A New Tomorrow, Today
March 2021
Building a Strong
Sustainable Oasis:
Our New E&P Model
Forward-Looking / Cautionary Statements
Non-GAAP Financial Measures
Cash Interest, Adjusted EBITDAX, E&P Cash G&A, Free Cash Flow, Adjusted Net Income (Loss) Attributable to Oasis, Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share and Recycle Ratio are supplemental financial measures that are not presented in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP measures should not be considered in isolation or as a substitute for interest expense, net income (loss), operating income (loss), net cash provided by (used in) operating activities, earnings (loss) per share or any other measures prepared under GAAP. Because Cash Interest, Adjusted EBITDAX, Free Cash Flow, Adjusted Net Income (Loss) Attributable to Oasis, Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share and Recycle Ratio exclude some but not all items that affect net income (loss) and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies. Reconciliations of these non-GAAP financial measures to their most comparable GAAP measure can be found in the annual report on Form 10-K, quarterly reports on Form 10-Q and on our website at www.oasispetroleum.com. Amounts excluded from these non-GAAP measure in future periods could be significant.
Cautionary Statement Regarding Oil and Gas Quantities
The Securities Exchange Commission (the “SEC”) requires oil and gas companies, in their filings with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions (using unweighted average 12-month first day of the month prices), operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities of the exploration and development companies may justify revisions of estimates that were made previously. If significant, such revisions could impact the Company’s strategy and future prospects. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered. The SEC also permits the disclosure of separate estimates of probable or possible reserves that meet SEC definitions for such reserves; however, we currently do not disclose probable or possible reserves in our SEC filings.
Our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases.
Forward-Looking Statements
This presentation, including the oral statements made in connection herewith, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this presentation specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company’s ability to capitalize on its emergence from restructuring and to implement its realigned initiatives and strategies, the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this presentation. When used in this presentation, the words "could," "should," "will,“ "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward- looking statements, although not all forward-looking statements contain such identifying words. These statements are based on certain
assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the headings “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included in the Company’s filings with the Securities and Exchange Commission. These include, but are not limited to changes in oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions and divestitures and the ability to integrate acquisitions into its existing business, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, access to and terms of credit in the commercial banking and other debt markets, the condition of the capital markets generally, as well as the Company's ability to access them, cash flows and liquidity, the proximity to, availability of, and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business and other important factors. In addition, the Company’s forward-looking statements address the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the novel coronavirus 2019 pandemic and the actions of foreign oil producers to increase crude oil production and the expected impact on our business, operations, earnings, and results as well as the risks and uncertainties associated with the impact of the Company’s ability to respond to such risks on its actual results. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those expressed in any forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
A New Tomorrow, Today
A Stronger Oasis Aligned with Shareholder Interests
Best-in-Class
Balance Sheet
Returns-Focused
Business Model
High Quality Assets
Generating Significant
Free Cash Flow
ESG Leadership
Strong Strategic
Direction Aligned
with Shareholders
The Right Team
to Execute
Today’s Oasis has an industry
leading financial profile tailored to
the new environment. We are
focused on generating free cash
flow and delivering competitive
shareholder returns with our
low-cost assets.
New Oasis Built for the New Environment
Best-in-class balance sheet
(p. 9)
New business model focused on
returns
(p. 5)
New board of directors, with
enhanced governance, aligned
with shareholders
(p. 20)
Quality asset base delivering
significant free cash flow
(p.
13
,
15
)
Material Midstream value &
optionality
(p. 17)
Generate free cash flow and
competitive shareholder returns
(p. 7)
Understanding the energy transition
and its opportunities
Embracing environmental, social and
governance initiatives
(p. 6)
Alignment of management incentives
(p. 22)
Consolidation to build scale and
relevance
WILLISTON BASIN
404k Net Acres | 51.3Mboepd
1PERMIAN BASIN
24k Net Acres | 7.9Mboepd
11) Production as of 4Q20
A New Tomorrow, Today
New Business Model
Free cash generation: Forecasting $155-$175MM of free cash flow in 2021
1
Return of capital: Instituted inaugural fixed dividend of $0.375/share ($1.50/share annualized)
Returns: Capital allocation committee reviews options in rigorous, systematized framework
Balance sheet: Leverage of ~0.6x below target of <1.0x (Debt/EBITDA)
2
Operational Excellence
Costs: Continue to drive down LOE, capital, G&A per unit from historical levels
Third-Party: Identified $20 to $25 million of additional E&P savings from current levels
3
ESG Leadership
Commitment: Strong commitment to safety, diversity & inclusion and community
BoD: Refreshed, diverse and independent board of experienced industry professionals
Alignment: Progressive executive compensation program with 75% of incentive compensation
tied to returns
Emissions capture: Strong Williston gas capture in 2020
Portfolio Review
Midstream: Prioritizing the determination of optimal structure and value creation options
E&P Portfolio: Reviewing assets to assess how they compete in portfolio
Industry Consolidation
Opportunistic: In strong position to capitalize on upcoming value-enhancing opportunities
Position: Improve financial strength, investment quality, cost of capital, investment relevance
Progress on Strategic and Financial Priorities
1) Range of FCF reflects 2020 guidance and $50/bbl WTI and $2.50 NYMEX natural gas
2) 12/31/2020 figures reflect unaudited estimates of Oasis’s debt and cash balance as of that date and may differ from the cash and cash equivalents and long-term debt balances in the Company’s audited financial statements prepared in accordance with GAAP. EBITDA is based on 2021 guidance at $50 WTI and $2.50 NYMEX natural gas.
