Oasis Petroleum Inc. Announces Quarter Ended March 31, 2014 Earnings

     Oasis Petroleum Inc. Announces Quarter Ended March 31, 2014 Earnings

PR Newswire

HOUSTON, May 5, 2014

HOUSTON, May5, 2014 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis"
or the "Company") today announced financial results for the quarter ended
March31, 2014 and provided an operational update.

Highlights include:

  oCompleted the sale of certain non-operated properties in its Sanish
    project area and other non-operated leases adjacent to its Sanish position
    (the "Sanish Divestiture") for cash proceeds of approximately $321.9
    million, on March 5, 2014.
  oIncreased average daily production to 42,856 barrels of oil equivalent per
    day ("Boepd"). Excluding production from Sanish in the fourth quarter of
    2013 and the first quarter of 2014, Oasis grew production 5% quarter over
    quarter.
  oExpects production in the second quarter of 2014 to range between 43,000
    and 46,000 Boepd.
  oGrew Adjusted EBITDA to a record $239.8 million in the first quarter of
    2014. For a definition of Adjusted EBITDA and a reconciliation of Adjusted
    EBITDA to net income and net cash provided by operating activities, see
    "Non-GAAP Financial Measures" below.
  oInvested capital expenditures ("CapEx") of $307.5 million in the first
    quarter of 2014.
  oLowered well costs to $7.2 million, including the impact of Oasis Well
    Services ("OWS").
  oPlans to completeover 20% of its wells during the second half of 2014
    with slickwater, due to encouraging early production uplift of more than
    25% in the areas tested and analyzed.

"Oasis continues to execute and deliver on expectations, as we produced in the
middle of our production range and continued to drive down well costs in the
first quarter in spite of harsh weather conditions," said Thomas B. Nusz,
Oasis' Chairman and Chief Executive Officer. "Our first quarter well costs
were approximately $7.2 million, including the CapEx savings of $0.4 million
per well realized from OWS, as we completed approximately 80% of our wells
from multi-well pads and continued to optimize drilling and completion costs
by area across our significant acreage position."

Mr. Nusz added, "We picked up an additional rig during the quarter, and we
anticipate asixteenth rig coming after the spring breakup season. The
majority of our rigs will be operating on pads through the spring breakup
season, and we expect to produce between 43,000 and 46,000 Boepd in the second
quarter. In addition, we have been identifying and testing completion
techniques outside of our base design. Specifically, early time results from
slickwater completions point to greater than 25% production uplift in Indian
Hills, Foreman Butte, and Red Bank.Based on encouraging results to date from
slickwater tests and other completion technology, we intend to completeover
60% of our wells in the second half of 2014 with alternative completion
techniques.We are focused on designs that may increase production or reduce
costs, ultimately driving higher per well and per drilling spacing unit
returns."

Operational and Financial Update

On March 5, 2014, the Company completed the Sanish Divestiture for cash
proceeds of approximately $321.9 million, including, and subject to further,
customary post close adjustments, and recognized a gain of $183.4 million.

Average daily production by project area is listed in the following table:

                                  Quarter Ended:
                                  3/31/2014  12/31/2013  3/31/2013
Average daily production (Boepd)
West Williston                    28,227     28,067      19,021
East Nesson                       12,980     11,412      8,384
Sanish ^(1)                       1,649      2,627       2,748
Total                             42,856     42,106      30,153
Percent Oil                       89.4%      89.0%       91.5%

(1) Includes production from the Sanish Divestiture until March 1, 2014.

The following table describes the Company's producing wells by project area in
the Williston Basin as of March31, 2014:

                    Bakken/Three Forks Producing Wells
                                                                 Total
                    West Williston  East Nesson   Sanish         Williston
                                                                 Basin
                    Gross    Net    Gross  Net    Gross  Net     Gross  Net
Producing on or
before 12/31/2013:
^(1)
Operated           311      240.6  145    115.2  —      —       456    355.8
Non-Operated       151      12.6   109    8.4    323    25.0    583    46.0
Production started
in Q1 2014:
Operated           28       20.3   12     9.6    —      —       40     29.9
Non-Operated       11       0.8    1      —      —      —       12     0.8
Divested/Adjusted
in Q1 2014:
Operated           (1)      (0.9)  1      0.9    —      —       —      —
Non-Operated ^(2)  —        —      (12)   (1.3)  (323)  (25.0)  (335)  (26.3)
Total Producing
Wells on
3/31/2014:
Operated           338      260.0  158    125.7  —      —       496    385.7
Non-Operated       162      13.4   98     7.1    —      —       260    20.5

