4Q17 and fiscal 2017 revenue
Oasis Petroleum (OAS) is expected to release its fiscal 4Q17 earnings on February 28 after the market closes. For 4Q17, analysts’ revenue estimate for Oasis Petroleum is ~$327.37 million, 50% higher than the 4Q16 revenue.
Fiscal 2017 revenue estimates are $1.15 billion, versus the $704.66 million reported in fiscal 2016.
Revenues are expected to rise, likely due to higher production expectations in 4Q17 and fiscal 2017 versus 4Q16 and fiscal 2016 (as we’ll discuss in the next part of this series) and higher crude oil prices in 4Q17 and fiscal 2017. Crude oil prices averaged $55.39 per barrel in 4Q17 versus $49.33 in 4Q16. Crude oil prices averaged around $50.91 per barrel in 2017, compared to $43.41 in 2016.
For context, crude oil made up 78% of OAS’s production in 3Q17. In 4Q16, oil made up 80.4% of Oasis Petroleum’s total production.
The above graph shows that Oasis Petroleum’s revenues either beat or were similar to estimates in the previous four quarters. Investors can watch to see how things pan out for the upstream company in 4Q17.
Oasis Petroleum’s 4Q17 and fiscal 2017 EPS estimates
Oasis Petroleum’s 4Q17 earnings per share estimate is $0.05. Its 4Q16 loss per share was $0.08. Earnings per share in fiscal 2017 are expected to be -$0.04 versus the -$0.5 reported in fiscal 2016.
Higher revenues are likely behind the year-over-year improvement in earnings.
Peer comparison: 4Q17 versus 4Q16
In contrast, Oasis Petroleum’s peers Continental Resources (CLR), Apache Corporation (APA), and Concho Resources (CXO) are expected to report 4Q17 earnings per share of $0.27, $0.22, and $0.44, respectively—compared to 4Q16 earnings of -$0.07, $0.06, and $0.20.
Next in this series, we’ll look at OAS’s production expectations for 4Q17 and fiscal 2017.