Implementing ESG Initiatives And Best Practices
Note: More details on our ESG initiatives can be found on the Oasis website: www.oasispetroleum.com/sustainability/
Environmental, Health
and Safety
Best in Class Gas Capture
–
Flared gas 50%+ less than peer
average in North Dakota
–
Capture gas for other operators,
reducing industry-wide emissions
25% Y/Y reduction in total emissions
(CO2e) in 2019
No recordable injuries in 4Q20
67% per year reduction in reportable spills
(2019-2020)
Strong record of fluid and emission
containment
Environmental impact of our operations
complemented by control of extensive
infrastructure
Human Capital
Increased female (+15%) and minority
(+39%) percent of the total professional
workforce since 2017
Comprehensive benefits including health
care for employees at every level in the
organization and retirement plan dollar
matching
Oasis Academy for Success learning
system supports job-specific training
Soft skill and leadership development and
training
Committed to our Communities
–
Deeply involved in the areas in which
we work and are active
–
Employees involved in broad range of
charitable organizations in ND & TX
–
Work with NextOp to attract US Military
veterans for open positions at Oasis
Governance
New Board of Directors
–
83% independent
–
Diverse industry-leading experts across
multiple disciplines
–
Declassified Board
Implemented peer-leading compensation
practices aligned with shareholders
Established Nominating, Environmental,
Social & Governance Committee to
oversee ESG policies and initiatives
Codified an enterprise risk management
system to ensure organizational reliability
Directors elected by majority vote
Shareholders able to call special meetings
A New Tomorrow, Today
15%
15%
14%
11%
11%
9%
8%
7%
7%
4%
0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Significant FCF Yield and Leverage Below Targeted Levels
Generating Significant Cash Flow to Benefit Shareholders
1) Estimated free cash flow / market capitalization. FactSet consensus for peers as of 2/23/2020; Oasis Petroleum FCF reflects midpoint guidance at $50/bbl WTI and $2.50/mmBtu NYMEX gas issued 2/24/2021 2) Peer FCF defined as consolidated/estimated cash from operations minus CapEx. Peer Group: CDEV, CLR, CPE, LPI, MTDR, NOG, PDCE, RRC, SM, WLL
3) OAS market cap reflects 20.36MM shares (20MM + RSUs allocated to Board/NEOs + PSUs/LSUs to NEOs) x price on 2/23/2021
Invest well within cash flow
Rigorous capital discipline focused
on corporate level returns
Reinvestment rate significantly below
cash flow
2021 at or below 60%
Production growth an output rather
than an input
Return capital to shareholders
Announced $0.375/share dividend
($1.50/share annualized)
Exploring additional ways to return
capital
Maintain strong balance sheet
Leverage target: <1x
YE20 Net debt to 2021E EBITDA:
0.6x
2021E FCF Yield
1,2,3
OAS at $50/bbl WTI
Peers at consensus WTI
Capital Allocation Framework
Accountability
Compare
Projections vs.
Actual Investments
& Refine
Continuous Improvement
Use Internal Results &
External Benchmarks to
Improve Performance
Allocation
Allocate Capital
Based on
Investment
Framework &
Project Level
Returns
Systematic Investment Framework
Generate
Significant
Free Cash
Flow
Return of Capital
Return to Shareholders
via Dividend or Share
Repurchase
Debt Repayment
(targeting leverage <1x)
Reinvest in
Business
Upstream Projects
Reserve Purchase
A New Tomorrow, Today
0.6
0.9
1.5
2.2
2.3
2.5
2.6
2.6
2.7
3.4
4.4
0
1
2
3
4
5
6
Best-in-Class Balance Sheet Supports New Business Model
.
