Oasis Petroleum

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setliff
Posts: 1823
Joined: Tue Apr 27, 2010 12:15 pm

Oasis Petroleum

Post by setliff »

<Oasis Petroleum
Initial Investment: 2007
Headquartered in Houston, Oasis was formed by former senior management members of Burlington Resources. Oasis is an oil & gas exploitation and acquisitions company focused on under-managed and under-developed assets primarily in the Williston Basin and Bakken Shale play (Montana and North Dakota). [/b]
this outfit is going public --pricing will be today after mkt. cnbc claims it is over subscribed.>

anybody been following?

jim
setliff
Posts: 1823
Joined: Tue Apr 27, 2010 12:15 pm

Re: Oasis Petroleum --

Post by setliff »

:idea:

Oasis Petroleum shares jump after IPO raises $588M
(AP) – 2 hours ago

NEW YORK — Shares of oil and gas company Oasis Petroleum are rising after the company raised $588 million in the largest initial public offering so far this year.

Oasis shares, trading on the New York Stock Exchange under the symbol "OAS," are rising 55 cents, or 3.9 percent, to $14.55 in morning trading.

Earlier, Oasis and its stockholders priced 42 million shares at $14, the middle of the expected range.

Oasis, based in Houston, is selling 30.4 million shares, and private equity firm EnCap Investment LP's funds are selling 11.6 million shares.

Net proceeds for the company were expected to be about $394.6 million after expenses. Oasis will use the funds to pay debt and explore and drill for oil and gas.
par_putt
Posts: 565
Joined: Tue Apr 27, 2010 11:51 am

Re: Oasis Petroleum

Post by par_putt »

Oasis Petroluem (OAS) IPO Quick Look

Look at URL for more data..
http://seekingalpha.com/article/210760- ... urce=hp_wc


IPO raised $395 mm for the company
Shares out after deal 92.2 mm,
Market cap = $1.36 B
Total Enterprise Value = $1.022 B
Balance sheet:
No debt
Cash $339.6 mm (or $3.68 per share)
Pure Play Williston Basin Bakken player – North Dakota and Montana.

292,000 net acres
1Q production: 3,295 BOEpd (91% oil)
1,084 BOEpd Sanish (EOG and WLL country)

1,037 BOEpd East of Neeson Anticline

1,078 West of Neeson (drilling in and around BEXP’s Rough Rider)
The remaining volumes are non-core, non Williston.
Reserves: 13.3 MMBOE. Acreage is largely unproven by OAS but in territory highly proven by offset operators.
The 2010 Plan: Spend $220 mm in 2010 drilling 30 net wells in the Bakken with a 4 rig program. Note in the model that follows that I’ve factored in some fairly conservative assumptions on the incremental production this could lead to but this is very preliminary on my part. Chances are better than not that this forecast is overly conservative and will be lifted as we get more insight into their well results. Note that OAS is drilling two wells at present in the hear of BEXP’s Rough Rider area, in close proximity to BEPX wells that IP’d between 2,000 and 3,600 BOEpd and have demonstrated solid 30 and 60 day average rates. By contrast, I am modeling average IPs of 1,200 BOEpd and somewhat sharper decline rates than offset operators seem to be experiencing in this part of the play. Obviously there is no guarantee’s completions will be on this level but at least they are drilling in the right neighborhood.
This a brief, first take model and it will be updated as more data becomes available in the near future…


Valuation:

TEV / EBITDA:
Trades at about just over 16x my preliminary estimate for this year. While this number is high relative to their peers that is a function of being at the beginning of a production ramp and as BEXP’s multiples have contracted (even as the stock has risen) so too should OAS.

Acreage: $3,526 / acre. This is more than reasonable given where recent auctions have priced and where their peers are trading.


Nutshell: Oily and extremely Bakken focused with at least 2 years of capex in the bank and no debt. In a month expect glowing Buy recommendations from the underwriting group (Morgan Stanley, UBS, and Simmons plus a host of middle tier and energy savvy banks on the cover). Production should ramp fairly swiftly given where they are drilling, especially since we’re building on a small base and running a four rig program. I took a starter position yesterday.
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Oasis Petroleum

Post by dan_s »

What you should do is compare this one to KOG and AEZ. BEXP should also be in the comparison but they are much further along in the Bakken so not a good "apples to apples" one to compare.

I will add it to my Watch List.

Look for an IPO of an Eagle Ford small-cap soon.

The Bakken and the Eagle Ford are going to be big news with the GOM shut down.

Dan
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Oasis Petroleum

Post by dan_s »

I would compare Oasis to Sweet 16 members KOG and AEZ (which will officially replace ARD in the S-16 on July 1).

Investors now have another oil-focused company to invest in, as Oasis Petroleum (NYSE:OAS), a player in the Bakken and Three Forks, completed its initial public offering in June 2010.
Oasis Petroleum sold 42 million shares to the public at $14.00 per share, raising approximately $588 million for the company. EnCap Investments L.P., a private equity firm that specializes in the oil and gas industry, invested in Oasis Petroleum in 2007. Some of EnCap Investments L.P shares were also sold in the offering, netting $153 million to the private equity firm.

Oasis Petroleum was formed by former executives from Burlington Resources, which was purchased by Conoco Phillips (NYSE:COP) in 2006.

EnCap Investments L.P. has been quite successful in backing private companies and then bringing them public, or arranging its sale to established exploration and production companies. Common Resources was formed in 2007 with funding from EnCap Investments L.P. and several other private equity firms.

Common Resources recently sold its Haynesville Shale assets to EXCO Resources (NYSE:XCO) and its Eagle Ford Shale assets to Talisman Energy (NYSE:TLM).

Overview
Oasis Petroleum is concentrated in the Williston Basin in North Dakota and Montana, with 292,000 net acres under lease prospective for the Bakken and Three Forks formations.

The company had proved reserves of 13.3 million barrels of oil equivalent (BOE) as of the end of 2009, and average daily production of 3,295 BOE per day in the first quarter of 2010.

Most of the company's acreage is undeveloped, so Oasis Petroleum is planning to prove up its reserves in 2010, and will drill 30 net wells at a cost of $179 million. The company estimates that it has 469 gross locations on its acreage.

Other Bakken Players
Other players active in the Bakken area include Brigham Exploration Company (Nasdaq:BEXP), which has more than 300,000 net acres in the Williston Basin. The company recently set a record for the highest initial production rate with a well in the Ross project area reaching 5,133 BOE per day during an initial 24 hour period.

Northern Oil and Gas (NYSE:NOG) is also concentrated in the Bakken and Three Forks formation, and has participated in more than 200 gross wells in the area. The company produced an average of 1,400 BOE net per day in the first quarter of 2010.

Bottom Line
Oasis Petroleum is a new vehicle to invest with in the energy sector, as investors and many others in the exploration and production industry continue to be obsessed with oil and liquids at the expense of natural gas. (For more stock analysis, take a look at Big Dividends In Consumer Goods.)
Dan Steffens
Energy Prospectus Group
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