A month has gone by since the last earnings report for Oasis Petroleum (OAS - Free Report) . Shares have added about 132.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oasis due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Oasis Petroleum Q1 Loss Wider Than Estimates
Oasis Petroleum Inc. incurred first-quarter 2020 adjusted loss per share of 20 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents. However, in the year-ago period, the company earned a profit of 6 cents per share. These underperformances can be attributed to lower realized oil and gas prices.
The company’s total operating revenues of $387.8 million surpassed the Zacks Consensus Estimate of $324 million on higher-than-expected production. Precisely, this upstream player’s output of 80.06 thousand oil-equivalent barrels per day (MBOE/d) beat the Zacks Consensus Estimate of 78.7 MBOE/d. However, the top line fell from the year-ago figure of $575.7 million due to weak production.
Production & Price Realizations
Total production (comprising 67.6% oil) declined 12.7% from the year-ago level to 80.06 MBOE/d. While oil volume came in at 54.1 thousand barrels per day (down 18.08% year over year), natural gas totaled 155,776 thousand cubic feet per day (up 1.15%).
The average realized crude oil price during the first quarter was $43.22 per barrel, reflecting a 19.2% decrease from the prior-year realization of $53.52. Moreover, the average realized natural gas price was $1.86 per thousand cubic feet, down 49.1% from the year-earlier period.
Total operating expenses in the quarter soared to $5.3 billion from the year-ago quarter’s $522.4 million. This was mainly on account of non-cash impairment losses of $4.8 billion associated with the plunge in commodity prices. Meanwhile, purchased oil and gas expenses were $85.2 million compared with $149.9 million in the corresponding quarter of last year.
The company’s lease operating expenses declined to $6.83 per barrel of oil equivalent (Boe) from the year-ago figure of $7.08 per Boe.
Capital spending (before acquisitions) totaled $178.8 million in the quarter. Oasis Petroleum recorded $107.8 million in net cash flow from operations, lower than the year-ago period’s $174.9 million.
As of Mar 31, this Bakken-focused operator had $134 million in cash and cash equivalents. The company had long-term debt of $2.77 billion.
Oasis Petroleum trimmed its current-year E&P capex outlook by 50-60%, indicating a decline from the previously-issued guided range of $575-$595 million with the capex for the second to fourth-quarter period projected in the $80-$140 million band.
The company further slashed its 2020 Midstream capex guidance by 65-70% to the range of $35-$40 million with roughly 35% attributable to Oasis.
Oasis Petroleum suspended its 2020 output and operating expenses outlook due to the coronavirus-induced market disruptions and the uncertainty remaining around persistent production constraints over the near future.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 71.79% due to these changes.
At this time, Oasis has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oasis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.