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The Message behind Oasis Petroleum’s Revenue Growth Trends

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Oasis Petroleum’s revenue trends

Oasis Petroleum’s (OAS) 4Q16 revenue rose ~20% YoY (year-over-year). In comparison, its YoY revenue growth was -39% in 4Q15 and -10% in 3Q16.

We note from the above graph that since 4Q14, OAS’s revenues have been negative every quarter on a year-over-year basis. Year-over-year revenue growth in 4Q16 was positive for the first time in nine quarters.

Higher realized energy prices (USO) (UNG) have improved revenues for several upstream companies, in turn affecting their earnings. OAS’s peers Concho Resources (CXO) and Cimarex Energy (XEC) reported revenue growth of 35% and 23%, respectively, year-over-year.

OAS’s net profit margin in 4Q16 was -7.5%, compared to -586% in 4Q15 and -40% in 3Q16.

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