OAS 4th quarter results in line with forecast
Posted: Wed Feb 22, 2012 9:51 pm
Oasis Petroleums Q4 production was slightly higher than what I had in my forecast. Realized oil price a tad lower offset by lower operating expenses per boe. G&A was a tad high, so adjusted EPS came in slightly lower than my forecast.
OAS is another "Successful Efforts" company so you must focus on CFPS. CFPS hit my forecast almost right on the nose.
What makes the share price on growth companies like CLR, EOG and OAS go up is reserve growth. IMO Oasis Petroleum is now one of the Top Ten mid-cap takeover targets on the planet. They have some very good Bakken acreage. I bet my old M&A team at Hess is taking a hard look at this one. They should.
"Production more than doubled and reserves nearly doubled in 2011, as we significantly grew the business in the midst of some tough operating conditions," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "We currently have nine rigs running and three dedicated frac crews. Three more rigs are under contract for delivery in 2012, and we expect to begin operations for Oasis Well Services at the end of this quarter. The Williston Basin continues to experience significant growth, as the overall rig count is now around 210. Over the past five years, oil production in North Dakota alone has grown from 115,142 barrels per day in December 2006 to a new record of 534,884 barrels per day in December 2011. The oil-prone Williston Basin is a highly attractive area for a growth company like ours. Our growth strategy is on target, as we grew our average daily production rate in 2011 to 10,724 barrels of oil equivalent per day, up 106% from 5,206 equivalent barrels per day in 2010."
OAS is another "Successful Efforts" company so you must focus on CFPS. CFPS hit my forecast almost right on the nose.
What makes the share price on growth companies like CLR, EOG and OAS go up is reserve growth. IMO Oasis Petroleum is now one of the Top Ten mid-cap takeover targets on the planet. They have some very good Bakken acreage. I bet my old M&A team at Hess is taking a hard look at this one. They should.
"Production more than doubled and reserves nearly doubled in 2011, as we significantly grew the business in the midst of some tough operating conditions," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer. "We currently have nine rigs running and three dedicated frac crews. Three more rigs are under contract for delivery in 2012, and we expect to begin operations for Oasis Well Services at the end of this quarter. The Williston Basin continues to experience significant growth, as the overall rig count is now around 210. Over the past five years, oil production in North Dakota alone has grown from 115,142 barrels per day in December 2006 to a new record of 534,884 barrels per day in December 2011. The oil-prone Williston Basin is a highly attractive area for a growth company like ours. Our growth strategy is on target, as we grew our average daily production rate in 2011 to 10,724 barrels of oil equivalent per day, up 106% from 5,206 equivalent barrels per day in 2010."