Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Financial Information

The Notes (see Note 10 – Long-Term Debt) 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 operating units, including OMP, which is accounted for on a consolidated basis, do not guarantee the Notes (“Non-Guarantor Subsidiaries”).

The following financial information reflects consolidating financial information of the parent company, Oasis Petroleum Inc. (“Issuer”), its Guarantors on a combined basis and the Non-Guarantor Subsidiaries on a combined basis, prepared on the equity basis of accounting. 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, 2018
	Parent/ Issuer			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents	$	179		$	13,508		$	4,048		$	—		$	17,735
Accounts receivable, net	—			370,001			977			—			370,978
Accounts receivable - affiliates	373,954			55,939			57,087			(486,980		)	—
Inventory	—			23,039			—			—			23,039
Prepaid expenses	447			4,760			747			—			5,954
Intangible assets, net	—			958			—			—			958
Other current assets	—			193			—			—			193
Total current assets	374,580			468,398			62,859			(486,980		)	418,857
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			8,914,811			—			(3,715		)	8,911,096
Other property and equipment	—			220,293			743,578			—			963,871
Less: accumulated depreciation, depletion, amortization and impairment	—			(2,647,665		)	(40,696		)	—			(2,688,361		)
Total property, plant and equipment, net	—			6,487,439			702,882			(3,715		)	7,186,606
Investments in and advances to subsidiaries	5,198,126			428,245			—			(5,626,371		)	—
Deferred income taxes	191,671			—			—			(191,671		)	—
Long-term inventory	—			12,506			—			—			12,506
Other assets	—			19,062			1,899			—			20,961
Total assets	$	5,764,377		$	7,415,650		$	767,640		$	(6,308,737	)	$	7,638,930
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	15,534		$	593		$	—		$	16,127
Accounts payable - affiliates	40,406			431,041			15,533			(486,980		)	—
Revenues and production taxes payable	—			245,198			—			—			245,198
Accrued liabilities	284			165,899			67,239			—			233,422
Accrued interest payable	19,872			736			73			—			20,681
Derivative instruments	—			149,657			—			—			149,657
Advances from joint interest partners	—			4,888			—			—			4,888
Other current liabilities	—			40			—			—			40
Total current liabilities	60,562			1,012,993			83,438			(486,980		)	670,013
Long-term debt	1,953,534			626,000			117,000			—			2,696,534
Deferred income taxes	—			498,420			—			(191,671		)	306,749
Asset retirement obligations	—			50,624			1,331			—			51,955
Derivative instruments	—			19,699			—			—			19,699
Other liabilities	—			7,822			—			—			7,822
Total liabilities	2,014,096			2,215,558			201,769			(678,651		)	3,752,772
Stockholders’ equity
Capital contributions from affiliates	—			3,640,084			224,008			(3,864,092		)	—
Common stock, $0.01 par value: 450,000,000 shares authorized; 319,384,813 shares issued and 317,363,008 shares outstanding	3,154			—			—			—			3,154
Treasury stock, at cost: 2,021,805 shares	(28,200		)	—			—			—			(28,200		)
Additional paid-in-capital	3,055,003			8,994			—			(8,994		)	3,055,003
Retained earnings	720,324			1,413,388			21,593			(1,436,730		)	718,575
Oasis share of stockholders’ equity	3,750,281			5,062,466			245,601			(5,309,816		)	3,748,532
Non-controlling interests	—			137,626			320,270			(320,270		)	137,626
Total stockholders’ equity	3,750,281			5,200,092			565,871			(5,630,086		)	3,886,158
Total liabilities and stockholders’ equity	$	5,764,377		$	7,415,650		$	767,640		$	(6,308,737	)	$	7,638,930

