Oasis Petroleum Inc. (NYSE:OAS) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 11:00 am ET
Good morning. My name is Chad and I will be your conference operator today. At this time I'd like to welcome everyone to the Third Quarter 2019 Earnings Release and Operations Update for Oasis Petroleum. [Operator Instructions].
I would now like to turn the call over to Michael Lou Oasis Petroleum's CFO to begin the conference. Please go ahead sir.
Thank you Chad. Good morning everyone. Today we are reporting our third quarter 2019 financial and operational results. We're delighted to have you on our call. I'm joined today by Tommy Nusz Taylor Reid as well as other members of the team. Please be advised that our remarks on both the 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 releases 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 make reference to non-GAAP measures and reconciliations to the applicable GAAP measures can be found in our earnings releases and on our website. We will also reference our current Investor Presentation which you can find on our website.
With that I will turn the call over to Tommy.
Good morning and thanks for joining our call. The Oasis team delivered a strong third quarter exceeding our production guidance and spending below our capex projections. We also made progress lowering our cost structure in reducing debt. The organization continues to focus on per share value drivers of cash flow cash margins return on investment and capital efficiency all of which should drive attractive returns whether at a well project and corporate level. Taylor will get into more operational detail in a minute but I want to highlight a few key points about our performance and strategy. First Oasis continues to execute its measured development program in 2019 and has generated strong free cash flow at the E&P level. We reduced debt by $125 million under our Oasis credit facility driven by that free cash flow along with cash from divestitures. Second in the Williston we executed well across the board. I'll let Taylor and Mike will give more color in a bit but we've made material progress in reducing our well costs which should help drive capital lower in 2020. Separately in a tough A&D market we were able to divest a small portion of Williston assets during the quarter bringing in about $41 million in proceeds. Third in the Delaware it's been a little shy of two years since we announced the Forge acquisition and