Oasis Petroleum Inc. Announces Quarter and Year Ending December 31, 2015 Earnings and Provides an Operational Update and its 2016 Outlook

24 Feb, 2016, 17:00 ET from Oasis Petroleum Inc.

HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2015 and provided its 2016 outlook.

2015 Highlights

  • Increased average daily production 11% year-over-year to 50,477 barrels of oil equivalent per day ("Boepd") in 2015 and increased fourth quarter of 2015 production to 50,652 Boepd.
  • Completed and placed on production 80 gross (62.4 net) operated wells during 2015 and 16 gross (10.7 net) operated wells during the fourth quarter of 2015. As of December 31, 2015, the Company had 85 gross operated wells awaiting completion.  
  • Reduced lease operating expenses ("LOE") per barrel of oil equivalent ("Boe") by 23% to $7.84 per Boe for the year ended December 31, 2015.
  • Adjusted EBITDA was $820.2 million for the year ended December 31, 2015 as compared to $952.8 million for the year ended December 31, 2014. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities, see "Non-GAAP Financial Measures" below.
  • Net loss was $40.2 million for the year ended December 31, 2015 as compared to net income of $506.9 million for the year ended December 31, 2014. Lower realized prices for oil and natural gas reduced net income (loss) by $641.2 million year over year.
  • Capital expenditures ("CapEx") were $610.0 million for the year ended December 31, 2015, a 61% decrease year over year.

"Given the challenging market backdrop, Oasis continues to focus on protecting its balance sheet while improving operational results," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer.  "Oasis was free cash flow positive in 2015, as we lowered drilling and completion capital by 70% and LOE per Boe by 23% year over year. We reduced our high intensity well costs by about 30% from the fourth quarter of 2014 to the second half of 2015, and, at the same time, production performance of our high intensity wells continued to track 30% to in excess of 50% improvement to our base completion type curve in the core.  Additionally, our midstream business reported $66.3 million of Adjusted EBITDA in 2015, up from $26.5 million in 2014.  The team increased volumes flowing on our gathering lines from 40% exiting 2014 to 75% exiting 2015, significantly improving our cost structure in a low price environment as reflected in our lower per barrel LOE expense."

Mr. Nusz added, "We have set our 2016 drilling and completion CapEx program at $200 million and continue to project that 2016 cash flow from Adjusted EBITDA less cash interest will cover our CapEx plan, excluding midstream, at approximately $35 per barrel WTI.  We also now have about 70% of our projected oil volumes hedged at over $51 per barrel WTI in 2016."

2016 Plan

Highlights for 2016 include:

  • $400 million total CapEx budget
  • Completing 46 gross (28.6 net) operated wells in 2016
  • 100% of completions are high intensity in the core
  • Running two rigs in Wild Basin

2016 Range

Metric

Production (Boepd)

Full Year 2016

46,000 - 49,000

Full Year Financial Metrics

LOE ($ per Boe)

$7.75 - $8.50

Marketing, transportation and gathering ("MT&G") ($ per Boe)(1)

$1.70 - $1.90

General and administrative ("G&A") ($ in millions)(2)

$90 - $95

Production taxes (% of oil and gas revenue)

~9.0%

CapEx Budget ($ in millions)

Drilling and completion

$200

OMS, including Wild Basin infrastructure

$140

Other(3)

$60

(1)

Excludes the effect of non-cash valuation charges.

(2)

Includes non-cash amortization of restricted stock of $24-26 million.  Net Oasis Well Services ("OWS") G&A is projected to increase by $7-8 million in 2015 compared to 2014 due to lower working interest in wells being completed, although gross OWS G&A is expected to decrease by approximately $12 million due to less overall activity.

(3)

Includes $18 million for capitalized interest.  Capitalized interest is excluded in the cash flow calculation, as it is included in cash interest.

