Condensed Consolidating Financial Information

The Notes (see Note 7) are guaranteed on a senior unsecured basis by the Guarantors, which are 100% owned by the Company. These guarantees are full and unconditional and joint and several among the Guarantors. Certain of the Company’s immaterial wholly-owned subsidiaries do not guarantee the Notes (“Non-Guarantor Subsidiaries”).

The following financial information reflects consolidating financial information of the parent company, Oasis Petroleum Inc. (“Issuer”), and its Guarantors on a combined basis, prepared on the equity basis of accounting. The Non-Guarantor Subsidiaries are immaterial and, therefore, not presented separately. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantors operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantors because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantors.

Condensed Consolidating Balance Sheet



	March 31, 2015
	Parent/ Issuer		Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Cash and cash equivalents	$	774	$	9,414		$	—		$	10,188
Accounts receivable	—		243,169			—			243,169
Accounts receivable – affiliates	1,032		143,517			(144,549		)	—
Other current assets	148		293,082			—			293,230
Oil and gas properties (successful efforts method)	—		6,187,638			—			6,187,638
Other property and equipment	—		356,940			—			356,940
Accumulated depreciation, depletion, amortization and impairment	—		(1,215,216		)	—			(1,215,216		)
Investments in and advances to subsidiaries	4,499,571		—			(4,499,571		)	—
Other long-term assets	190,812		12,674			(162,498		)	40,988
Total assets	$	4,692,337	$	6,031,218		$	(4,806,618	)	$	5,916,937
LIABILITIES AND EQUITY
Accounts payable	$	—	$	9,339		$	—		$	9,339
Accounts payable – affiliates	143,517		1,032			(144,549		)	—
Other current liabilities	24,575		608,325			—			632,900
Long-term debt	2,200,000		165,000			—			2,365,000
Other long-term liabilities	—		747,951			(162,498		)	585,453
Common stock	1,372		—			—			1,372
Other equity	2,322,873		4,499,571			(4,499,571		)	2,322,873
Total liabilities and equity	$	4,692,337	$	6,031,218		$	(4,806,618	)	$	5,916,937

Condensed Consolidating Balance Sheet



	December 31, 2014
	Parent/ Issuer		Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Cash and cash equivalents	$	776	$	45,035		$	—		$	45,811
Accounts receivable	—		306,471			—			306,471
Accounts receivable – affiliates	781		91,459			(92,240		)	—
Prepaid expenses	297		13,976			—			14,273
Other current assets	—		330,052			—			330,052
Oil and gas properties (successful efforts method)	—		5,966,140			—			5,966,140
Other property and equipment	—		313,439			—			313,439
Accumulated depreciation, depletion, amortization and impairment	—		(1,092,793		)	—			(1,092,793		)
Investments in and advances to subsidiaries	4,032,494		—			(4,032,494		)	—
Other long-term assets	178,752		25,584			(149,317		)	55,019
Total assets	$	4,213,100	$	5,999,363		$	(4,274,051	)	$	5,938,412
LIABILITIES AND EQUITY
Accounts payable	$	—	$	20,958		$	—		$	20,958
Accounts payable – affiliates	91,459		781			(92,240		)	—
Other current liabilities	49,340		724,830			—			774,170
Long-term debt	2,200,000		500,000			—			2,700,000
Other long-term liabilities	—		720,300			(149,317		)	570,983
Equity	1,872,301		4,032,494			(4,032,494		)	1,872,301
Total liabilities and equity	$	4,213,100	$	5,999,363		$	(4,274,051	)	$	5,938,412

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	180,387		$	—		$	180,387
Total operating expenses	8,619			205,403			—			214,022
Operating loss	(8,619		)	(25,016		)	—			(33,635		)
Equity in earnings in subsidiaries	12,619			—			(12,619		)	—
Other income (expense)	(35,222		)	43,440			—			8,218
Income (loss) before income taxes	(31,222		)	18,424			(12,619		)	(25,417		)
Income tax benefit (expense)	13,181			(5,805		)	—			7,376
Net income (loss)	$	(18,041	)	$	12,619		$	(12,619	)	$	(18,041	)

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	349,519		$	—		$	349,519
General and administrative expenses	5,612			17,908			—			23,520
Other operating expenses	—			180,312			—			180,312
Gain on sale of properties	—			183,393			—			183,393
Operating income (loss)	(5,612		)	334,692			—			329,080
Equity in earnings in subsidiaries	196,933			—			(196,933		)	—
Interest expense, net of capitalized interest	(37,424		)	(2,734		)	—			(40,158		)
Other income (expense)	3			(17,453		)	—			(17,450		)
Income before income taxes	153,900			314,505			(196,933		)	271,472
Income tax benefit (expense)	16,053			(117,572		)	—			(101,519		)
Net income	$	169,953		$	196,933		$	(196,933	)	$	169,953

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(7,988	)	$	96,349		$	—	$	88,361
Cash flows from investing activities:
Capital expenditures	—			(359,113		)	—		(359,113		)
Derivative settlements	—			109,259			—		109,259
Other investing activities	—			(828		)	—		(828		)
Net cash used in investing activities	—			(250,682		)	—		(250,682		)
Cash flows from financing activities:
Proceeds from sale of common stock	463,218			—			—		463,218
Proceeds from revolving credit facility	—			145,000			—		145,000
Principal payments on revolving credit facility	—			(480,000		)	—		(480,000		)
Other financing activities	(455,232		)	453,712			—		(1,520		)
Net cash provided by financing activities	7,986			118,712			—		126,698
Decrease in cash and cash equivalents	(2		)	(35,621		)	—		(35,623		)
Cash and cash equivalents at beginning of period	776			45,035			—		45,811
Cash and cash equivalents at end of period	$	774		$	9,414		$	—	$	10,188

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(56,630	)	$	264,897		$	—	$	208,267
Cash flows from investing activities:
Capital expenditures	—			(280,895		)	—		(280,895		)
Proceeds from sale of properties	—			321,943			—		321,943
Other investing activities	—			(6,147		)	—		(6,147		)
Net cash provided by investing activities	—			34,901			—		34,901
Cash flows from financing activities:
Principal payments on revolving credit facility	—			(275,570		)	—		(275,570		)
Other financing activities	23,289			(26,490		)	—		(3,201		)
Net cash provided by (used in) financing activities	23,289			(302,060		)	—		(278,771		)
Decrease in cash and cash equivalents	(33,341		)	(2,262		)	—		(35,603		)
Cash and cash equivalents at beginning of period	34,277			57,624			—		91,901
Cash and cash equivalents at end of period	$	936		$	55,362		$	—	$	56,298