Wednesday, September 3, 2014

Seeking Alpha: Oasis Petroleum Getting Less Than Its Full Due

As one of the large operators in the Bakken (in terms of leased acres), Oasis Petroleum (NYSE:OAS) certainly isn't immune to the various concerns investors have about the space, including price differentials and the threat that well returns will decline as less promising formations are targeted. Oasis also has to deal with some concerns that are more company-specific like the question of whether their acreage is of lower quality and whether the company will overpay for acquisitions.

Despite these concerns, Oasis has done okay since my last write-up - rising almost 16% while the EPX Index has risen about 11%. On the other hand, when compared to the performance of other Bakken operators like Continental Resources (NYSE:CLR), Whiting (NYSE:WLL), or Triangle Petroleum (NYSEMKT:TPLM) that comparison becomes much less favorable, as these producers have seen their shares rise more than 40% and more than 50% (WLL, TPLM) over that same time period. Although I think there are reasons for Oasis to trade at some discount to these other names, the results over the last half-year or so seem a little extreme and Oasis is starting to look more interesting again on a relative basis.

Follow this link to the full article:
Oasis Petroleum Getting Less Than Its Full Due

No comments: