XML 37 R25.htm IDEA: XBRL DOCUMENT v3.19.2
Condensed Consolidating Financial Information
 6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Financial Information Condensed Consolidating Financial Information
The Notes (see Note 11 — 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.
During the preparation of the condensed consolidating financial information as of and for the three and six months ended June 30, 2019, the Company identified errors primarily relating to the presentation of non-controlling interests and equity in earnings of subsidiaries in the financial information of the Combined Guarantor Subsidiaries and the related intercompany eliminations.
•Condensed Consolidating Balance Sheet. As of December 31, 2018, it was determined that (1) in the Issuer's financial information, investment in and advances to subsidiaries and Oasis share of stockholders’ equity were both overstated by $9.6 million, (2) in the Combined Guarantor Subsidiaries financial information, investment in and advances to subsidiaries and non-controlling interests were overstated by $11.1 million and $184.3 million, respectively, and Oasis share of stockholders’ equity was understated by $173.2 million and (3) in the intercompany eliminations financial information, investments in and advances to subsidiaries and non-controlling interests were understated by $20.7 million and $184.3 million, respectively, and Oasis share of stockholders’ equity was overstated by $163.6 million.
•Condensed Consolidated Statements of Operations. For the three months ended June 30, 2018, it was determined that equity in earnings of subsidiaries and net income attributable to non-controlling interests were overstated by $6.6 million and $3.9 million, respectively, in the Combined Guarantor Subsidiaries financial information and understated by $6.6 million and $3.9 million, respectively, in the intercompany eliminations financial information. For the six months ended June 30, 2018, it was determined that equity in earnings of subsidiaries and net income attributable to non-controlling interests were overstated by $11.4 million and $7.0 million, respectively, in the Combined Guarantor Subsidiaries financial information and understated by $11.4 million and $7.0 million, respectively, in the intercompany eliminations financial information.
•Condensed Consolidated Statement of Cash Flows. For the six months ended June 30, 2018, it was determined that cash paid for distributions to non-controlling interests was understated by $48.9 million in the Combined Guarantor Subsidiaries financial information and overstated by $48.9 million in the intercompany eliminations financial information, with the offsetting impacts in investment in subsidiaries / capital contributions from parent.
These errors in the condensed consolidated financial information, which the Company has determined are not material to this disclosure, were all eliminated in consolidation and therefore have no impact on the Company's consolidated financial position, results of operations or cash flows. The Company has revised the condensed consolidating financial information as of December 31, 2018 and for the three and six months ended June 30, 2018 to reflect the correction of these errors.
In addition, for the three and six months ended June 30, 2018, the Company has revised the condensed consolidating financial information to reflect the correction of errors related to the manner in which it accounted for certain crude oil purchase and sale arrangements, which had no effect on the Company’s or any of its subsidiaries’ net income (loss). All impacts of this revision are included in the Combined Guarantor Subsidiaries financial information. Please see Note 2 — Summary of Significant Accounting Policies for more information related to this revision.
Condensed Consolidated Financial Information
Condensed Consolidating Balance Sheet
 June 30, 2019
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents$144 $13,868 $6,246 $— $20,258 
Accounts receivable, net— 390,094 6,010 — 396,104 
Accounts receivable - affiliates585,473 79,516 80,088 (745,077)— 
