Oasis Petroleum Inc. (NYSE:OAS) Q3 2017 Earnings Conference Call - Final Transcript
Nov 08, 2017 • 11:00 am ET
Good morning. My name is Andrew, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Third Quarter 2017 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 CFO to begin the conference. Thank you. Mr. Lou, you may begin your conference.
Thank you, Andrew. Good morning to everyone. This is Michael Lou. Today, we are reporting our third quarter 2017 financial and operational results. We're 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 on both Oasis Petroleum and Oasis Midstream Partners, 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, our Quarterly Reports on Form 10-Q and on the Oasis Midstream Partners Form S-1. We disclaim any obligation to update these forward-looking statements.
During this conference call, we will also make references to adjusted EBITDA, which is a non-GAAP financial measure. Reconciliations of adjusted EBITDA 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 our website.
With that, I'll turn the call over to Tommy.
Good morning and thank you for joining our call. It was a milestone quarter for Oasis, as the team successfully increased E&P activity into an environment of improving oil prices and differentials, activated our second internal frac spread OWS II, bringing the majority of our completion activity in-house and completed the IPO of Oasis Midstream Partners or OMP, which allows us to invest midstream capital in a more efficient manner and manage our product takeaway capacity in Wild Basin.
We completed 24 gross, or 15.1 net wells in the third quarter compared to 28 gross and 20.5 net in all of the first half of the year, as we brought on OWS II during the quarter. Production followed suit with the increased completion activity as we averaged 66,100 Boes per day in the third quarter, slightly above the midpoint of our 65,000 Boe per day to 67,000 Boe per day guidance. Production increased 7% quarter-over-quarter as we executed within our plan even with some in-basin processing issues.
We're on track to hit our projected 2017 exit rate