Condensed Combined Debtor-in-Possession Financial Information

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Combined Debtor-in-Possession Financial Information

Condensed Combined Debtor-in-Possession Financial Information The following tables present the condensed combined financial statements of the Debtors. These condensed combined financial statements exclude the financial statements of the Non-Filing Entities. Transactions and balances of receivables and payables between the Debtors have been eliminated in consolidation. Intercompany transactions and balances among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements.

Debtors Condensed Combined Balance Sheet

(Unaudited)

	September 30, 2020
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	49,566
Accounts receivable, net	197,804
Accounts receivable from non-filing entities	33,915
Inventory	27,642
Prepaid expenses	12,249
Derivative instruments	200
Other current assets	101
Total current assets	321,477
Property, plant and equipment
Oil and gas properties (successful efforts method)	9,392,414
Other property and equipment	132,243
Less: accumulated depreciation, depletion, amortization and impairment	(8,328,700)
Total property, plant and equipment, net	1,195,957
Assets held for sale, net	1,380
Investments in and advances to non-filing entities	317,398
Long-term inventory	14,210
Operating right-of-use assets	11,241
Other assets	20,437
Total assets	$	1,882,100
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Revenues and production taxes payable	108,979
Accrued liabilities	29,024
Current maturities of long-term debt	360,640
Accrued interest payable	30,384
Total current liabilities	529,027
Deferred income taxes	4,898
Liabilities subject to compromise	2,133,658
Total liabilities	2,667,583
Stockholders’ deficit
Common stock	3,232
Treasury stock, at cost	(36,532)
Additional paid-in-capital	3,128,752
Accumulated deficit	(3,881,021)
Oasis share of stockholders’ deficit	(785,569)
Non-controlling interests	86
Total stockholders’ deficit	(785,483)
Total liabilities and stockholders’ deficit	$	1,882,100

Debtors Condensed Combined Statement of Operations

(Unaudited)

	Three Months Ended		Nine Months Ended
	September 30, 2020		September 30, 2020
	(In thousands)
Revenues
Oil and gas revenues	$	179,191	$	511,096
Purchased oil and gas sales	44,194		167,824
Midstream revenues	2,168		7,094
Other services revenues	309		6,686
Total revenues	225,862		692,700
Operating expenses
Lease operating expenses	40,943		144,087
Midstream expenses	59		(146)
Other services expenses	308		5,968
Marketing, transportation and gathering expenses	31,727		105,301
Purchased oil and gas expenses	47,608		165,991
Production taxes	13,039		39,129
Depreciation, depletion and amortization	31,215		255,659
Exploration expenses	725		3,058
Rig termination	1,017		1,279
Impairment	1,120		4,725,134
Litigation settlement	22,750		22,750
General and administrative expenses	44,185		103,214
Total operating expenses	234,696		5,571,424
Gain on sale of properties	1,473		11,652
Operating loss	(7,361)		(4,867,072)
Other income (expense)
Equity in earnings of non-filing entities	52,260		8,521
Net gain (loss) on derivative instruments	(5,071)		243,064
Interest expense, net of capitalized interest	(34,636)		(139,338)
Gain (loss) on extinguishment of debt	(20)		83,867
Reorganization items, net	(49,758)		(49,758)
Other income	1,480		2,523
Total other income (expense), net	(35,745)		148,879
Loss before income taxes	(43,106)		(4,718,193)
Income tax benefit	5,144		262,495
Net loss including non-controlling interests	(37,962)		(4,455,698)
Less: Net income attributable to non-controlling interests	86		248
Net loss attributable to Oasis	$	(38,048)	$	(4,455,946)

Debtors Condensed Combined Statement of Cash Flows

(Unaudited)

	Nine Months Ended
	September 30, 2020
	(In thousands)
Cash flows from operating activities:
Net loss including non-controlling interests	$	(4,455,698)
Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities:
Depreciation, depletion and amortization	255,659
Gain on extinguishment of debt	(83,867)
Gain on sale of properties	(11,652)
Impairment	4,725,134
Deferred income taxes	(262,459)
Derivative instruments	(243,064)
Equity-based compensation expenses	16,330
Non-cash reorganization items, net	49,758
Deferred financing costs amortization and other	4,291
Working capital and other changes:
Change in accounts receivable, net	160,474
Change in inventory	2,234
Change in prepaid expenses	(5,093)
Change in accounts payable, interest payable and accrued liabilities	(147,554)
Change in other assets and liabilities, net	(4,006)
Net cash provided by operating activities	487
Cash flows from investing activities:
Capital expenditures	(243,079)
Proceeds from sale of properties	15,188
Derivative settlements	224,223
Contributions to non-filing entities	(5,399)
Distributions from non-filing entities	91,787
Net cash provided by investing activities	82,720
Cash flows from financing activities:
Proceeds from pre-petition revolving credit facility	938,189
Principal payments on pre-petition revolving credit facility	(914,549)
Repurchase of senior unsecured notes	(68,060)
Deferred financing costs	(172)
Purchases of treasury stock	(2,651)
Distributions to non-controlling interests	(263)
Payments on finance lease liabilities	(1,986)
Net cash used in financing activities	(49,492)
Increase in cash and cash equivalents	33,715
Cash and cash equivalents:
Beginning of period	15,851
End of period	$	49,566