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Oasis Petroleum’s Production Trends: What to Expect in 4Q16

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Nov. 20 2020, Updated 2:55 p.m. ET

2016 production guidance

In 3Q16, Oasis Petroleum (OAS) increased its 2016 production guidance to 49.3 Mboepd–50 Mboepd (thousand barrels of oil equivalent per day) from its previous forecast of 48.5 Mboepd–49.5 Mboepd, which it provided in 2Q16. This represents a fall of 1.6%, as compared to 2015 production levels.

Peers Concho Resources (CXO) and Cimarex Energy (XEC) had production growth guidance of 5.0% and -2.0%, respectively, for 2016. Continental Resources (CLR) expects its production to be 2% lower in 2016 compared to 2015.

The updated guidance is likely on account of OAS’s recent acquisition in the Williston Basin (see Part 1 of this series). The acquired assets are expected to produce 12,400 Boepd (barrels of oil equivalent per day) in 4Q16. This could drive revenues higher during 4Q16.

Thomas Nusz, Oasis’s CEO said in a press release, “This acquisition is a great opportunity to add acreage and inventory that is a natural fit with our existing core and extended core positions and will increase our gross operated drilling locations in our core acreage by approximately 25%.”

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Oasis Petroleum’s 3Q16 production

Oasis Petroleum’s (OAS)  total production volume in 3Q16 was ~48.5 Mboepd. By comparison, its 3Q15 production volume was 50.5 Mboepd, and its 2Q16 production volume was 49.5 Mboepd.

To know more about Oasis Petroleum, read Inside Oasis Petroleum’s Dramatic Rise in 2016: Key Analysis. Continue to the next part of this series for further analysis.

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