News Releases
HOUSTON, Nov. 7, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2016 and provided an operational update.
Highlights include:
- Produced 48,509 Boepd in the third quarter of 2016.
- Total capital expenditures ("CapEx") were $78.5 million and $297.7 million for the three and nine months ended September 30, 2016, respectively, in line with the Company's 2016 CapEx plan.
- Net cash provided by operating activities was $123.4 million for the three months ended September 30, 2016. Adjusted EBITDA for the Company was $104.4 million in the third 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.
"Oasis continues to increase shareholder value by further improving capital efficiency and acquiring assets that allow us to best leverage our operating expertise," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "With well costs of $5.2 million and Wild Basin type curves of 1,550 Mboe, we are positioned to grow volumes considerably across 2017 and 2018."
Operational and Financial Update
Select operational and financial statistics are in the following table:
|
Quarter Ended: | |||||||||||
|
9/30/2016 |
6/30/2016 |
9/30/2015 | |||||||||
|
Production data: |
|||||||||||
|
Oil (Bopd) |
39,439 |
41,176 |
44,318 |
||||||||
|
Natural gas (MMcfpd) |
54,421 |
49,983 |
37,366 |
||||||||
|
Total production (Boepd) |
48,509 |
49,507 |
50,546 |
||||||||
|
Percent Oil |
81 |
% |
83 |
% |
88 |
% | |||||
|
Average sales prices: |
|||||||||||
|
Oil, without derivative settlements (per Bbl)(1) |
$ |
40.54 |
$ |
40.81 |
$ |
41.61 |
|||||
|
Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI") (per Bbl) |
4.39 |
4.85 |
4.82 |
||||||||
|
Oil, with derivative settlements (per Bbl)(1)(2)(3) |
43.79 |
48.94 |
60.77 |
||||||||
|
Derivative settlements - net cash receipts (in millions)(3) |
11.8 |
30.5 |
78.1 |
||||||||
|
Natural gas (per Mcf)(4) |
1.84 |
1.42 |
1.63 |
||||||||
|
Revenues ($ in millions): |
|||||||||||
|
Oil |
$ |
149.0 |
$ |
152.9 |
$ |
169.7 |
|||||
|
Natural gas |
9.2 |
6.4 |
5.6 |
||||||||
|
Well services ("OWS") |
10.6 |
12.8 |
15.4 |
||||||||
|
Midstream services ("OMS") |
8.5 |
6.9 |
6.6 |
||||||||
|
Total revenues |
$ |
177.3 |
$ |
179.0 |
$ |
197.2 |
|||||
|
OWS and OMS operating expenses ($ in millions): |
|||||||||||
|
OWS |
$ |
5.5 |
$ |
7.1 |
$ |
8.5 |
|||||
|
OMS |
2.6 |
1.7 |
1.5 |
||||||||
|
Select operating expenses: |
|||||||||||
|
LOE ($ per Boe) |
$ |
8.00 |
$ |
7.00 |
$ |
7.67 |
|||||
|
MT&G ($ per Boe)(5) |
1.58 |
1.55 |
1.63 |
||||||||
|
DD&A ($ per Boe) |
25.08 |
27.19 |
26.61 |
||||||||
|
Exploration and production ("E&P") general and administrative expenses ("G&A") ($ per Boe) |
4.31 |
3.93 |
4.07 |
||||||||
|
Production taxes (% of oil and gas revenue) |
9.3 |
% |
9.0 |
% |
9.5 |
% | |||||
|
___________________ | |
|
(1) |
For the three months ended September 30, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $1.9 million, 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) |
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. |
|
(4) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(5) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchases. |
G&A totaled $22.8 million in the third quarter of 2016, $22.4 million in the third quarter of 2015 and $21.9 million in the second quarter of 2016. Amortization of stock-based compensation, which is included in G&A, was $5.8 million, or $1.30 per Boe, in the third quarter of 2016 as compared to $6.0 million, or $1.28 per Boe, in the third quarter of 2015 and $6.2 million, or $1.39 per Boe, in the second quarter of 2016. G&A for the Company's E&P segment totaled $19.2 million in the third quarter of 2016, $18.9 million in the third quarter of 2015 and $17.7 million in the second quarter of 2016.
Interest expense was $31.7 million for the third quarter of 2016 compared to $36.5 million for the third quarter of 2015 and $35.0 million for the second quarter of 2016. Capitalized interest totaled $4.4 million for the third quarter of 2016, $5.1 million for the third quarter of 2015 and $4.8 million for the second quarter of 2016. Cash Interest totaled $33.7 million for the third quarter of 2016, $40.0 million for the third quarter of 2015 and $37.8 million for the second quarter of 2016. 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 September 30, 2016, the Company recorded an income tax benefit of $16.7 million, resulting in a 33.0% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax benefit of $52.5 million, resulting in a 36.9% effective tax rate as a percentage of its pre-tax income for the three months ended June 30, 2016.
For the third quarter of 2016, the Company reported a net loss of $33.9 million, or $0.19 per diluted share, as compared to a net income of $27.1 million, or $0.20 per diluted share, for the third quarter of 2015. Excluding certain non-cash and non-recurring items and their tax effect, Adjusted Net Loss (non-GAAP) was $29.3 million, or $0.17 per diluted share, in the third quarter of 2016, compared to Adjusted Net Income of $12.5 million, or $0.09 per diluted share, in the third quarter of 2015. 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 third quarter of 2016 was $104.4 million. For a definition of Adjusted EBITDA and a reconciliation of net income (loss) and net cash provided by (used in) operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.
Capital Expenditures
The following table depicts the Company's total CapEx by category:
|
1Q 2016 |
2Q 2016 |
3Q 2016 |
YTD 2016 | ||||||||||||
|
CapEx ($ in thousands): |
|||||||||||||||
|
E&P |
$ |
47,734 |
$ |
73,125 |
$ |
31,333 |
$ |
152,192 |
|||||||
|
OMS |
35,039 |
52,842 |
42,085 |
129,966 |
|||||||||||
|
OWS |
650 |
— |
29 |
679 |
|||||||||||
|
Other(1) |
4,532 |
5,320 |
5,007 |
14,859 |
|||||||||||
|
Total CapEx(2) |
$ |
87,955 |
$ |
131,287 |
$ |
78,454 |
$ |
297,696 |
|||||||
|
___________________ | |
|
(1) |
Other CapEx includes such items 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 November 7, 2016, the Company had the following outstanding commodity derivative contracts, all of which are priced off of WTI and settle monthly:
|
Volume in Mbopd |
4Q16 |
1H17 |
2H17 |
1H18 |
2H18 | |||||||||||||||
|
Swaps |
||||||||||||||||||||
|
Volume |
33.0 |
16.0 |
14.0 |
4.0 |
3.0 |
|||||||||||||||
|
Price |
$ |
49.20 |
$ |
48.57 |
$ |
49.08 |
$ |
54.32 |
$ |
54.45 |
||||||||||
|
Collars |
||||||||||||||||||||
|
Volume |
— |
6.0 |
6.0 |
— |
— |
|||||||||||||||
|
Floor |
— |
$ |
45.00 |
$ |
45.00 |
— |
— |
|||||||||||||
|
Ceiling |
— |
$ |
53.95 |
$ |
53.95 |
— |
— |
|||||||||||||
|
3-way |
||||||||||||||||||||
|
Volume |
— |
6.0 |
6.0 |
— |
— |
|||||||||||||||
|
Sub Floor |
— |
$ |
31.67 |
$ |
31.67 |
— |
— |
|||||||||||||
|
Floor |
— |
$ |
45.83 |
$ |
45.83 |
— |
— |
|||||||||||||
|
Ceiling |
— |
$ |
59.94 |
$ |
59.94 |
— |
— |
|||||||||||||
|
Total Volume |
33.0 |
28.0 |
26.0 |
4.0 |
3.0 |
|||||||||||||||
Additionally, the Company has swaps priced off of NYMEX Natural Gas of 6,000 mmbtu/d at a weighted average price of $3.21 in 2017. The September 2016 contracts settled at $3.7 million and will be included in the Company's fourth quarter 2016 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
|
Date: |
Tuesday, November 8, 2016 | |
|
Time: |
10:00 a.m. Central Time | |
|
Dial-in: |
888-317-6003 | |
|
Intl. Dial in: |
412-317-6061 | |
|
Conference ID: |
6611124 | |
|
Website: |
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 Tuesday, November 15, 2016 by dialing:
|
Replay dial-in: |
877-344-7529 | |
|
Intl. replay: |
412-317-0088 | |
|
Replay code: |
10095010 |
The conference call will also be available for replay 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) | |||||||
|
September 30, 2016 |
December 31, 2015 | ||||||
|
(In thousands, except share data) | |||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
13,776 |
$ |
9,730 |
|||
|
Accounts receivable — oil and gas revenues |
103,128 |
96,495 |
|||||
|
Accounts receivable — joint interest and other |
77,903 |
100,914 |
|||||
|
Inventory |
8,513 |
11,072 |
|||||
|
Prepaid expenses |
6,093 |
7,328 |
|||||
|
Derivative instruments |
9,142 |
139,697 |
|||||
|
Other current assets |
4,290 |
50 |
|||||
|
Total current assets |
222,845 |
365,286 |
|||||
|
Property, plant and equipment |
|||||||
|
Oil and gas properties (successful efforts method) |
6,438,782 |
6,284,401 |
|||||
|
Other property and equipment |
580,171 |
443,265 |
|||||
|
Less: accumulated depreciation, depletion, amortization and impairment |
(1,866,280) |
(1,509,424) |
|||||
|
Total property, plant and equipment, net |
5,152,673 |
5,218,242 |
|||||
|
Assets held for sale |
— |
26,728 |
|||||
|
Derivative instruments |
194 |
15,776 |
|||||
|
Other assets |
22,549 |
23,343 |
|||||
|
Total assets |
$ |
5,398,261 |
$ |
5,649,375 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
7,929 |
$ |
9,983 |
|||
|
Revenues and production taxes payable |
141,991 |
132,356 |
|||||
|
Accrued liabilities |
98,926 |
167,669 |
|||||
|
Accrued interest payable |
19,798 |
49,413 |
|||||
|
Derivative instruments |
17,308 |
— |
|||||
|
Advances from joint interest partners |
5,191 |
4,647 |
|||||
|
Other current liabilities |
— |
6,500 |
|||||
|
Total current liabilities |
291,143 |
370,568 |
|||||
|
Long-term debt |
2,125,573 |
2,302,584 |
|||||
|
Deferred income taxes |
546,202 |
608,155 |
|||||
|
Asset retirement obligations |
37,092 |
35,338 |
|||||
|
Liabilities held for sale |
— |
10,228 |
|||||
|
Derivative instruments |
7,755 |
— |
|||||
|
Other liabilities |
2,992 |
3,160 |
|||||
|
Total liabilities |
3,010,757 |
3,330,033 |
|||||
|
Commitments and contingencies |
|||||||
|
Stockholders' equity |
|||||||
|
Common stock, $0.01 par value: 450,000,000 and 300,000,000 shares authorized at September 30, 2016 and December 31, 2015, respectively; 182,038,164 shares issued and 181,186,070 shares outstanding at September 30, 2016 and 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 |
1,779 |
1,376 |
|||||
|
Treasury stock, at cost: 852,094 and 507,926 shares at September 30, 2016 and December 31, 2015, respectively |
(15,895) |
(13,620) |
|||||
|
Additional paid-in capital |
1,755,427 |
1,497,065 |
|||||
|
Retained earnings |
646,193 |
834,521 |
|||||
|
Total stockholders' equity |
2,387,504 |
2,319,342 |
|||||
|
Total liabilities and stockholders' equity |
$ |
5,398,261 |
$ |
5,649,375 |
|||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Condensed Consolidated Statement of Operations | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil and gas revenues |
$ |
158,183 |
$ |
175,270 |
$ |
434,835 |
$ |
563,239 |
|||||||
|
Well services and midstream revenues |
19,128 |
21,965 |
51,839 |
44,429 |
|||||||||||
|
Total revenues |
177,311 |
197,235 |
486,674 |
