KLR Group Raises Price Target on Oasis Petroleum (OAS) Following Williston Basin Acquisition

October 19, 2016 8:21 AM EDT
Get Alerts OAS Hot Sheet
Price: $14.39 -0.48%

Rating Summary:
    27 Buy, 17 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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KLR Group reiterated a Buy rating on Oasis Petroleum (NYSE: OAS), and raised the price target to $18.00 (from $17.00), following the company's announced Williston Basin acquisition. The acquisition includes ~12.4 Mboepd of production and ~226 gross operated locations. To partly fund the acquisition, OAS priced ~55.2 mm shares, representing ~30% of shares outstanding, at $10.80 for total gross proceeds of ~$596 mm.

Analyst Gail Nicholson commented, "We are increasing our target price $1 to $18 per share following a ~5% improvement in our organic capital productivity assumption due to Wild Basin well outperformance and the integration of the company's recent Williston Basin acquisition partly offset by the equity issuance. Following our model adjustments, OAS generates a '18 capital yield (cash recycle ratio) of 135%+, up from ~130% previously, vs. the group median of ~125%."

For an analyst ratings summary and ratings history on Oasis Petroleum click here. For more ratings news on Oasis Petroleum click here.

Shares of Oasis Petroleum closed at $10.57 yesterday.

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