Opinion

2019 Game Plan for Texas Oil & Gas Firm 'Remains on Track


A Raymond James report discussed what to expect, operationally and financially, from this energy company next year.

Oil

John Freeman, a Raymond James analyst, reported that Oasis Petroleum Inc. (OAS:NYSE) "delivered an in line Q3/18 despite temporary issues hampering gas production" and the company's "2019 game plan remains on track."

Freeman reviewed production, capex and differentials, looking forward. Despite an anticipated Q4/18 production miss, the longer-term outlook for Oasis remains unchanged, he indicated. The company still expects its exit rate production to increase by about 25% in 2018 and 15% in 2019.

Due to rescheduled well completions, Oasis now expects Q4/18 production of 87.5–90 thousand barrels of oil equivalent per day (87.5–90 Mboe/d) versus its prior guidance of 91–94 Mboe/d, which the company maintains. The revised rate is below Raymond James' forecast of 91.7–92.2 Mboe/d.

Also noteworthy, Freeman wrote, is it looks like Oasis will exceed expected completions in 2018 and 2019. With a fifth rig added at year-end 2018 in the Bakken and a third rig added in mid-2019 in the Delaware, the company should achieve 15–20 completions in 2018 versus the expected eight and surpass the 110 planned for 2019.

To achieve all of these, the required capital spend would be more than roughly $1 billion ($1B), Freeman pointed out. Additionally, pipeline infrastructure in the Delaware should need about $150–200 million ($150–200M). Offsetting these costs would be capex on the Williston midstream, which is expected to be about 40% lower year over year, at roughly $180M. "All in, we estimate 2019 capex at about $1.4B, which includes projected midstream spending and anticipated Delaware buildout," Freeman noted.

As for differentials, guidance on them remains the same despite some expected changes at Williston. As a result of higher refinery maintenance costs, differentials will likely rise in December from October's $3 per barrel rate. As for 2019 though, Freeman indicated, "rail expansion and normalized refinery demand should help keep differentials in check."

About the company's overall efforts, Freeman concluded, "Oasis continues to make good progress proving out its acreage, and we look forward to future tests that could help to further expand the core Bakken position and help delineate the Delaware acreage further in 2019."

He reiterated Raymond James' Strong Buy rating and $22 per share target price on Oasis, whose stock is currently trading at around $9.36 per share.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

https://streetwisereports.com/article/2018/11/10/2...

Raymond JamesTexasOilgasStreetwise ReportsNYSEOasis PetroleumonshoreUnited StatesUSA

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 1 month agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 5 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 10 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 10 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 10 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice