Oasis to conduct financing in early 2019 to fund project acquisitions

By Devika Patel

Knoxville, Tenn., Nov. 6 – Oasis Petroleum Inc. plans to take on a financing in early 2019 and will be making decisions regarding that financing in the coming months.

The company has “strong” liquidity but is considering acquiring new projects.

“Liquidity remains strong,” executive vice president and chief financial officer Michael Lou said on the company’s third quarter ended Sept. 30 earnings conference call on Tuesday.

“We recently completed our fall redetermination.

“Our total borrowing base remains at $1.6 billion, with $1.35 billion committed with only $522 million drawn as of Sept. 30.

“Maturity was extended to five years from the closing date,” he said.

The company may take on additional financing in 2019, despite “strong” liquidity, since it is considering acquiring new projects in early 2019.

“Final decisions on which projects to pursue and the financing will be made in the coming months, and we look forward to updating the market in early 2019,” Lou said.

Cash and cash equivalents were $16,892,000 as of Sept. 30, 2018, compared to $16.72 million as of Dec. 31, 2017.

The company’s net leverage ratio was 2.4x in the third quarter.

Oasis is a Houston-based oil and natural gas company.

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