(1) Well counts include changes that occurred in the current reporting period
    for wells producing on or before December 31, 2013.
(2) Includes the impact from the Sanish Divestiture.

Additionally, the Company had 15 rigs running and had a backlog of gross
operated wells waiting on completion of 25 wells in West Williston and 22
wells in East Nesson as of March31, 2014.

The Company's average price per barrel of oil, without realized derivatives,
was $89.66 in the first quarter of 2014, compared to $93.33 in the first
quarter of 2013 and $85.87 in the fourth quarter of 2013. The Company's
average price differential compared to NYMEX West Texas Intermediate ("WTI")
crude oil index prices was 9% in the first quarter of 2014, compared to 1% in
the first quarter of 2013 and 12% in the fourth quarter of 2013. At the
beginning of the first quarter of 2014, the Company's price differentials to
WTI increased due to the pipeline market continuing to weaken as a result of
refinery down time and increased production from both the United States and
Canada. More recently, the pipeline market has strengthened, and the Company's
price differentials to WTI have decreased.

The Company's revenues are detailed in the following table:

                            Quarter Ended:
                            3/31/2014  12/31/2013  3/31/2013
Revenues ($ in thousands):
Oil                         $ 309,231  $ 295,903   $ 231,675
Natural gas                 22,616     18,064      9,976
Well services (OWS)         15,827     17,579      5,715
Midstream (OMS)             1,845      2,069       938
Total revenues              $ 349,519  $ 333,615   $ 248,304

The Company's operating expenses are detailed in the following table:

                                              Quarter Ended:
                                              3/31/2014  12/31/2013  3/31/2013
Operating expenses ($ in thousands):
Lease operating expenses (LOE)               $ 39,989   $ 35,048    $ 19,489
Well services (OWS)                          10,359     10,228      2,682
Midstream (OMS)                              561        608         232
Marketing, transportation and gathering      5,932      5,286       3,340
expenses ^(1)
Non-cash valuation charge                    (746)      782         49
Total operating expenses                     $ 56,095   $ 51,952    $ 25,792
Operating expenses ($ per Boe):
Lease operating expenses (LOE)               $  10.37  $  9.05   $  7.18
Marketing, transportation and gathering      1.53       1.36        1.23
expenses ^(1)

(1) Excludes non-cash valuation charges on pipeline imbalances.

The sequential quarter-over-quarter increase in lease operating expenses
("LOE") per barrel of oil equivalent ("Boe") was primarily due to additional
workover costs related to restoring wells that were down due to winter weather
conditions and costs to protect producing wells from offsetting wells that are
being completed by the Company and other operators. The Company expects LOE to
trend down over time, as it believes it will be able to drive down LOE to
pre-acquisition levels. Despite first quarter performance, the Company expects
that it will be able to keep LOE in the $7.50 to $9.00 per Boe range for the
full year, albeit at the high end of that range.

The increase in marketing, transportation and gathering expenses from the
fourth quarter of 2013 to the first quarter of 2014 is due to higher operated
volumes flowing through third party oil gathering pipelines in the first
quarter of 2014. Currently, the Company is flowing approximately 75% of its
gross operated oil production through these gathering systems. While
transporting volumes through third party oil gathering pipelines increases
marketing, transportation and gathering expenses, it improves oil price
realizations by reducing transportation costs included in the Company's oil
price differential for sales at the wellhead.

Production taxes as a percentage of oil and gas revenues were 9.6% in the
first quarter of 2014, 9.1% in the first quarter of 2013 and 9.6% in the
fourth quarter of 2013. The Company's production tax rate increased in the
first quarter of 2014 compared to the first quarter of 2013 due to the
decreased weighting of oil revenues on certain new wells in Montana that are
subject to lower incentivized production tax rates.

