Emerges from chapter 11 with a significantly stronger balance sheet, poised for long-term returns-focused success


Oasis Petroleum has completed financial restructuring. (Credit: Terry McGraw from Pixabay)

Oasis Petroleum Inc. (“Oasis Petroleum” or the “Company”) today announced that it has successfully completed its financial restructuring and emerged from Chapter 11. Oasis Petroleum has successfully restructured its balance sheet and reduced its prepetition debt by $1.8 billion and resolved the Mirada litigation, pursuant to its restructuring support agreement and “pre-packaged” restructuring plan (the “Plan”) confirmed by the Bankruptcy Court on November 10, 2020. Oasis Petroleum’s new common stock is expected to commence trading on NASDAQ under the ticker symbol OAS at market open on November 20, 2020.

Chairman of the Board, Douglas E. Brooks said, “On behalf of the new board of directors, I would like to acknowledge our appreciation to our employees for their diligent work during this process.  Oasis is now uniquely positioned with a best-in-class balance sheet, a quality and sustainable long-lived asset base, and a rigorous new capital discipline that should translate into long-term value creation for our shareholders.  This new direction for Oasis will be executed within a strong ESG culture to provide value for all stakeholders. The offices of the CEO and Non-Executive Chairman have been separated to reflect the broader strategic issues including, but not limited to, balancing cash returns and growth initiatives while maintaining operational excellence and sound environmental stewardship.”

Restructuring Highlights

Oasis’ new capital structure includes a new $575 million reserve-based revolving credit facility (“New RBL Facility”) maturing in May 2024. Oasis’ unsecured claims, including holders of Oasis’ senior unsecured notes, received their proportionate distribution of 100% of Oasis’ newly issued common stock (subject to dilution).

New RBL Facility

$575 million borrowing base
$340 million drawn at emergence
First borrowing base redetermination scheduled for April 1, 2021
Matures May 2024
LIBOR + 300-400 bps rate with 100 bps floor
New Common Equity and Warrants

Equity allocated to unsecured note holders: Approximately 20 million shares of common stock outstanding
Shares authorized at emergence: 60 million shares
Shares reserved for Long Term Incentive Plan, which constitutes the Management Incentive Plan: approximately 2.4 million shares
Warrants to current Oasis Petroleum shareholders: Approximately 1.6 million warrants exercisable for one share of common stock at an initial exercise price of $94.57, expiring on November 19, 2024.

Chief Executive Officer and Director, Thomas B. Nusz said, “Today marks a new beginning for Oasis Petroleum. We are emerging from the bankruptcy process as an even stronger company with an intense focus on generating sustainable returns and positive free cash flow coupled with a sharp goal of creating long term value for our shareholders.  These outcomes will be achieved by further cost reductions, new efficiencies, and strategic repositioning to reflect the current industry conditions.

I’d like to express our gratitude to our stakeholders including our regulators, vendors, customers, royalty interest owners, working interest owners and surface owners for their partnership throughout this process. The support of our lenders and noteholders has also been critical to the efficient completion of our financial restructuring. Finally, I want to thank our employees for their ongoing dedication to safety and execution. We look forward to operating efficiently, safely and responsibly, for the benefit of our stakeholders and communities, as we maximize our value for shareholders.”