News Releases

Quarter Ended:

Year Ended:

12/31/2013

9/30/2013

12/31/2013

12/31/2012

Revenues ($ in thousands)

Oil

$

295,903

$

273,663

$

1,028,089

$

641,925

Bulk oil sale

-

-

5,777

1,521

Natural gas

18,064

13,289

50,546

27,045

Well services (OWS)

17,579

17,090

51,845

16,177

Midstream (OMS)

2,069

1,456

5,742

-

Total revenues

$

333,615

$

305,498

$

1,141,999

$

686,668

Quarter Ended:

Year Ended:

12/31/2013

9/30/2013

12/31/2013

12/31/2012

Operating expenses ($ in thousands):

  Lease operating expenses

$

35,048

$

21,831

$

94,634

$

54,924

  Well services (OWS)

10,228

9,929

29,259

11,774

  Midstream (OMS)

608

390

1,454

-

  Marketing, transportation and gathering expenses⁽¹⁾

5,286

5,173

18,777

8,566

     Bulk oil purchase

-

-

5,776

1,383

     Non-cash valuation charge

782

515

1,371

(692)

   Select operating expenses

$

51,952

$

37,838

$

151,271

$

75,955

Operating expenses ($ per Boe):

  Lease operating expenses

$

9.05

$

7.18

$

7.65

$

6.68

  Marketing, transportation and gathering expenses⁽¹⁾

1.36

1.70

1.52

1.04

(1)

Excludes bulk oil purchase and non-cash valuation charges.

Quarter Ended:

Year Ended:

12/31/2013

9/30/2013

12/31/2013

12/31/2012

Derivative activities⁽¹⁾ ($ in thousands)

Derivative settlements

$

(2,998)

$

(8,067)

$

(8,133)

$

6,545

Change in fair value of derivative instruments

9,404

(31,750)

(27,299)

27,619

Net gain (loss) on derivative instruments

$

6,406

$

(39,817)

$

(35,432)

$

34,164

(1)

The Company's derivative instruments do not qualify for and were not designated as hedging instruments for accounting purposes.

2013

1Q

2Q

3Q

4Q

FY

CapEx ($ in thousands)

E&P CapEx

  West Williston

$

136,370

$

80,385

$

135,363

$

145,503

$

497,621

  East Nesson

82,429

92,576

97,881

105,654

378,540

  Sanish

19,943

5,577

9,964

5,083

40,567

Acquisitions⁽¹⁾

-

5,554

127,660

1,430,197

1,563,411

  Total E&P CapEx⁽²⁾

$

238,742

$

184,092

$

370,868

$

1,686,437

$

2,480,139

OWS

302

2,559

3,399

8,957

15,217

Other Non E&P⁽³⁾

1,303

2,340

3,107

4,192

10,942

 Total Company CapEx⁽⁴⁾

$

240,347

$

188,991

$

377,374

$

1,699,586

$

2,506,298

(1)

Reflects all acquisitions in 2013, including $1,551.7 million for four separate acquisitions of an aggregate of approximately 161,000 net acres in the Company's West Williston and East Nesson project areas.

(2)

Total E&P capital expenditures include:

• $855.8 million of drilling and completion (including production-related equipment) CapEx for operated and non-operated wells, including savings from services provided by OWS and Oasis Midstream Services ("OMS");
• $26.5 million for maintaining and expanding the Company's leasehold position;
• $22.3 million for constructing infrastructure to support production in the Company's core project areas, primarily related to salt water disposal systems;
• $10.2 million for field facilities; and
• $1.9 million for micro-seismic work, purchase of seismic data and other test work.

(3)

Non-E&P CapEx include such items as administrative capital and capitalized interest.

(4)

CapEx (including acquisitions) reflected in the table above differ from the amounts for capital expenditures and acquisition of oil and gas properties shown in the statement of cash flows in the Company's consolidated financial statements because amounts reflected in the table 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. In addition, acquisitions reflected in the table include inventory purchased as part of acquisitions, which is included in net cash provided by operating activities in the statement of cash flows in the Company's consolidated financial statements.