 

Fourth Quarter 2015 and Fiscal Year 2015 Results The Company's average daily production and revenues are detailed in the following table:

Quarter Ended:

Year Ended:

12/31/2015

9/30/2015

12/31/2015

12/31/2014

Average daily production (Boepd)

50,652

50,546

50,477

45,656

Percent Oil

85.5

%

87.7

%

87.3

%

89.3

%

Average oil sales price, without derivative settlements (per Bbl)

$

37.77

$

41.61

$

43.04

$

82.73

Differential to NYMEX West Texas Intermediate crude oil index prices ("WTI")

4.29

4.82

5.72

9.34

Revenues ($ in thousands):

Oil

$

150,448

$

169,672

$

692,497

$

1,231,251

Natural gas

7,985

5,598

29,175

72,753

Well services (OWS)

16,986

15,381

44,294

74,610

Midstream services (OMS)

6,648

6,584

23,769

11,614

Total revenues

$

182,067

$

197,235

$

789,735

$

1,390,228

 

Select expenses are detailed in the following table:

Quarter Ended:

Year Ended:

12/31/2015

9/30/2015

12/31/2015

12/31/2014

Select expenses ($ in thousands):

LOE

$

31,925

$

35,670

$

144,481

$

169,600

MT&G(1)

7,321

7,582

29,852

26,189

Non-cash valuation charges

976

883

1,758

2,314

Production taxes

15,669

16,676

69,584

127,648

Well services (OWS)

6,938

8,498

21,833

45,605

Midstream services (OMS)

1,723

1,525

6,198

4,647

Depreciation, depletion and amortization ("DD&A")

123,892

123,734

485,322

412,334

Total of select expenses

$

188,444

$

194,568

$

759,028

$

788,337

Operating expenses:

LOE ($ per Boe)

$

6.85

$

7.67

$

7.84

$

10.18

MT&G ($ per Boe)(1)

1.57

1.63

1.62

1.61

Production taxes (% of oil and gas revenue)

9.9

%

9.5

%

9.6

%

9.8

%

DD&A ($ per Boe)

$

26.59

$

26.61

$

26.34

$

24.74

(1)

Excludes non-cash valuation charges on pipeline imbalances and linefill.

 

Due to lower expected future oil prices, the Company reviewed its proved oil and natural gas properties for impairment as of December 31, 2015 and 2014. As a result, the Company recorded a non-cash impairment loss of $9.4 million in the fourth quarter of 2015 to adjust the carrying value of its proved oil and natural gas properties held for sale to their estimated fair value. For the year ended December 31, 2014, the Company recorded a non-cash impairment loss of $40.0 million for certain legacy wells producing from conventional reservoirs in the Williston Basin. During the fourth quarters of 2015 and 2014, the Company also recorded non-cash impairment charges of $11.7 million and $5.0 million, respectively, for unproved properties due to leases that expired during the period and periodic assessments of unproved properties.

G&A expenses for the fourth quarter of 2015 totaled $25.3 million, and for the year ended December 31, 2015, G&A totaled $92.5 million. The fourth quarter of 2015 included bank fees related to consent solicitations on the Company's senior unsecured notes. G&A expenses for the Company's exploration and production segment totaled $21.9 million in the fourth quarter of 2015 and $83.0 million in the full year of 2015. Exploration and production G&A expenses were $4.70 per Boe in the fourth quarter of 2015 and $4.50 per Boe in the full year of 2015. Amortization of stock-based compensation, which is included in G&A expenses, was $5.6 million, or $1.21 per Boe, in the fourth quarter of 2015 and $25.3 million, or $1.37 per Boe, in the full year of 2015.

As a result of entering into derivative contracts and the effect of the forward strip oil price changes, the Company incurred a $99.1 million net gain on derivative instruments, including net cash settlement receipts from derivatives of $79.0 million, for the fourth quarter of 2015 and a $210.4 million net gain on derivative instruments, including net cash settlement receipts of $370.4 million, for the full year of 2015. The net cash settlement receipts from derivative instruments of $79.0 million in the fourth quarter of 2015 included $25.3 million, $25.5 million and $28.2 million from contract settlements in September 2015, October 2015 and November 2015, respectively. The Company's derivative instruments do not qualify for and were not designated as hedging instruments for accounting purposes.

Interest expense was $36.9 million for the fourth quarter of 2015 and $149.6 million for the full year of 2015. Capitalized interest totaled $4.8 million for the fourth quarter of 2015 and $18.6 million for the full year of 2015. Cash interest, calculated as interest expense plus capitalized interest less amortization of deferring financing costs, totaled $40.0 million for the fourth quarter of 2015 and $161.0 million for the full year of 2015.