1) Peer EBITDA estimates from FactSet as of 2/23/2021; OAS EBITDA estimate reflects guidance at $50/bbl WTI as of 2/24/2021. Peer Group: CDEV, CLR, CPE, LPI, MTDR, NOG, PDCE, RRC, SM, WLL
2) Excludes OMP capital structure, as OAS and OMP debt are not cross collateralized and guarantors under OAS credit facility are not responsible for OMP debt; OAS share count includes 20.36MM shares (20MM + RSUs allocated to Board/NEOs + PSUs/LSUs to NEOs) 3) 12/31/2020 figures reflect unaudited estimates ofOasis’s debt and cash balance as of that date and may differ from the cash and cash equivalents and long-term debt balances in the Company’s audited financial statements prepared in accordance with GAAP 4) Weighted average WTI price includes floor price of 2-way collars (1.5 MBD in 2021 and 1.5 MBD in 2022) with average ceiling of $63.82/bbl
YE20 Net Debt / 2021E EBITDAX
1
PEER AVERAGE: 2.5X
New Capital Structure Highlights
2
Equity
20.4MM shares of common stock
Debt and Cash
$575MM RBL facility
$260MM drawn at YE20
LIBOR + 300-400 bps with 100 bps floor
$6.8MM of LCs
1
stredetermination – 4/1/2021
Matures – May 2024
Leverage ratio covenant < 3.0x EBITDAX (TTM)
$15.1MM of cash/restricted cash at YE20
3Hedging Program Minimizes Downside Risk
HH Gas Hedging
MMBtu/d
Price
Dec '20 - Dec '21
10,000
$2.92
Dec '20 - Jun'22
30,000
$2.82
WTI Oil Hedging
42021
2022
2023
Mbopd
30.5
20.5
14.0
Weighted Avg WTI Price
$42.23
$42.91
$43.68
OAS Target:
<1.0X
$10.50
$10.50
$9.50
Sep '20 Est for 2021
Current 2021
Guidance
$49
Below
$37
May '20 Run Rate
YE21 Exit Rate
$585
$211
$235
$207
$225
2020 Plan
2020 Estimate
2021 Plan
Driving Better Margins And Increased Capital Productivity
1) See appendix for details. E&P Costs do not include any benefit from midstream cash flows that return to Oasis, which are reflected in chart“Midstream Cash Flows to OAS.” 2) Cash G&A excludes restructuring and professional fees as well as costs associated with RIF in 2020
3) Reflects E&P & Other Capital: Other capital includes administrative capital, but excludes capitalized interest. E&P CapEx excludes acquisitions;
4) 2020 estimate is preliminary financial data which has been prepared by, and is the responsibility of, Oasis' management. The preliminary financial data has not been audited or reviewed by an independent registered public accounting firm 5) Based on annualized midpoint 4Q21 BOE guidance volumes issued February 24, 2021
Improving E&P LOE per Boe
1
Performance
Capital Budget Reductions
3,4
($MM)
Proactive E&P Cash G&A
Reductions
2
($MM)
25
%
61
%
5
%
~$1.60
/BOE
5A New Tomorrow, Today
OMP Capital Structure
MM
% of Total
Distribution per
Unit
2021E
Distribution
($MM)
2021E GP
Distribution to
OAS ($MM)
Total
Distributions to
OAS ($MM)
Public Units
11.0
32.5%
23.7
OAS Units
22.8
67.5%
$0.54
49.3
3.7
53.0
Total Units
33.8
100.0%
73.0
DevCo
Operating
Area
Services Provided
2021E EBITDA
($MM)
OAS Ownership
OAS EBITDA
($MM)
Gas Processing Crude Services0%
NGL Storage Gas & Crude Gathering Water Gathering & Disposal Water Gathering & Disposal Freshwater DistributionCrude Gathering Water Gathering & Disposal
Retained Midstream
Total DevCo EBITDA
221 - 233
81 - 84
Panther
Permian Basin
7 - 9
0%
Beartooth
Broader
Bakken
40 - 42
30%
12 - 13
Bobcat
Wild Basin
(Bakken)
106 - 110
65%
69 - 71
OMP Distributions
Bighorn
Wild Basin
(Bakken)
68 - 72
Significant Cash Flow from Midstream Provides Material Value
2021E
OAS Adjusted EBITDAX($MM)
1
2021E OAS EBITDAX at $50/bbl WTI
OAS
E&P EBITDAX
OMP
Distributions
to OAS
Retained
midstream
to OAS
$429 - $452
$53
$81 - $84
$295 - $315
1) Assumes flat $0.54/unit distribution through 2021
2) See Definitions of all non-GAAP measures and reconciliations to their most comparable GAAP measure can be found on the Oasis website at www.oasispetroleum.com. E&P EBITDAX excludes midstream ownership credits which are included in consolidated GAAP financials. DevCo portion of EBITDAX reflects retained interest in Bobcat and Beartooth DevCos. OMP distributions reflect distributions forOasis’s ownership of OMP units and OMP GP, assuming distributions as held flat at current levels.
