-GAAP) was $9.2 million, or $0.03 per diluted share, in YE19. For a
definition of Adjusted Net Income (Loss) Attributable to Oasis and
a reconciliation of net income (loss) attributable to Oasis to
Adjusted Net Income (Loss) Attributable to Oasis, see "Non-GAAP
Financial Measures" below.
The Company completed and placed on production 8 gross (5.1 net)
operated wells in 4Q19 and 78 gross (51.5 net) operated wells in
YE19.
Capital Expenditures
The following table depicts the
Company's total capital expenditures ("CapEx") by category:
|
YE19
|
|
(In
millions)
|
|
CapEx
|
|
|
E&P (excluding
acquisitions)
|
$
|
594.2
|
|
|
Well
Services
|
0.3
|
|
|
Other(1)
|
15.5
|
|
|
Total CapEx before
acquisitions and midstream
|
610.0
|
|
|
Midstream(2)
|
212.4
|
|
|
Total CapEx before
acquisitions
|
822.4
|
|
|
Acquisitions
|
21.0
|
|
|
Total
CapEx(3)
|
$
|
843.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Other CapEx includes
administrative capital of $3.5 million and capitalized interest of
$12.0 million.
|
|
(2)
|
Midstream CapEx
attributable to OMP was $198.6 million for YE19.
|
|
(3)
|
Total CapEx
(including acquisitions) reflected in the table above differs from
the amounts shown in the statements 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 statements of cash flows are presented on a cash
basis.
|
Liquidity and Balance Sheet
As of YE19, Oasis had cash
and cash equivalents of $20.0
million, total elected commitments under the Oasis Credit
Facility of $1,100.0 million and a
borrowing base under the OMP Credit Facility of $575.0 million. In addition, Oasis had
$337.0 million of borrowings and
$15.1 million of outstanding letters
of credit issued under the Oasis Credit Facility and $458.5 million of borrowings and $1.7 million of outstanding letters of credit
under the OMP Credit Facility, resulting in an unused borrowing
capacity of $862.7 million for both
revolving credit facilities as of YE19.
Hedging Activity
As of February
24, 2020, the Company's crude oil hedge position remained
unchanged compared to the update included in the press release
dated January 30, 2020. The
December 2019 crude oil derivative
contracts settled at a net $2.0
million paid in January 2020
and will be included in the Company's 1Q20 derivative
settlements.
Conference Call Information
Investors, analysts and
other interested parties are invited to listen to the conference
call:
|
Date:
|
|
Wednesday, February
26, 2020
|
|
Time:
|
|
10:00 a.m. Central
Time
|
|
Live
Webcast:
|
|
https://www.webcaster4.com/Webcast/Page/1052/32923
|
|
OR:
|
|
|
|
Dial-in:
|
|
888-317-6003
|
|
Intl. Dial
in:
|
|
412-317-6061
|
|
Conference ID:
|
|
2472167
|
|
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 Wednesday, March 4, 2020 by dialing:
|
Replay
dial-in:
|
|
877-344-7529
|
|
Intl.
replay:
|
|
412-317-0088
|
|
Replay
code:
|
|
10138757
|
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, but are not limited to, changes in crude
oil and natural gas prices, weather and environmental conditions,
the timing of planned capital expenditures, availability of
acquisitions, the ability to realize the anticipated benefits from
the previously announced Delaware
midstream assets assignment from Oasis to OMP, 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 Securities and Exchange Commission.
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 onshore, unconventional crude oil and natural gas
resources in the United States.
For more information, please visit the Company's website at
www.oasispetroleum.com.
Oasis Petroleum Inc. Financial
Statements
|
OASIS PETROLEUM
INC.
