Oasis Petroleum Inc. (NYSE:OAS) Q3 2018 Earnings Conference Call - Final Transcript
Nov 06, 2018 • 11:00 am ET
Good morning. My name is Danielle, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Third 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. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the call over to Michael Lou, Oasis Petroleum CFO, to begin the conference.
Thank you, Danielle. Good morning, everyone. Today, we are reporting our third 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.
(Forward-Looking Cautionary Statements)
During this conference call, we may make references to non-GAAP financial measures, and reconciliations 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. Oasis completed another solid quarter as we continue to execute on our 2018 plan and set up for 2019. Performance in our cornerstone Williston asset remains strong as we continue to efficiently develop our deep core inventory across the basin. Separately, we cannot be happier with the performance of our Delaware position. Our deliberate and measured development program is progressing nicely. As well performance remained strong, we've been able to secure necessary services with quality partners and our subsurface knowledge is growing rapidly.
The plan we laid out at the first of the year is right on track is reflected in our completion cadence, where we've completed five of the six to eight well target for the year by the end of the third quarter. We have just brought on an additional well and that brings our total to six currently. And we currently have three wells waiting on frac. Additionally, we continue to engineer a long-term development strategy for this world-class asset and remain very impressed with everything we've seen so far.
I want to highlight a few key points for you this morning. Our capital efficiency continues to stand out among our peers. Page 13 of our investor presentation highlights our recycle ratios, which are top tier within our peer group, reflecting a healthy mix of strong well productivity and capital cost. We are modestly adjusting our fourth quarter volume guidance to reflect timing of our second gas plant, but still expect to exit rates to approximate our previous guidance of 91,000 to 94,000 BOEs per day.
That being said, our updated fourth quarter range reflects a 5% increase from our original guidance, with our exit rate up 10%. We're also maintaining our current full year '18 CapEx budget and continue to expect the E&P business to generate free cash flow in 2019, while growing volumes