2/12/2021
2021E
EV OAS' OMP LP unit value Upstream EV 1,377 - $374 - $601 = $402 E&P EBITDA = $305 Retained Midstream at OMP multiple1.3x
3.1 3.6 3.9 4.1 4.2 4.3 5.4 5.7 5.9 6.2 6.3 0 1 2 3 4 5 6 7Attractive Valuation for OAS Shareholders
OAS EV($MM)
1,4
OAS Adjusted EBITDAX($MM)
2
2021E OAS EBITDAX at $50/bbl WTI
OAS RBL
Drawn Less
Cash
OAS Market
Capitalization
1) Market cap reflects 20.36MM shares (20MM + RSUs allocated to Board/NEOs + PSUs/LSUs to NEOs) x price on 2/23/21; OAS has $260MM drawn on RBL with $15.1MM of cash as of 12/31/2020
2) See Definitions of all non-GAAP measures and reconciliations to their most comparable GAAP measure can be found on the Oasis website at www.oasispetroleum.com. E&P EBITDAX excludes midstream ownership credits which are included in consolidated GAAP financials. DevCo portion of EBITDAX reflects retained interest in Bobcat and Beartooth DevCos. OMP distributions reflect distributions forOasis’s ownership of OMP units and OMP GP, assuming distributions as held flat at current levels.
3) Peer estimates and prices from Factset as of 2/23/2021. OAS EBITDAX is estimate at $50/bbl WTI consistent with 2/24/2021 guidance (E&P EBITDAX + OMP distributions + DevCo EBITDA) at midpoint. Peer Group: CDEV, CLR, CPE, LPI, MTDR, NOG, PDCE, RRC, SM, WLL. 4) 12/31/2020 figures reflect unaudited estimates ofOasis’s debt and cash balance as of that date and may differ from the cash and cash equivalents and long-term debt balances in the Company’s audited financial statements prepared in accordance with GAAP
E&P Peers at ~5.0x
3Compelling Valuation
3
EV/EBITDAX (2021E)
E&P
EBITDAX
OMP
Distributions
to OAS
Retained
midstream
at OAS
$245
$1,377
$1,132
$429 - $452
$53
$81 - $84
$295 - $315
Implied Upstream EV / EBITDAX
3
=
2021 guidance
p. 23
A New Tomorrow, Today
Bakken – Cornerstone Asset
1) Production as of 4Q20
2) Percent operated and working interest is based on producing wells
Contiguous core asset with
87% of OAS production and
strong cash margins
One of the largest
producers and acreage
holders
Strong FCF from proven /
highly predictable asset
base
Peer leading well cost and
performance
Competitive Advantages
A New Tomorrow, Today
404k
Net Acres
51.3
Mboepd
192
%
Operated
271
%
Working
Interest
210+ Years of Top-Tier Inventory
Drives Free Cash Flow
Wild
Basin
South
Nesson
Indian
Hills
Painted
Woods
North
Alger
Red Bank
Cottonwood
Montana
Focus Area
Long-term Upside
19.0
20.8
0
5
10
15
20
25
Avg. '16-'18
2019
Bakken - Deep Top-Tier Inventory
Bakken Inventory Overview
10+ years of top-tier inventory at 2021 completion pace
Breakevens between $30-$45 WTI w/15% discount rate
Well economics fully-loaded with corporate overhead of
$2.50/bbl
2021 program to generate >50% IRR at $45 WTI
Disciplined investment framework drives superior well head and
corporate returns
Focus Areas: Wild Basin, South Nesson, Indian Hills, Painted
Woods, North Alger
Recent well performance in-line with historical average
Quality Inventory Supports Magnitude and Duration
of Free Cash Flow
12 M
onth
Cumu
lati
ve O
il
(Mbbl
/1,000’)
1) Well performance data from Enverus– all horizontal OAS wells across all Williston Basin locations. 2020 vintages excluded given 2Q20 shut-ins affect comparability.