Weighted Average Prices ($/Bbl)

Current Hedged Volumes

Term

Sub-Floor

Floor

Ceiling

Swaps

BOPD

Total Barrels

2014

Full Year

Swaps

January - December

$

93.07

3,500

1,277,500

Swaps with sub-floor

January - December

$

70.00

$

92.60

6,000

2,190,000

Two-way collars

January - December

$

90.00

$

101.13

3,500

1,277,500

Three-way collars

January - December

$

70.59

$

90.59

$

105.25

8,500

3,102,500

First Half

Swaps

January - June

$

99.42

4,000

724,000

Three-way collars

January - June

$

70.00

$

90.00

$

103.98

2,000

362,000

Partial Year

Swaps

March - December

$

96.49

4,000

1,224,000

Total 2014 hedges (weighted average)

$

70.32

$

90.38

$

104.04

$

94.50

27,829

10,157,500

Remaining 1H14 Hedges (Mar-Jun)

31,500

Average 2H14 Hedges

25,500

2015

Full Year

Swaps

January - December

$

88.80

2,000

730,000

First Half

Swaps

January - June

$

90.03

4,000

724,000

Total 2015 hedges (weighted average)

$

89.41

3,984

1,454,000

Total 1H15 Hedges

6,000

Total 2H15 Hedges

2,000

Oasis Petroleum Inc. Financial Statements

OASIS PETROLEUM INC.

CONSOLIDATED BALANCE SHEET

December 31,

2013

2012

(In thousands, except share data)

ASSETS

Current assets

Cash and cash equivalents

$

91,901

$

213,447

Short-term investments

-

25,891

Accounts receivable - oil and gas revenues

175,653

110,341

Accounts receivable - joint interest partners

139,459

99,194

Inventory

20,652

20,707

Prepaid expenses

10,191

1,770

Advances to joint interest partners

760

1,985

Derivative instruments

2,264

19,016

Deferred income taxes

6,335

-

Other current assets

391

335

Total current assets

447,606

492,686

Property, plant and equipment

Oil and gas properties (successful efforts method)

4,528,958

2,348,128

Other property and equipment

188,468

49,732

Less: accumulated depreciation, depletion, amortization and impairment

(637,676)

(391,260)

Total property, plant and equipment, net

4,079,750

2,006,600

Assets held for sale

137,066

-

Derivative instruments

1,333

4,981

Deferred costs and other assets

46,169

24,527

Total assets

$

4,711,924

$

2,528,794

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

8,920

$

12,491

Advances from joint interest partners

12,829

21,176

Revenues and production taxes payable

146,741

71,553

Accrued liabilities

241,830

189,863

Accrued interest payable

47,910

30,096

Derivative instruments

8,188

1,048

Deferred income taxes

-

4,558

Total current liabilities

466,418

330,785

Long-term debt

2,535,570

1,200,000

Asset retirement obligations

35,918

22,956

Derivative instruments

139

380

Deferred income taxes

323,147

177,671

Other liabilities

2,183

1,997

Total liabilities

3,363,375

1,733,789

Commitments and contingencies

Stockholders' equity

Common stock, $0.01 par value; 300,000,000 shares authorized; 100,866,589 shares and 93,432,712 shares issued at December 31, 2013 and 2012, respectively

996

925

Treasury stock, at cost; 167,155 shares and 129,414 shares at December 31, 2013 and 2012, respectively

(5,362)

(3,796)

Additional paid-in-capital

985,023

657,943

Retained earnings

367,892

139,933

Total stockholders' equity

1,348,549

795,005

Total liabilities and stockholders' equity

$

4,711,924

$

2,528,794

OASIS PETROLEUM INC.

