Oasis Petroleum Inc. Announces Quarter Ending September 30, 2012 Earnings

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Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended September 30, 2012.

 

Highlights for the three months ended September 30, 2012 include:

 

 

    --  Increased average daily production to 24,257 barrels of oil equivalent

        per day ("Boepd"), a 109% increase over the third quarter of 2011.

        Average daily production increased by 19% compared to the second quarter

        of 2012 and exceeded our guidance range of 22,000 to 24,000 Boepd.

    --  Increased revenue to $184.7 million in the third quarter of 2012, up

        from $87.6 million in the third quarter of 2011 and $149.1 million in

        the second quarter of 2012, for an increase of 111% and 24%,

        respectively.

    --  Completed and brought on production 34 gross operated wells in the third

        quarter 2012 compared to 22 gross operated wells in the third quarter of

        2011 and 26 gross operated wells in the second quarter of 2012.

    --  Grew Adjusted EBITDA to $139.2 million, an increase of $76.3 million

        over the third quarter of 2011 and a sequential increase of $30.7

        million over the second quarter of 2012.  For a definition of Adjusted

        EBITDA and a reconciliation of Adjusted EBITDA to net income and net

        cash provided by operating activities, see "Non-GAAP Financial Measures"

        below.

"The momentum of our operational success continued into the third quarter, as we again exceeded our production guidance and drove down our capital cost per well," said Thomas B. Nusz, Oasis' Chairman and Chief Executive Officer.  "The team has done a great job minimizing downtime and has continued to deliver on our completion schedule, which has allowed us to bring the total operated wells on first production to 86 for the first nine months of 2012.  As production continues to grow, we now believe that the fourth quarter average daily production will range between 26.0 MBoepd and 28.0 MBoepd, and our new full-year guidance is 22.1 MBoepd to 22.6 MBoepd.  Operated well costs averaged $9.0 million this quarter, including $0.3 million per well savings related to Oasis Well Services, compared to $10.5 million for the first half of the year. Even before taking into account the benefit of Oasis Well Services, our current well costs are in-line where we said we would be by year-end 2012, at an average cost of $8.8 million per well. Oasis Well Services has proven itself to be a robust value driver for Oasis on numerous fronts, including driving down well costs and increasing the efficiency and quality of our fracs. Additionally, we recently brought wells online in our Indian Hills infill pilot programs in advance of our transition to development mode, which we expect to occur in 2013."

 

"We have approximately 60% of our gross operated oil volumes on our third party gathering system and expect this to grow to north of 80% by mid-year 2013 as we connect our wells in East Nesson.  This gathering system provides access to numerous rail and pipeline delivery points," Mr. Nusz added.

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