~10
%
OAS Williston Basin Performance
1
A New Tomorrow, Today
Permian – Premier, Multi-Stacked Oil Focused Asset
Repeatable, capital efficient
deployment
Advantaged geologic position
Oil-rich and multi-stacked pay
zones
–
~80% oil mix
Strong inventory and compelling
economics
Optimizing parent-child
relationships and flow back
Improving well costs & overall
capital efficiency
Competitive Advantages
A New Tomorrow, Today
1) Production as of 4Q20
2) Percent operated and working interest is based on producing wells
24k
Net Acres
7.9
Mboepd
199
%
Operated
292
%
Working
Interest
2Extensive Multi-Stacked Inventory in the Core
of the Delaware Basin
Permian Inventory Positioned for Long-Term Returns
Permian Inventory Overview
10+ years of top-tier inventory at 2021 completion pace
Measured program generates attractive rates of
return across portfolio
Wider spacing delivers improved well head returns
Disciplined investment framework provides flexibility in
program execution
Opportunities to lengthen laterals further improve returns
Focus Areas: 3
rd
Bone Springs Shale and Sand, Wolfcamp
A, B, & C
Co-development is key for effective stimulation
3
rdBone Springs Shale
3
rdBone Springs Sand
Wolfcamp A
Wolfcamp B
Wolfcamp C
7
6
6
6
Updated View on Spacing
A New Tomorrow, Today
Midstream Position Generates FCF and Creates Optionality
Oasis Midstream Partners (OMP) Position
Significant (~68%) ownership position in top tier midstream
company
OMP is a leading owner, developer, operator and acquirer of a
diversified portfolio of midstream assets in North America
Generates significant distributions with strong coverage and
balance sheet
Third party customers provide significant revenue and additions
will be a priority for future
Retained Midstream Interests
Receives meaningful cash flow from retained DevCo ownership
interest
Evaluating Optimal Structure and
Value Creation Options
A Stronger Oasis Aligned with Shareholder Interests
Best-in-Class
Balance Sheet
Returns-Focused
Business Model
High Quality Assets
Generating Significant
Free Cash Flow
ESG Leadership
Strong Strategic
Direction Aligned
with Shareholders
The Right Team
to Execute
A New Tomorrow, Today
New Board Driving Our Strategic Plan
Douglas E.
Brooks
Samantha F.
Holroyd
John D.
Jacobi
N. John
Lancaster, Jr.
Robert J.
McNally
Cynthia L.
Walker
OAS Roles /
Committees
1Board Chair
and CEO
Lead Independent;
Chair of NESG
1; A&R
Chair of Comp;
NESG
Comp;
NESG
A&R;
Comp
Chair of A&R;
NESG
Industry Leadership
- Marathon Oil
- Energy XXI
- Yates Petroleum
- Aurora Oil & Gas
- Golden Advisors
- Lantana Energy
- TPG Sixth Street
- Denham
- Royal Dutch Shell
- Javelin Energy
- Jacobi-Johnson
- Covey Park
- CEO Venado Oil & Gas
- Oyster Creek
- Riverstone
- CSFB
- EQT
- EQM Midstream
- Precision Drilling
- Warrior Energy
- Simmons & Co
- Occidental
- Goldman Sachs
Current and Previous
Board(s)
- California Resources
- Chaparral Energy
- Madalena Energy
- Energy XXI
- Yates
- Aurora Oil & Gas
-
Gulfport Energy
- Pioneer Energy
- Comstock Resources
- Liberty Oilfield
- Magellan Midstream
- Cobalt International
- Warrior Energy
- Dalbo Holdings
- EQT
- Summit Midstream
-
Sempra Energy
Current or past public
company CEO or C-suite
✓
✓
✓
✓
E&P/Midstream
Operations
✓
✓
✓
✓
✓
✓
Capital
Allocation/Investment
✓
✓
✓
✓
✓
✓
Environmental, health and
safety management
✓
✓
✓
✓
Mergers and acquisitions
✓
✓
✓
✓
✓
✓
Independent,
experienced and
aligned with
shareholders
83% Independent
New Board provides
an updated perspective
33% of directors are
women
Average of 30+ years
of industry experience
Leadership roles across
upstream, midstream,
oil services, investing,
banking, advising and
finance
A New Tomorrow, Today
Highly Experienced Management Team
Senior management
team with extensive
expertise in the oil and
gas industry
Deep knowledge of
Oasis’ business
Brings differentiated
and advanced skills in
identification, acquisition
and execution of
resource conversion
opportunities
DOUG BROOKS
Board Chair & Chief
Executive Officer
39 years of oil & gas
industry experience
Previously CEO at
Yates Petroleum,
Aurora Oil and Gas
and Energy XXI
Multiple positions at
Marathon Oil
TAYLOR REID
President & Chief
Operating Officer
COO since inception
in 2007
35 years of oil & gas
industry experience
Multiple positions at
Conoco Phillips and
Burlington Resources
MICHAEL LOU
EVP & Chief Financial Officer
CFO or similar
capacities since 2009
23 years of oil & gas
industry experience
10 years energy
investment banking
CFO of private E&P
company
NIKO
LORENTZATOS
EVP General Counsel and
Corporate Secretary
GC since 2010
21 years of oil & gas
industry experience
Senior Counsel with
Targa Resources,
ConocoPhillips and
Burlington Resources
Incentives Aligned with Long-Term Value Creation
1
Longer Vesting Schedules and Stringent Returns Criteria
Differentiate Oasis’s Compensation Program
Jan. 2021
Initial Grant
Jan. 2025
Normal Grant TBD
Jan. 2024
Normal Grant TBD
Jan. 2023
No Grant
Jan. 2022
No Grant
25%
25%
25%
25%
Time-Based
RSUs
Relative TSR
PSUs vs.
