Oasis Petroleum Inc. (NYSE:OAS) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 08, 2018 • 11:00 am ET
Good morning. My name is Brian. I will be your conference operator today. At this time, I'd like to welcome everyone to the First Quarter 2018 Earnings Release and Operations Update for Oasis Petroleum. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. 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. You may begin the conference.
Thank you, Brian. Good morning, everyone. This is Michael Lou. Today, we are reporting our first quarter 2018 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 releases and conference calls. 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 Report on Form 10-Q. We disclaim any obligation to update these forward-looking statements.
During this conference call, we will make reference to non-GAAP measures and reconciliations to be applicable GAAP measures can be found in our earnings releases and on our websites. 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. Oasis completed another solid quarter as we began to execute on the 2018 plan we outlined in February. We closed the Forge acquisition on February 14 and have taken over operations and continue to integrate that world-class asset into our portfolio. We're off to a great start to the year producing 76,800 Boes per day in the first quarter while maintaining top-tier capital efficiency, cash margins and resulting recycle ratio.
We maintained our projection of being free cash flow positive on our E&P business for the year, while continuing to grow volumes at 15% to 20% year-over-year. Internally controlled infrastructure through OMS supported flow assurance, reduced costs, and provided access to liquid marketing points. This combination resulted in reduced downtime and per barrel operating costs in spite of abnormally difficult winter conditions.
We remain on pace to exceed our stated 2018 combined exit rate of 88,000 Boes per day and we are focusing on the second quarter ranging between 76,000 Boes to 80,500 Boes per day. Additionally, we've increased our full-year guidance to 81,000 Boes to 84,000 Boes per day.
The team did a tremendous job of managing capital