For the three months ended December 31, 2015, the Company recorded an income tax expense of $1.7 million, resulting in an effective tax rate of 30.1% as a percentage of its pre-tax income for the quarter. The Company's income tax benefit for the year ended December 31, 2015 was recorded at $16.1 million, or 28.6% of pre-tax net loss.

Adjusted EBITDA for the fourth quarter of 2015 was $176.7 million and adjusted EBITDA for the full year 2015 was $820.2 million.

The Company reported net income of $4.0 million in the fourth quarter of 2015. For the full year 2015, Oasis reported a net loss of $40.2 million. Excluding certain non-cash items and their tax effect in the fourth quarter of 2015 and full year of 2015, Adjusted Net Income (non-GAAP) was $6.7 million, or $0.05 per diluted share, and $93.8 million, or $0.72 per diluted share, respectively. For a definition of Adjusted Net Income and a reconciliation of net income to Adjusted Net Income, see "Non-GAAP Financial Measures" below.

Capital Expenditures

The following table depicts the Company's CapEx for the year ended December 31, 2015:

2015

CapEx ($ in thousands)

Exploration and production (E&P)

$

465,698

Midstream services (OMS)

96,947

Well services (OWS)

21,711

Other(1)

25,643

Total CapEx(2)

$

609,999

(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 accrued liabilities for CapEx, while the amounts presented in the statement of cash flows are presented on a cash basis.

 

Liquidity

On February 2, 2016, Oasis completed a public equity offering of 39.1 million shares, which resulted in net proceeds to the Company of $182.9 million.  On February 23, 2016, Oasis completed its spring redetermination of its borrowing base.  As a result, the Company's borrowing base was set at $1,150 million.  The next redetermination is October 1, 2016.  As of December 31, 2015, Oasis had cash and cash equivalents of $9.7 million and $138.0 million of borrowings and $5.2 million of outstanding letters of credit issued under its revolving credit facility.  Pro forma for the equity raise and the new borrowing base, Oasis had $1,199.4 million of liquidity as of December 31, 2015.

Hedging Activity

As of February 24, 2016, the Company had the following outstanding commodity derivate contracts, all of which are priced relative to WTI crude oil index prices and settle monthly:

Type

Floor

Ceiling

Bopd

2016 Swaps

First Half (Jan - June)

$

54.20

$

54.20

28,000

Second Half (July - Dec)

$

50.10

$

50.10

28,000

Partial Year (Mar - June)

$

39.35

$

39.35

3,000

2017 Hedges

Full Year Swaps

$

49.25

$

49.25

6,000

Full Year Collars

$

40.00

$

47.58

2,000

 

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, derivatives activities, 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 changes in oil and natural gas prices, 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. Financial Statements

OASIS PETROLEUM INC.

CONSOLIDATED BALANCE SHEET

(Unaudited)

December 31,

2015

2014

(In thousands, except share data)

ASSETS

Current assets

Cash and cash equivalents

$

9,730

$

45,811

Accounts receivable — oil and gas revenues

96,495

130,934

Accounts receivable — joint interest and other

100,914

175,537

Inventory

11,072

21,354

Prepaid expenses

7,328

14,273

Derivative instruments

139,697

302,159

Other current assets

50

6,539

Total current assets

365,286

696,607

Property, plant and equipment

Oil and gas properties (successful efforts method)

6,284,401

5,966,140

Other property and equipment

443,265

313,439

Less: accumulated depreciation, depletion, amortization and impairment

(1,509,424)

(1,092,793)

Total property, plant and equipment, net

5,218,242

5,186,786

Assets held for sale

26,728

Derivative instruments

15,776

13,348

Other assets

23,343

12,335

Total assets

$

5,649,375

$

5,909,076

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

9,983

$

20,958

Revenues and production taxes payable

132,356

209,890

Accrued liabilities

167,669

410,379

Accrued interest payable

49,413

49,786

Deferred income taxes

97,499

Advances from joint interest partners

4,647

6,616

Other current liabilities

6,500

Total current liabilities

370,568

795,128

Long-term debt

2,302,584

2,670,664

Deferred income taxes

608,155

526,770

Asset retirement obligations

35,338

42,097

Liabilities held for sale

10,228

Other liabilities

3,160

2,116

Total liabilities

3,330,033

4,036,775

Commitments and contingencies

Stockholders' equity

Common stock, $0.01 par value: 300,000,000 shares authorized; 139,583,990 shares issued and 139,076,064 shares outstanding at December 31, 2015 and 101,627,296 shares issued and 101,341,619 shares outstanding at December 31, 2014

