Oasis Petroleum Inc. (NYSE:OAS) Q4 2019 Earnings Conference Call - Final Transcript
Feb 26, 2020 • 11:00 am ET
Good morning. My name is Jason, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Fourth Quarter 2019 Earnings Release and Operations Update for Oasis Petroleum. [Operator Instructions] 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, Jason. Good morning, everyone. Today, we are reporting our fourth quarter 2019 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 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 references to non-GAAP measures, and reconciliations to the 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.
Thanks, Michael. Good morning, and thanks for joining our call. The Oasis team delivered another strong quarter, exceeding our production guidance and spent well below both internal and external CapEx projections. We generated substantial E&P free cash flow in the fourth quarter, allowing us to pay down a significant amount of debt. In 2019, Oasis paid down $188 million of E&P debt with the Oasis credit facility, exiting 2019 with only $337 million drawn. Taylor will get into more operational detail in a minute, but I want to highlight a few key points about our performance and our strategy. First, in the Williston. This cornerstone asset continues to generate strong free cash flow, driven by well productivity, a high oil mix and access to Gulf Coast pricing. The team had a strong fourth quarter as we were able to power through some difficult weather and get our wells online while preserving the cost reductions seen in the third quarter. This remarkable asset is expected to generate significant free cash flow in 2020. Second, in the Delaware. It's been about two years since we closed the Forge acquisition, and we're really excited to enter full field development in 2020, which will drive repeatable, capital-efficient growth. Drilling times and well costs have come down significantly, which should drive capital-efficient development plan this