Inventory— 30,056 — — 30,056 
Prepaid expenses273 4,478 1,267 — 6,018 
Derivative instruments— 19,089 — — 19,089 
Other current assets— 195 — — 195 
Total current assets585,890 537,296 93,611 (745,077)471,720 
Property, plant and equipment
Oil and gas properties (successful efforts method)— 9,299,365 — (15,903)9,283,462 
Other property and equipment— 241,456 1,060,379 — 1,301,835 
Less: accumulated depreciation, depletion, amortization and impairment— (3,336,023)(80,160)— (3,416,183)
Total property, plant and equipment, net— 6,204,798 980,219 (15,903)7,169,114 
Investments in and advances to subsidiaries4,886,462 367,275 — (5,253,737)— 
Derivative instruments— 5,636 — — 5,636 
Deferred income taxes243,866 — — (243,866)— 
Long-term inventory— 13,286 — — 13,286 
Operating right-of-use assets— 16,412 3,642 — 20,054 
Other assets— 27,093 3,385 — 30,478 
Total assets$5,716,218 $7,171,796 $1,080,857 $(6,258,583)$7,710,288 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable$— $14,381 $774 $— $15,155 
Accounts payable - affiliates44,643 665,561 34,873 (745,077)— 
Revenues and production taxes payable— 169,786 748 — 170,534 
Accrued liabilities183 258,337 56,930 — 315,450 
Accrued interest payable37,096 312 293 — 37,701 
Derivative instruments— 4,445 — — 4,445 
Advances from joint interest partners— 4,076 — — 4,076 
Current operating lease liabilities— 5,786 2,051 — 7,837 
Other current liabilities— 2,620 610 — 3,230 
Total current liabilities81,922 1,125,304 96,279 (745,077)558,428 
Long-term debt1,957,524 531,000 408,000 — 2,896,524 
Deferred income taxes— 552,538 — (243,866)308,672 
Asset retirement obligations— 53,664 1,564 — 55,228 
Operating lease liabilities— 16,424 1,597 — 18,021 
Other liabilities— 6,404 553 — 6,957 
Total liabilities2,039,446 2,285,334 507,993 (988,943)3,843,830 
Stockholders’ equity
Oasis share of stockholders’ equity3,676,772 4,886,462 257,733 (5,144,195)3,676,772 
Non-controlling interests— — 315,131 (125,445)189,686 
Total stockholders’ equity3,676,772 4,886,462 572,864 (5,269,640)3,866,458 
Total liabilities and stockholders’ equity$5,716,218 $7,171,796 $1,080,857 $(6,258,583)$7,710,288 
Condensed Consolidated Financial Information
Condensed Consolidating Balance Sheet
 December 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 $15,362 $6,649 $— $22,190 
Accounts receivable, net— 385,121 2,481 — 387,602 
Accounts receivable - affiliates643,382 76,127 80,805 (800,314)— 
Inventory— 33,106 22 — 33,128 
Prepaid expenses373 9,206 1,418 — 10,997 
Derivative instruments— 99,930 — — 99,930 
Intangible assets, net— 125 — — 125 
Other current assets— 183 — — 183 
Total current assets643,934 619,160 91,375 (800,314)554,155 
Property, plant and equipment
Oil and gas properties (successful efforts method)— 8,923,291 — (11,102)8,912,189 
Other property and equipment— 218,617 933,155 — 1,151,772 
Less: accumulated depreciation, depletion, amortization and impairment— (2,974,122)(62,730)— (3,036,852)
Total property, plant and equipment, net— 6,167,786 870,425 (11,102)7,027,109 
Investments in and advances to subsidiaries4,900,528 356,039 — (5,256,567)— 
Derivative instruments— 6,945 — — 6,945 
Deferred income taxes219,670 — — (219,670)— 
Long-term inventory— 12,260 — — 12,260 
Other assets— 23,221 2,452 — 25,673 
Total assets$5,764,132 $7,185,411 $964,252 $(6,287,653)$7,626,142 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable$— $18,567 $1,599 $— $20,166 
Accounts payable - affiliates43,113 724,187 33,014 (800,314)— 
Revenues and production taxes payable— 216,114 581 — 216,695 
Accrued liabilities71 273,923 57,657 — 331,651 
Accrued interest payable37,096 502 442 — 38,040 
Derivative instruments— 84 — — 84 
Advances from joint interest partners— 5,140 — — 5,140 
Total current liabilities80,280 1,238,517 93,293 (800,314)611,776 
Long-term debt1,949,276 468,000 318,000 — 2,735,276 
Deferred income taxes— 519,725 — (219,670)300,055 
Asset retirement obligations— 50,870 1,514 — 52,384 
Derivative instruments— 20 — — 20 
Other liabilities— 7,751 — — 7,751 
Total liabilities2,029,556 2,284,883 412,807 (1,019,984)3,707,262 
Stockholders’ equity