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
December 31,
|
|
2019
|
|
2018
|
|
(In thousands, except share data)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
20,019
|
|
|
$
|
22,190
|
|
|
Accounts receivable,
net
|
371,181
|
|
|
387,602
|
|
|
Inventory
|
35,259
|
|
|
33,128
|
|
|
Prepaid
expenses
|
10,011
|
|
|
10,997
|
|
|
Derivative
instruments
|
535
|
|
|
99,930
|
|
|
Intangible assets,
net
|
—
|
|
|
125
|
|
|
Other current
assets
|
346
|
|
|
183
|
|
|
Total current
assets
|
437,351
|
|
|
554,155
|
|
|
Property, plant and
equipment
|
|
|
|
|
Oil and gas properties
(successful efforts method)
|
9,463,038
|
|
|
8,912,189
|
|
|
Other property and
equipment
|
1,279,653
|
|
|
1,151,772
|
|
|
Less: accumulated
depreciation, depletion, amortization and impairment
|
(3,764,915)
|
|
|
(3,036,852)
|
|
|
Total property, plant
and equipment, net
|
6,977,776
|
|
|
7,027,109
|
|
|
Assets held for sale,
net
|
21,628
|
|
|
—
|
|
|
Derivative
instruments
|
639
|
|
|
6,945
|
|
|
Long-term
inventory
|
13,924
|
|
|
12,260
|
|
|
Operating
right-of-use assets
|
18,497
|
|
|
—
|
|
|
Other
assets
|
29,438
|
|
|
25,673
|
|
|
Total
assets
|
$
|
7,499,253
|
|
|
$
|
7,626,142
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
17,948
|
|
|
$
|
20,166
|
|
|
Revenues and
production taxes payable
|
233,090
|
|
|
216,695
|
|
|
Accrued
liabilities
|
281,079
|
|
|
331,651
|
|
|
Accrued interest
payable
|
37,388
|
|
|
38,040
|
|
|
Derivative
instruments
|
19,695
|
|
|
84
|
|
|
Advances from joint
interest partners
|
4,598
|
|
|
5,140
|
|
|
Current operating
lease liabilities
|
6,182
|
|
|
—
|
|
|
Other current
liabilities
|
2,903
|
|
|
—
|
|
|
Total current
liabilities
|
602,883
|
|
|
611,776
|
|
|
Long-term
debt
|
2,711,573
|
|
|
2,735,276
|
|
|
Deferred income
taxes
|
267,357
|
|
|
300,055
|
|
|
Asset retirement
obligations
|
56,305
|
|
|
52,384
|
|
|
Derivative
instruments
|
120
|
|
|
20
|
|
|
Operating lease
liabilities
|
17,915
|
|
|
—
|
|
|
Other
liabilities
|
6,019
|
|
|
7,751
|
|
|
Total
liabilities
|
3,662,172
|
|
|
3,707,262
|
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value: 900,000,000 shares authorized; 324,198,057 shares issued
and 321,231,319 shares outstanding at December 31, 2019 and
320,469,049 shares issued and 318,377,161 shares outstanding at
December 31, 2018
|
3,189
|
|
|
3,157
|
|
|
Treasury stock, at
cost: 2,966,738 and 2,091,888 shares at December 31, 2019 and
December 31, 2018, respectively
|
(33,881)
|
|
|
(29,025)
|
|
|
Additional paid-in
capital
|
3,112,384
|
|
|
3,077,755
|
|
|
Retained
earnings
|
554,446
|
|
|
682,689
|
|
|
Oasis share of
stockholders' equity
|
3,636,138
|
|
|
3,734,576
|
|
|
Non-controlling
interests
|
200,943
|
|
|
184,304
|
|
|
Total stockholders'
equity
|
3,837,081
|
|
|
3,918,880
|
|
|
Total liabilities and
stockholders' equity
|
$
|
7,499,253
|
|
|
$
|
7,626,142
|
|
|
OASIS PETROLEUM
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In thousands,
except per share data)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Oil and gas
revenues
|
$
|
338,515
|
|
|
$
|
371,385
|
|
|
$
|
1,408,771
|
|
|
$
|
1,590,024
|
|
|
Purchased oil and gas
sales
|
71,579
|
|
|
181,586
|
|
|
408,791
|
|
|
550,344
|
|
|
Midstream
revenues
|
62,591
|
|
|
32,053
|
|
|
212,208
|
|
|
120,504
|
|
|
Well services
revenues
|
11,179
|
|
|
14,731
|
|
|
41,974
|
|
|
61,075
|
|
|
Total
revenues
|
483,864
|
|
|
599,755
|
|
|
2,071,744
|
|
|
2,321,947
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
58,399
|
|
|
56,456
|
|
|
223,384
|
|
|
193,912
|
|
|
Midstream
expenses
|
15,082
|
|
|
8,433
|
|
|
62,146
|
|
|
32,758
|
|
|
Well services
expenses
|
7,166
|
|
|
8,848
|
|
|
28,761
|
|
|
41,200
|
|
|
Marketing,
transportation and gathering expenses
|
32,709
|
|
|
32,634
|
|
|
128,806
|
|
|
107,193
|
|
|
Purchased oil and gas
expenses
|
70,959
|
|
|
179,019
|
|
|
409,180
|
|
|
553,461
|
|
|
Production
taxes
|
26,371
|
|
|
29,948
|
|
|
112,592
|
|
|
133,696
|
|
|
Depreciation,
depletion and amortization
|
209,169
|
|
|
170,477
|
|
|
787,192
|
|
|
636,296
|
|
|
Exploration
expenses
|
4,289
|
|
|
3,731
|
|
|
6,658
|
|
|
27,432
|
|
|
Rig
termination
|
384
|
|
|
—
|
|
|
384
|
|
