Oasis Petroleum Inc. (NYSE:OAS) Q3 2016 Earnings Conference Call - Final Transcript

Nov 08, 2016 • 11:00 am ET

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Oasis Petroleum Inc. (NYSE:OAS) Q3 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Oasis Petroleum Third Quarter 2016 Earnings Conference Call. All participants will be in listen-only mode today. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

Now I'd like to turn the conference over to Michael Lou, Chief Financial Officer. Please go ahead.

Executive
Michael Lou

Thank you, Nan. Good morning everyone. This is Michael Lou. Today we are reporting our third 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 in 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 to 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 home page of our website.

With that, I will turn the call over to Tommy.

Executive
Thomas B. Nusz

Good morning, everyone, and thanks for joining our call today. We entered this year knowing that 2016 would be a pivotal year for us, as we focused on increasing capital efficiency, and operational excellence, which has served as key drivers towards positioning us for organic growth within cash flow in 2017 and 2018.

We made further progress in the third quarter, as we completed 17 gross and 17.1 net wells in Wild Basin, and brought on our gas processing plant in early October. That plant is now fully operational and we're moving oil and produced water volumes through their respective systems. We also have oil volumes moving through our pipeline to Johnson's Corner. We began opening up the Wild Basin wells we had choked back as they waited on this infrastructure. Although most of the data is at restricted rates, those well results, coupled with the White unit wells, are included in the performance curves on slide 11 of presentation.

It's this performance that led us to increase our Wild Basin Bakken type curve to 1.55 million barrels of oil equivalent. This curve is based off of our 4 million pound Slick Water well, which now just costs $5.2 million. Spud to rig release is down to 13 days in the third