Oasis share of stockholders’ equity3,734,576 4,900,528 238,630 (5,139,158)3,734,576 
Non-controlling interests— — 312,815 (128,511)184,304 
Total stockholders’ equity3,734,576 4,900,528 551,445 (5,267,669)3,918,880 
Total liabilities and stockholders’ equity$5,764,132 $7,185,411 $964,252 $(6,287,653)$7,626,142 
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Operations
 Three Months Ended June 30, 2019
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Revenues
Oil and gas revenues$— $357,004 $— $— $357,004 
Purchased oil and gas sales— 109,389 — — 109,389 
Midstream revenues— 1,082 97,644 (47,153)51,573 
Well services revenues— 11,439 — — 11,439 
Total revenues— 478,914 97,644 (47,153)529,405 
Operating expenses
Lease operating expenses— 69,362 — (13,134)56,228 
Midstream expenses— 675 28,025 (11,332)17,368 
Well services expenses— 8,474 — — 8,474 
Marketing, transportation and gathering expenses— 38,574 — (10,086)28,488 
Purchased oil and gas expenses— 109,662 — — 109,662 
Production taxes— 28,142 — — 28,142 
Depreciation, depletion and amortization— 173,754 8,562 (4,958)177,358 
Exploration expenses— 887 — — 887 
Impairment— 24 — — 24 
General and administrative expenses6,308 21,352 7,809 (4,543)30,926 
Total operating expenses6,308 450,906 44,396 (44,053)457,557 
Loss on sale of properties— (276)— — (276)
Operating income (loss)(6,308)27,732 53,248 (3,100)71,572 
Other income (expense)
Equity in earnings of subsidiaries73,855 37,518 — (111,373)— 
Net gain on derivative instruments— 34,749 — — 34,749 
Interest expense, net of capitalized interest(32,415)(6,562)(4,209)— (43,186)
Other income (expense)1 282 (4)— 279 
Total other income (expense), net41,441 65,987 (4,213)(111,373)(8,158)
Income before income taxes35,133 93,719 49,035 (114,473)63,414 
Income tax benefit (expense)7,624 (19,864)— — (12,240)
Net income including non-controlling interests42,757 73,855 49,035 (114,473)51,174 
Less: Net income attributable to non-controlling interests— — 22,837 (14,420)8,417 
Net income attributable to Oasis$42,757 $73,855 $26,198 $(100,053)$42,757 
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Operations
 Three Months Ended June 30, 2018
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Revenues
Oil and gas revenues$— $397,849 $— $— $397,849 
Purchased oil and gas sales— 128,064 — — 128,064 
Midstream revenues— 917 66,558 (38,133)29,342 
Well services revenues— 18,496 — — 18,496 
Total revenues— 545,326 66,558 (38,133)573,751 
Operating expenses
Lease operating expenses— 57,615 — (13,474)44,141 
Midstream expenses— 780 16,334 (9,426)7,688 
Well services expenses— 13,560 — — 13,560 
Marketing, transportation and gathering expenses— 28,653 — (5,820)22,833 
Purchased oil and gas expenses— 129,579 — — 129,579 
Production taxes— 34,026 — — 34,026 
Depreciation, depletion and amortization— 150,554 6,659 (3,643)153,570 
Exploration expenses— 617 — — 617 
Impairment— 384,135 — — 384,135 
General and administrative expenses7,496 17,954 5,897 (3,117)28,230 
Total operating expenses7,496 817,473 28,890 (35,480)818,379 
Gain on sale of properties— 1,954 — — 1,954 
Operating income (loss)(7,496)(270,193)37,668 (2,653)(242,674)
Other income (expense)
Equity in earnings (loss) of subsidiaries(278,014)30,929 — 247,085 — 
Net loss on derivative instruments— (120,285)— — (120,285)
Interest expense, net of capitalized interest(33,135)(7,592)(183)— (40,910)
Loss on extinguishment of debt (13,651)— — — (13,651)
Other income— 218 — — 218 
Total other expense, net(324,800)(96,730)(183)247,085 (174,628)
Income (loss) before income taxes(332,296)(366,923)37,485 244,432 (417,302)
Income tax benefit12,092 88,909 — — 101,001 
Net income (loss) including non-controlling interests(320,204)(278,014)37,485 244,432 (316,301)
Less: Net income attributable to non-controlling interests— — 25,042 (21,139)3,903 
Net income (loss) attributable to Oasis$(320,204)$(278,014)$12,443 $265,571 $(320,204)
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Operations
 Six Months Ended June 30, 2019
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Revenues
Oil and gas revenues$— $725,786 $— $— $725,786 
Purchased oil and gas sales— 257,860 — — 257,860 
