News Releases

Oasis Petroleum Inc. Announces Quarter Ended June 30, 2017 Earnings

HOUSTON, Aug. 2, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended June 30, 2017 and provided an operational update.

Highlights include:

  • Completed and placed on production 15 gross (10.8 net) operated wells in the Williston Basin in the second quarter of 2017, 60% of which were completed in June.
  • Produced over 66,000 barrels of oil equivalent per day ("Boepd") in July 2017, up from 61,943 Boepd produced in the second quarter of 2017.
  • Expect to complete 48 gross operated wells and produce between 67,500 and 69,500 Boepd in the second half of 2017 and continue to expect to hit exit rate of 72,000 Boepd.

"Oasis is well positioned to execute our plan for the second half of 2017, as we integrate our second internal frac spread and efficiently increase completion activity," said Taylor L. Reid, Oasis' Director, President, and Chief Operating Officer. "Our completion design innovation across our core acreage position, including Wild Basin, Indian Hills, and Alger, continues to deliver uplifts in production, and our wells remain highly economic in the current commodity price environment."

"The next six months represent the heart of our 2017 program and will lay the groundwork for everything to come in 2018 and beyond," added Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "The quality of the asset base we have built and the strength of the team we have assembled to develop it give me great conviction around the future success of Oasis. We are confident in our ability to execute and to manage our business prudently in what continues to be a constantly changing market."

Operational and Financial Update

Select operational and financial statistics are in the following table:


Quarter Ended:


6/30/2017


3/31/2017


6/30/2016

Production data:






Oil (Bopd)

47,795



49,281



41,176


Natural gas (Mcfpd)

84,890



83,470



49,983


Total production (Boepd)

61,943



63,192



49,507


Percent Oil

77

%


78

%


83

%

Average sales prices:






Oil, without derivative settlements (per Bbl)

$

44.61



$

47.03



$

40.81


Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl)

3.68



4.88



4.85


Natural gas (per Mcf)(1)

3.19



3.81



1.42


Revenues ($ in millions):






Oil

$

194.0



$

208.6



$

152.9


Natural gas

24.6



28.7



6.4


Bulk oil sales

8.1



27.6




Midstream services ("OMS")

15.6



14.6



6.9


Well services ("OWS")

11.8



5.6



12.8


Total revenues

$

254.1



$

285.1



$

179.0


OMS and OWS operating expenses ($ in millions):






OMS

$

3.3



$

3.3



$

1.7


OWS

8.1



3.9



7.1


Select operating expenses:






LOE ($ per Boe)

$

7.92



$

7.71



$

7.00


    MT&G ($ per Boe)(2)

2.17



1.77



1.55


DD&A ($ per Boe)

22.23



22.27



27.19


Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe)

3.52



3.54



3.93


Production taxes (% of oil and gas revenues)

8.7

%


8.6

%


9.0

%







(1)

Natural gas prices include the value for natural gas and natural gas liquids.

(2)

Excludes non-cash valuation charges on pipeline imbalances.

Second quarter production was adversely impacted by additional workover activity and a completion schedule weighted towards the end of the quarter.  Oasis invested incremental dollars on workovers during the latter part of the quarter, which coupled with late quarter completions, drove July production to over 66,000 Boepd.

G&A totaled $23.5 million in the second quarter of 2017, $21.9 million in the second quarter of 2016 and $23.8 million in the first quarter of 2017. Amortization of stock-based compensation, which is included in G&A, was $7.1 million, or $1.26 per Boe, in the second quarter of 2017 as compared to $6.2 million, or $1.39 per Boe, in the second quarter of 2016 and $6.7 million, or $1.18 per Boe, in the first quarter of 2017. G&A for the Company's E&P segment totaled $19.8 million in the second quarter of 2017, $17.7 million in the second quarter of 2016 and $20.1 million in the first quarter of 2017.

Interest expense was $36.8 million for the second quarter of 2017 compared to $35.0 million for the second quarter of 2016 and $36.3 million for the first quarter of 2017. Capitalized interest totaled $2.8 million for the second quarter of 2017, $4.8 million for the second quarter of 2016 and $2.8 million for the first quarter of 2017. Cash Interest totaled $35.5 million for the second quarter of 2017, $37.8 million for the second quarter of 2016 and $35.1 million for the first quarter of 2017. 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 June 30, 2017, the Company recorded an income tax expense of $2.3 million, resulting in a 12.4% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax expense of $16.0 million, resulting in a 40.2% effective tax rate as a percentage of its pre-tax income for the three months ended March 31, 2017.

