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Oasis Petroleum (OAS) Stock Up 16.4% Despite Q4 Earnings Miss
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Shares of Oasis Petroleum Inc. have gone up 16.4% since the fourth-quarter 2021 earnings release on Feb 23.
The stock appreciation can be attributed to Oasis Petroleum’s better-than-expected fourth-quarter top line and a hike in dividend. The uptrend shown in share price was despite the fact that OAS’ bottom line lagged the Zacks Consensus Estimate.
Behind the Earnings Headlines
The Williston Basin-focused oil and gas producer, Oasis Petroleum, reported fourth-quarter 2021 adjusted earnings per share of $4.25, lower than the Zacks Consensus Estimate of $5.36, improving from the quarter-ago profit of $3.16 due to higher price realizations. The underperformance can be attributed to much higher total operating expenses in the quarter.
Oasis Petroleum’s total operating revenues of $522 million beat the Zacks Consensus Estimate of $377 million. The top line also improved from the sequential quarter’s figure of $402 million. This can be attributed to higher commodity prices and the overall bullishness around the energy sector.
Among other encouraging metrics of OAS, adjusted EBITDA and adjusted free cash flow totaled $200.8 million and $148.5 million, respectively.
In some good news for investors, Oasis Petroleum announced that it will increase its base dividend by 17% to 58.5 cents ($2.34 per share annualized), and the amount was paid out on Mar 4, 2022 to shareholders of record as of Feb 21, 2022.
Production & Price Realizations
The total production (comprising 64.6% oil) jumped 32.8% from the quarter-ago level to 68.788 oil-equivalent barrels per day (MBOE/d). While the oil volume came in at 44.422 thousand barrels per day (up 39% from the last quarter), natural gas totaled 146.196 thousand cubic feet per day (up 22.4 % sequentially).
The average realized crude oil price during the fourth quarter was $76.37 per barrel, reflecting an 8.9% increase from the prior-quarter realization of $70.12. The average realized natural gas price was $7.93 per thousand cubic feet, increasing about 15% from the quarter-earlier period’s figure.
Oasis Petroleum Inc. Price, Consensus and EPS Surprise
Total operating expenses in the quarter ascended to $281.8 million from the sequential quarter’s $223.5 million. This increase in expenses was mainly due to a rise in lease operating expenses, depreciation, purchased oil and gas expenses, which were up 28.2%, 81.3% and 21.4%, respectively, from the corresponding sequential quarter’s levels. OAS’ lease operating expenses also rose to $9.63 per barrel of oil equivalent (Boe) from the quarter-ago figure of $9.42 per Boe.
Financial Position
Capital spending totaled $45.3 million in the quarter. Oasis Petroleum recorded $269.4 million in net cash flow provided by operations.
As of Dec 31, this Bakken-focused operator had $172.11 million in cash and cash equivalents. The company had long-term debt of $1.22 billion, representing a debt-to-capitalization of about 50%.
Guidance
For 2022, Oasis Petroleum anticipates its E&P capex estimate of around $295 million. OAS expects 2022 EBITDA of $860 million, with free cash flow of more than $500 million.
Management expects the average volume view in the band of 65-70 MBOE/d for the entire year.
Oasis Petroleum said that it would continue to focus on ESG and sustainability for this year and also plans to improve its program and overall transparency.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
The Zacks Consensus Estimate for COP’s earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.
ExxonMobil is banking on key upstream projects centered around Permian – the most prolific basin in the United States – and the offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results due to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, XOM has witnessed upward earnings estimate revisions for 2022.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, CVX has witnessed upward earnings estimate revisions for 2022.
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Oasis Petroleum (OAS) Stock Up 16.4% Despite Q4 Earnings Miss
Shares of Oasis Petroleum Inc. have gone up 16.4% since the fourth-quarter 2021 earnings release on Feb 23.
The stock appreciation can be attributed to Oasis Petroleum’s better-than-expected fourth-quarter top line and a hike in dividend. The uptrend shown in share price was despite the fact that OAS’ bottom line lagged the Zacks Consensus Estimate.
Behind the Earnings Headlines
The Williston Basin-focused oil and gas producer, Oasis Petroleum, reported fourth-quarter 2021 adjusted earnings per share of $4.25, lower than the Zacks Consensus Estimate of $5.36, improving from the quarter-ago profit of $3.16 due to higher price realizations. The underperformance can be attributed to much higher total operating expenses in the quarter.
Oasis Petroleum’s total operating revenues of $522 million beat the Zacks Consensus Estimate of $377 million. The top line also improved from the sequential quarter’s figure of $402 million. This can be attributed to higher commodity prices and the overall bullishness around the energy sector.
Among other encouraging metrics of OAS, adjusted EBITDA and adjusted free cash flow totaled $200.8 million and $148.5 million, respectively.
In some good news for investors, Oasis Petroleum announced that it will increase its base dividend by 17% to 58.5 cents ($2.34 per share annualized), and the amount was paid out on Mar 4, 2022 to shareholders of record as of Feb 21, 2022.
Production & Price Realizations
The total production (comprising 64.6% oil) jumped 32.8% from the quarter-ago level to 68.788 oil-equivalent barrels per day (MBOE/d). While the oil volume came in at 44.422 thousand barrels per day (up 39% from the last quarter), natural gas totaled 146.196 thousand cubic feet per day (up 22.4 % sequentially).
The average realized crude oil price during the fourth quarter was $76.37 per barrel, reflecting an 8.9% increase from the prior-quarter realization of $70.12. The average realized natural gas price was $7.93 per thousand cubic feet, increasing about 15% from the quarter-earlier period’s figure.
Oasis Petroleum Inc. Price, Consensus and EPS Surprise
Oasis Petroleum Inc. price-consensus-eps-surprise-chart | Oasis Petroleum Inc. Quote
Total Expenses
Total operating expenses in the quarter ascended to $281.8 million from the sequential quarter’s $223.5 million. This increase in expenses was mainly due to a rise in lease operating expenses, depreciation, purchased oil and gas expenses, which were up 28.2%, 81.3% and 21.4%, respectively, from the corresponding sequential quarter’s levels. OAS’ lease operating expenses also rose to $9.63 per barrel of oil equivalent (Boe) from the quarter-ago figure of $9.42 per Boe.
Financial Position
Capital spending totaled $45.3 million in the quarter. Oasis Petroleum recorded $269.4 million in net cash flow provided by operations.
As of Dec 31, this Bakken-focused operator had $172.11 million in cash and cash equivalents. The company had long-term debt of $1.22 billion, representing a debt-to-capitalization of about 50%.
Guidance
For 2022, Oasis Petroleum anticipates its E&P capex estimate of around $295 million. OAS expects 2022 EBITDA of $860 million, with free cash flow of more than $500 million.
Management expects the average volume view in the band of 65-70 MBOE/d for the entire year.
Oasis Petroleum said that it would continue to focus on ESG and sustainability for this year and also plans to improve its program and overall transparency.
Zacks Rank & Other Stocks to Consider
Oasis Petroleum currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space are ConocoPhillips (COP - Free Report) , ExxonMobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.
The Zacks Consensus Estimate for COP’s earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.
ExxonMobil is banking on key upstream projects centered around Permian – the most prolific basin in the United States – and the offshore Guyana resources.
ExxonMobil reported strong fourth-quarter results due to improved realized oil and natural gas prices as well as higher refining and chemical margins. In the past seven days, XOM has witnessed upward earnings estimate revisions for 2022.
In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.
In the past 30 days, CVX has witnessed upward earnings estimate revisions for 2022.