607,668 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Lease operating expenses |
35,696 |
35,670 |
98,283 |
112,556 |
|||||||||||
|
Well services and midstream operating expenses |
8,165 |
10,023 |
21,429 |
19,370 |
|||||||||||
|
Marketing, transportation and gathering expenses |
8,856 |
8,465 |
23,899 |
23,313 |
|||||||||||
|
Production taxes |
14,638 |
16,676 |
39,758 |
53,915 |
|||||||||||
|
Depreciation, depletion and amortization |
111,948 |
123,734 |
356,885 |
361,430 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
General and administrative expenses |
22,845 |
22,358 |
69,087 |
67,190 |
|||||||||||
|
Total operating expenses |
203,019 |
217,333 |
614,500 |
668,838 |
|||||||||||
|
Gain (loss) on sale of properties |
6 |
172 |
(1,305) |
172 |
|||||||||||
|
Operating loss |
(25,702) |
(19,926) |
(129,131) |
(60,998) |
|||||||||||
|
Other income (expense) |
|||||||||||||||
|
Net gain (loss) on derivative instruments |
20,847 |
103,637 |
(55,624) |
111,285 |
|||||||||||
|
Interest expense, net of capitalized interest |
(31,726) |
(36,513) |
(105,444) |
(112,702) |
|||||||||||
|
Gain (loss) on extinguishment of debt |
(13,793) |
— |
4,865 |
— |
|||||||||||
|
Other income (expense) |
(259) |
249 |
188 |
370 |
|||||||||||
|
Total other income (expense) |
(24,931) |
67,373 |
(156,015) |
(1,047) |
|||||||||||
|
Income (loss) before income taxes |
(50,633) |
47,447 |
(285,146) |
(62,045) |
|||||||||||
|
Income tax benefit (expense) |
16,691 |
(20,392) |
96,818 |
17,829 |
|||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
Earnings (loss) per share: |
|||||||||||||||
|
Basic |
$ |
(0.19) |
$ |
0.20 |
$ |
(1.09) |
$ |
(0.35) |
|||||||
|
Diluted |
(0.19) |
0.20 |
(1.09) |
(0.35) |
|||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
Diluted |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
Oasis Petroleum Inc. | |||||||||||||||
|
Selected Financial and Operational Statistics | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Operating results (in thousands): |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
Oil |
$ |
148,962 |
$ |
169,672 |
$ |
413,068 |
$ |
542,049 |
|||||||
|
Natural gas |
9,221 |
5,598 |
21,767 |
21,190 |
|||||||||||
|
Well services |
10,641 |
15,381 |
29,459 |
27,308 |
|||||||||||
|
Midstream |
8,487 |
6,584 |
22,380 |
17,121 |
|||||||||||
|
Total revenues |
$ |
177,311 |
$ |
197,235 |
$ |
486,674 |
$ |
607,668 |
|||||||
|
Production data: |
|||||||||||||||
|
Oil (MBbls) |
3,628 |
4,077 |
11,245 |
12,107 |
|||||||||||
|
Natural gas (MMcf) |
5,007 |
3,438 |
13,809 |
9,940 |
|||||||||||
|
Oil equivalents (MBoe) |
4,463 |
4,650 |
13,547 |
13,764 |
|||||||||||
|
Average daily production (Boe per day) |
48,509 |
50,546 |
49,440 |
50,418 |
|||||||||||
|
Average sales prices: |
|||||||||||||||
|
Oil, without derivative settlements (per Bbl)(1) |
$ |
40.54 |
$ |
41.61 |
$ |
36.57 |
$ |
44.77 |
|||||||
|
Oil, with derivative settlements (per Bbl)(1)(2) |
43.79 |
60.77 |
46.85 |
68.84 |
|||||||||||
|
Natural gas (per Mcf)(3) |
1.84 |
1.63 |
1.58 |
2.13 |
|||||||||||
|
Costs and expenses (per Boe of production): |
|||||||||||||||
|
Lease operating expenses |
$ |
8.00 |
$ |
7.67 |
$ |
7.26 |
$ |
8.18 |
|||||||
|
Marketing, transportation and gathering expenses(4) |
1.58 |
1.63 |
1.58 |
1.64 |
|||||||||||
|
Production taxes |
3.28 |
3.59 |
2.93 |
3.92 |
|||||||||||
|
Depreciation, depletion and amortization |
25.08 |
26.61 |
26.35 |
26.26 |
|||||||||||
|
General and administrative expenses ("G&A") |
5.12 |
4.81 |
5.10 |
4.88 |
