OAS - Good Quarter with Free Cash Flow

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HOUSTON, Nov. 3, 2015 /PRNewswire/ -- Oasis Petroleum Inc. (OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2015 and provided an operational update.

Highlights include:
•Exceeded production guidance range and increased average daily production to 50,546 barrels of oil equivalent per day ("Boepd"), a 10% increase over the third quarter of 2014.
•Completed and placed on production 20 gross (15.4 net) operated and 0.7 net non-operated wells in the third quarter of 2015.
•Total capital expenditures ("CapEx") were $78.1 million for the three months ended September 30, 2015 and $519.6 million for the nine months ended September 30, 2015.
•Decreased lease operating expenses ("LOE") per barrel of oil equivalent ("Boe") to $7.67, a 27% decrease from the third quarter of 2014 and a 7% sequential quarter decrease.
•Adjusted EBITDA was $189.2 million in the third quarter of 2015. For a definition of Adjusted EBITDA and a reconciliation of net income and net cash provided by operating activities to Adjusted EBITDA, see "Non-GAAP Financial Measures" below.

"Oasis delivered another exceptional quarter by growing production, lowering LOE, delivering better differentials, and driving well costs down further," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "Production of 50,546 Boepd exceeded the top end of our guidance range of 48,000 to 50,000 Boepd and LOE per Boe of $7.67 was below the low end of our guidance range of $8.35 to $9.00. Oil differentials improved to $4.82 per barrel compared to guidance of $5.50 to $6.50. The average cost to complete a slickwater well using all ceramics has fallen from $7.8 million at the end of the second quarter of 2015 to $7.4 million at the end of the third quarter. While costs are coming down, we continue to deliver strong performance with our high intensity completions, consistent with our historical high intensity results."

"We now plan to complete 80 gross (63.8 net) operated wells during 2015 and have increased our full year guidance to 49,700 to 50,100 Boepd, up from 49,000 to 50,000 Boepd," added Mr. Nusz. "Completion activity in the fourth quarter of 2015 is expected to be lower than the third quarter, primarily due to operations during winter months. We exited the third quarter of 2015 with 87 gross operated wells waiting on completion. We continue to run three rigs and have now started drilling operations in our Wild Basin project area."

Michael Lou, Oasis' Chief Financial Officer also commented, "The Oasis team continues to exceed expectations, allowing us to be cash flow positive, as measured by Adjusted EBITDA less cash interest and CapEx, again in the third quarter. Our operational performance and lower cost structure sets us up to be cash flow positive in the fourth quarter of 2015 and throughout 2016, excluding CapEx for Oasis Midstream Services, or OMS, during 2016. OMS delivered another strong quarter, with Adjusted EBITDA growing to $20.5 million, and OMS Adjusted EBITDA is now projected to exceed $60 million in 2015. OMS has increased produced water volumes flowing on its gathering lines from 40% at year-end 2014 to 75% at the end of the third quarter of 2015."

"We continue to have a great liquidity position, as our lenders set our borrowing base at $1.525 billion in October 2015, which was equal to the elected commitment amount," added Mr. Lou.