Canaccord Reiterates Hold on Oasis Petroleum Inc. Following 1Q:15 Update
Canaccord analyst Stephen Berman came out with his views on Oasis Petroleum Inc. (NYSE:OAS), after the company reported its first-quarter earnings. The analyst reiterated a Hold rating on the stock with a $14 price target, which implies a downside of 9% from current levels.
Berman observed, “OAS reported Q1 adjusted EPS/CFPS of $0.28/$1.55 vs. our estimates of $0.27/ $1.38 and consensus of $0.26/$1.43. Q1 production came in at 50.4 MBoe/d (89% oil) vs. our 48.2 MBoe/d (89% oil) estimate and consensus of 48.1 MBoe/d. Company guidance was 47-49 MBoe/d. Cash operating costs were lower than we had modeled across the board, as was interest expense, while DD&A was higher. Realized prices were slightly below our forecast.”
Furthermore, “New wells brought on during Q1 exceeded production expectations with over 60% of the wells completed with high intensity stimulations. Based on Q1 performance, OAS expects to produce between 47-49 MBoe/d in Q2 and and 46-49 MBoe/d for FY 2015. Prior FY 2015 guidance was 45-49 MBoe/d. We are currently modeling 46.7 MBoe/d for Q2 and 47.6 MBoe/d for the full year.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Stephen Berman has a total average return of -12.0% and a 38.4% success rate. Berman has a -32.4% average return when recommending OAS, and is ranked #3561 out of 3594 analysts.