CONSOLIDATED STATEMENT OF OPERATIONS

Three Months Ended December 31,

Year Ended December 31,

2013

2012

2013

2012

(In thousands, except per share data)

Revenues

Oil and gas revenues

$

313,967

$

208,634

$

1,084,412

$

670,491

Well services and midstream revenues

19,648

5,693

57,587

16,177

Total revenues

333,615

214,327

1,141,999

686,668

Expenses

Lease operating expenses

35,048

16,945

94,634

54,924

Well services and midstream operating expenses

10,836

4,670

30,713

11,774

Marketing, transportation and gathering expenses

6,068

1,974

25,924

9,257

Production taxes

30,228

19,546

100,537

62,965

Depreciation, depletion and amortization

101,276

65,951

307,055

206,734

Exploration expenses

(452)

79

2,260

3,250

Impairment of oil and gas properties

406

974

1,168

3,581

General and administrative expenses

28,072

17,568

75,310

57,190

Total expenses

211,482

127,707

637,601

409,675

Operating income

122,133

86,620

504,398

276,993

Other income (expense)

Net gain (loss) on derivative instruments

6,406

596

(35,432)

34,164

Interest expense, net of capitalized interest

(41,736)

(21,191)

(107,165)

(70,143)

Other income (expense)

119

2,339

1,216

4,860

Total other income (expense)

(35,211)

(18,256)

(141,381)

(31,119)

Income before income taxes

86,922

68,364

363,017

245,874

Income tax expense

32,432

25,774

135,058

92,486

Net income

$

54,490

$

42,590

$

227,959

$

153,388

Earnings per share:

Basic

$

0.58

$

0.46

$

2.45

$

1.66

Diluted

0.57

0.46

2.44

1.66

Weighted average shares outstanding:

Basic

94,228

92,226

92,867

92,180

Diluted

94,821

92,509

93,411

92,513

OASIS PETROLEUM INC.

SELECTED FINANCIAL AND OPERATIONAL STATS

Three Months Ended December 31,

Year Ended December 31,

2013

2012

2013

2012

Operating results ($ in thousands):

Revenues

Oil

$

295,903

$

199,761

$

1,033,866

$

643,446

Natural gas

18,064

8,873

50,546

27,045

Well services and midstream

19,648

5,693

57,587

16,177

Total revenues

$

333,615

$

214,327

$

1,141,999

$

686,668

Production data:

Oil (MBbls)

3,446

2,301

11,133

7,533

Natural gas (MMcf)

2,567

1,406

7,450

4,146

Oil equivalents (MBoe)

3,874

2,535

12,375

8,224

Average daily production (Boe/d)

42,106

27,556

33,904

22,469

Average sales prices:

Oil, without derivative settlements (per Bbl)⁽¹⁾

$

85.87

$

86.82

$

92.34

$

85.22

Oil, with derivative settlements (per Bbl)⁽¹⁾⁽²⁾

85.00

88.45

91.61

86.09

Natural gas (per Mcf)⁽³⁾

7.04

6.31

6.78

6.52

Costs and expenses (per Boe of production):

Lease operating expenses⁽⁴⁾

$

9.05

$

6.68

$

7.65

$

6.68

Marketing, transportation and gathering expenses⁽⁵⁾

1.36

1.03

1.52

1.04

Production taxes

7.80

7.71

8.12

7.66

Depreciation, depletion and amortization

26.14

26.01

24.81

25.14

General and administrative expenses

7.25

6.93

6.09

6.95

(1)

For the years ended December 31, 2013 and 2012, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $5.8 million and $1.5 million, respectively, divided by oil production.

(2)

Realized prices include 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 year ended December 31, 2012, lease operating expenses include midstream income and operating expenses, which are included in well services and midstream revenues and well services and midstream operating expenses, respectively, for the year ended December 31, 2013.

(5)

Excludes bulk oil purchase and non-cash valuation charges.

OASIS PETROLEUM INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 31,

2013

2012

(In thousands)

Cash flows from operating activities:

Net income

$

227,959

$

153,388

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

Depreciation, depletion and amortization

307,055

206,734

Impairment of oil and gas properties

1,168

3,581

Deferred income taxes

134,583

92,479

Derivative instruments

35,432

(34,164)

Stock-based compensation expenses

11,982

10,333

Debt discount amortization and other

4,248

2,810

Working capital and other changes:

Change in accounts receivable

(107,473)

(90,103)

Change in inventory

(13,941)

(29,313)

Change in prepaid expenses

(8,191)

346

Change in other current assets

(56)