|||||||||||
|
Exploration and production G&A |
4.31 |
4.07 |
4.28 |
4.43 |
|||||||||||
|
___________________ | |
|
(1) |
For both the three and nine months ended September 30, 2016, average sales prices for oil are calculated using total oil revenues, excluding bulk oil sales of $1.9 million, 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. 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. |
|
(3) |
Natural gas prices include the value for natural gas and natural gas liquids. |
|
(4) |
Excludes non-cash valuation charges on pipeline imbalances and bulk oil purchases. |
|
Oasis Petroleum Inc. | |||||||
|
Condensed Consolidated Statement of Cash Flows | |||||||
|
(Unaudited) | |||||||
|
Nine Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(In thousands) | |||||||
|
Cash flows from operating activities: |
|||||||
|
Net loss |
$ |
(188,328) |
$ |
(44,216) |
|||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
|
Depreciation, depletion and amortization |
356,885 |
361,430 |
|||||
|
Gain on extinguishment of debt |
(4,865) |
— |
|||||
|
(Gain) loss on sale of properties |
1,305 |
(172) |
|||||
|
Impairment |
3,967 |
24,917 |
|||||
|
Deferred income taxes |
(96,818) |
(17,829) |
|||||
|
Derivative instruments |
55,624 |
(111,285) |
|||||
|
Stock-based compensation expenses |
18,761 |
19,629 |
|||||
|
Deferred financing costs amortization and other |
10,174 |
7,468 |
|||||
|
Working capital and other changes: |
|||||||
|
Change in accounts receivable |
11,349 |
108,309 |
|||||
|
Change in inventory |
2,559 |
8,425 |
|||||
|
Change in prepaid expenses |
1,168 |
638 |
|||||
|
Change in other current assets |
(240) |
5,529 |
|||||
|
Change in other assets |
(148) |
— |
|||||
|
Change in accounts payable, interest payable and accrued liabilities |
(41,991) |
(84,133) |
|||||
|
Change in other current liabilities |
(6,000) |
1,655 |
|||||
|
Change in other liabilities |
17 |
(28) |
|||||
|
Net cash provided by operating activities |
123,419 |
280,337 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(340,314) |
(740,633) |
|||||
|
Proceeds from sale of properties |
12,333 |
78 |
|||||
|
Costs related to sale of properties |
(310) |
— |
|||||
|
Derivative settlements |
115,576 |
291,436 |
|||||
|
Advances from joint interest partners |
544 |
(1,239) |
|||||
|
Net cash used in investing activities |
(212,171) |
(450,358) |
|||||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
835,000 |
618,000 |
|||||
|
Principal payments on revolving credit facility |
(778,000) |
(938,000) |
|||||
|
Repurchase of senior unsecured notes |
(435,907) |
— |
|||||
|
Proceeds from issuance of senior unsecured convertible notes |
300,000 |
— |
|||||
|
Deferred financing costs |
(8,811) |
(3,587) |
|||||
|
Proceeds from sale of common stock |
182,791 |
462,833 |
|||||
|
Purchases of treasury stock |
(2,275) |
(2,771) |
|||||
|
Net cash provided by financing activities |
92,798 |
136,475 |
|||||
|
Increase (decrease) in cash and cash equivalents |
4,046 |
(33,546) |
|||||
|
Cash and cash equivalents: |
|||||||
|
Beginning of period |
9,730 |
45,811 |
|||||
|
End of period |
$ |
13,776 |
$ |
12,265 |
|||
|
Supplemental non-cash transactions: |
|||||||
|
Change in accrued capital expenditures |
$ |
(49,177) |
$ |
(233,913) |
|||
|
Change in asset retirement obligations |
(8,083) |
3,405 |
|||||
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 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 September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Interest expense |
