Tuesday, January 26, 2016

Update On Oasis -- January 26, 2016

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From "Elephant Analytics" at Seeking Alpha, the summary:
  • Oasis has reduced its long-term breakeven point to $50 to $55 oil. This is down from around $66 one year ago.
  • Narrower oil differentials and cost reductions account for the lower breakeven point.
  • Oasis may still burn $200 million to $300 million over the next two years as it invests in midstream infrastructure though.
  • Its debt remains quite significant, but Oasis has valuable midstream assets that it can monetize.
  • This may help reduce its leverage to a more manageable level.
Other data points:
  • guidance of 50,000 boepd 
  • presumes $300 million drilling and completion
  • presumes $150 million in infrastructure CAPEX
  • presumes total spending of slightly less than $1 billion in 2016; a deficit of $166 million at $40 oil
  • likely to burn through $200 million in 2016
  • adequate liquidity to handle the projected 2016 burn
  • Oasis has said it could monetize its Oasis Midstream Services (OMS) unit
  • wells costs reduced to $7.4 million from $9 million (1Q15) and $10 million (4Q14)
  • mentions the "Wild Basin" project
  • analyst estimates $100 million cash burn in 2017 at $50 oil
Wild Basin Project at the November, 2015, corporate briefing; slide 13 of that presentation
  • natural gas gathering and processing
  • oil gathering, stabilization, and storage
  • SWD gathering and wells
2016 plan:
  • currently moving core program to Wild Basin
  • expect system online in 2H16
  • planned 2016 - 2017 CAPEX of $150 million



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