|
—
|
|
|
Impairment
|
9,604
|
|
|
—
|
|
|
10,257
|
|
|
384,228
|
|
|
General and
administrative expenses
|
25,261
|
|
|
30,317
|
|
|
143,506
|
|
|
121,346
|
|
|
Total operating
expenses
|
459,393
|
|
|
519,863
|
|
|
1,912,866
|
|
|
2,231,522
|
|
|
Gain (loss) on sale
of properties
|
(505)
|
|
|
(10,236)
|
|
|
(4,455)
|
|
|
28,587
|
|
|
Operating
income
|
23,966
|
|
|
69,656
|
|
|
154,423
|
|
|
119,012
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Net gain (loss) on
derivative instruments
|
(71,374)
|
|
|
268,402
|
|
|
(106,314)
|
|
|
28,457
|
|
|
Interest expense, net
of capitalized interest
|
(44,672)
|
|
|
(41,469)
|
|
|
(176,223)
|
|
|
(159,085)
|
|
|
Gain (loss) on
extinguishment of debt
|
4,312
|
|
|
(150)
|
|
|
4,312
|
|
|
(13,848)
|
|
|
Other income
(expense)
|
(266)
|
|
|
(25)
|
|
|
440
|
|
|
121
|
|
|
Total other income
(expense), net
|
(112,000)
|
|
|
226,758
|
|
|
(277,785)
|
|
|
(144,355)
|
|
|
Income (loss) before
income taxes
|
(88,034)
|
|
|
296,414
|
|
|
(123,362)
|
|
|
(25,343)
|
|
|
Income tax benefit
(expense)
|
23,880
|
|
|
(69,548)
|
|
|
32,715
|
|
|
5,843
|
|
|
Net income (loss)
including non-controlling interests
|
(64,154)
|
|
|
226,866
|
|
|
(90,647)
|
|
|
(19,500)
|
|
|
Less: Net income
attributable to non-controlling interests
|
12,252
|
|
|
4,889
|
|
|
37,596
|
|
|
15,796
|
|
|
Net income (loss)
attributable to Oasis
|
$
|
(76,406)
|
|
|
$
|
221,977
|
|
|
$
|
(128,243)
|
|
|
$
|
(35,296)
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.24)
|
|
|
$
|
0.71
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.11)
|
|
|
Diluted
|
(0.24)
|
|
|
0.70
|
|
|
(0.41)
|
|
|
(0.11)
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
315,416
|
|
|
313,260
|
|
|
315,002
|
|
|
307,480
|
|
|
Diluted
|
315,416
|
|
|
315,098
|
|
|
315,002
|
|
|
307,480
|
|
|
OASIS PETROLEUM
INC.
SELECTED FINANCIAL
AND OPERATIONAL STATS
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Operating results
($ in thousands):
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Crude oil
revenues
|
|
$
|
296,751
|
|
|
$
|
321,834
|
|
|
$
|
1,261,413
|
|
|
$
|
1,425,409
|
|
|
Natural gas
revenues
|
|
41,764
|
|
|
49,551
|
|
|
147,358
|
|
|
164,615
|
|
|
Purchased oil and gas
sales
|
|
71,579
|
|
|
181,586
|
|
|
408,791
|
|
|
550,344
|
|
|
Midstream
revenues
|
|
62,591
|
|
|
32,053
|
|
|
212,208
|
|
|
120,504
|
|
|
Well services
revenues
|
|
11,179
|
|
|
14,731
|
|
|
41,974
|
|
|
61,075
|
|
|
Total
revenues
|
|
$
|
483,864
|
|
|
$
|
599,755
|
|
|
$
|
2,071,744
|
|
|
$
|
2,321,947
|
|
|
Production
data:
|
|
|
|
|
|
|
|
|
|
Crude oil
(MBbls)
|
|
5,530
|
|
|
6,188
|
|
|
22,824
|
|
|
23,050
|
|
|
Natural gas
(MMcf)
|
|
15,066
|
|
|
11,604
|
|
|
55,906
|
|
|
42,430
|
|
|
Oil equivalents
(MBoe)
|
|
8,041
|
|
|
8,122
|
|
|
32,142
|
|
|
30,122
|
|
|
Average daily
production (Boepd)
|
|
87,401
|
|
|
88,288
|
|
|
88,061
|
|
|
82,525
|
|
|
Average sales
prices:
|
|
|
|
|
|
|
|
|
|
Crude oil, without
derivative settlements (per Bbl)
|
|
$
|
53.66
|
|
|
$
|
52.01
|
|
|
$
|
55.27
|
|
|
$
|
61.84
|
|
|
Crude oil, with
derivative settlements (per Bbl)(1)
|
|
54.96
|
|
|
44.14
|
|
|
55.89
|
|
|
52.65
|
|
|
Natural gas, without
derivative settlements (per Mcf)(2)
|
|
2.77
|
|
|
4.27
|
|
|
2.64
|
|
|
3.88
|
|
|
Natural gas, with
derivative settlements (per Mcf)(1)(2)
|
|
2.85
|
|
|
4.02
|
|
|
2.72
|
|
|
3.84
|
|
|
Costs and expenses
(per Boe of production):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
$
|
7.26
|
|
|
$
|
6.95
|
|
|
$
|
6.95
|
|
|
$
|
6.44
|
|
|
Marketing,
transportation and gathering expenses
|
|
4.07
|
|
|
4.02
|
|
|
4.01
|
|
|
3.56
|
|
|
Cash marketing,
transportation and gathering expenses(3)
|
|
4.05
|
|
|
3.55
|
|
|
3.93
|
|
|
3.41
|
|
|
Production
taxes
|
|
3.28
|
|
|
3.69
|
|
|
3.50
|
|
|
4.44
|
|
|
Depreciation,
depletion and amortization
|
|
26.01
|
|
|
20.99
|
|
|
24.49
|
|
|
21.12
|
|
|
General and
administrative expenses
|
|
3.14
|
|
|
3.73
|
|
|
4.46
|
|
|
4.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Realized prices
include gains or losses on cash settlements for commodity
derivatives, which do not qualify for or 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.