Condensed Consolidating Balance Sheet



	December 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents	$	178		$	15,659		$	883		$	—		$	16,720
Accounts receivable, net	—			362,746			834			—			363,580
Accounts receivable - affiliates	425,668			46,020			85,818			(557,506		)	—
Inventory	—			19,367			—			—			19,367
Prepaid expenses	267			6,586			778			—			7,631
Derivative instruments	—			344			—			—			344
Other current assets	—			193			—			—			193
Total current assets	426,113			450,915			88,313			(557,506		)	407,835
Property, plant and equipment
Oil and gas properties (successful efforts method)	—			7,840,921			—			(1,966		)	7,838,955
Other property and equipment	—			214,818			653,928			—			868,746
Less: accumulated depreciation, depletion, amortization and impairment	—			(2,499,867		)	(34,348		)	—			(2,534,215		)
Total property, plant and equipment, net	—			5,555,872			619,580			(1,966		)	6,173,486
Investments in and advances to subsidiaries	4,790,976			422,132			—			(5,213,108		)	—
Derivative instruments	—			9			—			—			9
Deferred income taxes	183,568			—			—			(183,568		)	—
Long-term inventory	—			12,200			—			—			12,200
Other assets	—			19,587			2,013			—			21,600
Total assets	$	5,400,657		$	6,460,715		$	709,906		$	(5,956,148	)	$	6,615,130
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	13,370		$	—		$	—		$	13,370
Accounts payable - affiliates	34,382			511,486			11,638			(557,506		)	—
Revenues and production taxes payable	—			213,995			—			—			213,995
Accrued liabilities	216			177,446			58,818			—			236,480
Accrued interest payable	38,796			53			114			—			38,963
Derivative instruments	—			115,716			—			—			115,716
Advances from joint interest partners	—			4,916			—			—			4,916
Other current liabilities	—			40			—			—			40
Total current liabilities	73,394			1,037,022			70,570			(557,506		)	623,480
Long-term debt	1,949,606			70,000			78,000			—			2,097,606
Deferred income taxes	—			489,489			—			(183,568		)	305,921
Asset retirement obligations	—			47,195			1,316			—			48,511
Derivative instruments	—			19,851			—			—			19,851
Other liabilities	—			6,182			—			—			6,182
Total liabilities	2,023,000			1,669,739			149,886			(741,074		)	3,101,551
Stockholders’ equity
Capital contributions from affiliates	—			3,264,691			234,935			(3,499,626		)	—
Common stock, $0.01 par value: 450,000,000 shares authorized; 270,627,014 shares issued and 269,295,466 shares outstanding	2,668			—			—			—			2,668
Treasury stock, at cost: 1,331,548 shares	(22,179		)	—			—			—			(22,179		)
Additional paid-in-capital	2,677,217			8,922			—			(8,922		)	2,677,217
Retained earnings	719,951			1,379,475			11,639			(1,393,080		)	717,985
Oasis share of stockholders’ equity	3,377,657			4,653,088			246,574			(4,901,628		)	3,375,691
Non-controlling interests	—			137,888			313,446			(313,446		)	137,888
Total stockholders’ equity	3,377,657			4,790,976			560,020			(5,215,074		)	3,513,579
Total liabilities and stockholders’ equity	$	5,400,657		$	6,460,715		$	709,906		$	(5,956,148	)	$	6,615,130

