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Oasis Petroleum’s 1Q16 Production and Operational Highlights

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Dec. 4 2020, Updated 10:52 a.m. ET

Oasis Petroleum’s 1Q16 production

Oasis Petroleum’s (OAS) total 1Q16 production volume was 50,315 boepd (barrels of oil equivalent per day). This represents a flattish year-over-year growth, as you can see in the graph below.

For 2016, OAS expects its annual production to be 46,000–49,000 boepd. This represents a ~6% year-over-year decline compared to 2015 levels at midpoint.

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Other operational highlights

OAS noted in its earnings release that it completed 15 gross operated wells in the Williston Basin during 1Q16. Well costs declined to $6.5 million compared to $7.4 million in the second half of 2015 and $10.6 million in 2014. The company expects to further reduce its well costs by 5%–10%.

OAS’s 1Q16 realized prices

OAS’s crude oil price realizations, including the effect of hedges, were $47.68 per barrel in 1Q16. That’s ~30% lower than its 1Q15 realized prices. OAS’s natural gas price realizations were $1.44 per thousand cubic feet in 1Q16, which were ~55.4% lower than its 1Q15 realized prices.

OAS’s capex guidance and cost guidance

OAS expects to spend $200 million in drilling and completions capex (capital expenditures) in 2016, against ~$407 million in 2015. Total capex in 2016 is expected to be 34% lower than 2015 capex.

Many upstream companies have slashed their 2016 capex in response to low energy prices (USO) (UNG). Anadarko Petroleum (APC), Whiting Petroleum (WLL), and Hess (HES) have announced capex cuts of 50%, 80%, and 40%, respectively, from 2015 levels. Combined, these companies make up ~8% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

OAS is also focusing on reducing its production costs in 2016. Lease operating expenses (or LOE) in 2016 are expected to be $7.75–$8.50 per barrel of oil equivalent, down ~20% at midpoint compared to 2014 LOE. 1Q16 LOE was $6.78 per boe, which was 21% lower year-over-year and 1% lower sequentially.

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