Oasis Petroleum OAS Stock News

Oasis Petroleum Inc. (NASDAQ: OAS) is making a run for the top in the market this orning, and for good reason. The company announced its financial results for the second quarter, beating expectations in the midst of a COVID-19 pandemic. Here’s what’s going on:

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OAS Stock Climbs On Financial Results

As mentioned above, Oasis Petroleum announced its financial results for the second quarter of 2020. The company also updated its 2020 outlook.

First and foremost, the company generated adjusted EBITDA of $174.2 million in the second quarter. To do so, the company produced 54.1 million barrels of oil equivalent per day. 36.4 million of these barrels were actually oil.

Moreover, free cash flow came in at $92.7 million with pretax income including non-controling interests coming in at $25.3 million.

OAS went on to explain that volumes have steadily increased with production expectations in the second half now expected to be 13% higher than what we saw in the second quarter.

In a statement, Thomas B. Nusz, Chairman and CEO at OAS, had the following to offer:

Oasis executed well through an exceptionally tumultuous period. The Oasis team responded swiftly and effectively, powering down activity in an orderly manner, significantly lowering operating cost structure and capital while maintaining the integrity of our infrastructure to enhance flexibility for the future. The team was successful in keeping per unit lease operating expense low despite significant shut-ins reflecting meticulous cost management, including a carefully planned curtailment process, pricing concessions, labor optimization, and deferring workovers. Strip pricing has improved materially, but Oasis will maintain a prudent approach to future activity. Capital efficiency improvements and a significantly lower cost structure will improve economics for future development. Additionally, cash generation and free cash flow benefit from a robust hedge position and our midstream ownership which continues to support industry leading gas capture. As always, we remain focused on the health and safety of our employees, contractors, and communities.

Why This News Is Exciting

The the release of the company’s second quarter report, there are plenty of reasons to be excited about Oasis Petroleum. Even in the face of COVID-19, reducing oil prices, and more, the company is still generating free cash flow. At the same time, it’s increasing production and expecting for continued growth ahead. With all of this in mind, OAS is a stock to watch ahead.

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