Flexibility Of Blogger As Good As One's Imagination -- Conference Presenters Listed On Sidebar Under Conferences; Oasis On Sale -- Bret Jensen

Bakken operators that will be presenting next week at the Wells Fargo Energy Symposium have been linked at the sidebar at the right, under conferences.

A big "thank you" to Don for sending these to me. The presentations will eventually show up on the websites of the various operators if you can't find them elsewhere.

The pdf is also here.

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There are a handful of contributors over at SeekingAlpha that I enjoy. Bret Jensen is one of them.

Today Mr Jensen has an update on Oasis.

Oasis Petroleum is an independent exploration and production company that engages in the acquisition and development of oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin. With its recent purchases of ~160,000 net acres, the company now has almost 500,000 net acres in this key energy producing region.

Part of the decline was triggered by a just announced secondary offering. The company will issue some 7mm new shares. It should be noted the new shares will amount to just ~8% of the company's overall float. The proceeds will be used to retire debt which will lower interest expense as well. A lot of the company's debt was taken on to significantly expand the company's acreage in the Williston region of the Bakken formation.

Oasis is also operating from a position of strength. The company has beat on top and bottom line expectations in each of its four quarterly reports delivered in 2013. The median price target on Oasis held by the 26 analysts that cover the firm is $59.50 a share, ~30% above the current stock price.

It is easy to see why analysts hold Oasis in high regard. The company is tracking to double its earnings this year to ~$3 a share. Analysts believe earnings will increase more than 25% on consensus in FY2014 as well. The stock goes for just over 12x forward earnings, which is a significant discount to its five year average valuation (21.7).

This is huge. I thought Oasis issued 7 million new shares to help pay for their recent acquisition of Zenergy assets. But if that's accurate, and I assume it is, to use the proceeds to retire debt and lower interest expense as well is ... well.... that's incredible. That says a lot about operators using / needing cash to maintain their drilling plan.

Sweet.

Sweet Jane, Lou Reed Limbic system: Jimi Hendrix meets Bruce Springsteen.