1,376

1,001

Treasury stock, at cost: 507,926 shares and 285,677 shares at December 31, 2015 and 2014, respectively

(13,620)

(10,671)

Additional paid-in-capital

1,497,065

1,007,202

Retained earnings

834,521

874,769

Total stockholders' equity

2,319,342

1,872,301

Total liabilities and stockholders' equity

$

5,649,375

$

5,909,076

 

OASIS PETROLEUM INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2015

2014

2015

2014

(In thousands, except per share data)

Revenues

Oil and gas revenues

$

158,433

$

273,269

$

721,672

$

1,304,004

Well services and midstream revenues

23,634

26,403

68,063

86,224

Total revenues

182,067

299,672

789,735

1,390,228

Operating expenses

Lease operating expenses

31,925

44,697

144,481

169,600

Well services and midstream operating expenses

8,661

15,641

28,031

50,252

Marketing, transportation and gathering expenses

8,297

9,527

31,610

29,133

Production taxes

15,669

26,768

69,584

127,648

Depreciation, depletion and amortization

123,892

116,814

485,322

412,334

Exploration expenses

117

1,109

2,369

3,064

Rig termination

3,895

Impairment of oil and gas properties

21,364

44,995

46,109

47,238

General and administrative expenses

25,308

24,120

92,498

92,306

Total operating expenses

235,233

283,671

903,899

931,575

Gain (loss) on sale of properties

(77)

186,999

Operating income (loss)

(53,166)

15,924

(114,164)

645,652

Other income (expense)

Net gain on derivative instruments

99,091

306,758

210,376

327,011

Interest expense, net of capitalized interest

(36,946)

(39,822)

(149,648)

(158,390)

Other income (expense)

(3,305)

(55)

(2,935)

195

Total other income (expense)

58,840

266,881

57,793

168,816

Income (loss) before income taxes

5,674

282,805

(56,371)

814,468

Income tax benefit (expense)

(1,706)

(106,301)

16,123

(307,591)

Net income (loss)

$

3,968

$

176,504

$

(40,248)

$

506,877

Earnings per share:

Basic

$

0.03

$

1.77

$

(0.31)

$

5.09

Diluted

0.03

1.77

(0.31)

5.05

Weighted average shares outstanding:

Basic

137,184

99,767

130,186

99,677

Diluted

137,184

99,767

130,186

100,365

 

OASIS PETROLEUM INC.

SELECTED FINANCIAL AND OPERATIONAL STATS

Three Months Ended December 31,

Year Ended December 31,

2015

2014

2015

2014

Operating results ($ in thousands):

Revenues

Oil

$

150,448

$

258,913

$

692,497

$

1,231,251

Natural gas

7,985

14,356

29,175

72,753

Well services and midstream

23,634

26,403

68,063

86,224

Total revenues

$

182,067

$

299,672

$

789,735

$

1,390,228

Production data:

Oil (MBbls)

3,983

4,123

16,091

14,883

Natural gas (MMcf)

4,062

2,939

14,002

10,691

Oil equivalents (MBoe)

4,660

4,613

18,424

16,664

Average daily production (Boe/d)

50,652

50,143

50,477

45,656

Average sales prices:

Oil, without derivative settlements (per Bbl)

$

37.77

$

62.79

$

43.04

$

82.73

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

57.60

70.44

66.06

83.19

Natural gas (per Mcf)(2)

1.97

4.89

2.08

6.81

Costs and expenses (per Boe of production):

Lease operating expenses

$

6.85

$

9.69

$

7.84

$

10.18

Marketing, transportation and gathering expenses(3)

1.57

1.48

1.62

1.61

Production taxes

3.36

5.80

3.78

7.66

Depreciation, depletion and amortization

26.59

25.32

26.34

24.74

General and administrative expenses

5.43

5.23

5.02

5.54

(1)

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 our 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)

Natural gas prices include the value for natural gas and natural gas liquids.