Depreciation, depletion and amortization expenses ("DD&A") totaled $91.3
million in the first quarter of 2014, $66.3 million in the first quarter of
2013 and $101.3 million in the fourth quarter of 2013. DD&A was $23.66 per
Boe in the first quarter of 2014, $24.42 per Boe in the first quarter of 2013
and $26.14 per Boe in the fourth quarter of 2013. The decrease in the DD&A
rate was a result of lower well costs for wells completed during 2013. In
addition, during the first two months of 2014, the Company had production from
the wells sold in the Sanish Divestiture, but these wells were not depreciated
because the assets were held for sale, which lowered DD&A by $0.78 per Boe in
the first quarter of 2014.

General and administrative ("G&A") expenses totaled $23.5 million in the first
quarter of 2014, $13.9 million in the first quarter of 2013 and $28.1 million
in the fourth quarter of 2013. The sequential quarter-over-quarter decrease in
G&A expenses was primarily due to end-of-year compensation expenses and
acquisition-related costs incurred in the fourth quarter of 2013. G&A expenses
were $6.10 per Boe in the first quarter of 2014, $5.10 per Boe in the first
quarter of 2013 and $7.25 per Boe in the fourth quarter of 2013. Amortization
of stock-based compensation, which is included in the aggregate G&A expenses,
was $4.5 million, or $1.17 per Boe, in the first quarter of 2014 as compared
to $2.3 million, or $0.84 per Boe, in the first quarter of 2013 and $3.6
million, or $0.92 per Boe, in the fourth quarter of 2013.

The Company's derivative activities are detailed in the following table:

                                            Quarter Ended:
                                            
                                                        12/31/2013  3/31/2013
                                            3/31/2014
Derivative activities^(1)($ in thousands)
Derivative settlements                      $ (2,239)   $ (2,998)   $ 1,686
Change in fair value of derivative          (15,364)    9,404       (16,298)
instruments
Net gain (loss) on derivative instruments   $ (17,603)  $ 6,406     $ (14,612)

(1) The Company's derivative instruments do not qualify for and were not
    designated as hedging instruments for accounting purposes.

The Company recorded non-cash charges for the impairment of oil and natural
gas properties of $0.8 million in the first quarter of 2014 related to
unproved property leases that expired or have been forecasted to expire under
current drilling plans, as compared to $0.5 million in the first quarter of
2013 and $0.4 million in the fourth quarter of 2013.

Interest expense was $40.2 million for the first quarter of 2014 compared to
$21.2 million for the first quarter of 2013 and $41.7 million for the fourth
quarter of 2013. The $1.5 million decrease from the fourth quarter of 2013 was
primarily the result of less interest expense incurred due to lower borrowings
under the Company's revolving credit facility during the three months ended
March 31, 2014. Capitalized interest totaled $1.6 million for the first
quarter of 2014, $0.8 million for the first quarter of 2013 and $1.4 million
for the fourth quarter of 2013.

Income tax expense was $101.5 million for the three months ended March31,
2014, resulting in an effective tax rate of 37.4%. The Company's income tax
expense for the three months ended March31, 2013 was recorded at 37.5% of
pre-tax net income. The Company's effective tax rate is expected to continue
to closely approximate the statutory rate applicable to the U.S. and the
blended rate for each of the states in which the Company conducts business.

Adjusted EBITDA for the first quarter of 2014 was $239.8 million, a 25%
increase over the first quarter of 2013 of $191.4 million, and a 6% increase
from the fourth quarter of 2013 of $225.4 million. For a definition of
Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income and net
cash provided by operating activities, see "Non-GAAP Financial Measures"
below.

For the first quarter of 2014, the Company reported net income of$170.0
million, or$1.70per diluted share, as compared to net income of$51.9
million, or$0.56per diluted share, for the first quarter of 2013. The
Company's first quarter 2014 results were impacted by several non-cash or
non-recurring items, including a $183.4 million gain on sale of properties for
the Sanish Divestiture and a$15.4 millionmark-to-market loss on derivative
instruments. Excluding these items and their tax effect, the first quarter
2014 Adjusted Net Income (non-GAAP) was$64.8 million, or$0.65 per diluted
share. Excluding similar non-cash items and their tax effect, Adjusted Net
Income (non-GAAP) for the first quarter of 2013 was$62.4 million, or$0.67
per diluted share.For a definition of Adjusted Net Income and a
reconciliation of net income to Adjusted Net Income, see "Non-GAAP Financial
Measures" below.

Capital Expenditures

The following table depicts the Company's exploration and production ("E&P")
CapEx by project area and total CapEx by category:

                          1Q 2014
CapEx ($ in thousands):
E&P CapEx by Project Area
West Williston            $ 189,288
East Nesson               107,843
Total E&P CapEx ^(1)      297,131
OWS                       6,410
Non E&P ^(2)              3,957
Total Company CapEx^(3)   $ 307,498

(1) Total E&P CapEx include $3.1 million for OMS, primarily related to salt
    water disposal systems.
(2) Non-E&P CapEx include such items as administrative capital and capitalized
    interest.
    CapEx reflected in the table above differ from the amounts shown in the
    statement of cash flows in the Company's condensed consolidated financial
(3) statements because amounts reflected in the table above include accrued
    liabilities for capital expenditures, while the amounts presented in the
    statement of cash flows are presented on a cash basis.

Liquidity

On March 31, 2014, Oasis had total cash and cash equivalents of $56.3 million.
As of March31, 2014, the Company had $60.0 million of LIBOR loans and $5.2
million of outstanding letters of credit issued under its revolving credit
facility, resulting in an unused borrowing base capacity of $1,434.8 million.
On March 27, 2014, the lenders under the revolving credit facility (the
"Lenders") completed their regular semi-annual redetermination of the
borrowing base, resulting in an increase to the borrowing base from $1,500.0
million to $1,750.0 million. However, the Company elected to limit the
Lenders' aggregate commitment to $1,500.0 million. The overall senior secured
line of credit under the revolving credit facility is $2,500.0 million as of
March 31, 2014.

Hedging Activity

As of May5, 2014, the Company had the following outstanding commodity
derivative contracts, all of which are priced off of WTI and settle monthly:

                          Weighted Average Prices ($/Bbl)
              Remaining   Sub-Floor  Floor  Ceiling   Swaps  BOPD    Total
              Term                                                   Barrels
2014
Full Year
Swaps        Apr - Dec                               $      9,500   2,612,500
                                                      95.90
Swaps with   Apr - Dec   $ 70.00                     $      6,000   1,650,000
sub-floors                                            92.60
Two-way      Apr - Dec              $      $ 100.71         3,500   962,500
collars                              90.00
Three-way    Apr - Dec   $ 70.59    $      $ 105.25         8,500   2,337,500
collars                              90.59
First Half
Swaps        Apr - June                              $      4,000   364,000
                                                      99.42
Three-way    Apr - June  $ 70.00    $      $ 103.98         2,000   182,000
collars                              90.00
Total 2014
hedges                    $ 70.33    $      $ 103.93  $      29,485  8,108,500
(weighted                            90.39            95.00
average)
Remaining                                                   33,500
1H14 Hedges
Total 2H14                                                  27,500
Hedges
2015
Full Year
Swaps        Jan - Dec                               $      8,000   2,920,000
                                                      89.62
First Half
Swaps        Jan - June                              $      8,000   1,448,000
                                                      90.97
Total 2015
hedges                                                $      11,967  4,368,000
(weighted                                             90.06
average)
Total 1H15                                                  16,000
Hedges
Total 2H15                                                  8,000
Hedges

Conference Call Information

Investors, analysts and other interested parties are invited to listen to the
conference call:



Date:           Tuesday, May 6, 2014
Time:           10:00 a.m. Central Time
Dial-in:        877-621-0256
Intl. Dial in:  706-634-0151
ConferenceID:  31470336
Website:        www.oasispetroleum.com

A recording of the conference call will be available beginning at 1:00 p.m.
Central Time on the day of the call and will be available until Tuesday, May
13, 2014 by dialing:

