Winning Stock Forecast:

[Source: Seeking Alpha, May 8th, 2018]

“Our strong start to the year enables the company to stand by its projection of being free cash flow positive on our E&P business for the year, while continuing to grow volumes 15% to 20% year over year. Internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points.”

—Thomas B. Nusz, Oasis’ Chairman and Chief Executive Officer.

[Source: Yahoo Finance, May 8th, 2018]

On , Monday, May 7^th, 2018, Oasis Petroleum (NYSE: OAS) announced their financial results for the first quarter (Q1) of 2018.  Following their Earnings Announcement held on Monday, OASs stock jumped from $11.23 to $11.82 per share, outperforming the NASDAQ by more than 6%. Upon examining the drivers behind this impressive growth that occurred within the past 8 days, the most recent financial earnings report published by Oasis Petroleum provides the following highlights and updates that shed light on the stock event:

• Oasis produced 76.8 thousand barrels of oil equivalent per day (“MBoepd”) in the first quarter of 2018, representing an increase of 22% over the first quarter of 2017.
• Completed and placed on production 17 gross operated wells, including 16 gross operated wells in the Williston Basin and 1 gross  operated well in the Delaware Basin, in the first quarter of 2018.
• Oil differentials improved to $1.67 off of NYMEX West Texas Intermediate crude oil index price in the first quarter of 2018, approximately a 65% decrease over the first quarter of 2017.
• Lease operating expenses per barrels of oil equivalent decreased over 15% to $6.48 in the first quarter of 2018 compared to $7.71 per Boe in the first quarter of 2017.
• Exploration and production capital expenditures were $176.9 million for the three months ended March 31, 2018.
• Closed on the Permian Basin Acquisition from Forge Energy on February 14, 2018, adding an average of approximately 3.6 MBoepd of production and approximately 22,000 net undeveloped acres.
• Delivered net cash provided by operating activities was $228.4 million and Adjusted EBITDA of $232.9 million for the first quarter of 2018.

Oasis delivered a formidable start to the year by growing volumes to 76,800 Boe per day in the first quarter while maintaining top tier capital efficiency and recycle ratio. The strong start to the year enabled Oasis to stand by its projection of being free cash flow positive on their E&P business for the year, while continuing to grow volumes 15% to 20% year over year. Additionally, internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points. This combination resulted in reduced downtime and per barrel operating costs in spite of abnormally difficult winter conditions. Also, their access to liquid marketing points as a result of strategic investments in their integrated midstream infrastructure continue to help realize improved price differentials.

Oasis closed the Permian Basin Acquisition on February 14, 2018 and they have now taken over operations. Expansion of their service partnerships developed in the Williston Basin has helped them secure critical services at market competitive prices. Continued positive results of Oasis’s wells and offsets give them confidence in their plan. Their completion cadence is on track, if not a little ahead, and they have secured a second rig for the Permian which should spud by the end of May. They have increased their full year guidance to 81.0 to 84.0 MBoepd and expect production in the second quarter of 2018 to be 76.0 to 80.5 MBoepd, with the Williston being between 72.5 and 76.5 MBoepd and the Delaware being around 3.5 to 4.0 MBoepd.

[Source: PR Newswire, May 8th, 2018]

G&A costs totaled $27.9 million in the first quarter of 2018 vs. $23.2 million in the first quarter of 2017. Amortization of equity-based compensation, which is included in G&A, was $6.8 million, or $0.98 per Boe, in the first quarter of 2018 as compared to $6.7 million, or $1.18 per Boe, in the first quarter of 2017. G&A for the Company’s E&P segment totaled $23.5 million in the first quarter of 2018 vs. $20.1 million in the first quarter of 2017.

Interest expense was $37.1 million for the first quarter of 2018 as compared to $36.3 million for the first quarter of 2017.  Capitalized interest totaled $4.5 million for the first quarter of 2018 vs. $2.8 million for the first quarter of 2017. Cash Interest totaled $37.2 million for the first quarter of 2018, and $35.1 million for the first quarter of 2017.  For the three months ended March 31, 2018, the Company recorded an income tax expense of $0.8 million, resulting in an 18.2% effective tax rate as a percentage of its pre-tax income for the quarter. The Company recorded an income tax benefit of $202.8 million, resulting in a 271.5% effective tax rate as a percentage of its pre-tax loss for the three months ended December 31, 2017.

For the first quarter of 2018, Oasis  reported net income of $0.6 million, or $0.00 per diluted share, as compared to a net income of $23.8 million, or $0.10 per diluted share, for the first quarter of 2017. Excluding certain non-cash items and their tax effect, Adjusted Net Income Attributable to Oasis (non-GAAP) was $30.2 million, or $0.10 per diluted share, in the first quarter of 2018, as compared to Adjusted Net Loss Attributable to Oasis of $11.5 million, or $0.05 per diluted share, in the first quarter of 2017.  Adjusted EBITDA for the first quarter of 2018 was $232.9 million, as compared to Adjusted EBITDA of $150.6 million for the first quarter of 2017.

Analyst Recommendations:

According to analyst recommendations from Yahoo Finance, the current consensus is a “Buy” in OAS Stock, with 9  advising a “Strong Buy”, 12 advising a “Buy” and 10 advising a “Hold”.

On April 16th, 2018, Know First issued a bullish 14-day forecast for Oasis Petroleum (NYSE: OAS). The forecast illustrated a signal of 20.28 and a predictability of 0.36. In accordance with the forecast, OAS stock returned 24.35% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish OAS forecast on April 16th, 2018. 

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About Oasis Petroleum:

Oasis Petroleum Inc. (NYSE: OAS), incorporated on February 25, 2010, is an independent exploration and production company. The Company is focused on the acquisition and development of unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin. The Company’s segments include Exploration and Production, Well Services, and Midstream Services. The exploration and production segment is engaged in the acquisition and development of oil and natural gas properties. The well services business segment (OWS) performs completion services for the Company’s oil and natural gas wells operated by Oasis Petroleum North America LLC (OPNA). The midstream services business segment (OMS) performs salt water gathering and disposal services, fresh water services, natural gas gathering and processing and crude oil gathering and transportation and other midstream services for the Company’s oil and natural gas wells operated by OPNA. The Company also operates a well services business through Oasis Well Services LLC (OWS) and a midstream services business through Oasis Midstream Services LLC (OMS).

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts. Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.