Q1 2022 Oasis Petroleum Inc Earnings Call

Turning to outlook is essentially unchanged from February and excluding the impact of the storm, we have generally been trending at or better than plan.

As we look forward service pricing and availability do remain challenged Fortunately Oasis has been running a steady two rig program and proactively worked with our providers to secure equipment and consumables required to execute our plan as a reminder, oasis budgeted for 15% implementation from the first quarter to the fourth quarter.

2022, frankly at the time, we believed this was likely a conservative estimate, but as you've heard from other e&ps inflation is pervasive across most items, putting upward pressure on budgets and pricing.

Based on our current outlook, we are still confident in our full year capital guidance on a standalone basis, while recognizing subsequent quarters, we'll we'll see increased capital spending due to our development plan being weighted toward the second half of the year I look forward to discussing combined oasis and widen guidance after the deal closes.

And speaking of wafers and Whiting work on the pending merger is going as expected and we remain excited at the strategic operational and financial benefits of the merger. We believe the combination will result in a company with enhanced scale better operating efficiency and significant financial strength, which will deliver value across commodity cycles over.

Over the past couple of months, we've been on the road meeting with many of our shareholders and we're very appreciative of the support we've heard we're confident the combined company is stronger than either standalone entity and will deliver superior long term value for our shareholders.

As many of you are aware the HSR waiting period ended April 18th and the S. Four was filed on April 28. Once the S. Four is effective the companies will mail proxies and set dates for special meetings to approve the transaction. We currently expect to close sometime in the third quarter and look forward to announcing our new company name and ticker at that time.

In summary, it was a great quarter I'm very pleased with our operating results and the progress we've made on transforming our organization. We remain committed to our core strategy, which revolves around return on and of capital balance sheet strength and being a sustainable operator in short we strive to be responsible stewards and strong capital allocators through the cycle.

I'll now turn it over to Michael for some financial updates.

Thanks Danny.

As Danny mentioned, we are expecting to close the merger with Whiting sometime in the third quarter.

We're providing guidance for.

For the second quarter of 'twenty two for waste this on a standalone basis, which reflects the impact of the winter storms.

As a reminder, we do plan to move to three stream reporting for the combined company upon closing to make our operational and financial metrics more comparable to peers.

The team at <unk> continues to do a great job, managing LOE and minimizing downtime E&P LOE averaged $10 seven per BOE in the first quarter below the low end of our guidance, we expect per unit LOE to increase a bit over the course of the year as workover.

Expenses pickup.

Second quarter LOE.

We will be a little above normal levels as we get as we work to get wells back online from the storm.

E&P cash G&A expense was $15 7 million in the first quarter, but excluding transaction related items.

The E&P cash G&A was $11 6 million.

Both crude and gas realizations were strong in the quarter as markets are fairly tight around the Williston.

E&P Capex was $62 9 million in the first quarter below initial expectations.

The delta largely relates to timing and we still expect Oasis standalone capital to be in line with original projections or approximately $295 million over the course of the year.

Currently Oasis has zero drawn on its borrowing base with elected commitments of $450 million cash was approximately $410 million as of March 31, exceeding our long term debt of $400 million.

We are working with our lenders to accommodate an updated credit facility post close and we expect our borrowing base to be $2 billion with.

With elected commitments of $800 million.

Terms and conditions on the facility are expected to be in line with other companies of similar size and credit quality.

Separately consistent with the previously announced plan to return $70 million per quarter to shareholders Oasis declared a base dividend of $58.05 per share payable June one to shareholders of record on may 20th. Additionally, Oasis declare.

Third a $2 94.

Per share variable dividend payable June 15th to shareholders.

Of record as of June <unk>.

Also consistent with what we said and with the merger announcement of which is still plans to declare a special dividend of $15 per share shortly before close the record date for this special dividend will be prior to the merger closing.

Also during the quarter, we closed the merger between <unk> and Crestwood on February one results.