U.S. energy firm Oasis Petroleum Inc.OAS reported fourth-quarter loss per share - excluding one-time items - of 2 cents, as against the Zacks Consensus Estimate of 4 cents profit and the year-ago income of 12 cents. The weak results can be attributed to lower realized oil prices .
Oasis Petroleum's total operating revenues in the fourth quarter amounted to $599.8 million, increasing substantially from $434.9 million a year ago. The top line also surpassed the Zacks Consensus Estimate of $433 million, driven by strong production growth.
The company's lease operating expenses rose 12.5% to $6.95 per barrels of oil equivalent.
Production & Realized Prices
The production of oil and natural gas averaged 88.3 thousand oil-equivalent barrels per day (MBOE/d) (76% oil), up 20.6% from last year and at the midpoint of the company's guidance.
Oasis Petroleum's production for oil was 67.3 thousand barrels per day (MBbl/d), while natural gas output came in at 126,135 thousand cubic feet per day (Mcf/d).
The average realized crude oil price during the fourth quarter was $52.01 per barrel, representing a decrease of 23.9% from the year-ago realization of $68.33. Meanwhile, the average realized natural gas price during the December quarter of 2018 was $4.27 per thousand cubic feet (Mcf), up 14.8% from the year-ago period.
Capital spending (before acquisitions) totaled $303.6 million this quarter. Oasis Petroleum delivered a slightly improving cash flow performance this quarter - a benchmark for the oil and gas industry - with $234.4 million in net cash flow from operations, up from $209.1 million a year ago.
As of Dec 31, 2018, the Bakken-focused operator with a market capitalization of almost $2 billion, had $22.2 million in cash and cash equivalents. The company had long-term debt of $2.7 billion, representing a debt-to-capitalization ratio of 41.1%.
Oasis Petroleum expects first quarter output to be essentially flat sequentially, while 2019 production is estimated in the range of 86-91 MBOE/d. The company further said that it will spend 40% less in 2019, expecting capital spending of $540-$560 million (75% Williston, 25% Delaware). Overall, Oasis Petroleum projects 2019 capital spending of $709-$751 million (including $150-$170 million for midstream). The company's lease operating expense is set to increase from $6.44 per BOE in 2018 to $7-$8 per BOE in 2019.
As of year-end 2018, Oasis had 320.5 thousand barrels of oil equivalent equivalent in proved reserves, up 2.7% year over year.
Zacks Rank & Stock Picks
Oasis Petroleum currently retains a Zacks Rank #3 (Hold).
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