Replay dial-in:  855-859-2056
Intl. replay:    404-537-3406
ConferenceID:   31470336

The conference call will also be available for replay at
www.oasispetroleum.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933 and Section21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may
occur in the future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained in this
press release specifically include the expectations of plans, strategies,
objectives and anticipated financial and operating results of the Company,
including the Company's drilling program, production, derivative instruments,
capital expenditure levels and other guidance included in this press release.
These statements are based on certain assumptions made by the Company based on
management's experience and perception of historical trends, current
conditions, anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company, which may
cause actual results to differ materially from those implied or expressed by
the forward-looking statements. These include, but are not limited to, changes
in oil and natural gas prices, weather and environmental conditions, the
timing of planned capital expenditures, availability of acquisitions,
uncertainties in estimating proved reserves and forecasting production
results, operational factors affecting the commencement or maintenance of
producing wells, the condition of the capital markets generally, as well as
the Company's ability to access them, the proximity to and capacity of
transportation facilities, and uncertainties regarding environmental
regulations or litigation and other legal or regulatory developments affecting
the Company's business and other important factors that could cause actual
results to differ materially from those projected as described in the
Company's reports filed with the SEC.

Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable law.

About Oasis Petroleum Inc.

Oasis is an independent exploration and production company focused on the
acquisition and development of unconventional oil and natural gas resources,
primarily operating in the Williston Basin. For more information, please visit
the Company's website at www.oasispetroleum.com.

Contact:
Oasis Petroleum Inc.
Matt Ultis, (281)404-9600
Manager – Finance and Investor Relations

Oasis Petroleum Inc.

Condensed Consolidated Balance Sheet

(Unaudited)
                                  March 31, 2014         December 31, 2013
                                  (Inthousands,exceptsharedata)
ASSETS
Current assets
Cash and cash equivalents        $       56,298  $          
                                                         91,901
Accounts receivable— oil and    202,749                175,653
gas revenues
Accounts receivable— joint      134,553                139,459
interest partners
Inventory                        19,862                 20,652
Prepaid expenses                 24,450                 10,191
Deferred income taxes            8,484                  6,335
Derivative instruments           778                    2,264
Advances to joint interest       214                    760
partners
Other current assets             420                    391
Total current assets             447,808                447,606
Property, plant and equipment
Oil and gas properties           4,820,902              4,528,958
(successful efforts method)
Other property and equipment     200,158                188,468
Less: accumulated depreciation,
depletion, amortization and       (723,429)              (637,676)
impairment
Total property, plant and        4,297,631              4,079,750
equipment, net
Assets held for sale              —                      137,066
Derivative instruments            470                    1,333
Deferred costs and other assets   46,175                 46,169
Total assets                     $    4,792,084     $       
                                                         4,711,924
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable                 $       24,516   $          
                                                         8,920
Revenues and production taxes    183,120                146,741
payable
Accrued liabilities              283,024                241,830
Accrued interest payable         24,562                 47,910
Derivative instruments           20,663                 8,188
Advances from joint interest     10,931                 12,829
partners
Other current liabilities        2,766                  —
Total current liabilities        549,582                466,418
Long-term debt                    2,260,000              2,535,570
Deferred income taxes             424,049                323,147
Asset retirement obligations      35,790                 35,918
Derivative instruments            679                    139
Other liabilities                 2,002                  2,183
Total liabilities                3,272,102              3,363,375
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value:
300,000,000 shares authorized;

101,416,749 and 100,866,589      999                    996
shares issued at March 31, 2014
and

December31, 2013, respectively
Treasury stock, at cost: 238,453
and 167,155 shares at March31,
2014                              (8,387)                (5,362)

and December31, 2013,
respectively
Additional paid-in capital       989,525                985,023
Retained earnings                537,845                367,892
Total stockholders' equity       1,519,982              1,348,549
Total liabilities and            $    4,792,084     $       
stockholders' equity                                     4,711,924



Oasis Petroleum Inc.

