Press Releases

 
 PDF version   Printer friendly   Display list
Aug 06, 2012
Oasis Petroleum Inc. Announces Quarter Ending June 30, 2012 Earnings

HOUSTON, Aug. 6, 2012 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended June 30, 2012.

Highlights for the three months ended June 30, 2012 include:

  • Grew average daily production to 20,353 barrels of oil equivalent per day ("Boepd"), a 158% increase over the second quarter of 2011.  Average daily production increased by 15% compared to the first quarter of 2012 and exceeded guidance range of 18,000 to 19,500 Boepd.
  • Increased revenue to $149.1 million in the second quarter of 2012, up from $67.2 million in the second quarter of 2011 and $138.6 million in the first quarter of 2012, for an increase of 122% and 8%, respectively.
  • Grew Adjusted EBITDA to $108.5 million, an increase of $63.9 million over the second quarter of 2011 and a sequential increase of $7.4 million over the first quarter of 2012.  For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities, see "Non-GAAP Financial Measure" below.
  • Increased net income to $76.0 million in the second quarter of 2012, up from $33.3 million in the second quarter of 2011 and $16.4 million in the first quarter of 2012, for an increase of 128% and 363%, respectively.

"Our team continued to execute on our business plan and capitalize on the operational efficiencies and improvements from the first quarter, resulting in record average daily production of 20,353 Boepd," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer.  "Oasis completed and brought on production another 26 gross operated wells in the second quarter, matching our activity from the first quarter and exceeding our second quarter estimates of 22 to 24 completions.  We believe our production will continue to grow in the second half of 2012, and based on our increased operating activity for the year, we are increasing our full year 2012 production guidance to 20,500 to 22,500 Boepd from 18,000 to 22,000 Boepd. We are positioning the Company for long-term success as we expand our infrastructure development efforts and execute on our well density testing and infill pilot programs in advance of our transition to full development mode in 2013. We are also starting to see a reduction in well costs as a result of operating efficiencies and lower service costs."

"Additionally, our marketing team continues to leverage our third party oil gathering pipeline, as we have been able to optimize realizations by marketing approximately 60% of our operated volumes to both rail and pipeline delivery points off the gathering system rather than sales at the lease," Mr. Nusz added.  "Lastly, Oasis Well Services is progressing as scheduled and commenced 24 hour operations in June."

Operational and Financial Update
Average daily production for the second quarter of 2012 was 20,353 Boepd, an increase of 158% as compared to 7,893 Boepd in the second quarter of 2011. Sequential quarter-over-quarter average daily production increased 2,720 Boepd, or 15%. In the second quarter of 2012, 91% of production was from oil. Average daily production by project area is listed in the following table:










Average Daily Production for the Quarter Ended (Boepd):

Project Area

Jun 30, 2012


Mar 31, 2012


Change


% Change

  West Williston 

13,715


12,131


1,584


13%

  East Nesson 

4,494


3,541


953


27%

  Sanish 

2,144


1,961


183


9%

Total Company

20,353


17,633


2,720


15%

The Company's average price per barrel of oil, without realized derivatives, was $82.36 in the second quarter of 2012, compared to $95.48 in the second quarter of 2011 and $88.10 in the first quarter of 2012.  The Company's average price differential compared to West Texas Intermediate ("WTI") crude oil index prices was 12% in the second quarter of 2012, compared to 7% in the second quarter of 2011 and 14% in the first quarter of 2012.  The Company's differentials improved in the second quarter of 2012 compared to the first quarter of 2012 due to higher quoted prices relative to WTI for Bakken crude in markets such as Clearbrook, Minnesota and Guernsey, Wyoming as a result of increased takeaway capacity from the Williston Basin and fewer refinery constraints.

Total revenue for the second quarter of 2012 was $149.1 million compared to $67.2 million for the second quarter of 2011, an increase of 122%.  Sequential quarter-over-quarter revenue growth was $10.5 million, or 8%. This increase is primarily due to a 15% increase in production and a $3.2 million increase in well services revenues in the second quarter of 2012, offset by a 7% decrease in realized prices compared to the first quarter 2012.   

