Oasis Crosses Its Fingers on Realized Prices and Production Growth

Oasis Petroleum (OAS) is expected to release its fiscal 4Q16 earnings on February 23, 2017. Oasis Petroleum’s 4Q16 revenue estimates are higher than its revenue for the previous quarters. For 4Q16, the revenue estimate is ~$204 million, which would be ~12% higher than its 4Q15 revenue and ~15% higher than its 3Q16 revenue.

The above graph shows that Oasis Petroleum’s revenues had fallen short of analysts’ estimates in the previous four quarters. The higher revenue estimates could be driven by expectations of higher realized prices in light of improving energy prices (UCO) (UGAZ).

Oasis Petroleum’s 4Q16 loss per share estimate is $0.12. Its 3Q16 loss per share was $0.17. Its EPS (earnings per share) in 4Q15 was $0.05.

Oasis peers Continental Resources (CLR) and Newfield Exploration (NFX) are expected to report EPS of -$0.10 and $0.35, respectively, in 4Q16.

On October 18, 2016, Oasis Petroleum announced its intentions to acquire 55,000 net acres and ~226 gross operated drilling locations in the Williston Basin from SM Energy (SM) for ~$785 million. The acquired assets are expected to produce 12,400 barrels of oil equivalent per day in 4Q16, and these could also be driving revenue expectations.