For the second quarter of 2017, the Company reported net income of $16.6 million, or $0.07 per diluted share, as compared to a net loss of $89.9 million, or $0.51 per diluted share, for the second quarter of 2016. Excluding certain non-cash items and their tax effect, Adjusted Net Loss (non-GAAP) was $11.2 million, or $0.05 per diluted share, in the second quarter of 2017, compared to Adjusted Net Loss of $19.4 million, or $0.11 per diluted share, in the second quarter of 2016. For a definition of Adjusted Net Income (Loss) and a reconciliation of net income (loss) to Adjusted Net Income (Loss), see "Non-GAAP Financial Measures" below. Adjusted EBITDA for the second quarter of 2017 was $141.3 million, compared to Adjusted EBITDA of $132.2 million for the second quarter of 2016. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.

Capital Expenditures

The following table depicts the Company's total CapEx by category:


1Q 2017


2Q 2017


YTD 2017

CapEx ($ in thousands):






E&P

$

90,780



$

100,822



$

191,602


OMS

13,144



53,777



66,921


OWS



268



268


Other(1)

5,871



18,108



23,979


Total CapEx(2)

$

109,795



$

172,975



$

282,770








(1)

Other CapEx includes asset acquisitions, primarily related to midstream assets, of $17.2 million for the six months ended June 30, 2017 and other items, such as administrative capital and capitalized interest.

(2)

CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis.

Hedging Activity

As of August 1, 2017, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:

Crude oil (Volume in Mbopd)


1H17


2H17


1H18


2H18

Swaps









Volume


19.3



22.7



22.0



20.0


Price


$

49.20



$

49.90



$

51.17



$

51.11


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 Crude Oil Volume


33.3



36.7



23.0



21.0











Natural Gas (Volume in MMBtupd)









Swaps









Volume


16.5



20.0



15.0



15.0


Price


$

3.31



$

3.32



$

3.04



$

3.04


The June 2017 crude oil derivative contracts settled at a net $3.3 million received in July 2017 and will be included in the Company's third quarter 2017 derivative settlements.

Conference Call Information

Investors, analysts and other interested parties are invited to listen to the conference call:

Date:


Thursday, August 3, 2017

Time:


10:00 a.m. Central Time

Dial-in:


888-317-6003

Intl. Dial in:


412-317-6061

Conference ID:


3753112

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, August 10, 2017 by dialing:

Replay dial-in:


877-344-7529

Intl. replay:


412-317-0088

Replay code:


10110100

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, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company's ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Oasis Petroleum Inc.

Oasis is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit the Company's website at www.oasispetroleum.com.

Oasis Petroleum Inc.

Condensed Consolidated Balance Sheet

(Unaudited)



June 30, 2017


December 31, 2016


(In thousands, except share data)

ASSETS




Current assets




Cash and cash equivalents

$

11,440



$

11,226


Accounts receivable, net

218,302



204,335


Inventory

17,942



10,648


Prepaid expenses

10,610



7,623


Derivative instruments

31,851



362


Other current assets

62



4,355


Total current assets

290,207



238,549


Property, plant and equipment




Oil and gas properties (successful efforts method)

7,488,075



7,296,568


Other property and equipment

695,592



618,790


Less: accumulated depreciation, depletion, amortization and impairment

(2,252,653)



(1,995,791)


Total property, plant and equipment, net

5,931,014



5,919,567


Derivative instruments

11,834




Long-term inventory

8,762




Other assets

19,904



20,516


Total assets

$

6,261,721



$

6,178,632


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable

$

12,257



$

4,645


Revenues and production taxes payable

143,715



139,737


Accrued liabilities

139,766



119,173


Accrued interest payable

39,128



39,004


Derivative instruments



60,469


Advances from joint interest partners

5,816



7,597


Other current liabilities



10,490


Total current liabilities

340,682



381,115


Long-term debt

2,359,683



2,297,214


Deferred income taxes

527,181



513,529


Asset retirement obligations

51,059



48,985


Derivative instruments



11,714


Other liabilities

5,506



2,918


Total liabilities

3,284,111



3,255,475


Commitments and contingencies




Stockholders' equity




Common stock, $0.01 par value: 450,000,000 shares authorized; 238,642,598 shares issued and 237,410,395 shares outstanding at June 30, 2017 and 237,201,064 shares issued and 236,344,172 shares outstanding at December 31, 2016

2,345



2,331


Treasury stock, at cost: 1,232,203 and 856,892 shares at June 30, 2017 and December 31, 2016, respectively

(21,401)



(15,950)


Additional paid-in capital

2,362,084



2,345,271


Retained earnings

634,582



591,505


Total stockholders' equity

2,977,610



2,923,157


Total liabilities and stockholders' equity

$

6,261,721



$

6,178,632



 

Oasis Petroleum Inc.