The following table describes the Company's drilling activity by project area in the Williston Basin as of June 30, 2012:

Bakken/Three Forks Wells


West Williston


East Nesson


Sanish


Total Williston Basin


Gross

Net


Gross

Net


Gross

Net


Gross

Net

Producing on or before December 31, 2011:











Gross Operated (Net)

73

(59.2)


41

(32.7)


0

-


114

(91.9)

Gross Non-Operated (Net)

37

(2.6)


51

(4.4)


174

(13.1)


262

(20.1)

Production started  in Q1 2012












Gross Operated (Net)

19

(14.9)


7

(5.0)


0

-


26

(19.9)

Gross Non-Operated (Net)

3

(0.5)


0

-


21

(1.6)


24

(2.0)

Production started  in Q2 2012












Gross Operated (Net)

19

(14.6)


7

(5.7)


0

-


26

(20.3)

Gross Non-Operated (Net)

3

(0.2)


2

(0.0)


17

(1.7)


22

(2.0)

Total Producing Wells












Gross Operated (Net)

111

(88.7)


55

(43.4)


0

-


166

(132.1)

Gross Non-Operated (Net)

43

(3.3)


53

(4.4)


212

(16.4)


308

(24.1)

Wells Waiting on Completion












Gross Operated (Net)

24

(19.5)


6

(4.6)


0

-


30

(24.1)

Gross Non-Operated (Net)

5

(0.6)


6

(0.4)


8

(0.5)


19

(1.5)

Wells Drilling












Gross Operated (Net) (1)

8

(6.7)


1

(0.7)


0

-


9

(7.4)

Gross Non-Operated (Net)

1

(0.2)


1

(0.1)


8

(0.7)


10

(1.0)

____________

(1)      One rig was moving to a new location on June 30, 2012.

Lease operating expenses ("LOE") per Boe decreased $1.80, or 22%, to $6.49 per Boe in the second quarter of 2012 compared to the second quarter of 2011, and increased $0.37 per Boe in the second quarter of 2012 compared to the first quarter of 2012.  LOE trended up due to higher workover expenses incurred in the second quarter; however, this increase was partially offset by cost savings resulting from an increase in produced water volumes flowing through the Company's salt water disposal systems. 

Marketing, transportation and gathering expense per Boe was $1.06 in the second quarter of 2012 compared to $0.34 in the second quarter 2011 and $1.60 in the first quarter of 2012. The sequential quarter decrease is attributed to the $1.4 million cost for bulk oil purchases made in the first quarter.  Excluding the bulk oil purchase in the first quarter of 2012, marketing, transportation and gathering per Boe would have been $0.74.  The 43% increase from the first to the second quarter of 2012 is due to higher operated volumes flowing through third party oil gathering pipelines. While transporting volumes through third party oil gathering pipelines increases marketing, transportation and gathering expenses, it improves oil price realizations by eliminating trucking costs, which are reflected in the oil price differential rather than as an expense.

Production taxes as a percent of oil and gas revenues were 9.5% in the second quarter of 2012, 10.5% in the second quarter of 2011, and 9.6% in the first quarter of 2012. The Company's effective production tax rate decreased in the second quarter of 2012 primarily as a result of certain new wells in Montana subject to lower incentivized production tax rates.

Depreciation, depletion and amortization expenses ("DD&A") totaled $44.2 million in the second quarter of 2012, $13.1 million in the second quarter of 2011, and $38.9 million in the first quarter of 2012. DD&A was $23.87 per Boe in the second quarter of 2012, $18.24 per Boe in the second quarter of 2011, and $24.23 per Boe in the first quarter of 2012.