Midstream revenues— 4,152 189,295 (93,853)99,594 
Well services revenues— 21,897 — — 21,897 
Total revenues— 1,009,695 189,295 (93,853)1,105,137 
Operating expenses
Lease operating expenses— 141,147 — (26,475)114,672 
Midstream expenses— 2,523 54,940 (23,366)34,097 
Well services expenses— 15,444 — — 15,444 
Marketing, transportation and gathering expenses— 83,811 — (20,373)63,438 
Purchased oil and gas expenses— 259,566 — — 259,566 
Production taxes— 57,760 — — 57,760 
Depreciation, depletion and amortization— 359,823 17,491 (10,123)367,191 
Exploration expenses— 1,717 — — 1,717 
Impairment— 653 — — 653 
General and administrative expenses15,395 42,177 16,529 (8,716)65,385 
Total operating expenses15,395 964,621 88,960 (89,053)979,923 
Loss on sale of properties— (3,198)— — (3,198)
Operating income (loss)(15,395)41,876 100,335 (4,800)122,016 
Other income (expense)
Equity in earnings (loss) of subsidiaries(15,637)72,253 — (56,616)— 
Net loss on derivative instruments— (82,862)— — (82,862)
Interest expense, net of capitalized interest(65,291)(14,406)(7,957)— (87,654)
Other income (expense)1 236 (4)— 233 
Total other expense, net(80,927)(24,779)(7,961)(56,616)(170,283)
Income (loss) before income taxes(96,322)17,097 92,374 (61,416)(48,267)
Income tax benefit (expense)24,197 (32,734)— — (8,537)
Net income (loss) including non-controlling interests(72,125)(15,637)92,374 (61,416)(56,804)
Less: Net income attributable to non-controlling interests— — 44,633 (29,312)15,321 
Net income (loss) attributable to Oasis$(72,125)$(15,637)$47,741 $(32,104)$(72,125)
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Operations
 Six Months Ended June 30, 2018
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Revenues
Oil and gas revenues$— $764,444 $— $— $764,444 
Purchased oil and gas sales— 195,773 — — 195,773 
Midstream revenues— 2,067 127,979 (72,782)57,264 
Well services revenues— 30,082 — — 30,082 
Total revenues— 992,366 127,979 (72,782)1,047,563 
Operating expenses
Lease operating expenses— 113,314 — (24,392)88,922 
Midstream expenses— 1,526 33,450 (19,303)15,673 
Well services expenses— 20,947 — — 20,947 
Marketing, transportation and gathering expenses— 55,325 — (11,479)43,846 
Purchased oil and gas expenses— 200,173 — — 200,173 
Production taxes— 65,026 — — 65,026 
Depreciation, depletion and amortization— 296,781 13,023 (6,969)302,835 
Exploration expenses— 1,386 — — 1,386 
Impairment— 384,228 — — 384,228 
General and administrative expenses14,728 35,632 12,047 (6,237)56,170 
Total operating expenses14,728 1,174,338 58,520 (68,380)1,179,206 
Gain on sale of properties— 1,954 — — 1,954 
Operating income (loss)(14,728)(180,018)69,459 (4,402)(129,689)
Other income (expense)
Equity in earnings (loss) of subsidiaries(245,850)57,587 — 188,263 — 
Net loss on derivative instruments— (191,401)— — (191,401)
Interest expense, net of capitalized interest(65,581)(12,030)(445)— (78,056)
Loss on extinguishment of debt (13,651)— — — (13,651)
Other income— 35 — — 35 
Total other expense, net(325,082)(145,809)(445)188,263 (283,073)
Income (loss) before income taxes(339,810)(325,827)69,014 183,861 (412,762)
Income tax benefit20,196 79,977 — — 100,173 
Net income (loss) including non-controlling interests(319,614)(245,850)69,014 183,861 (312,589)
Less: Net income attributable to non-controlling interests— — 46,616 (39,591)7,025 
Net income (loss) attributable to Oasis$(319,614)$(245,850)$22,398 $223,452 $(319,614)
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2019
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Cash flows from operating activities:
Net income (loss) including non-controlling interests$(72,125)$(15,637)$92,374 $(61,416)$(56,804)
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities:
Equity in earnings (loss) of subsidiaries15,637 (72,253)— 56,616 — 
Depreciation, depletion and amortization — 359,823 17,491 (10,123)367,191 
Loss on sale of properties— 3,198 — — 3,198 
Impairment— 653 — — 653 
Deferred income taxes (24,197)32,814 — — 8,617 
Derivative instruments — 82,862 — — 82,862 
Equity-based compensation expenses 13,933 3,772 219 — 17,924 