|
|
(2)
|
Natural gas prices
include the value for natural gas and natural gas
liquids.
|
|
(3)
|
Cash MT&G, a
non-GAAP financial measure, is defined as marketing, transportation
and gathering expenses excluding non-cash valuation charges on
pipeline imbalances. See "Non-GAAP Financial Measures" below for a
reconciliation of the Company's MT&G to Cash
MT&G.
|
|
OASIS PETROLEUM
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss including
non-controlling interests
|
$
|
(90,647)
|
|
|
$
|
(19,500)
|
|
|
Adjustments to
reconcile net loss including non-controlling interests to net cash
provided by operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
787,192
|
|
|
636,296
|
|
|
(Gain) loss on
extinguishment of debt
|
(4,312)
|
|
|
13,848
|
|
|
(Gain) loss on sale of
properties
|
4,455
|
|
|
(28,587)
|
|
|
Impairment
|
10,257
|
|
|
384,228
|
|
|
Deferred income
taxes
|
(32,699)
|
|
|
(5,866)
|
|
|
Derivative
instruments
|
106,314
|
|
|
(28,457)
|
|
|
Equity-based
compensation expenses
|
33,607
|
|
|
29,273
|
|
|
Deferred financing
costs amortization and other
|
27,263
|
|
|
29,057
|
|
|
Working capital and
other changes:
|
|
|
|
|
Change in accounts
receivable, net
|
13,729
|
|
|
(23,508)
|
|
|
Change in
inventory
|
(5,893)
|
|
|
(14,346)
|
|
|
Change in prepaid
expenses
|
325
|
|
|
(2,354)
|
|
|
Change in accounts
payable, interest payable and accrued liabilities
|
53,051
|
|
|
26,116
|
|
|
Change in other assets
and liabilities, net
|
(9,789)
|
|
|
221
|
|
|
Net cash provided by
operating activities
|
892,853
|
|
|
996,421
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(869,221)
|
|
|
(1,148,961)
|
|
|
Acquisitions
|
(21,009)
|
|
|
(581,650)
|
|
|
Proceeds from sale of
properties
|
42,376
|
|
|
333,229
|
|
|
Costs related to sale
of properties
|
—
|
|
|
(2,850)
|
|
|
Derivative
settlements
|
19,098
|
|
|
(213,528)
|
|
|
Other
|
—
|
|
|
224
|
|
|
Net cash used in
investing activities
|
(828,756)
|
|
|
(1,613,536)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
Revolving Credit Facilities
|
1,982,000
|
|
|
3,224,000
|
|
|
Principal payments on
Revolving Credit Facilities
|
(1,972,500)
|
|
|
(2,586,000)
|
|
|
Repurchase of senior
unsecured notes
|
(45,790)
|
|
|
(423,340)
|
|
|
Proceeds from issuance
of senior unsecured notes
|
—
|
|
|
400,000
|
|
|
Deferred financing
costs
|
(1,052)
|
|
|
(13,862)
|
|
|
Proceeds from sale of
Oasis Midstream common units, net of offering costs
|
—
|
|
|
44,503
|
|
|
Purchases of treasury
stock
|
(4,856)
|
|
|
(6,846)
|
|
|
Distributions to
non-controlling interests
|
(21,270)
|
|
|
(14,114)
|
|
|
Payments on finance
lease liabilities
|
(2,382)
|
|
|
—
|
|
|
Other
|
(418)
|
|
|
(1,756)
|
|
|
Net cash provided by
(used in) financing activities
|
(66,268)
|
|
|
622,585
|
|
|
Increase (decrease)
in cash and cash equivalents
|
(2,171)
|
|
|
5,470
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning of
period
|
22,190
|
|
|
16,720
|
|
|
End of
period
|
$
|
20,019
|
|
|
$
|
22,190
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for
interest, net of capitalized interest
|
$
|
155,833
|
|
|
$
|
141,196
|
|
|
Cash paid for income
taxes
|
111
|
|
|
38
|
|
|
Cash received for
income tax refunds
|
146
|
|
|
25
|
|
|
Supplemental
non-cash transactions:
|
|
|
|
|
Change in accrued
capital expenditures
|
$
|
(82,414)
|
|
|
$
|
68,946
|
|
|
Change in asset
retirement obligations
|
4,917
|
|
|
3,880
|
|
|
Issuance of shares in
connection with acquisition
|
—
|
|
|
371,220
|
|
Non-GAAP Financial Measures
E&P Cash G&A Reconciliation
E&P Cash G&A 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 E&P
Cash G&A as the total general and administrative expenses
included in the Company's exploration and production segment less
non-cash equity-based compensation expenses and other non-cash
charges included in the Company's exploration and production
segment. E&P Cash G&A is not a measure of general and
administrative expenses as determined by United States generally accepted accounting
principles, or GAAP.