156

Change in other assets

(3,248)

(95)

Change in accounts payable and accrued liabilities

107,451

76,706

Change in other current liabilities

-

(472)

Change in other liabilities

887

-

Net cash provided by operating activities

697,856

392,386

Cash flows from investing activities:

Capital expenditures

(893,524)

(1,051,365)

Acquisition of oil and gas properties

(1,560,072)

-

Derivative settlements

(8,133)

6,545

Purchases of short-term investments

-

(126,213)

Redemptions of short-term investments

25,000

120,316

Advances from joint interest partners

(8,347)

12,112

Net cash used in investing activities

(2,445,076)

(1,038,605)

Cash flows from financing activities:

Proceeds from issuance of senior notes

1,000,000

400,000

Proceeds from revolving credit facility

600,000

-

Principal payments on revolving credit facility

(264,430)

-

Debt issuance costs

(22,910)

(8,012)

Proceeds from sale of common stock

314,580

-

Purchases of treasury stock

(1,566)

(3,194)

Net cash provided by financing activities

1,625,674

388,794

Decrease in cash and cash equivalents

(121,546)

(257,425)

Cash and cash equivalents:

Beginning of period

213,447

470,872

End of period

$

91,901

$

213,447

Supplemental cash flow information:

Cash paid for interest, net of capitalized interest

$

85,596

$

53,488

Cash paid for taxes

750

107

Supplemental non-cash transactions:

Change in accrued capital expenditures

$

34,354

$

59,878

Change in asset retirement obligations

13,201

10,230

Three Months Ended

December 31,

Year Ended

December 31,

2013

2012

2013

2012

(In thousands)

Adjusted EBITDA reconciliation to Net Income:

Net income

$

54,490

$

42,590

$

227,959

$

153,388

Change in fair value of derivative instruments

(9,404)

3,165

27,299

(27,619)

Interest expense, net of capitalized interest

41,736

21,191

107,165

70,143

Depreciation, depletion and amortization

101,276

65,951

307,055

206,734

Impairment of oil and gas properties

406

974

1,168

3,581

Exploration expenses

(452)

79

2,260

3,250

Stock-based compensation expenses

3,571

3,706

11,982

10,333

Income tax expense

32,432

25,774

135,058

92,486

Other non-cash adjustments

1,321

54

1,910

(2)

Adjusted EBITDA

$

225,376

$

163,484

$

821,856

$

512,294

Adjusted EBITDA reconciliation to Net Cash Provided by Operating Activities:

Net cash provided by operating activities

$

161,175

$

110,258

$

697,856

$

392,386

Derivative settlements

(2,998)

3,761

(8,133)

6,545

Interest expense, net of capitalized interest

41,736

21,191

107,165

70,143

Exploration expenses

(452)

79

2,260

3,250

Debt discount amortization and other

(1,555)

(772)

(4,248)

(2,810)

Current tax expense

93

(57)

475

7

Changes in working capital

26,056

28,970

24,571

42,775

Other non-cash adjustments

1,321

54

1,910

(2)

Adjusted EBITDA

$

225,376

$

163,484

$

821,856

$

512,294

Adjusted Net Income Reconciliation

Three Months Ended

December 31,

Year Ended

December 31,

2013

2012

2013

2012

(In thousands, except per share data)

Net income

$

54,490

$

42,590

$

227,959

$

153,388

Change in fair value of derivative instruments

(9,404)

3,165

27,299

(27,619)

Impairment of oil and gas properties

406

974

1,168

3,581

Other non-cash adjustments

1,321

54

1,910

(2)

       Tax impact⁽¹⁾

2,864

(1,581)

(11,302)

9,043

Adjusted Net Income

$

49,677

$

45,202

$

247,034

$

138,391

Adjusted earnings per share:

Basic

$

0.53

$

0.49

$

2.66

$

1.50

Diluted

0.52

0.49

2.64

1.50

Weighted average shares outstanding:

Basic

94,228

92,226

92,867

92,180

Diluted

94,821

92,509

93,411

92,513

Effective tax rate

37.3%

37.7%

37.2%

37.6%

(1)

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