General and administrative expenses ("G&A") totaled $13.5 million in the second quarter of 2012, $6.6 million in the second quarter of 2011, and $12.2 million in the first quarter of 2012.  The increase in G&A expenses from the first quarter of 2012 to the second quarter of 2012 was primarily due to higher compensation costs from organizational growth.  G&A expenses were $7.31 per Boe in the second quarter of 2012 ($6.71 per Boe for exploration and production ("E&P") only), $9.21 per Boe in the second quarter of 2011, and $7.60 per Boe in the first quarter of 2012.  Amortization of restricted stock-based compensation, which is included in the aggregate G&A expense, was $2.3 million, or $1.25 per Boe, in the second quarter of 2012 as compared to $1.0 million, or $1.45 per Boe, in the second quarter of 2011 and $1.6 million, or $0.99 per Boe, in the first quarter of 2012. 

As a result of the Company's derivative activities, it incurred net cash settlement losses of $1.2 million and $4.1 million in the second quarters of 2012 and 2011, respectively.  In the first quarter of 2012, Oasis incurred a net cash settlement loss of $1.3 million.  As a result of forward oil price changes, the Company recognized non-cash unrealized mark-to-market net derivative gains of $75.8 million and $31.7 million for the second quarters of 2012 and 2011, respectively. Oasis recognized a non-cash unrealized mark-to-market net derivative loss of $17.3 million in the first quarter of 2012.

The Company recorded non-cash charges for the impairment of oil and natural gas properties of $2.2 million in the second quarter of 2012 related to unproved property leases that expired during the period or have been forecasted to expire under current drilling plans, as compared to $1.5 million in the second quarter of 2011 and $0.4 million in the first quarter of 2012.

Interest expense increased $7.3 million to $14.1 million for the second quarter of 2012 compared to the second quarter of 2011 and increased $0.2 million compared to the first quarter of 2012. The $7.3 million increase was the result of additional interest expense from the Company's issuance of 6.5% senior unsecured notes in November of 2011.

Income tax expense was $45.4 million for the three months ended June 30, 2012, resulting in an effective tax rate of 37.4%. The Company's income tax expense for the three months ended June 30, 2011 was recorded at 37.8% of pre-tax net income.  The Company's effective tax rate is expected to continue to closely approximate the statutory rate applicable to the U.S. and the blended state rate of the states in which the Company conducts business.

Adjusted EBITDA for the second quarter of 2012 was $108.5 million, an increase of $63.9 million, or 143%, over the second quarter of 2011 of $44.6 million, and a 7% increase over the first quarter of 2012 of $101.1 million.  For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss) and net cash provided by operating activities, see "Non-GAAP Financial Measure" below.

The Company reported net income of $76.0 million, or $0.82 per weighted average diluted share, for the second quarter of 2012 as compared to net income of $33.3 million, or $0.36 per weighted average diluted share, for the second quarter of 2011 and net income of $16.4 million, or $0.18 per weighted average diluted share, for the first quarter of 2012.

Capital Expenditures
Oasis' E&P capital expenditures were $263.2 million for the second quarter of 2012 and $530.2 million year to date.  The following table depicts the Company's E&P capital expenditures by project area and total capital expenditures by category for the first and second quarters of 2012: 

CapEx ($ in millions)

1Q 2012


2Q 2012


YTD 2012

E&P Capital by Project Area






West Williston

$   204.0


$   188.0


$      392.0

East Nesson

50.1


56.5


106.6

Sanish

12.9


18.7


31.6

Total E&P Capital

$  267.0


$  263.2


$    530.2

  Oasis Well Services ("OWS")

11.3


2.2


13.5

  Non E&P (1)

10.0


1.8


11.8

Total Company Capital Expenditures (2)

$  288.3


$  267.2


$    555.5







____________

(1)    Non-E&P capital expenditures include such items as district tools, administrative capital and capitalized interest.

(2)      Capital expenditures reflected in the table above differ 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 accrued liabilities for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis. 

Liquidity
On June 30, 2012, Oasis had total cash and cash equivalents of $238.9 million and had no outstanding indebtedness under its revolving credit facility with a $500 million borrowing base. On July 2, 2012, the Company received $392 million in net proceeds from its issuance of $400 million in aggregate principal amount of 6.875% senior unsecured notes due 2023.  The Company's lenders waived the mandatory reduction of the Company's borrowing base that otherwise would have occurred as a result of the issuance of the senior unsecured notes.

