It has been about a month since the last earnings report for Oasis Petroleum Inc. . Shares have added about 19.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oasis Petroleum Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Oasis Petroleum Q4 Earnings Miss Estimates, Revenues Beat
Oasis Petroleum reported fourth-quarter 2021 adjusted earnings per share of $4.25, lower than the Zacks Consensus Estimate of $5.36 but 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.
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 $392.5 billion, representing a debt-to-capitalization of about 24.3%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 7.91% due to these changes.
VGM Scores
At this time, Oasis Petroleum Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oasis Petroleum Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Image: Bigstock
Oasis Petroleum Inc. (OAS) Up 19.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Oasis Petroleum Inc. . Shares have added about 19.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oasis Petroleum Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Oasis Petroleum Q4 Earnings Miss Estimates, Revenues Beat
Oasis Petroleum reported fourth-quarter 2021 adjusted earnings per share of $4.25, lower than the Zacks Consensus Estimate of $5.36 but 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.
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 $392.5 billion, representing a debt-to-capitalization of about 24.3%.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 7.91% due to these changes.
VGM Scores
At this time, Oasis Petroleum Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oasis Petroleum Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.