$ |
31,726 |
$ |
36,513 |
$ |
105,444 |
$ |
112,702 |
|||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Amortization of deferred financing costs |
(2,095) |
(1,570) |
(8,042) |
(5,527) |
|||||||||||
|
Amortization of debt discount |
(300) |
— |
(300) |
— |
|||||||||||
|
Cash Interest |
$ |
33,711 |
$ |
39,997 |
$ |
110,785 |
$ |
121,005 |
|||||||
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 or non-recurring 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 United States generally accepted accounting principles, or 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 September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,305 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Depreciation, depletion and amortization |
111,948 |
123,734 |
356,885 |
361,430 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Stock-based compensation expenses |
5,782 |
5,966 |
18,761 |
19,629 |
|||||||||||
|
Income tax (benefit) expense |
(16,691) |
20,392 |
(96,818) |
(17,829) |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
104,394 |
189,241 |
369,440 |
643,541 |
|||||||||||
|
Cash Interest |
(33,711) |
(39,997) |
(110,785) |
(121,005) |
|||||||||||
|
Capital expenditures(2) |
(78,453) |
(78,053) |
(297,696) |
(519,566) |
|||||||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Free Cash Flow |
$ |
(3,390) |
$ |
76,245 |
$ |
(25,358) |
$ |
16,800 |
|||||||
|
Net cash provided by operating activities |
$ |
32,018 |
$ |
50,451 |
$ |
123,419 |
$ |
280,337 |
|||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Deferred financing costs amortization and other |
(3,622) |
(2,409) |
(10,174) |
(7,468) |
|||||||||||
|
Changes in working capital |
32,023 |
25,376 |
33,286 |
(40,395) |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
104,394 |
189,241 |
369,440 |
643,541 |
|||||||||||
|
Cash Interest |
(33,711) |
(39,997) |
(110,785) |
(121,005) |
|||||||||||
|
Capital expenditures(2) |
(78,453) |
(78,053) |
(297,696) |
(519,566) |
|||||||||||
|
Capitalized interest |
4,380 |
5,054 |
13,683 |
13,830 |
|||||||||||
|
Free Cash Flow |
$ |
(3,390) |
$ |
76,245 |
$ |
(25,358) |
$ |
16,800 |
|||||||
|
___________________ | |
|
(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 September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income (loss) before income taxes |
$ |
(66,333) |
$ |
29,070 |
$ |
(331,075) |
$ |
(104,102) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,663 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Interest expense, net of capitalized interest |
31,726 |
36,513 |
105,444 |
112,702 |
|||||||||||
|
Depreciation, depletion and amortization |
109,668 |
122,075 |
346,240 |
357,664 |
|||||||||||
|
Impairment |
382 |
80 |
1,536 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Exploration expenses |
489 |
327 |
1,192 |
2,252 |
|||||||||||
|
Stock-based compensation expenses |
5,570 |
5,761 |
17,495 |
19,276 |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Adjusted EBITDA |
$ |
86,202 |
$ |
169,000 |
$ |
309,527 |
$ |
597,365 |
|||||||
|
___________________ | |
|
(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. |
|
Well Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
1,577 |
$ |
10,950 |
$ |
3,462 |
$ |
29,588 |
|||||||
|
Depreciation, depletion and amortization |
3,478 |
4,904 |
11,605 |
14,430 |
|||||||||||
|
Stock-based compensation expenses |
354 |
544 |
1,253 |
1,530 |
|||||||||||
|
Adjusted EBITDA |
$ |
5,409 |
$ |
16,398 |
$ |
16,320 |
$ |
45,548 |
|||||||
|