Outlook for 2012
Oasis is providing an updated outlook for 2012.  On July 26, 2012, the Company's Board of Directors increased the total 2012 capital expenditure budget from $884 million to $1,062 million.

CapEx ($ in millions)



Prior Budget


Updated Budget


Change

E&P Capital








   Development Capital



$758


$912


$154

   Lease Acquisition



25


30


5

   Infrastructure



57


74


17

   Geology



6


6


0

Total E&P Capital



$846


$1,022


$176

   OWS



$15


$17


$2

   Non E&P



23


23


0

Total Company Capital Expenditures (1)



$884


$1,062


$178

(1)     The updated 2012 capital expenditure budget does not include approximately $30 million of capital that was related to 2011 activity that was included in the first quarter of 2012 actual capital expenditures. 

The increase in the development capital budget is primarily due to accelerated activity in both operated wells (additional gross operated wells and increased working interest in operated wells) and non-operated wells. The increase in development capital is partially offset by anticipated reductions in well costs related to both service and proppant costs.  The Company has also updated its wells spud by area, as shown below:

Wells Spud by Area

Gross
Operated


Net
Operated


Net Non Operated


Total Net
Wells

Updated Budget








West Williston

79


59.2


1.7


60.9

East Nesson

33


24.5


1.5


25.9

Sanish

0


0.0


6.0


6.0

Total

112


83.7


9.1


92.8

Oasis also increased its infrastructure budget by $17 million, as the Company continues to improve LOE through its investment in salt water disposal projects.  In addition to the increased capital expenditure budget, Oasis is also providing updated guidance on operational metrics, including a lower range for LOE, as follows:

Metrics



Prior Guidance


Updated Guidance

  Average Daily Production (MBoepd)






  Full Year



18.0 - 22.0


20.5 - 22.5

  3Q 2012





22.0 - 24.0

  Full Year Financial Metrics






  LOE ($/Boe)



$6.00 - $8.00


$5.75 - $7.00

  Marketing, Transportation and Gathering ($/Boe)



$1.00 - $1.50


$1.00 - $1.50

  G&A ($ in millions)



$55 - $62


$55 - $62

  Production Taxes (% of E&P Revenue)


10.5% - 11.5%


9.5% - 10.5%

"Our continued production growth has been enhanced by an increase in both gross operated and total net wells," said Mr. Nusz. "Our board of directors increased our 2012 CapEx budget due to higher working interest and accelerated activity, which has a proportionate increase to our capital production.  With the increased operational performance from both our drilling rigs and frac crews, Oasis now expects to be able to spud 112 gross operated wells and turn to production a similar number of wells while running nine to ten rigs for the remainder of the year and utilizing two to three frac spreads. With all of the great work our team has been doing operationally and working constructively with our service providers on cost structure, we believe that we will be able to decrease overall well costs by approximately 10% by year-end 2012.  We expect additional savings will arise from pad drilling, further decreasing costs, especially in 2013."

Hedging Activity
As of August 6, 2012, the Company had the following outstanding commodity derivative contracts, all of which are priced off of NYMEX WTI and settle monthly:





Weighted Average Prices ($/Bbl)





Type


Remaining Term


Sub-Floor


Floor


Ceiling


BOPD


Total Barrels














2012













Full Year













  Two-Way
   Collars


5 Months (Aug-Dec)




$88.44


$106.36


8,000


1,472,000

  Three-Way
   Collars


5 Months (Aug-Dec)


$66.25


$90.25


$110.04


10,000


1,840,000

Total 2012 Hedges






$89.44


$108.40




3,312,000

Implied total volume hedged (BOPD) for 2012










18,000














2013













Partial Year













  Put Spreads (No
   Ceiling)

6 Months (Jan-Jun)


$65.00


$95.00




500


90,500

Full Year













  Two-Way
   Collars


12 Months (Jan-Dec)




$85.00


$97.10


3,500


1,277,500

  Three-Way
   Collars


12 Months (Jan-Dec)


$65.13


$92.92


$113.09


5,130


1,872,450

  Put Spreads (No
   Ceiling)

