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Oasis Petroleum’s 2Q16 Earnings Were Better than Expected

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Oasis’s 2Q16 revenue

Oasis Petroleum (OAS) reported its 2Q16 earnings on August 3, 2016. Oasis’s 2Q16 revenue was ~$210 million, as compared to the estimate of $192 million. Its revenue in 2Q15 was ~$230 million, and in 1Q16, it was ~$204 million.

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Oasis’s 2Q16 earnings

Oasis Petroleum’s adjusted net loss in 2Q16 was $19.4 million, as compared to its adjusted net income of $52 in 2Q15. OAS’s 2Q16 adjusted EPS (earnings per share) was -$0.11, as compared to the Wall Street analyst consensus estimate of about -$0.15. Its 2Q15 EPS came in at $0.38, and its 1Q16 earnings came in at -$0.18.

As we can see in the graph, Oasis’s earnings and revenues came in better than the analyst expectations.

Peer comparison and management comments

Newfield Exploration (NFX), Continental Resources (CLR), and Concho Resources (CXO) announced 2Q16 earnings of $0.32, -$0.18, and $0.26, respectively.

Commenting on Oasis’s 2Q16 results, CEO Thomas Nusz said, “Oasis delivered another strong quarter with production remaining basically flat for the seventh consecutive quarter in a row.” Nusz added that “Our continually improved capital and operational efficiency coupled with our strong well performance in our core acreage continues to improve the trajectory of returns for Oasis. As a result, we now plan to complete 53 gross (34.3 net) wells in 2016, while continuing to operate two rigs and one frac spread and remaining within our original guidance of $200 million of drilling and completion capital.”

Now let’s take a look at profit margin and revenue.

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