(3)

Excludes non-cash valuation charges.

 

OASIS PETROLEUM INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

Year Ended December 31,

2015

2014

(In thousands)

Cash flows from operating activities:

Net income (loss)

$

(40,248)

$

506,877

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation, depletion and amortization

485,322

412,334

Gain on sale of properties

(186,999)

Impairment of oil and gas properties

46,109

47,238

Deferred income taxes

(16,114)

307,457

Derivative instruments

(210,376)

(327,011)

Stock-based compensation expenses

25,272

21,302

Deferred financing costs amortization and other

12,299

11,028

Working capital and other changes:

Change in accounts receivable

108,461

16,702

Change in inventory

6,873

(3,776)

Change in prepaid expenses

1,828

(3,199)

Change in other current assets

6,489

(6,135)

Change in other assets

(950)

114

Change in accounts payable and accrued liabilities

(71,617)

76,723

Change in other current liabilities

6,500

Change in other liabilities

(33)

(139)

Net cash provided by operating activities

359,815

872,516

Cash flows from investing activities:

Capital expenditures

(819,847)

(1,354,281)

Acquisition of oil and gas properties

(28,817)

(46,247)

Proceeds from sale of properties

1,075

324,852

Costs related to sale of properties

(2,337)

Derivative settlements

370,410

6,774

Advances from joint interest partners

(1,969)

(6,213)

Net cash used in investing activities

(479,148)

(1,077,452)

Cash flows from financing activities:

Proceeds from revolving credit facility

630,000

620,000

Principal payments on revolving credit facility

(992,000)

(455,570)

Deferred financing costs

(14,632)

(99)

Proceeds from sale of common stock

462,833

Purchases of treasury stock

(2,949)

(5,309)

Other

(176)

Net cash provided by financing activities

83,252

158,846

Decrease in cash and cash equivalents

(36,081)

(46,090)

Cash and cash equivalents:

Beginning of period

45,811

91,901

End of period

$

9,730

$

45,811

Supplemental cash flow information:

Cash paid for interest, net of capitalized interest

$

145,333

$

150,181

Cash paid for taxes

5,329

Cash received for income tax refunds

5,548

Supplemental non-cash transactions:

Change in accrued capital expenditures

$

(260,060)

$

169,710

Change in asset retirement obligations

3,972

6,182

 

Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company's consolidated 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. Adjusted EBITDA is not a measure of net income 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 and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA for the periods presented:

Adjusted EBITDA Reconciliations

Three Months Ended

December 31,

Year Ended

December 31,

2015

2014

2015

2014

(In thousands)

Net income (loss)

$

3,968

$

176,504

$

(40,248)

$

506,877

Loss (gain) on sale of properties

77

(186,999)

Net gain on derivative instruments

(99,091)

(306,758)

(210,376)

(327,011)

Derivative settlements(1)

78,974

31,547

370,410

6,774

Interest expense, net of capitalized interest

36,946

39,822

149,648

158,390

Depreciation, depletion and amortization

123,892

116,814

485,322

412,334

Impairment of oil and gas properties

21,364

44,995

46,109

47,238

Exploration expenses

117

1,109

2,369

3,064

Rig termination

3,895

Stock-based compensation expenses

5,643

5,547

25,272

21,302

Income tax expense (benefit)

1,706

106,301

(16,123)

307,591

Other non-cash adjustments

3,174

3,561

3,956

3,284

Adjusted EBITDA

$

176,693

$

219,519

$

820,234

$

952,844

Net cash provided by operating activities

$

79,478

$

199,024

$

359,815

$

872,516

Derivative settlements(1)

78,974

31,547

370,410

6,774

Interest expense, net of capitalized interest

36,946

39,822

149,648

158,390

Exploration expenses

117

1,109

2,369

3,064

Rig termination

3,895

Deferred financing costs amortization and other

(4,831)

(5,819)

(12,299)

(11,028)

Current tax expense

(9)

(3,608)

(9)

134

Changes in working capital

(17,156)

(46,117)

(57,551)

(80,290)

Other non-cash adjustments

3,174

3,561

3,956

3,284

Adjusted EBITDA

$

176,693

$

219,519

$

820,234

$

952,844

(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.