Deferred financing costs amortization and other 8,246 3,582 417 — 12,245 
Working capital and other changes:
Change in accounts receivable, net57,909 (13,500)(2,086)(55,237)(12,914)
Change in inventory— 3,029 — — 3,029 
Change in prepaid expenses100 3,668 150 — 3,918 
Change in accounts payable, interest payable and accrued liabilities1,643 (97,321)3,927 55,237 (36,514)
Change in other assets and liabilities, net— (4,074)(399)— (4,473)
Net cash provided by operating activities1,146 290,616 112,093 (14,923)388,932 
Cash flows from investing activities:
Capital expenditures — (394,675)(130,826)— (525,501)
Acquisitions— (5,781)— — (5,781)
Derivative settlements — 3,629 — — 3,629 
Net cash used in investing activities— (396,827)(130,826)— (527,653)
Cash flows from financing activities:
Proceeds from Revolving Credit Facilities— 1,083,000 95,000 — 1,178,000 
Principal payments on Revolving Credit Facilities— (1,020,000)(5,000)— (1,025,000)
Deferred financing costs— (42)(440)— (482)
Purchases of treasury stock(4,305)— — — (4,305)
Distributions to non-controlling interests— — (43,581)33,488 (10,093)
Investment in subsidiaries / capital contributions from parent3,124 42,642 (27,201)(18,565)— 
Other— (883)(448)— (1,331)
Net cash provided by (used in) financing activities(1,181)104,717 18,330 14,923 136,789 
Decrease in cash and cash equivalents(35)(1,494)(403)— (1,932)
Cash and cash equivalents at beginning of period 179 15,362 6,649 — 22,190 
Cash and cash equivalents at end of period $144 $13,868 $6,246 $— $20,258 
Condensed Consolidated Financial Information
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2018
 Parent/
Issuer		Combined
Guarantor
Subsidiaries		Combined
Non-Guarantor
Subsidiaries		Intercompany
Eliminations		Consolidated
(In thousands)
Cash flows from operating activities:
Net income (loss) including non-controlling interests$(319,614)$(245,850)$69,014 $183,861 $(312,589)
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities:
Equity in earnings (loss) of subsidiaries245,850 (57,587)— (188,263)— 
Depreciation, depletion and amortization — 296,781 13,023 (6,969)302,835 
Loss on extinguishment of debt 13,651 — — — 13,651 
Gain on sale of properties— (1,954)— — (1,954)
Impairment— 384,228 — — 384,228 
Deferred income taxes (20,196)(80,097)— — (100,293)
Derivative instruments — 191,401 — — 191,401 
Equity-based compensation expenses 13,340 624 166 — 14,130 
Deferred financing costs amortization and other 7,892 2,522 104 — 10,518 
Working capital and other changes:
Change in accounts receivable, net96,993 (8,178)29,407 (124,088)(5,866)
Change in inventory— (4,629)(92)— (4,721)
Change in prepaid expenses58 95 420 — 573 
Change in accounts payable, interest payable and accrued liabilities 3,335 (90,679)4,105 124,088 40,849 
Change in other assets and liabilities, net— (746)— — (746)
Net cash provided by operating activities41,309 385,931 116,147 (11,371)532,016 
Cash flows from investing activities:
Capital expenditures — (381,971)(154,988)— (536,959)
Acquisitions— (524,255)— — (524,255)
Proceeds from sale of properties— 2,236 — — 2,236 
Derivative settlements — (96,823)— — (96,823)
Other— (933)— — (933)
Net cash used in investing activities— (1,001,746)(154,988)— (1,156,734)
Cash flows from financing activities:
Proceeds from Revolving Credit Facilities— 1,820,000 113,000 — 1,933,000 
Principal payments on Revolving Credit Facilities— (1,239,000)(26,000)— (1,265,000)
Repurchase of senior unsecured notes(423,143)— — — (423,143)
Proceeds from issuance of senior unsecured convertible notes400,000 — — — 400,000 
Deferred financing costs(6,524)(266)— — (6,790)
Purchases of treasury stock(6,064)— — — (6,064)
Distributions to non-controlling interests— — (55,757)48,911 (6,846)
Investment in subsidiaries / capital contributions from parent(5,619)33,695 9,464 (37,540)— 
Other38 (125)— — (87)
Net cash provided by (used in) financing activities(41,312)614,304 40,707 11,371 625,070 
Increase (decrease) in cash and cash equivalents(3)(1,511)1,866 — 352 
Cash and cash equivalents at beginning of period 178 15,659 883 — 16,720 
Cash and cash equivalents at end of period $175 $14,148 $2,749 $— $17,072