Oasis Petroleum (OAS) Update - Feb 5

dan_s · Post by **dan_s** » Wed Feb 05, 2020 9:45 am

OAS is trading at $2.40 this morning.

I have updated my forecast/valuation model for OAS, extending it through 2021. You can download it from the EPG website.

The company should report little in the way of earnings per share in Q4 and 1H 2020, but it should continue to generate strong operating cash flow of $2.65/share in 2019 and close to that in 2020. RBC Capital published a new report on the company on 1/30/2020 with a price target of $5.00.

In 2019 operating cash flow was approximately $850 million, which compares to OAS capex spending of $640 million.

~65% of the 1H 2020 crude oil is hedged at approximately $54/bbl.