Industry Peers
Relative TSR
PSUs vs.
General
Industry Index
Absolute TSR
PSUs/LSUs
1) Full details of compensation program can be found in form 8-K filed with SEC on January 21, 2021. Less than 50% of 2.4MM has been allocated and large portion of units are at risk.
Relative TSR PSU - Peers
50% 3 year and 50% 4 year vesting
Measured on cumulative TSR over
period vs peers
Absolute TSR PSU/LSU
50% 3 year and 50% 4 year vesting
Measured on absolute TSR following
four quarterly measurement periods
prior to vesting periods
RSUs - 4 year ratable vesting
Relative TSR PSU - Index
50% 3 year and 50% 4 year vesting
Measured on cumulative TSR over
period vs general market index peers
100%
100%
100%
100%
100%
100%
Vesting Schedule
50%
50%
50%
50%
50%
50%
100%
A New Tomorrow, Today
2021 Guidance ($MM except per unit)
OAS E&P Metrics
FY2021
1Q21
Oil Volumes (Mbbl/d)
37.5 – 39.5
35 – 37
Total Volumes (Mboe/d)
57 – 60
54 – 57
Oil Differential per Bbl
$2.00 - $3.00
$2.00 - $3.00
Gas realization (% NYMEX)
100%
110%
LOE per Boe
$9.50 - $10.50
$10.00 - $11.00
GM&T per Boe
$4.00 - $4.25
$4.25 - $4.50
Cash E&P G&A
$42 - $45
$11 - $12
Production taxes
7.2% - 7.4%
7.2% - 7.4%
E&P CapEx
$225 - $235
$45 - $47
OAS portion of Midstream CapEx
$6 - $8
$2 - $3
OAS Total CapEx
$231 - $243
$47 - $50
Cash Interest
$9 - $10
$2 - $3
Cash Taxes
1$14 - $26
$0
Retained Midstream Cash Flow Attributable to OAS
*
DevCo
OAS
Ownership
FY2021
1Q21
Bobcat DevCo
64.7%
$69 - $71
$16 - $20
Beartooth DevCo
30%
$12 - $13
$2 - $3
Total
$81 - $84
$18 - $23
*Additionally, OAS owns 22.8MM units of OMP and Incentive Distribution Rights. OMP declared a distribution of $0.54 per unit 02/24/2021, which was flat quarter over quarter. Assuming the distribution from OMP stays flat for 2021, OAS would receive approximately $49MM in LP distributions and $4MM in GP distributions in 2021.
Oasis Financial and Operational Results
See slides 25 & 26 for reconciliations
1) Excludes litigation contingency of $22.75MM and $26.3MM of restructuring related expenses
2) In accordance with OAS credit facility to capture cash flows not associated with OMP 3) OAS adjusted EBITDAX conforms to definition
of EBITDAX in OAS credit facility and excludes OMP EBITDA
4) Excludes capitalized interest. Midstream CapEx reflects adjustments to prior reporting periods
5) Assumes interest based on Exit Revolver Exposure for entire period
3Q20
4Q20
3Q20
4Q20
Oil Revenues
155.1
143.0
Oil Production (Boepd)
43,748
38,646
Gas Revenues
14.8
26.8
Gas Production (Mcfpd)
130,981
123,105
Total Oil & Gas Revenue
169.9
169.8
Total Production (Boepd)
65,578
59,164
Other Services Margin
0.0
-0.3
NYMEX WTI ($/Bbl)
40.96
42.62
Purchased Oil and Gas margin
-2.6
-0.5
Realized Oil Price
38.52
40.21
Realized Hedges
80.2
0.1
NYMEX Henry Hub ($/mmBtu)
1.99
2.52
Other Income / non-cash adjustments
1.6
-2.5
Realized Gas Price
1.23
2.37
Operating Costs
Operating Costs per boe
E&P LOE
41.4
38.1
E&P LOE
6.85
7.01
E&P GP&T
22.3
22.7
E&P GM&T
3.69
4.17
E&P Cash G&A
113.1
11.9
E&P Cash G&A
(1)2.17
2.19
Production Taxes
13.0
12.2
Production Taxes
2.16
2.25
Total E&P Operating Costs
89.8
85.0
Total Operating Costs
14.88
15.61
Adjusted E&P EBITDAX
159.2
81.6
Adjusted E&P EBITDAX per boe
26.39
15.00
Cash distributions from midstream ownership