Condensed Consolidated Statement of Operations

(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands, except per share data)

Revenues








Oil and gas revenues

$

218,633



$

159,337



$

455,885



$

276,652


Bulk oil sales

8,091





35,722




Midstream revenues

15,566



6,910



30,172



13,893


Well services revenues

11,801



12,833



17,428



18,818


Total revenues

254,091



179,080



539,207



309,363


Operating expenses








Lease operating expenses

44,665



31,523



88,537



62,587


Midstream operating expenses

3,263



1,740



6,590



3,478


Well services operating expenses

8,088



7,135



11,990



9,786


Marketing, transportation and gathering expenses

12,039



6,491



22,990



15,043


Bulk oil purchases

7,980





35,982




Production taxes

18,971



14,367



39,270



25,120


Depreciation, depletion and amortization

125,291



122,488



251,957



244,937


Exploration expenses

1,667



340



3,156



703


Impairment

3,200



23



5,882



3,585


General and administrative expenses

23,548



21,876



47,382



46,242


Total operating expenses

248,712



205,983



513,736



411,481


Loss on sale of properties



(1,311)





(1,311)


Operating income (loss)

5,379



(28,214)



25,471



(103,429)


Other income (expense)








Net gain (loss) on derivative instruments

50,532



(90,846)



106,607



(76,471)


Interest expense, net of capitalized interest

(36,838)



(34,979)



(73,159)



(73,718)


Gain on extinguishment of debt



11,642





18,658


Other income (expense)

(166)



(32)



(150)



447


Total other income (expense)

13,528



(114,215)



33,298



(131,084)


Income (loss) before income taxes

18,907



(142,429)



58,769



(234,513)


Income tax benefit (expense)

(2,339)



52,498



(18,376)



80,127


Net income (loss)

$

16,568



$

(89,931)



$

40,393



$

(154,386)


Earnings (loss) per share:








Basic

$

0.07



$

(0.51)



$

0.17



$

(0.91)


Diluted

0.07



(0.51)



0.17



(0.91)


Weighted average shares outstanding:








Basic

233,283



176,984



233,176



169,953


Diluted

234,917



176,984



236,281



169,953



 

Oasis Petroleum Inc.

Selected Financial and Operational Statistics

(Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,


2017


2016


2017


2016

Operating results (in thousands):








Revenues








Oil

$

194,005



$

152,900



$

402,599



$

264,106


Natural gas

24,628



6,437



53,286



12,546


Bulk oil sales

8,091





35,722




Midstream

15,566



6,910



30,172



13,893


Well services

11,801



12,833



17,428



18,818


Total revenues

$

254,091



$

179,080



$

539,207



$

309,363


Production data:








Oil (MBbls)

4,349



3,747



8,785



7,617


Natural gas (MMcf)

7,725



4,549



15,237



8,802


Oil equivalents (MBoe)

5,637



4,505



11,324



9,084


Average daily production (Boe per day)

61,943



49,507



62,564



49,911


Average sales prices:








Oil, without derivative settlements (per Bbl)

$

44.61



$

40.81



$

45.83



$

34.67


Oil, with derivative settlements (per Bbl)(1)

42.56



48.94



40.72



48.30


Natural gas (per Mcf)(2)

3.19



1.42



3.50



1.43


Costs and expenses (per Boe of production):








Lease operating expenses

$

7.92



$

7.00



$

7.82



$

6.89


Marketing, transportation and gathering expenses(3)

2.17



1.55



1.97



1.58


Production taxes

3.37



3.19



3.47



2.77


Depreciation, depletion and amortization

22.23



27.19



22.25



26.96


General and administrative expenses ("G&A")

4.18



4.86



4.18



5.09


Exploration and production G&A

3.52



3.93



3.53



4.27









(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 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)

Natural gas prices include the value for natural gas and natural gas liquids.

(3)

Excludes non-cash valuation charges on pipeline imbalances.


 

Oasis Petroleum Inc.

Condensed Consolidated Statement of Cash Flows

(Unaudited)



Six Months Ended June 30,


2017


2016


(In thousands)

Cash flows from operating activities:




Net income (loss)

$

40,393



$

(154,386)


Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation, depletion and amortization

251,957



244,937


Gain on extinguishment of debt



(18,658)


Loss on sale of properties



1,311


Impairment

5,882



3,585


Deferred income taxes

18,376



(80,127)


Derivative instruments

(106,607)



76,471


Stock-based compensation expenses

13,823



12,979


Deferred financing costs amortization and other

8,871



6,552


Working capital and other changes:




Change in accounts receivable

(13,743)



4,297


Change in inventory

(1,007)



2,054


Change in prepaid expenses

(264)



1,423


Change in other current assets

280



(114)


Change in long-term inventory and other assets

(8,768)



100


Change in accounts payable, interest payable and accrued liabilities

11,158



(18,034)


Change in other current liabilities

(10,490)



9,001


Change in other liabilities



10


Net cash provided by operating activities

209,861



91,401


Cash flows from investing activities:




Capital expenditures

(252,461)



(231,341)


Proceeds from sale of properties

4,000



11,679


Costs related to sale of properties



(310)


Derivative settlements

(8,899)



103,790


Advances from joint interest partners

(1,781)



769


Net cash used in investing activities

(259,141)



(115,413)


Cash flows from financing activities:




Proceeds from revolving credit facility

484,000



359,000


Principal payments on revolving credit facility

(429,000)



(462,000)


Repurchase of senior unsecured notes



(56,925)


Deferred financing costs



(751)


Proceeds from sale of common stock



182,953


Purchases of treasury stock

(5,451)



(1,520)


Other

(55)




Net cash provided by financing activities

49,494



20,757


Increase (decrease) in cash and cash equivalents

214



(3,255)


Cash and cash equivalents:




Beginning of period

11,226



9,730


End of period

$

11,440



$

6,475


Supplemental non-cash transactions:




Change in accrued capital expenditures

$

19,017



$

(17,015)


Change in asset retirement obligations

1,759



(8,785)


Notes payable from acquisition

4,875




Non-GAAP Financial Measures

Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts 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 June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands)

Interest expense

$

36,838



$

34,979



$

73,159



$

73,718


Capitalized interest

2,816



4,835



5,636



9,303


Amortization of deferred financing costs

(1,709)



(2,030)



(3,399)



(5,947)


Amortization of debt discount

(2,480)





(4,835)




Cash Interest

$

35,465



$

37,784



$

70,561



$

77,074


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 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 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 June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands)

Net income (loss)

$

16,568



$

(89,931)



$

40,393



$

(154,386)


Loss on sale of properties



1,311





1,311


Gain on extinguishment of debt



(11,642)





(18,658)


Net (gain) loss on derivative instruments

(50,532)



90,846



(106,607)



76,471


Derivative settlements(1)

(939)



30,477



(8,899)



103,790


Interest expense, net of capitalized interest

36,838



34,979



73,159



73,718


Depreciation, depletion and amortization

125,291



122,488



251,957



244,937


Impairment

3,200



23



5,882



3,585


Exploration expenses

1,667



340



3,156



703


Stock-based compensation expenses

7,115



6,249



13,823



12,979


Income tax (benefit) expense

2,339



(52,498)



18,376



(80,127)


Other non-cash adjustments

(213)



(484)



699



723


Adjusted EBITDA

141,334



132,158



291,939



265,046


Cash interest

(35,465)



(37,784)



(70,561)



(77,074)


Capital expenditures(2)

(172,975)



(131,288)



(282,770)



(219,243)


Capitalized interest

2,816



4,835



5,636



9,303


Free Cash Flow

$

(64,290)



$

(32,079)



$

(55,756)



$

(21,968)










Net cash provided by operating activities

$

102,062



$

137,452



$

209,861



$

91,401


Derivative settlements(1)

(939)



30,477



(8,899)



103,790


Interest expense, net of capitalized interest

36,838



34,979



73,159



73,718


Exploration expenses

1,667



340



3,156



703


Deferred financing costs amortization and other

(3,931)



(1,486)



(8,871)



(6,552)


Changes in working capital

5,850



(69,120)



22,834



1,263


Other non-cash adjustments

(213)



(484)



699



723


Adjusted EBITDA

141,334



132,158



291,939



265,046


Cash interest

(35,465)



(37,784)



(70,561)



(77,074)


Capital expenditures(2)

(172,975)



(131,288)



(282,770)



(219,243)


Capitalized interest

2,816



4,835



5,636



9,303


Free Cash Flow

$

(64,290)



$

(32,079)



$

(55,756)



$

(21,968)









(1)

Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled.