Condensed Consolidated Statement of Operations



(Unaudited)
                                         Three Months Ended March 31,
                                         2014                 2013
                                         (In thousands, except per share data)
Revenues
Oil and gas revenues                    $ 331,847           $ 241,651
Well services and midstream revenues    17,672               6,653
Total revenues                          349,519              248,304
Expenses
Lease operating expenses                39,989               19,489
Well services and midstream operating   10,920               2,914
expenses
Marketing, transportation and           5,186                3,389
gathering expenses
Production taxes                        31,803               22,089
Depreciation, depletion and             91,272               66,261
amortization
Exploration expenses                    380                  1,857
Impairment of oil and gas properties    762                  498
General and administrative expenses     23,520               13,854
Total expenses                          203,832              130,351
Gain on sale of properties               183,393              —
Operating income                         329,080              117,953
Other income (expense)
Net loss on derivative instruments      (17,603)             (14,612)
Interest expense, net of capitalized    (40,158)             (21,183)
interest
Other income (expense)                  153                  780
Total other income (expense)            (57,608)             (35,015)
Income before income taxes               271,472              82,938
Income tax expense                       101,519              31,087
Net income                               $ 169,953           $  51,851
Earnings per share:
Basic                                    $    1.71         $    0.56
Diluted                                  1.70                 0.56
Weighted average shares outstanding:
Basic                                    99,560               92,375
Diluted                                  100,049              92,651



Oasis Petroleum Inc.

Selected Financial and Operational Statistics

(Unaudited)
                                                  Three Months Ended March 31,
                                                  2014          2013
Operating results ($ in thousands):
Revenues
Oil                                              $ 309,231    $ 231,675
Natural gas                                      22,616        9,976
Well services and midstream                      17,672        6,653
Total revenues                                   349,519       248,304
Production data:
Oil (MBbls)                                       3,449         2,482
Natural gas (MMcf)                                2,448         1,388
Oil equivalents (MBoe)                            3,857         2,714
Average daily production (Boe/d)                  42,856        30,153
Average sales prices:
Oil, without realized derivatives (per Bbl)       $   89.66  $   93.33
Oil, with realized derivatives (per Bbl)^(1)      89.01         94.01
Natural gas (per Mcf)^(2)                         9.24          7.18
Costs and expenses (per Boe of production):
Lease operating expenses                         $   10.37  $     7.18
Marketing, transportation and gathering expenses  1.53          1.23
^(3)
Production taxes                                  8.25          8.14
Depreciation, depletion and amortization          23.66         24.42
General and administrative expenses               6.10          5.10

    Realized prices include gains or losses on cash settlements for commodity
(1) derivatives, which do not qualify for and were not designated as hedging
    instruments for accounting purposes.
(2) Natural gas prices include the value for natural gas and natural gas
    liquids.
(3) Excludes non-cash valuation charge.



Oasis Petroleum Inc.

Condensed Consolidated Statement of Cash Flows

(Unaudited)
                                                      Three Months Ended

                                                      March 31,
                                                      2014         2013
                                                      (In thousands)
Cash flows from operating activities:
Net income                                            $ 169,953   $  51,851
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization             91,272       66,261
Gain on sale of properties                           (183,393)    —
Impairment of oil and gas properties                 762          498
Deferred income taxes                                98,753       30,987
Derivative instruments                               17,603       14,612
Stock-based compensation expenses                    4,505        2,289
Debt discount amortization and other                 1,487        746
Working capital and other changes:
Change in accounts receivable                        (9,275)      (3,360)
Change in inventory                                  790          (8,407)
Change in prepaid expenses                           (14,259)     293
Change in other current assets                       (29)         (232)
Change in other assets                               (1,593)      —
Change in accounts payable and accrued liabilities   29,007       15,009
Change in other current liabilities                  2,766        —
Change in other liabilities                          (82)         —
Net cash provided by operating activities            208,267      170,547
Cash flows from investing activities:
Capital expenditures                                 (280,895)    (217,819)
Proceeds from sale of properties                     321,943      —
Costs related to sale of properties                  (2,010)      —
Derivative settlements                               (2,239)      1,686
Advances from joint interest partners                (1,898)      (1,691)
Net cash provided by (used in) investing activities  34,901       (217,824)
Cash flows from financing activities:
Principal payments on revolving credit facility      (275,570)    —
Purchases of treasury stock                          (3,025)      (156)
Debt issuance costs                                  —            (25)
Other                                                (176)        —
Net cash used in financing activities                (278,771)    (181)
Decrease in cash and cash equivalents                 (35,603)     (47,458)
Cash and cash equivalents:
Beginning of period                                   91,901       213,447
End of period                                         $  56,298  $ 165,989
Supplemental non-cash transactions:
Change in accrued capital expenditures                $  39,516  $  13,735
Change in asset retirement obligations                (128)        2,048

Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by
management and external users of the Company's consolidated financial
statements, such as industry analysts, investors, lenders and rating agencies.
The Company defines Adjusted EBITDA as earnings before interest expense,
income taxes, depreciation, depletion, amortization, exploration expenses and
other similar non-cash or non-recurring charges. Adjusted EBITDA is not a
measure of net income or cash flows as determined by United States generally
accepted accounting principles, or GAAP.

The following tables present a reconciliation of the non-GAAP financial
measure of Adjusted EBITDA to the GAAP financial measures of net income and
net cash provided by operating activities, respectively.

                                                       Three Months Ended

                                                       March 31,
                                                       2014        2013
                                                       (In thousands)
Adjusted EBITDA reconciliation to Net Income:
Net income                                            $ 169,953  $  51,851
Gain on sale of properties                            (183,393)   —
Change in fair value of derivative instruments        15,364      16,298
Interest expense                                      40,158      21,183
Depreciation, depletion and amortization              91,272      66,261
Impairment of oil and gas properties                  762         498
Exploration expenses                                  380         1,857
Stock-based compensation expenses                     4,505       2,289
Income tax expense                                    101,519     31,087
Other non-cash adjustments                            (746)       49
Adjusted EBITDA                                        $ 239,774  $ 191,373
Adjusted EBITDA reconciliation to Net Cash Provided by
Operating Activities:
Net cash provided by operating activities             $ 208,267  $ 170,547
Derivative settlements                                (2,239)     1,686
Interest expense                                      40,158      21,183
Exploration expenses                                  380         1,857
Debt discount amortization and other                  (1,487)     (746)
Current tax expense                                   2,766       100
Changes in working capital                            (7,325)     (3,303)
Other non-cash adjustments                            (746)       49
Adjusted EBITDA                                        $ 239,774  $ 191,373

Adjusted Net Income is a supplemental non-GAAP financial measure that is used
by management and external users of the Company's consolidated financial
statements, such as industry analysts, investors, lenders and rating agencies.
The Company defines Adjusted Net Income as net income after adjusting first
for (1)the impact of certain non-cash and non-recurringitems, including
changes in the fair value of derivative instruments, impairment of oil and gas
properties, and other similar non-cash and non-recurringcharges, and then
(2)the non-cash and non-recurringitems' impact on taxes based on the
Company's effective tax rates in the same period. Adjusted Net Income is not a
measure of net income as determined by GAAP.

The following table provides a reconciliation of net income (GAAP) to
Adjusted Net Income (non-GAAP):

                                         Three Months Ended

                                         March 31,
                                         2014                  2013
                                         (Inthousands,exceptpersharedata)
Net income                               $ 169,953            $ 51,851
 Change in fair value of derivative     15,364                16,298
instruments
 Gain on sale of properties             (183,393)             —
 Impairment of oil and gas properties   762                   498
 Other non-cash adjustments             (746)                 49
 Tax impact ^(1)                      62,830                (6,314)
Adjusted Net Income                      $  64,770           $ 62,382
Adjusted earnings per share:
Basic                                   $    0.65          $   0.68
Diluted                                  0.65                  0.67
Weighted average shares outstanding:
Basic                                    99,560                92,375
Diluted                                  100,049               92,651
Effective Tax Rate                       37.4%                 37.5%

(1) The tax impact is computed utilizing the Company's effective tax rate on
    the adjustments for certain non-cash and non-recurringitems.

SOURCE Oasis Petroleum Inc.

Website: http://www.oasispetroleum.com
 
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