Midstream Services | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands) | |||||||||||||||
|
Income before income taxes |
$ |
16,065 |
$ |
18,828 |
$ |
49,262 |
$ |
44,039 |
|||||||
|
Gain on sale of properties |
— |
— |
(358) |
— |
|||||||||||
|
Depreciation, depletion and amortization |
1,909 |
1,509 |
5,325 |
4,070 |
|||||||||||
|
Impairment |
— |
— |
2,431 |
— |
|||||||||||
|
Stock-based compensation expenses |
218 |
206 |
661 |
529 |
|||||||||||
|
Adjusted EBITDA |
$ |
18,192 |
$ |
20,543 |
$ |
57,321 |
$ |
48,638 |
|||||||
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 and non-recurring items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash and non-recurring charges, 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 September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In thousands, except per share data) | |||||||||||||||
|
Net income (loss) |
$ |
(33,942) |
$ |
27,055 |
$ |
(188,328) |
$ |
(44,216) |
|||||||
|
(Gain) loss on sale of properties |
(6) |
(172) |
1,305 |
(172) |
|||||||||||
|
(Gain) loss on extinguishment of debt |
13,793 |
— |
(4,865) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(20,847) |
(103,637) |
55,624 |
(111,285) |
|||||||||||
|
Derivative settlements(1) |
11,786 |
78,100 |
115,576 |
291,436 |
|||||||||||
|
Impairment |
382 |
80 |
3,967 |
24,917 |
|||||||||||
|
Rig termination |
— |
— |
— |
3,895 |
|||||||||||
|
Amortization of deferred financing costs(2) |
2,095 |
1,570 |
8,042 |
5,526 |
|||||||||||
|
Amortization of debt discount |
300 |
— |
300 |
— |
|||||||||||
|
Other non-cash adjustments |
(26) |
883 |
697 |
782 |
|||||||||||
|
Tax impact(3) |
(2,798) |
8,668 |
(67,598) |
(80,447) |
|||||||||||
|
Adjusted Net Income (Loss) |
$ |
(29,263) |
$ |
12,547 |
$ |
(75,280) |
$ |
90,436 |
|||||||
|
Diluted loss per share |
$ |
(0.19) |
$ |
0.20 |
$ |
(1.09) |
$ |
(0.35) |
|||||||
|
(Gain) loss on sale of properties |
— |
— |
0.01 |
— |
|||||||||||
|
(Gain) loss on extinguishment of debt |
0.08 |
— |
(0.03) |
— |
|||||||||||
|
Net (gain) loss on derivative instruments |
(0.12) |
(0.76) |
0.32 |
(0.87) |
|||||||||||
|
Derivative settlements(1) |
0.07 |
0.57 |
0.67 |
2.28 |
|||||||||||
|
Impairment |
— |
— |
0.02 |
0.19 |
|||||||||||
|
Rig termination |
— |
— |
— |
0.03 |
|||||||||||
|
Amortization of deferred financing costs(2) |
0.01 |
0.01 |
0.05 |
0.04 |
|||||||||||
|
Amortization of debt discount |
— |
— |
— |
— |
|||||||||||
|
Other non-cash adjustments |
— |
0.01 |
— |
0.01 |
|||||||||||
|
Tax impact(3) |
(0.02) |
0.06 |
(0.39) |
(0.62) |
|||||||||||
|
Adjusted Diluted Earnings (Loss) Per Share |
$ |
(0.17) |
$ |
0.09 |
$ |
(0.44) |
$ |
0.71 |
|||||||
|
Diluted weighted average shares outstanding |
177,120 |
137,014 |
172,360 |
127,827 |
|||||||||||
|
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) |
As of September 30, 2016, Adjusted Net Income (Loss) includes the non-cash adjustment for amortization of deferred financing costs. Comparative periods have been conformed. The amortization of deferred financing costs are included in interest expense on the Company's Condensed Consolidated Statement of Operations. For the nine months ended September 30, 2016 and 2015, the amortization of deferred financing costs included $1.8 million and $0.5 million, respectively, for unamortized deferred financing costs related to the revolving credit facility, which were written off in proportion to the decreases in the borrowing base. |
|
(3) |
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.