Over 10% of Oasis Petroleum's common stock changed hands on Thursday, January 8.
IMO this company is a Prime Takeover Target for one of the majors. My break-up valuation is $28.35/share, compares to First Call's Price Target of $24.00.
If WTI stays at $50 forever, then OAS has some problems. If you do not believe oil is going to stay low FOREVER, then OAS is a heck of a buy at today's price. This company holds over 500,000 acres of prime leasehold in the Williston Basin and most of it is HBP.
OAS
Re: OAS
Oasis Said to Explore Sale, IPO of Bakken Midstream Unit
(Bloomberg) -- Oasis Petroleum Inc., the North Dakota oil producer that lost almost 70 percent of its value since June, is considering divesting a water disposal unit in the Bakken shale basin, according to people familiar with the matter.
The Houston-based company is considering selling Oasis Midstream Services LLC, a subsidiary that handles water used for fracking wells, said the people, who asked not to be identified because the matter is private.
Falling oil prices and a $2.6 billion debt burden have weighed heavily on Oasis shares, making it the fourth-worst performing energy company in the Russell 1000 Index last year. The shares, which rose as much as 9 percent Friday, slid 0.2 percent to $16.84 at the close in New York -- giving the company a market value of $1.81 billion.
It’s not clear how much the unit is worth. Oasis generated $36.5 million in midstream revenue in the first nine months of 2014, and $15.9 million in income before taxes, according to its third-quarter report.
Oil explorers have been seeking to unload pipelines, processing plants, and non-drilling infrastructure as the oil slump squeezes profits. Another Bakken producer, Whiting Petroleum Corp. is also in the process of selling its interest in oil and gas processing plants in North Dakota, people familiar with the matter have said.
A spokesman for Oasis didn’t respond to requests for comment.
Oasis Chief Executive Thomas Nusz said the company could eventually monetize Oasis Midstream Services when it established the unit in 2013.
“We’re putting it into the separate subsidiary to give us options in the future, but it’s a bit early to figure out where we go with that,” Nusz said in an earnings call with investors in May 2013, according to a transcript compiled by Bloomberg.
(An earlier version of this story was corrected to restate the revenue figure in the fourth paragraph.)
To contact the reporters on this story: Matthew Monks in New York at mmonks1@bloomberg.net; Zain Shauk in Houston at zshauk@bloomberg.net
To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net Robin Saponar
http://www.bloomberg.com/news/articles/ ... tream-unit
(Bloomberg) -- Oasis Petroleum Inc., the North Dakota oil producer that lost almost 70 percent of its value since June, is considering divesting a water disposal unit in the Bakken shale basin, according to people familiar with the matter.
The Houston-based company is considering selling Oasis Midstream Services LLC, a subsidiary that handles water used for fracking wells, said the people, who asked not to be identified because the matter is private.
Falling oil prices and a $2.6 billion debt burden have weighed heavily on Oasis shares, making it the fourth-worst performing energy company in the Russell 1000 Index last year. The shares, which rose as much as 9 percent Friday, slid 0.2 percent to $16.84 at the close in New York -- giving the company a market value of $1.81 billion.
It’s not clear how much the unit is worth. Oasis generated $36.5 million in midstream revenue in the first nine months of 2014, and $15.9 million in income before taxes, according to its third-quarter report.
Oil explorers have been seeking to unload pipelines, processing plants, and non-drilling infrastructure as the oil slump squeezes profits. Another Bakken producer, Whiting Petroleum Corp. is also in the process of selling its interest in oil and gas processing plants in North Dakota, people familiar with the matter have said.
A spokesman for Oasis didn’t respond to requests for comment.
Oasis Chief Executive Thomas Nusz said the company could eventually monetize Oasis Midstream Services when it established the unit in 2013.
“We’re putting it into the separate subsidiary to give us options in the future, but it’s a bit early to figure out where we go with that,” Nusz said in an earnings call with investors in May 2013, according to a transcript compiled by Bloomberg.
(An earlier version of this story was corrected to restate the revenue figure in the fourth paragraph.)
To contact the reporters on this story: Matthew Monks in New York at mmonks1@bloomberg.net; Zain Shauk in Houston at zshauk@bloomberg.net
To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net Robin Saponar
http://www.bloomberg.com/news/articles/ ... tream-unit
Re: OAS
Selling off the "other stuff" will make Oasis ever more of a takeover target.
> For the first two quarters of 2015, Oasis has more than 75% of their oil production hedged at $91.60/bbl, so they should have no problem servicing their debt for at least the next few months.
> CFPS in 2015, net of interest expense, should be near $5.00. The banks will work with them as long as they can pay the interest.
Oasis holds a lot of Tier One acreage in the Williston Basin, most of which is HBP. This makes it a prime takeover target.
> For the first two quarters of 2015, Oasis has more than 75% of their oil production hedged at $91.60/bbl, so they should have no problem servicing their debt for at least the next few months.
> CFPS in 2015, net of interest expense, should be near $5.00. The banks will work with them as long as they can pay the interest.
Oasis holds a lot of Tier One acreage in the Williston Basin, most of which is HBP. This makes it a prime takeover target.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group