 

The following tables present reconciliations of the GAAP financial measure of income before income taxes to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments for the periods presented:

Segment Adjusted EBITDA Reconciliations

Exploration and Production

Three Months Ended

December 31,

Year Ended

December 31,

2015

2014

2015

2014

(In thousands)

Income (loss) before income taxes

$

(14,868)

$

274,934

$

(118,970)

$

779,591

Loss (gain) on sale of properties

77

(186,999)

Net gain on derivative instruments

(99,091)

(306,758)

(210,376)

(327,011)

Derivative settlements(1)

78,974

31,547

370,410

6,774

Interest expense, net of capitalized interest

36,946

39,822

149,648

158,390

Depreciation, depletion and amortization

122,028

114,705

479,693

406,960

Impairment of oil and gas properties

21,364

44,995

46,109

47,238

Exploration expenses

117

1,109

2,369

3,064

Rig termination

3,895

Stock-based compensation expenses

5,486

5,303

24,762

20,701

Other non-cash adjustments

2,937

2,591

3,719

2,314

Adjusted EBITDA

$

153,893

$

208,325

$

751,259

$

911,022

(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

December 31,

Year Ended

December 31,

2015

2014

2015

2014

(In thousands)

Income before income taxes

$

19,608

$

17,741

$

49,197

$

70,953

Depreciation, depletion and amortization

4,643

4,362

19,073

14,080

Stock-based compensation expenses

422

475

1,952

1,658

Other non-cash adjustments

237

970

237

970

Adjusted EBITDA

$

24,910

$

23,548

$

70,459

$

87,661

 

Midstream Services

Three Months Ended

December 31,

Year Ended

December 31,

2015

2014

2015

2014

(In thousands)

Income before income taxes

$

15,828

$

6,876

$

59,867

$

22,730

Depreciation, depletion and amortization

1,695

1,032

5,764

3,744

Stock-based compensation expenses

162

692

Adjusted EBITDA

$

17,685

$

7,908

$

66,323

$

26,474

 

Adjusted Net Income and Adjusted Diluted Earnings Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income as net income 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 of oil and gas properties, 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 items in the same period. Adjusted Net Income is not a measure of net income as determined by GAAP. The Company defines Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by diluted weighted average shares outstanding.

The following table presents reconciliations of the GAAP financial measure of net income to the non-GAAP financial measure of Adjusted Net Income and the GAAP financial measure of diluted earnings per share to the non-GAAP financial measure of Adjusted Diluted Earnings Per Share for the periods presented:

Adjusted Net Income and Adjusted Diluted Earnings Per Share Reconciliations

Three Months Ended December 31,

Year Ended December 31,

2015

2014

2015

2014

Net income (loss)

$

3,968

$

176,504

$

(40,248)

$

506,877

Loss (gain) on sale of properties

77

(186,999)

Net gain on derivative instruments

(99,091)

(306,758)

(210,376)

(327,011)

Derivative settlements(1)

78,974

31,547

370,410

6,774

Impairment of oil and gas properties

21,364

44,995

46,109

47,238

Rig termination

3,895

Other non-cash adjustments

3,174

3,561

3,956

3,284

Tax impact(2)

(1,653)

85,195

(79,991)

172,482

Adjusted Net Income

$

6,736

$

35,121

$

93,755

$

222,645

Diluted earnings per share

$

0.03

$

1.77

$

(0.31)

$

5.05

Loss (gain) on sale of properties

(1.86)

Net gain on derivative instruments

(0.72)

(3.07)

(1.62)

(3.26)

Derivative settlements(1)

0.58

0.32

2.85

0.07

Impairment of oil and gas properties

0.16

0.45

0.35

0.47

Rig termination

0.03

Other non-cash adjustments

0.02

0.04

0.03

0.03

Tax impact(2)

(0.02)

0.84

(0.61)

1.72

Adjusted Diluted Earnings Per Share

$

0.05

$

0.35

$

0.72

$

2.22

Diluted weighted average shares outstanding

137,184

99,767

130,186

100,365

Effective tax rate applicable to adjustment items

37.4

%

37.6

%

37.4

%

37.8

%

(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)

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.



RELATED LINKS

http://www.oasispetroleum.com