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



	September 30, 2015
	Parent/ Issuer		Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
ASSETS
Cash and cash equivalents	$	757	$	11,508		$	—		$	12,265
Accounts receivable	16		198,166			—			198,182
Accounts receivable – affiliates	1,258		221,784			(223,042		)	—
Inventory	—		12,929			—			12,929
Prepaid expenses	417		8,100						8,517
Other current assets	—		131,757			—			131,757
Oil and gas properties (successful efforts method)	—		6,337,945			—			6,337,945
Other property and equipment	—		436,052			—			436,052
Accumulated depreciation, depletion, amortization and impairment	—		(1,466,422		)	—			(1,466,422		)
Investments in and advances to subsidiaries	4,526,226		—			(4,526,226		)	—
Other long-term assets	227,143		27,849			(201,109		)	53,883
Total assets	$	4,755,817	$	5,919,668		$	(4,950,377	)	$	5,725,108
LIABILITIES AND EQUITY
Accounts payable – affiliates	221,784		1,258			(223,042		)	—
Other current liabilities	24,551		391,382			—			415,933
Long-term debt	2,200,000		180,000			—			2,380,000
Other long-term liabilities	—		820,802			(201,109		)	619,693
Common stock	1,376		—			—			1,376
Other stockholders’ equity	2,308,106		4,526,226			(4,526,226		)	2,308,106
Total liabilities and stockholders’ equity	$	4,755,817	$	5,919,668		$	(4,950,377	)	$	5,725,108

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
Total stockholders’ equity	1,872,301		4,032,494			(4,032,494		)	1,872,301
Total liabilities and stockholders’ equity	$	4,213,100	$	5,999,363		$	(4,274,051	)	$	5,938,412

Condensed Consolidating Statement of Operations



	Three Months Ended September 30, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	197,235		$	—		$	197,235
Total operating expenses	(5,903		)	(211,430		)	—			(217,333		)
Gain on sale of properties	—			172			—			172
Operating loss	(5,903		)	(14,023		)	—			(19,926		)
Equity in earnings of subsidiaries	49,899			—			(49,899		)	—
Interest expense, net of capitalized interest	(34,020		)	(2,493		)	—			(36,513		)
Other income (expense)	1			103,885			—			103,886
Income before income taxes	9,977			87,369			(49,899		)	47,447
Income tax benefit (expense)	17,078			(37,470		)	—			(20,392		)
Net income	$	27,055		$	49,899		$	(49,899	)	$	27,055

Condensed Consolidating Statement of Operations



	Three Months Ended September 30, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	368,659		$	—		$	368,659
General and administrative expenses	(6,373		)	(17,542		)	—			(23,915		)
Other operating expenses	—			(210,684		)	—			(210,684		)
Gain on sale of properties	—			43			—			43
Operating income (loss)	(6,373		)	140,476			—			134,103
Equity in earnings of subsidiaries	148,357			—			(148,357		)	—
Interest expense, net of capitalized interest	(36,724		)	(2,696		)	—			(39,420		)
Other income (expense)	—			103,388			—			103,388
Income before income taxes	105,260			241,168			(148,357		)	198,071
Income tax benefit (expense)	16,327			(92,811		)	—			(76,484		)
Net income	$	121,587		$	148,357		$	(148,357	)	$	121,587

Condensed Consolidating Statement of Operations



	Nine Months Ended September 30, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	607,668		$	—		$	607,668
General and administrative expenses	(20,847		)	(46,343		)	—			(67,190		)
Other operating expenses	—			(601,648		)	—			(601,648		)
Gain on sale of properties	—			172			—			172
Operating loss	(20,847		)	(40,151		)	—			(60,998		)
Equity in earnings of subsidiaries	28,269			—			(28,269		)	—
Interest expense, net of capitalized interest	(103,435		)	(9,267		)	—			(112,702		)
Other income (expense)	5			111,650			—			111,655
Income (loss) before income taxes	(96,008		)	62,232			(28,269		)	(62,045		)
Income tax benefit (expense)	51,792			(33,963		)	—			17,829
Net income (loss)	$	(44,216	)	$	28,269		$	(28,269	)	$	(44,216	)

Condensed Consolidating Statement of Operations



	Nine Months Ended September 30, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Total revenues	$	—		$	1,090,556		$	—		$	1,090,556
General and administrative expenses	(17,790		)	(50,396		)	—			(68,186		)
Other operating expenses	—			(579,718		)	—			(579,718		)
Gain on sale of properties	—			187,076			—			187,076
Operating income (loss)	(17,790		)	647,518			—			629,728
Equity in earnings of subsidiaries	410,775			—			(410,775		)	—
Interest expense, net of capitalized interest	(110,853		)	(7,715		)	—			(118,568		)
Other income (expense)	3			20,500			—			20,503
Income before income taxes	282,135			660,303			(410,775		)	531,663
Income tax benefit (expense)	48,238			(249,528		)	—			(201,290		)
Net income	$	330,373		$	410,775		$	(410,775	)	$	330,373

Condensed Consolidating Statement of Cash Flows



	Nine Months Ended September 30, 2015
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Net cash provided by operating activities	$	3,323		$	277,014		$	—	$	280,337
Cash flows from investing activities:
Capital expenditures	—			(740,633		)	—		(740,633		)
Derivative settlements	—			291,436			—		291,436
Other investing activities	—			(1,161		)	—		(1,161		)
Net cash used in investing activities	—			(450,358		)	—		(450,358		)
Cash flows from financing activities:
Proceeds from sale of common stock	462,833			—			—		462,833
Proceeds from revolving credit facility	—			618,000			—		618,000
Principal payments on revolving credit facility	—			(938,000		)	—		(938,000		)
Other financing activities	(466,175		)	459,817			—		(6,358		)
Net cash provided by (used in) financing activities	(3,342		)	139,817			—		136,475
Decrease in cash and cash equivalents	(19		)	(33,527		)	—		(33,546		)
Cash and cash equivalents at beginning of period	776			45,035			—		45,811
Cash and cash equivalents at end of period	$	757		$	11,508		$	—	$	12,265

Condensed Consolidating Statement of Cash Flows



	Nine Months Ended September 30, 2014
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(64,099	)	$	737,591		$	—	$	673,492
Cash flows from investing activities:
Capital expenditures	—			(998,889		)	—		(998,889		)
Proceeds from sale of properties	—			324,938			—		324,938
Other investing activities	—			(33,163		)	—		(33,163		)
Net cash used in investing activities	—			(707,114		)	—		(707,114		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—			370,000			—		370,000
Principal payments on revolving credit facility	—			(355,570		)	—		(355,570		)
Other financing activities	30,599			(36,114		)	—		(5,515		)
Net cash provided by (used in) financing activities	30,599			(21,684		)	—		8,915
Increase (decrease) in cash and cash equivalents	(33,500		)	8,793			—		(24,707		)
Cash and cash equivalents at beginning of period	34,277			57,624			—		91,901
Cash and cash equivalents at end of period	$	777		$	66,417		$	—	$	67,194