The following table presents a reconciliation of the GAAP
financial measure of general and administrative expenses included
in the Company's exploration and production segment to the non-GAAP
financial measure of E&P Cash G&A for the periods
presented:
|
Exploration and
Production
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
General and
administrative expenses
|
$
|
19,036
|
|
|
$
|
25,057
|
|
|
$
|
118,701
|
|
|
$
|
102,482
|
|
|
Equity-based
compensation expenses
|
(6,903)
|
|
|
(7,345)
|
|
|
(32,251)
|
|
|
(27,910)
|
|
|
Litigation contingency
expenses(1)
|
—
|
|
|
—
|
|
|
(20,000)
|
|
|
—
|
|
|
E&P Cash
G&A
|
$
|
12,133
|
|
|
$
|
17,712
|
|
|
$
|
66,450
|
|
|
$
|
74,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In 2019, the Company
incurred a charge to establish a loss accrual of $20.0 million,
which the Company believes is the estimable amount of loss that
could potentially be incurred from its pending legal proceedings
based upon currently available information.
|
Cash MT&G Reconciliation
Cash MT&G is defined as the total marketing, transportation
and gathering expenses less non-cash valuation charges on pipeline
imbalances. Cash MT&G is not a measure of marketing,
transportation and gathering expenses as determined by GAAP.
Management believes that the presentation of Cash MT&G provides
useful additional information to investors and analysts to assess
the cash costs incurred to get its commodities to market without
regard for the change in value of its pipeline imbalances, which
vary monthly based on commodity prices.
The following table presents a reconciliation of the GAAP
financial measure of marketing, transportation and gathering
expenses to the non-GAAP financial measure of Cash MT&G for the
periods presented:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Marketing,
transportation and gathering expenses
|
$
|
32,709
|
|
|
$
|
32,634
|
|
|
$
|
128,806
|
|
|
$
|
107,193
|
|
|
Pipeline
imbalances
|
(130)
|
|
|
(3,774)
|
|
|
(2,446)
|
|
|
(4,331)
|
|
|
Cash
MT&G
|
$
|
32,579
|
|
|
$
|
28,860
|
|
|
$
|
126,360
|
|
|
$
|
102,862
|
|
Cash Interest Reconciliation
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 and debt discounts included in interest
expense. Cash Interest is not a measure of interest expense as
determined by 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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Interest
expense
|
$
|
44,672
|
|
|
$
|
41,469
|
|
|
$
|
176,223
|
|
|
$
|
159,085
|
|
|
Capitalized
interest
|
2,500
|
|
|
4,017
|
|
|
11,964
|
|
|
17,226
|
|
|
Amortization of
deferred financing costs
|
(3,378)
|
|
|
(2,079)
|
|
|
(8,832)
|
|
|
(7,590)
|
|
|
Amortization of debt
discount
|
(3,137)
|
|
|
(2,919)
|
|
|
(12,164)
|
|
|
(11,120)
|
|
|
Cash
Interest
|
$
|
40,657
|
|
|
$
|
40,488
|
|
|
$
|
167,191
|
|
|
$
|
157,601
|
|
Adjusted EBITDA and Free Cash Flow
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 attributable to Oasis
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 GAAP.
