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UPDATE: Oasis Petroleum (OAS) PT Raised to $133 at Stifel After Divestiture

May 21, 2021 6:29 AM EDT
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Price: $109.30 --0%

Rating Summary:
    17 Buy, 20 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(Updated - May 21, 2021 6:53 AM EDT)

Stifel analyst Derrick Whitfield raised the price target on Oasis Petroleum (NASDAQ: OAS) to $133.00 (from $107.00) after the company announced the divestiture of the company's Permian assets for $406 million due at closing and $25 million contingent payments in 2023, 2024, and 2025 if WTI averages over $60/ bbl WTI in each respective year.

The analyst reiterated a Buy rating, stating "We view this transaction positively as it allows the company to focus on driving value from the Williston by leveraging its extensive operational expertise to accelerate the return of capital to shareholders, further deleverages the balance sheet, and was executed at a favorable price ($8.6k/acre) based on transaction comps. Net-net, management continues to quickly achieve its strategic objectives designed to deliver strong shareholder returns. We believe the next likely item on the list (monetization of midstream shares) could unlock substantial shareholder value."


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