12 Months (Jan-Dec)


$71.03


$91.03




4,870


1,777,550

Total  2013 Hedges




$67.93


$90.27






5,018,000

Implied total volume hedged (BOPD) for 2013










13,748














2014













Full Year













  Three-Way
   Collars


12 Months (Jan-Dec)


$72.50


$92.50


$114.40


2,000


730,000

Total  2014 Hedges




$72.50


$92.50


$114.40




730,000

Implied total volume hedged (BOPD) for 2014










2,000

Conference Call Information
Investors, analysts and other interested parties are invited to listen to the Company's conference call:

Date:

Tuesday, August 7, 2012

Time:

10:00 a.m. Central Time

Dial-in:

877-621-0256

Intl. Dial in:

706-634-0151

Conference ID:

97326299

Website:

www.oasispetroleum.com

A recording of the conference call will be available beginning at 11:00 a.m. Central Time on the day of the call and will be available until Tuesday, August 14, 2012 by dialing:

Replay dial-in:

855-859-2056

Intl. replay:

404-537-3406

Conference ID:

97326299

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

Contact:
Oasis Petroleum Inc.
Richard Robuck, (281) 404-9600
Director Finance


 

 

Oasis Petroleum Inc. Financial Statements

 

Oasis Petroleum Inc.

Condensed Consolidated Balance Sheet

(Unaudited)

 






June 30,
 2012


December 31,
 2011


(In thousands, except share data)

ASSETS




Current assets 




  Cash and cash equivalents 

$   238,886


$        470,872

  Short-term investments

-


19,994

  Accounts receivable - oil and gas revenues 

79,478


52,164

  Accounts receivable - joint interest partners 

66,794


67,268

  Inventory 

19,550


3,543

  Prepaid expenses 

674


2,140

  Advances to joint interest partners 

1,957


3,935

  Derivative instruments 

35,257


-

  Deferred income taxes

-


3,233

  Other current assets

1


491

 Total current assets 

442,597


623,640

Property, plant and equipment 




  Oil and gas properties (successful efforts method) 

1,769,570


1,235,357

  Other property and equipment 

41,333


20,859

  Less: accumulated depreciation, depletion, amortization and impairment 

(261,529)


(176,261)

 Total property, plant and equipment, net 

1,549,374


1,079,955

Derivative instruments 

18,167


4,362

Deferred costs and other assets 

26,232


19,425

 Total assets

$2,036,370


$     1,727,382





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




  Accounts payable 

$       1,010


$          12,207

  Advances from joint interest partners 

28,444


9,064

  Revenues and production taxes payable

56,795


19,468

  Accrued liabilities 

237,694


119,692

  Accrued interest payable 

16,427


15,774

  Derivative instruments 

-


5,907

  Deferred income taxes 

11,780


-

  Other current liabilities

2,895


472

 Total current liabilities 

355,045


182,584

Long-term debt 

800,000


800,000

Asset retirement obligations 

16,982


13,075

Derivative instruments 

-


3,505

Deferred income taxes 

133,178


92,983

Other liabilities 

1,751


997

 Total liabilities 

1,306,956


1,093,144

Commitments and contingencies 




Stockholders' equity




  Common stock, $0.01 par value; 300,000,000 shares authorized;
   93,185,023 issued and 93,122,353 outstanding at June 30, 2012;
   92,483,393 issued and 92,460,914 outstanding at December 31, 2011

922


921

  Treasury stock, at cost; 62,670 and 22,479 shares at June 30, 2012 and
   December 31, 2011, respectively

(1,808)


(602)

  Additional paid-in-capital 

651,271


647,374

  Retained earnings (deficit)

79,029


(13,455)

 Total stockholders' equity 

729,414


634,238

 Total liabilities and  stockholders' equity 

$2,036,370


$     1,727,382

 

 

Oasis Petroleum Inc.