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2018
	Parent/ Issuer			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	—			363,671			—			—			$	363,671
Purchased oil and gas sales	—			18,037			—			—			18,037
Midstream revenues	—			1,150			61,421			(34,649		)	27,922
Well services revenues	—			11,586			—			—			11,586
Total revenues	—			394,444			61,421			(34,649		)	421,216
Operating expenses
Lease operating expenses	—			55,699			—			(10,918		)	44,781
Midstream operating expenses	—			746			17,116			(9,877		)	7,985
Well services operating expenses	—			7,387			—			—			7,387
Marketing, transportation and gathering expenses	—			26,672			—			(5,659		)	21,013
Purchased oil and gas expenses	—			17,998			—			—			17,998
Production taxes	—			31,000			—			—			31,000
Depreciation, depletion and amortization	—			146,227			6,364			(3,326		)	149,265
Exploration expenses	—			769			—			—			769
Impairment	—			93			—			—			93
General and administrative expenses	7,232			17,678			6,150			(3,120		)	27,940
Total operating expenses	7,232			304,269			29,630			(32,900		)	308,231
Operating income (loss)	(7,232		)	90,175			31,791			(1,749		)	112,985
Other income (expense)
Equity in earnings of subsidiaries	32,164			31,529			—			(63,693		)	—
Net loss on derivative instruments	—			(71,116		)	—			—			(71,116		)
Interest expense, net of capitalized interest	(32,446		)	(4,438		)	(262		)	—			(37,146		)
Other expense	—			(183		)	—			—			(183		)
Total other expense	(282		)	(44,208		)	(262		)	(63,693		)	(108,445		)
Income (loss) before income taxes	(7,514		)	45,967			31,529			(65,442		)	4,540
Income tax benefit (expense)	8,104			(8,932		)	—			—			(828		)
Net income including non-controlling interests	590			37,035			31,529			(65,442		)	3,712
Less: Net income attributable to non-controlling interests	—			3,122			21,574			(21,574		)	3,122
Net income attributable to Oasis	$	590		$	33,913		$	9,955		$	(43,868	)	$	590

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Revenues
Oil and gas revenues	$	—		$	237,252		$	—		$	237,252
Purchased oil and gas sales	—			27,631			—			27,631
Midstream revenues	—			14,606			—			14,606
Well services revenues	—			5,627			—			5,627
Total revenues	—			285,116			—			285,116
Operating expenses
Lease operating expenses	—			43,872			—			43,872
Midstream operating expenses	—			3,327			—			3,327
Well services operating expenses	—			4,560			—			4,560
Marketing, transportation and gathering expenses	—			10,951			—			10,951
Purchased oil and gas expenses	—			28,002			—			28,002
Production taxes	—			20,299			—			20,299
Depreciation, depletion and amortization	—			126,666			—			126,666
Exploration expenses	—			1,489			—			1,489
Impairment	—			2,682			—			2,682
General and administrative expenses	7,065			16,111			—			23,176
Total operating expenses	7,065			257,959			—			265,024
Operating income (loss)	(7,065		)	27,157			—			20,092
Other income (expense)
Equity in earnings of subsidiaries	49,103			—			(49,103		)	—
Net gain on derivative instruments	—			56,075			—			56,075
Interest expense, net of capitalized interest	(32,851		)	(3,470		)	—			(36,321		)
Other income	—			16			—			16
Total other income	16,252			52,621			(49,103		)	19,770
Income before income taxes	9,187			79,778			(49,103		)	39,862
Income tax benefit (expense)	14,638			(30,675		)	—			(16,037		)
Net income	$	23,825		$	49,103		$	(49,103	)	$	23,825