33.1
30.5
Other adjustments
2-4.1
-5.7
OAS Adjusted EBITDAX
3188.2
106.4
Exit
4Q20
OAS Unhedged Adjusted EBITDAX
108.0
106.3
Borrowing Base
575.0
575.0
OAS CapEx
4Borrowing under revolver
340.0
260.0
E&P CapEx
8.7
13.6
LCs
41.0
6.8
Midstream CapEx from retained DevCo ownership
-1.2
1.6
Total Revolver Exposure
381.0
266.8
Total CapEx
7.4
15.2
Other Debt
6.3
5.4
Total Debt
387.3
272.2
Pro forma interest / Cash Interest
(5)4.4
5.2
Cash
16.0
15.1
Liquidity
210.0
323.3
Free Cash Flow
Leverage (Net Debt to Annualized OAS Adjusted EBITDAX)
Hedged
176.3
86.0
Hedged
0.5x
0.6x
Unhedged
96.2
85.8
Unhedged
0.9x
0.6x
Balance Sheet 12/31/20 ($MM)
A New Tomorrow, Today
4Q20 Consolidated Financial Metrics ($MM)
1) On November 19, 2020 (the “Emergence Date”) Oasis emerged from voluntary bankruptcy under Chapter 11 of the Bankruptcy Code. Beginning on the Emergence Date, the Company applied fresh start accounting, which resulted in a new basis of accounting, and became a new entity for financial reporting purposes. As a result of the application of fresh start accounting and the effects of the implementation of the Company’s Chapter 11 plan of reorganization, the consolidated financial statements after November 19, 2020 are not comparable with the consolidated financial statements on or prior to that date. References to “Successor” refer to the Oasis entity after emergence from bankruptcy on the Emergence Date. References to
“Predecessor” refer to the Oasis entity prior to emergence from bankruptcy. References to “Successor Period” refer to the period from November 20, 2020 through December 31, 2020. Although GAAP requires that we report on results for the Successor Period and the Current Predecessor Quarter separately, the Company’s operating results are displayed for the three months ended December 31, 2020 by combining the results of the applicable Predecessor and Successor period in order to provide the most meaningful comparison of the Company’s current results to prior periods. Accordingly, references to “4Q20 Combined” refer to the three months ended December 31, 2020.
2) Negative amount reflects differences between the estimated capital expenditures accrued in a reporting period and actual capital expenditures recognized in a subsequent reporting period.
Predecessor
Successor
Non- GAAP
110/1/20-11/19/20 11/19/20-12/31/20
4Q20 Combined
Oil Revenues
73.9
69.1
143.0
Gas Revenues
17.1
17.4
34.5
Total Oil & Gas Revenue
91.0
86.4
177.5
Other Services Margin
-0.5
0.2
-0.3
Purchased Oil and Gas margin
-0.4
-0.1
-0.5
Realized Hedges
0.0
0.1
0.1
Other Income / non-cash adjustments
-2.1
-0.4
-2.5
Operating Costs
E&P LOE
9.6
17.8
27.5
E&P GP&T
12.2
9.3
21.5
E&P Cash G&A
9.1
12.0
21.1
Production Taxes
6.3
5.9
12.2
Total E&P Operating Costs
37.2
45.1
82.3
OAS CapEx
2E&P CapEx
-4.5
18.1
13.6
Midstream CapEx from retained DevCos
0.5
1.2
1.6
Total CapEx
-4.0
19.2
15.2
Cash Interest
3.2
2.0
5.2
Consolidated EBITDA
64.1
55.1
119.2
Select Consolidated Financial Statistics
Reconciliation from Consolidated Financial Statements to E&P Business
Adjusting for midstream benefits and credits
