On Jun 25, Zacks Investment Research upgraded
Oasis Petroleum Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
This oil and natural gas exploration and production company
delivered positive earnings surprises in the last 4 quarters with
an average beat of 11.73%. Oasis Petroleum has witnessed an
upward revision in earnings estimates on the back of strong first
Oasis Petroleum' first quarter 2013 earnings per share came in at
67 cents, surpassing the Zacks Consensus Estimate by 31.37%.
Oasis Petroleum continues to perform well with its daily
production touching 30,153 barrels of oil equivalent per day
("Boepd"), a 71% increase over the first quarter of 2012.
Higher oil production along with improvement in realized prices
boosted the top line of the company. Total revenue at the end of
the first quarter was $248.3 million, surpassing the year-ago
number by 79.1% and the Zacks Consensus Estimate of $219 million
Oasis Petroleum's consistent investments in exploration and
production (E&P) activities have paid rich dividends. In
2013, the company decided to invest nearly 97.8% of its proposed
capital expenditure of $1.02 billion in E&P activities. The
solid performance and systematic investment in operations
prompted the company to increase its production guidance to the
range of 31,000 Boepd to 34,000 Boepd.
Another key positive for Oasis Petroleum is the location of its
335,000 net acres in the highly concentrated Williston Basin. The
dense oil accumulation in this formation and the oil dominated
production profile of Oasis will help address increasing domestic
The Zacks Consensus Estimate for 2013 increased 12.1% in the
last 60 days to $2.65 per share as 13 estimates were revised
higher. This comes to a year-over-year projected growth rate of
76.53%. The long-term earnings growth of the company is presently
pegged at 32.50%.
ANADARKO PETROL (APC): Free Stock Analysis
CHESAPEAKE ENGY (CHK): Free Stock Analysis
EOG RES INC (EOG): Free Stock Analysis Report
OASIS PETROLEUM (OAS): Free Stock Analysis
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Other Stocks to Consider
Besides Oasis Petroleum Inc. other operators in the industry with
a favorable Zacks Rank are
Anadarko Petroleum Corporation
Chesapeake Energy Corporation
EOG Resources, Inc.
). All these companies presently carry a Zacks Rank #2 (Buy).