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2018
	Parent/ Issuer			Combined Guarantor Subsidiaries			Combined Non-guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income including non-controlling interests	$	590		$	37,035		$	31,529		$	(65,442	)	$	3,712
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities:
Equity in earnings of subsidiaries	(32,164		)	(31,529		)	—			63,693			—
Depreciation, depletion and amortization	—			146,227			6,364			(3,326		)	149,265
Impairment	—			93			—			—			93
Deferred income taxes	(8,104		)	8,932			—			—			828
Derivative instruments	—			71,116			—			—			71,116
Equity-based compensation expenses	6,418			273			63			—			6,754
Deferred financing costs amortization and other	3,929			1,432			114			—			5,475
Working capital and other changes:
Change in accounts receivable	51,714			(23,888		)	36,992			(70,526		)	(5,708		)
Change in inventory	—			(3,672		)	—			—			(3,672		)
Change in prepaid expenses	(180		)	641			31			—			492
Change in long-term inventory and other assets	—			(315		)	—			—			(315		)
Change in accounts payable, interest payable and accrued liabilities	(12,832		)	(66,000		)	8,062			70,526			(244		)
Change in other liabilities	—			563			—			—			563
Net cash provided by operating activities	9,371			140,908			83,155			(5,075		)	228,359
Cash flows from investing activities:
Capital expenditures	—			(169,994		)	(84,844		)	—			(254,838		)
Acquisitions	—			(520,728		)	—			—			(520,728		)
Derivative settlements	—			(36,974		)	—			—			(36,974		)
Advances from joint interest partners	—			(28		)	—			—			(28		)
Net cash used in investing activities	—			(727,724		)	(84,844		)	—			(812,568		)
Cash flows from financing activities:
Proceeds from Revolving Credit Facilities	—			1,413,000			57,000			—			1,470,000
Principal payments on Revolving Credit Facilities	—			(857,000		)	(18,000		)	—			(875,000		)
Deferred financing costs	—			(215		)	—			—			(215		)
Purchases of treasury stock	(6,021		)	—			—			—			(6,021		)
Distributions to non-controlling interests	—			34,866			(38,316		)	—			(3,450		)
Investment in subsidiaries / capital contributions from parent	(3,259		)	(5,986		)	4,170			5,075			—
Other	(90		)	—			—			—			(90		)
Net cash provided by (used in) financing activities	(9,370		)	584,665			4,854			5,075			585,224
Increase (decrease) in cash and cash equivalents	1			(2,151		)	3,165			—			1,015
Cash and cash equivalents at beginning of period	178			15,659			883			—			16,720
Cash and cash equivalents at end of period	$	179		$	13,508		$	4,048		$	—		$	17,735

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2017
	Parent/ Issuer			Combined Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities:
Net income	$	23,825		$	49,103		$	(49,103	)	$	23,825
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(49,103		)	—			49,103			—
Depreciation, depletion and amortization	—			126,666			—			126,666
Impairment	—			2,682			—			2,682
Deferred income taxes	(14,638		)	30,675			—			16,037
Derivative instruments	—			(56,075		)	—			(56,075		)
Equity-based compensation expenses	6,498			210			—			6,708
Deferred financing costs amortization and other	3,665			1,275			—			4,940
Working capital and other changes:
Change in accounts receivable	51,230			(27,952		)	(45,756		)	(22,478		)
Change in inventory	—			(3,679		)	—			(3,679		)
Change in prepaid expenses	(59		)	341			—			282
Change in other current assets	(2		)	(108		)	—			(110		)
Change in long-term inventory and other assets	—			(4		)	—			(4		)
Change in accounts payable, interest payable and accrued liabilities	(13,321		)	(26,375		)	45,756			6,060
Change in other current liabilities	—			2,945			—			2,945
Net cash provided by operating activities	8,095			99,704			—			107,799
Cash flows from investing activities:
Capital expenditures	—			(96,047		)	—			(96,047		)
Derivative settlements	—			(7,960		)	—			(7,960		)
Advances from joint interest partners	—			(759		)	—			(759		)
Net cash used in investing activities	—			(104,766		)	—			(104,766		)
Cash flows from financing activities:
Proceeds from Oasis Credit Facility	—			246,000			—			246,000
Principal payments on Oasis Credit Facility	—			(241,000		)	—			(241,000		)
Purchases of treasury stock	(5,419		)	—			—			(5,419		)
Investment in subsidiaries / capital contributions from parent	(2,610		)	2,610			—			—
Other	(55		)	—			—			(55		)
Net cash provided by (used in) financing activities	(8,084		)	7,610			—			(474		)
Increase in cash and cash equivalents	11			2,548			—			2,559
Cash and cash equivalents at beginning of period	166			11,060			—			11,226
Cash and cash equivalents at end of period	$	177		$	13,608		$	—		$	13,785