Oasis Petroleum Inc. (NYSE:OAS) Q2 2016 Earnings Conference Call - Final Transcript

Aug 04, 2016 • 11:00 am ET

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Oasis Petroleum Inc. (NYSE:OAS) Q2 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Aronson, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Second Quarter 2016 Earnings Release and Operations Update for Oasis Petroleum. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I will now turn the call over to Michael Lou, Oasis Petroleum's CFO, to begin the conference. Thank you. Mr. Lou, you may begin your conference.

Executive
Michael H. Lou

Thank you, Aronson. Good morning, everyone. This is Michael Lou. Today, we are reporting our second quarter 2016 financial and operational results. We are delighted to have you on our call. I'm joined today by Tommy Nusz and Taylor Reid, as well as other members of the team.

Please be advised that our remarks, including the answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently disclosed in our earnings release and conference call. Those risks include, among others, matters that we have described in our earnings release, as well as our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward-looking statements.

During this conference call, we will also make references to adjusted EBITDA and other non-GAAP financial measures. Reconciliations of our non-GAAP financial measures to the applicable GAAP measures can be found in our earnings release and on our website. We will also reference our current investor presentation, which you can find on the homepage of our website.

With that, I'll turn the call over to Tommy.

Executive
Thomas B. Nusz

Good morning, everyone, and thanks for joining our call today. I'm proud to report Oasis had another great quarter, as the team continued to carry momentum forward in spite of a challenging macro environment. In the second quarter, Oasis produced 49,507 Boes per day, driven by continued improvement in operational results. This number would be essentially flat with the first quarter when adjusted for divested volumes. While living within cash flow, we have effectively kept volumes flat for the last six quarters. In the second quarter, we transitioned our completion activities from Indian Hills to Wild Basin, where we continued to see outstanding operational results. In total, we completed 13 gross, or 8.7 net wells, in the quarter.

We've spoken at length in the past about our dramatically improves capital efficiency as a company, which over the last two years has changed the way we operate and plan our business. That momentum has continued through a combination of service cost reductions, operating efficiencies and increased recoveries as we have further delivered significant gains in the first half of 2016. The team has driven down our well costs from $6.5