Wunderlich Securities: Oasis Petroleum Looks Forward to Strong Quarter; Higher Production, Lower Costs

According to a research report from Wunderlich Securities this morning, Oasis Petroleum

continues to gain momentum as operations are in full effect. Wunderlich explained, “OAS is coring up its drilling blocks, optimizing completion, and securing mission-critical services. OAS worked on shortening cycle time; it took 23 days from spud to release during the first quarter, down from 2011's average of 27 days. Duration for completion and connection has been compressed as well. In addition, the company continues to work on water disposal, gas gathering, and oil product marketing. We believe that this is paying off, as lease operating expenses are coming down. OAS sold 8.7 mmcf/d of gas at $8.32/mmbtu.” Oasis Petroleum closed yesterday at $28.38 as Wunderlich maintains its Buy rating and PT of $44.