1) Adjustment to Gas Revenue, LOE, GP&T are related to midstream credits for consolidating purposes. G&A and EBITDAX adjustments are related to restructuring costs incurred in 3Q20 and 4Q20. Note that G&A does not include litigation contingency of $22.75MM accrued in 3Q20
$MM except per unit
Consolidated($)
Adjustment
1($)
E&P($)
Consolidated($)
Adjustment
1($)
E&P($)
Revenue
24.5
-9.7
14.8
34.5
-7.7
26.8
Price per MCF
2.04
-0.81
1.23
3.05
-0.68
2.37
LOE
29.4
12.0
41.4
27.5
10.7
38.1
LOE per Boe
4.87
1.99
6.85
5.05
1.96
7.01
GP&T
20.3
2.0
22.3
21.5
1.2
22.7
GP&T per Boe
3.37
0.33
3.69
3.94
0.22
4.17
Cash G&A
39.4
-26.3
13.1
21.1
-9.2
11.9
Cash G&A per Boe
6.54
-4.37
2.17
3.88
-1.69
2.19
Per Unit($)
$MM
Per Unit($)
$MM
NYMEX WTI ($/Bbl)
$ 40.96
$ 164.8
$ 42.62
$ 151.5
Realized Oil Price
38.52
155.0
40.21
143.0
Oil Differential per Bbl
2.44
9.8
2.41
8.6
NYMEX Henry Hub ($/mmBtu)
1.99
24.0
2.52
28.6
Realized Gas Price per Mcf
1.23
14.8
2.37
26.8
Gas Differential per Mcf
0.76
9.2
0.16
1.8
Total Differential
3.15
19.0
1.90
10.3
GP&T
3.69
22.3
4.17
22.7
Differential + GP&T
6.84
41.3
6.06
33.0
$MM
$MM
Oasis Consolidated EBITDAX
186.7
119.2
Less: OMP DevCo EBITDAX
57.9
52.5
Add: EBITDAX Attributable to OAS
19.8
17.2
Add: Cash Distributions from OMP to OAS
13.3
13.3
Add: Adjustment
(1)26.3
9.2
EBITDAX per OAS credit agreement
188.2
106.4
E&P Cash G&A
Differentials
EBITDAX Reconciliation to OAS
credit agreement
3Q20
4Q20
Gas Revenue
Lease Operating Expense
Gathering, Processing, and
Transport
A New Tomorrow, Today
Oasis and OMP Financial Highlights
1,2
1) Debt is calculated in accordance with respective credit facility definitions. OAS and OMP debt are not cross collateralized and guarantors under OAS credit facility are not responsible for OMP debt. OAS revolver, cash, and LCs, are as of 12/31/20 and surety bonds and finance lease liabilities are as of 9/30/20. OMP net debt as of 9/30/20
2) 12/31/2020 figures reflect unaudited estimates ofOasis’s debt and cash balance as of that date and may differ from the cash and cash equivalents and long-term debt balances in the Company’s audited financial statements prepared in accordance with GAAP
OAS & OMP Leverage ($MM)
OMP Financial Highlights – 4Q20 Actuals ($MM)
OAS (E&P)
OMP
Revolving credit facility
Capacity
575.0
575.0
Revolver Borrowings
260.0
450.0
LCs
6.8
0.0
Finance Lease Liabilities
2.9
0.6
Surety bonds
2.5
2.5
Total Debt
272.2
453.0
Cash and restricted cash
15.1
5.1
Net Debt
257.1
447.9
Liqudity
323.3
130.1
4Q20 Annualized EBITDA (clean)
106.4
34.9
Leverage (Net Debt to Annualized EBITDAX)
0.6x
3.2x
Bighorn
Bobcat
Beartooth
Panther
Total
Gross Operating Income $ 16.0 $ 17.9 $ 8.4 $ 1.4 $ 43.7 Gross Depreciation $ 2.5 $ 4.1 $ 2.3 $ 0.2 $ 9.1
Gross Midstream EBITDA $ 18.5 $ 22.0 $ 10.7 $ 1.6 $ 52.8
OMP Ownership 100% 35% 70% 100%
Net OMP EBITDA $ 18.5 $ 7.9 $ 7.5 $ 1.6 $ 35.5
less: Cash PubCo Expenses 0.6
Net OMP EBITDA (net of PubCo expenses) $ 34.9
less: Cash interest 2.3 less: Maintenance CapEx 1.7
Distributable Cash Flow $ 30.8 Declared Distribution
LP 18.3
GP 1.0
Total Declared Distribution 19.3
Coverage 1.6x
Guided Coverage (Implied) ~1.3-1.5x
Gross Midstream CapEx $ 0.3 $ 4.5 $ 0.5 $ 1.1 $ 6.4
Net OMP CapEx 0.3 1.6 0.4 1.1 3.3
Guided OMP CapEx $2.7 - $3.2 $0.3 - $1.3 $0.5 - $0.8 $1.8 - $2.8 $5.4 - $8.2
Revolver Balance at YE20 $ 450.0
Cash 5.1
Net Debt $ 444.9
2020 EBITDA 144.4