The following table presents reconciliations of the GAAP
financial measures of net income (loss) including non-controlling
interests 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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Net income (loss)
including non-controlling interests
|
$
|
(64,154)
|
|
|
$
|
226,866
|
|
|
$
|
(90,647)
|
|
|
$
|
(19,500)
|
|
|
(Gain) loss on sale of
properties
|
505
|
|
|
10,236
|
|
|
4,455
|
|
|
(28,587)
|
|
|
(Gain) loss on
extinguishment of debt
|
(4,312)
|
|
|
150
|
|
|
(4,312)
|
|
|
13,848
|
|
|
Net (gain) loss on
derivative instruments
|
71,374
|
|
|
(268,402)
|
|
|
106,314
|
|
|
(28,457)
|
|
|
Derivative
settlements(1)
|
8,346
|
|
|
(51,515)
|
|
|
19,098
|
|
|
(213,528)
|
|
|
Interest expense, net
of capitalized interest
|
44,672
|
|
|
41,469
|
|
|
176,223
|
|
|
159,085
|
|
|
Depreciation,
depletion and amortization
|
209,169
|
|
|
170,477
|
|
|
787,192
|
|
|
636,296
|
|
|
Impairment
|
9,604
|
|
|
—
|
|
|
10,257
|
|
|
384,228
|
|
|
Rig
termination
|
384
|
|
|
—
|
|
|
384
|
|
|
—
|
|
|
Exploration
expenses
|
4,289
|
|
|
3,731
|
|
|
6,658
|
|
|
27,432
|
|
|
Equity-based
compensation expenses
|
7,237
|
|
|
7,687
|
|
|
33,607
|
|
|
29,273
|
|
|
Income tax (benefit)
expense
|
(23,880)
|
|
|
69,548
|
|
|
(32,715)
|
|
|
(5,843)
|
|
|
Litigation contingency
expenses(2)
|
—
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
Other non-cash
adjustments
|
719
|
|
|
3,878
|
|
|
3,035
|
|
|
4,435
|
|
|
Adjusted
EBITDA
|
263,953
|
|
|
214,125
|
|
|
1,039,549
|
|
|
958,682
|
|
|
Adjusted EBITDA
attributable to non-controlling interests
|
16,025
|
|
|
7,094
|
|
|
51,525
|
|
|
21,703
|
|
|
Adjusted EBITDA
attributable to Oasis
|
247,928
|
|
|
207,031
|
|
|
988,024
|
|
|
936,979
|
|
|
Cash
Interest
|
(40,657)
|
|
|
(40,488)
|
|
|
(167,191)
|
|
|
(157,601)
|
|
|
Capital
expenditures(3)
|
(134,484)
|
|
|
(305,348)
|
|
|
(843,368)
|
|
|
(2,203,453)
|
|
|
Capitalized
interest
|
2,500
|
|
|
4,017
|
|
|
11,964
|
|
|
17,226
|
|
|
Free Cash
Flow
|
$
|
75,287
|
|
|
$
|
(134,788)
|
|
|
$
|
(10,571)
|
|
|
$
|
(1,406,849)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
252,959
|
|
|
$
|
234,420
|
|
|
$
|
892,853
|
|
|
$
|
996,421
|
|
|
Derivative
settlements(1)
|
8,346
|
|
|
(51,515)
|
|
|
19,098
|
|
|
(213,528)
|
|
|
Interest expense, net
of capitalized interest
|
44,672
|
|
|
41,469
|
|
|
176,223
|
|
|
159,085
|
|
|
Rig
termination
|
384
|
|
|
—
|
|
|
384
|
|
|
—
|
|
|
Exploration
expenses
|
4,289
|
|
|
3,731
|
|
|
6,658
|
|
|
27,432
|
|
|
Deferred financing
costs amortization and other
|
(9,073)
|
|
|
(8,983)
|
|
|
(27,263)
|
|
|
(29,057)
|
|
|
Current tax (benefit)
expense
|
(21)
|
|
|
(4)
|
|
|
(16)
|
|
|
23
|
|
|
Changes in working
capital
|
(38,323)
|
|
|
(8,871)
|
|
|
(51,424)
|
|
|
13,871
|
|
|
Litigation contingency
expenses(2)
|
—
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
Other non-cash
adjustments
|
719
|
|
|
3,878
|
|
|
3,035
|
|
|
4,435
|
|
|
Adjusted
EBITDA
|
263,952
|
|
|
214,125
|
|
|
1,039,548
|
|
|
958,682
|
|
|
Adjusted EBITDA
attributable to non-controlling interests
|
16,025
|
|
|
7,094
|
|
|
51,525
|
|
|
21,703
|
|
|
Adjusted EBITDA
attributable to Oasis
|
247,927
|
|
|
207,031
|
|
|
988,023
|
|
|
936,979
|
|
|
Cash
Interest
|
(40,657)
|
|
|
(40,488)
|
|
|
(167,191)
|
|
|
(157,601)
|
|
|
Capital
expenditures(3)
|
(134,484)
|
|
|
(305,348)
|
|
|
(843,368)
|
|
|
(2,203,453)
|
|
|
Capitalized
interest
|
2,500
|
|
|
4,017
|
|
|
11,964
|
|
|
17,226
|
|
|
Free Cash
Flow
|
$
|
75,286
|
|
|
$
|
(134,788)
|
|
|
$
|
(10,572)
|
|
|
$
|
(1,406,849)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
In 2019, the Company
incurred a charge to establish a loss accrual of $20.0 million,
which the Company believes is the estimable amount of loss that
could potentially be incurred from its pending legal proceedings
based upon currently available information.
|
|
(3)
|
CapEx (including
acquisitions) reflected in the table above differs from the amounts
shown in the statements 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
statements of cash flows are presented on a cash basis.