Condensed Consolidated Statement of Operations

(Unaudited)

 






Three Months Ended June 30,


Six Months Ended June 30,


2012


2011


2012


2011


(In thousands, except per share data)

Revenues








  Oil and gas revenues

$145,203


$  67,206


$283,109


$125,950

  Well services revenues

3,861


-


4,521


-

 Total revenues 

149,064


67,206


287,630


125,950

Expenses








  Lease operating expenses 

12,029


5,951


21,845


11,581

  Well services operating expenses 

1,207


-


1,684


-

  Marketing, transportation and gathering
   expenses 

1,970


247


4,539


559

  Production taxes 

13,720


7,085


26,986


13,168

  Depreciation, depletion and amortization 

44,213


13,100


83,099


26,912

  Exploration expenses 

-


259


2,835


291

  Impairment of oil and gas properties 

2,203


1,536


2,571


2,917

  General and administrative expenses 

13,537


6,614


25,736


12,564

 Total expenses 

88,879


34,792


169,295


67,992

Operating income 

60,185


32,414


118,335


57,958

Other income (expense)








  Net gain (loss) on derivative
   instruments 

74,595


27,547


56,009


(4,119)

  Interest expense 

(14,074)


(6,761)


(27,973)


(11,959)

  Other income 

776


379


1,374


691

 Total other income (expense) 

61,297


21,165


29,410


(15,387)

  Income before income taxes 

121,482


53,579


147,745


42,571

  Income tax expense

(45,439)


(20,230)


(55,261)


(16,069)









Net income 

$76,043


$33,349


$92,484


$26,502









Earnings per share:








Basic and diluted 

$      0.82


$      0.36


$      1.00


$      0.29









Weighted average shares outstanding:








Basic

92,176


92,048


92,153


92,047

Diluted

92,222


92,151


92,339


92,177


 

 

Oasis Petroleum Inc.
Selected Financial and Operational Statistics

(Unaudited)

 






Three Months Ended June 30,


Six Months Ended June 30,


2012


2011


2012


2011

Operating results ($ in thousands):




Revenues:








Oil 

$138,559


$65,400


$269,935


$122,572

Natural gas 

6,644


1,806


13,174


3,378

Well services

3,861


-


4,521


-

  Total revenues 

149,064


67,206


287,630


125,950









Production data:








Oil (MBbls) 

1,682


685


3,156


1,379

Natural gas (MMcf) 

1,019


200


1,803


402

Oil equivalents (MBoe) 

1,852


718


3,457


1,446

Average daily production (Boe/d) 

20,353


7,893


18,993


7,991









Average sales prices:








Oil, without realized derivatives (per Bbl) (1) 

$    82.36


$  95.48


$    85.04


$    88.86

Oil, with realized derivatives (per Bbl) (1) (2) 

81.67


89.43


84.26


85.49

Natural gas (per Mcf) (3)

6.52


9.05


7.30


8.41









Cost and expense (per Boe of production):








Lease operating expenses (4)

$      6.49


$    8.29


$      6.32


$      8.00

Marketing, transportation and gathering expenses

1.06


0.34


1.31


0.39

Production taxes 

7.41


9.86


7.81


9.10

Depreciation, depletion and amortization 

23.87


18.24


24.04


18.61

General and administrative expenses (5)

7.31


9.21


7.45


8.69

____________

(1)     For the six months ended June 30, 2012, average sales prices for oil are calculated using total oil revenues, excluding bulk purchase sales of $1.5 million, divided by oil production.

(2)     Realized prices include realized 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)     Natural gas prices include the value for natural gas and natural gas liquids.

(4)     For the three and six months ended June 30, 2011, lease operating expenses excludes marketing, transportation and gathering expenses to conform such amounts to current year classifications.

(5)     Includes $1.1 million and $2.7 million of expenses related to OWS for the three and six months ended June 30, 2012, respectively. Excluding OWS, E&P only G&A would be $6.71 and $6.66 per Boe for the three and six months ended June 30, 2012, respectively.   

 

Oasis Petroleum Inc.