(2)

CapEx reflected in the table above differs from the amounts shown in the statement of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis.

The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:

Exploration and Production


Three Months Ended June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands)

Income (loss) before income taxes

$

(3,900)



$

(158,978)



$

16,836



$

(264,744)


Loss on sale of properties



1,669





1,669


Gain on extinguishment of debt



(11,642)





(18,658)


Net (gain) loss on derivative instruments

(50,532)



90,846



(106,607)



76,471


Derivative settlements(1)

(939)



30,477



(8,899)



103,790


Interest expense, net of capitalized interest

36,838



34,979



73,159



73,718


Depreciation, depletion and amortization

122,785



120,039



247,193



240,881


Impairment

3,200



23



5,882



1,154


Exploration expenses

1,667



340



3,156



703


Stock-based compensation expenses

6,897



6,077



13,395



12,625


Other non-cash adjustments

(213)



(484)



699



723


Adjusted EBITDA

$

115,803



$

113,346



$

244,814



$

228,332









(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.

 

Midstream Services


Three Months Ended June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands)

Income before income taxes

$

23,106



$

18,040



$

43,867



$

33,198


Gain on sale of properties



(358)





(358)


Depreciation, depletion and amortization

3,753



1,732



7,211



3,415


Impairment







2,431


Stock-based compensation expenses

365



224



713



443


Adjusted EBITDA

$

27,224



$

19,638



$

51,791



$

39,129


 

Well Services


Three Months Ended June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands)

Income (loss) before income taxes

$

1,950



$

(2,142)



$

(1,637)



$

1,885


Depreciation, depletion and amortization

3,057



3,895



6,222



8,127


Stock-based compensation expenses

338



235



734



899


Adjusted EBITDA

$

5,345



$

1,988



$

5,319



$

10,911


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 items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items 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 June 30,


Six Months Ended June 30,


2017


2016


2017


2016


(In thousands, except per share data)

Net income (loss)

$

16,568



$

(89,931)



$

40,393



$

(154,386)


Loss on sale of properties



1,311





1,311


Gain on extinguishment of debt



(11,642)





(18,658)


Net (gain) loss on derivative instruments

(50,532)



90,846



(106,607)



76,471


Derivative settlements(1)

(939)



30,477



(8,899)



103,790


Impairment

3,200



23



5,882



3,585


Amortization of deferred financing costs

1,709



2,030



3,399



5,947


Amortization of debt discount

2,480





4,835




Other non-cash adjustments

(213)



(484)



699



723


      Tax impact(2)

16,575



(42,075)



37,679



(64,731)


Adjusted Net Loss

$

(11,152)



$

(19,445)



$

(22,619)



$

(45,948)










Diluted earnings (loss) per share

$

0.07



$

(0.51)



$

0.17



$

(0.91)


Loss on sale of properties



0.01





0.01


Gain on extinguishment of debt



(0.07)





(0.11)


Net (gain) loss on derivative instruments

(0.22)



0.51



(0.45)



0.45


Derivative settlements(1)



0.17



(0.04)



0.61


Impairment

0.01





0.02



0.02


Amortization of deferred financing costs

0.01



0.01



0.01



0.03


Amortization of debt discount

0.01





0.02




      Tax impact(2)

0.07



(0.23)



0.17



(0.37)


Non-GAAP Diluted Loss Per Share

$

(0.05)



$

(0.11)



$

(0.10)



$

(0.27)










Diluted weighted average shares outstanding

234,917



176,984



236,281



169,953










Effective tax rate applicable to adjustment items

37.4

%


37.4

%


37.4

%


37.4

%








(1)

Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled.

(2)

The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items.

 

SOURCE Oasis Petroleum Inc.

For further information: Oasis Petroleum Inc., Taylor Mason, (281) 404-9600, Manager, Corporate Finance & Investor Relations


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