Acquisitions totaled $12.7 million and $21.0 million for the fourth
quarter and full year 2019, respectively, and $1.8 million and
$951.9 million for the fourth quarter and full year 2018,
respectively. Additionally, CapEx (including acquisitions)
reflected in the table above includes consideration paid through
the issuance of common stock in connection with an acquisition for
the year ended December 31, 2018.
|
Segment Adjusted EBITDA
Reconciliations
The following tables present reconciliations of the GAAP
financial measure of income (loss) before income taxes including
non-controlling interests 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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Income (loss)
before income taxes including non-controlling
interests
|
$
|
(147,931)
|
|
|
$
|
256,177
|
|
|
$
|
(332,069)
|
|
|
$
|
(167,292)
|
|
|
(Gain) loss on sale of
properties
|
505
|
|
|
10,226
|
|
|
4,455
|
|
|
(38,188)
|
|
|
(Gain) loss on
extinguishment of debt
|
(4,312)
|
|
|
150
|
|
|
(4,312)
|
|
|
13,848
|
|
|
Net (gain) loss on
derivative instruments
|
71,374
|
|
|
(268,402)
|
|
|
106,314
|
|
|
(28,457)
|
|
|
Derivative
settlements(1)
|
8,346
|
|
|
(51,515)
|
|
|
19,098
|
|
|
(213,528)
|
|
|
Interest expense, net
of capitalized interest
|
40,205
|
|
|
39,734
|
|
|
159,287
|
|
|
156,742
|
|
|
Depreciation,
depletion and amortization
|
203,551
|
|
|
165,319
|
|
|
766,959
|
|
|
618,402
|
|
|
Impairment
|
5,203
|
|
|
—
|
|
|
5,856
|
|
|
384,228
|
|
|
Exploration
expenses
|
4,289
|
|
|
3,731
|
|
|
6,658
|
|
|
27,432
|
|
|
Rig
termination
|
384
|
|
|
—
|
|
|
384
|
|
|
—
|
|
|
Equity-based
compensation expenses
|
6,903
|
|
|
7,345
|
|
|
32,251
|
|
|
27,910
|
|
|
Litigation contingency
expenses(2)
|
—
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
Other non-cash
adjustments
|
130
|
|
|
3,774
|
|
|
2,446
|
|
|
4,331
|
|
|
Adjusted
EBITDA
|
$
|
188,647
|
|
|
$
|
166,539
|
|
|
$
|
787,327
|
|
|
$
|
785,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
In 2019, the Company
incurred a charge to establish a loss accrual of $20.0 million,
which the Company believes is the estimable amount of loss that
could potentially be incurred from its pending legal proceedings
based upon currently available information.
|
|
Midstream
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Income before
income taxes including non-controlling interests
|
$
|
67,235
|
|
|
$
|
40,248
|
|
|
$
|
224,096
|
|
|
$
|
141,001
|
|
|
Loss on sale of
properties
|
—
|
|
|
31
|
|
|
—
|
|
|
9,622
|
|
|
Interest expense, net
of capitalized interest
|
4,467
|
|
|
1,735
|
|
|
16,936
|
|
|
2,343
|
|
|
Depreciation,
depletion and amortization
|
9,732
|
|
|
8,380
|
|
|
37,152
|
|
|
29,282
|
|
|
Equity-based
compensation expenses
|
381
|
|
|
325
|
|
|
1,744
|
|
|
1,547
|
|
|
Adjusted
EBITDA
|
$
|
81,815
|
|
|
$
|
50,719
|
|
|
$
|
279,928
|
|
|
$
|
183,795
|
|
|
|
Well
Services
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
|
Income (loss)
before income taxes including non-controlling
interests
|
$
|
(4,560)
|
|
|
$
|
5,708
|
|
|
$
|
(1,866)
|
|
|
$
|
31,023
|
|
|
Depreciation,
depletion and amortization
|
3,138
|
|
|
4,138
|
|
|
13,631
|
|
|
15,698
|
|
|
Impairment
|
4,401
|
|
|
—
|
|
|
4,401
|
|
|
—
|
|
|
Equity-based
compensation expenses
|
267
|
|
|
439
|
|
|
1,397
|
|
|
1,588
|
|
|
Other non-cash
adjustments
|
589
|
|
|
104
|
|
|
589
|
|
|
104
|
|
|
Adjusted
EBITDA
|
$
|
3,835
|
|
|
$
|
10,389
|
|
|
$
|
18,152
|
|
|
$
|
48,413
|
|
Adjusted Net Income (Loss) Attributable to
Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis
Per Share Reconciliations
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted
Diluted Earnings (Loss) Attributable to Oasis 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)
Attributable to Oasis as net income (loss) after adjusting 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,
(2) the impact of net income attributable to non-controlling
interests and (3) the non-cash and non-recurring items' impact on
taxes based on the Company's effective tax rate applicable to those
adjusting items, excluding net income attributable to
non-controlling interests, in the same period. Adjusted Net Income
(Loss) Attributable to Oasis is not a measure of net income (loss)
as determined by GAAP. The Company defines Adjusted Diluted
Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net
Income (Loss) Attributable to Oasis divided by diluted weighted
average shares outstanding. Adjusted Diluted Earnings (Loss)
Attributable to Oasis Per Share is not a measure of diluted
earnings (loss) per share as determined by GAAP.