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 




Six Months Ended June 30,


2012


2011


(In thousands)

Cash flows from operating activities:




Net income  

$   92,484


$   26,502

Adjustments to reconcile net income to net cash provided by operating activities:







  Depreciation, depletion and amortization 

83,099


26,912

  Impairment of oil and gas properties 

2,571


2,917

  Deferred income taxes 

55,161


16,069

  Derivative instruments 

(56,009)


4,119

  Stock-based compensation expenses 

3,898


1,571

  Debt discount amortization and other 

1,265


648

Working capital and other changes:




  Change in accounts receivable 

(26,840)


(19,945)

  Change in inventory 

(21,636)


(65)

  Change in prepaid expenses 

1,500


(254)

  Change in other current assets 

490


(211)

  Change in other assets 

(7,365)


(103)

  Change in accounts payable and accrued liabilities 

40,022


43,612

  Change in other current liabilities 

2,470


-

  Change in other liabilities 

750


323

 Net cash provided by operating activities 

171,860


102,095

Cash flows from investing activities:




  Capital expenditures 

(440,781)


(212,267)

  Derivative settlements 

(2,465)


(4,652)

  Purchases of short-term investments 

-


(164,913)

  Redemptions of short-term investments 

19,994


39,974

  Advances to joint interest partners 

1,978


983

  Advances from joint interest partners 

19,380


5,851

 Net cash used in investing activities 

(401,894)


(335,024)

Cash flows from financing activities:




  Proceeds from issuance of senior notes

-


400,000

  Purchases of treasury stock

(1,206)


(559)

  Debt issuance costs 

(746)


(10,027)

 Net cash (used in) provided by financing activities 

(1,952)


389,414

(Decrease) increase in cash and cash equivalents 

(231,986)


156,485

Cash and cash equivalents:




Beginning of period 

470,872


143,520

End of period 

$ 238,886


$ 300,005





Supplemental non-cash transactions:




Change in accrued capital expenditures 

$ 104,486


$   (6,676)

Change in asset retirement obligations 

4,185


2,357

 

Non-GAAP Financial Measure
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's consolidated 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. Adjusted EBITDA is not a measure of net income or cash flows as determined by United States generally accepted accounting principles, or GAAP.

The following tables present a reconciliation of the non-GAAP financial measure of Adjusted EBITDA to the GAAP financial measures of net income and net cash provided by operating activities, respectively. 

Adjusted EBITDA Reconciliations









Three Months Ended June 30,


Six Months Ended June 30,



2012


2011


2012


2011



(In thousands)

Adjusted EBITDA reconciliation to Net Income: 






  Net income 


$     76,043


$  33,349


$     92,484


$  26,502

  Change in unrealized gain on
   derivative instruments


(75,769)


(31,687)


(58,474)


(533)

  Interest expense


14,074


6,761


27,973


11,959

  Depreciation, depletion and
   amortization


44,213


13,100


83,099


26,912

  Impairment of oil and gas
   properties


2,203


1,536


2,571


2,917

  Exploration expenses


-


259


2,835


291

  Stock-based compensation
   expenses


2,307


1,044


3,898


1,571

  Income tax expense 


45,439


20,230


55,261


16,069

Adjusted EBITDA


$108,510


$44,592


$209,647


$85,688










Adjusted EBITDA reconciliation to Net Cash Provided by Operating Activities:






Net cash provided by operating activities


$   109,095


$  79,250


$   171,860


$102,095

  Realized loss on derivative
   instruments


(1,174)


(4,140)


(2,465)


(4,652)

  Interest expense


14,074


6,761


27,973


11,959

  Exploration expenses


-


259


2,835


291

  Debt discount amortization and
   other


(617)


(392)


(1,265)


(648)

  Cash paid for income taxes


100


-


100


-

  Changes in working capital


(12,968)


(37,146)


10,609


(23,357)

Adjusted EBITDA


$108,510


$44,592


$209,647


$85,688

 

 

SOURCE Oasis Petroleum Inc.


[ Privacy ]