The following table presents reconciliations of the GAAP
financial measure of net income (loss) attributable to Oasis to the
non-GAAP financial measure of Adjusted Net Income (Loss)
Attributable to Oasis and the GAAP financial measure of diluted
earnings (loss) attributable to Oasis per share to the non-GAAP
financial measure of Adjusted Diluted Earnings (Loss) Attributable
to Oasis Per Share for the periods presented:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In thousands,
except per share data)
|
|
Net income (loss)
attributable to Oasis
|
$
|
(76,406)
|
|
|
$
|
221,977
|
|
|
$
|
(128,243)
|
|
|
$
|
(35,296)
|
|
|
(Gain) loss on sale of
properties
|
505
|
|
|
10,236
|
|
|
4,455
|
|
|
(28,587)
|
|
|
(Gain) loss on
extinguishment of debt
|
(4,312)
|
|
|
150
|
|
|
(4,312)
|
|
|
13,848
|
|
|
Net (gain) loss on
derivative instruments
|
71,374
|
|
|
(268,402)
|
|
|
106,314
|
|
|
(28,457)
|
|
|
Derivative
settlements(1)
|
8,346
|
|
|
(51,515)
|
|
|
19,098
|
|
|
(213,528)
|
|
|
Impairment
|
9,604
|
|
|
—
|
|
|
10,257
|
|
|
384,228
|
|
|
Rig
termination
|
384
|
|
|
—
|
|
|
384
|
|
|
—
|
|
|
Amortization of
deferred financing costs
|
3,378
|
|
|
2,079
|
|
|
8,832
|
|
|
7,591
|
|
|
Amortization of debt
discount
|
3,137
|
|
|
2,919
|
|
|
12,164
|
|
|
11,120
|
|
|
Litigation contingency
expenses(2)
|
—
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
Other non-cash
adjustments
|
719
|
|
|
3,878
|
|
|
3,035
|
|
|
4,435
|
|
|
Tax
impact(3)
|
(22,108)
|
|
|
71,365
|
|
|
(42,782)
|
|
|
(35,759)
|
|
|
Adjusted Net
Income (Loss) Attributable to Oasis
|
$
|
(5,379)
|
|
|
$
|
(7,313)
|
|
|
$
|
9,202
|
|
|
$
|
79,595
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) attributable to Oasis per share
|
$
|
(0.24)
|
|
|
$
|
0.70
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.11)
|
|
|
(Gain) loss on sale of
properties
|
—
|
|
|
0.03
|
|
|
0.01
|
|
|
(0.09)
|
|
|
(Gain) loss on
extinguishment of debt
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
0.04
|
|
|
Net (gain) loss on
derivative instruments
|
0.23
|
|
|
(0.85)
|
|
|
0.34
|
|
|
(0.09)
|
|
|
Derivative
settlements(1)
|
0.03
|
|
|
(0.16)
|
|
|
0.06
|
|
|
(0.69)
|
|
|
Impairment
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
1.24
|
|
|
Rig
termination
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Amortization of
deferred financing costs
|
0.01
|
|
|
0.01
|
|
|
0.03
|
|
|
0.02
|
|
|
Amortization of debt
discount
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
|
0.04
|
|
|
Litigation contingency
expenses(2)
|
—
|
|
|
—
|
|
|
0.06
|
|
|
—
|
|
|
Other non-cash
adjustments
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
Tax
impact(3)
|
(0.08)
|
|
|
0.23
|
|
|
(0.13)
|
|
|
(0.11)
|
|
|
Adjusted Diluted
Earnings (Loss) Attributable to Oasis Per Share
|
$
|
(0.02)
|
|
|
$
|
(0.02)
|
|
|
$
|
0.03
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding(4)
|
315,416
|
|
|
313,260
|
|
|
315,324
|
|
|
310,860
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
applicable to adjustment items
|
23.7
|
%
|
|
23.7
|
%
|
|
23.7
|
%
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
In 2019, the Company
incurred a charge to establish a loss accrual of $20.0 million,
which the Company believes is the estimable amount of loss that
could potentially be incurred from its pending legal proceedings
based upon currently available information.
|
|
(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. The
tax impact was not computed for the tax reform rate change
adjustments.
|
|
(4)
|
The Company included
322,000 and 3,379,000 of unvested stock awards for the years ended
December 31, 2019 and 2018, respectively, in computing Adjusted
Diluted Earnings Attributable to Oasis Per Share due to the
dilutive effect under the treasury stock method. No unvested stock
awards were included in computing Adjusted Diluted Loss
Attributable to Oasis Per Share for the three months ended
December 31, 2019 and 2018 because the effect was
anti-dilutive due to the Company incurring an Adjusted
Net Loss Attributable to Oasis.
|
View original
content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-and-year-ending-december-31-2019-earnings-and-provides-an-operational-update-and-2020-outlook-301011226.html
SOURCE Oasis Petroleum Inc.