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Fresh Start Accounting (Tables)
 12 Months Ended
Dec. 31, 2021
Reorganizations [Abstract]  
Reconciliation of Enterprise Value to Estimated Reorganization Value
The following table reconciles the Company’s enterprise value to the estimated fair value of the Successor’s stockholders’ equity at the Emergence Date:
November 19, 2020
 (In thousands)
Enterprise value$1,300,000 
Plus: Cash(1)
5,615 
Less: Fair value of Oasis Credit Facility(2)
(340,000)
Fair value of Oasis share of Successor stockholders’ equity(3)
965,615 
Plus: Fair value of non-controlling interests92,816 
Fair value of total Successor stockholders’ equity$1,058,431 
__________________ 
(1)Cash excludes $4.5 million of cash attributable to OMP and includes $1.4 million that was initially classified as restricted cash as of November 19, 2020 but subsequently released from escrow and returned to the Successor. A total of $10.4 million of restricted cash as of November 19, 2020 was used to pay professional fees and is not included in the table above.
(2)Enterprise value includes the value of the Company’s interests in OMP and OMP GP, which is net of debt under the OMP Credit Facility, and as such, only the fair value of debt under the Oasis Credit Facility is subtracted in order to determine the value of the Successor’s stockholders’ equity.
(3)Reflects Successor equity issued in accordance with the Plan, including 20,000,000 shares of common stock and 1,621,622 warrants (the “Warrants”).
The following table reconciles the Company’s enterprise value to the estimated reorganization value as of the Emergence Date:
November 19, 2020
 (In thousands)
Enterprise value$1,300,000 
Plus: Fair value of OMP Credit Facility held for sale(1)
455,500 
Plus: Fair value of non-controlling interests92,816 
Plus: Cash(2)
5,615 
Plus: Current liabilities266,796 
Plus: Asset retirement obligations (non-current portion)45,161 
Plus: Other non-current liabilities28,086 
Plus: Current liabilities held for sale38,796 
Plus: Non-current liabilities held for sale5,221 
Reorganization value of Successor assets$2,237,991 
_________________ 
(1)    Enterprise value includes the value of the Company’s interests in OMP and OMP GP, which is net of debt under the OMP Credit Facility, and as such, the fair value of the OMP Credit Facility is considered in the reconciliation of enterprise value to the reorganization value of the Successor’s assets.
(2)     Cash excludes $4.5 million of cash attributable to OMP and includes $1.4 million that was initially classified as restricted cash as of November 19, 2020 but subsequently released from escrow and returned to the Successor. A total of $10.4 million of restricted cash as of November 19, 2020 was used to pay professional fees and is not included in the table above.
Reorganization value and enterprise value were estimated using numerous projections and assumptions that are inherently
Schedule of fresh-start adjustments The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine fair values as well as significant assumptions.
As of November 19, 2020
Predecessor Reorganization AdjustmentsFresh Start AdjustmentsSuccessor
(In thousands)
ASSETS
Current assets
Cash and cash equivalents$69,558 $(65,317)(a)$— $4,241 
Restricted cash— 11,800 (b)— 11,800 
Accounts receivable, net234,413 — — 234,413 
Inventory 19,867 — 2,102 (q)21,969 
Prepaid expenses8,085 (4,325)(c)— 3,760 
Derivative instruments728 — — 728 
Other current assets104 — — 104 
Current assets held for sale62,070 — — 62,070 
Total current assets394,825 (57,842)2,102 339,085 
Property, plant and equipment
Oil and gas properties (successful efforts method)9,301,065 — (8,505,818)(r)795,247 
Other property and equipment105,410 — (60,411)(r)44,999 
Less: accumulated depreciation, depletion, amortization and impairment(8,332,534)— 8,332,534 (r)— 
Total property, plant and equipment, net1,073,941 — (233,695)840,246 
Derivative instruments47 — — 47 
Long-term inventory12,526 — (292)(q)12,234 
Operating right-of-use assets11,509 — (797)(s)10,712 
Other assets19,876 7,017 (d)(8,139)(t)18,754 
Non-current assets held for sale921,031 — 95,882 (u)1,016,913 
Total assets $2,433,755 $(50,825)$(144,939)$2,237,991 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable$(291)$21,809 (e)$— $21,518 
Revenues and production taxes payable129,031 — — 129,031 
Accrued liabilities46,561 57,470 (f)1,885 (v)105,916 
Current maturities of long-term debt360,640 (360,640)(g)— — 
Accrued interest payable32,538 (32,496)(h)— 42 
Derivative instruments4,902 49 (i)18 (w)4,969 
Advances from joint interest partners 170 2,555 (i)— 2,725 
Current operating lease liabilities109 924 (i)(76)(s)957 
Other current liabilities(102)1,774 (i)(34)(s)1,638 
Current liabilities held for sale66,810 (28,014)(j)— 38,796 
Total current liabilities640,368 (336,569)1,793 305,592 
Long-term debt— 340,000 (k)— 340,000 
Deferred income taxes1,097 9,746 (l)(6,412)(x)4,431 
Asset retirement obligations283 57,306 (i)(12,428)(v)45,161 
Derivative instruments5,316 — 41 (w)5,357 
Operating lease liabilities72 15,462 (i)(740)(s)14,794 
Other liabilities80 3,456 (i)(32)(s)3,504 
Liabilities subject to compromise 2,051,294 (2,051,294)(m)— — 
Non-current liabilities held for sale461,859 — (1,138)(y)460,721 
Total liabilities 3,160,369 (1,961,893)(18,916)1,179,560 
Commitments and contingencies
Stockholders’ equity (deficit)
Predecessor common stock 3,233 (3,233)(n)— — 
Successor common stock— 200 (o)— 200 
Predecessor treasury stock, at cost(36,637)36,637 (n)— — 
Predecessor additional paid-in capital3,131,446 (3,131,446)(n)— — 
Successor additional paid-in capital — 965,415 (o)— 965,415 
Retained earnings (accumulated deficit)(3,995,209)4,034,401 (p)(39,192)(z)— 
Oasis share of stockholders’ equity (deficit)(897,167)1,901,974 (39,192)965,615 
Non-controlling interests170,553 9,094 (p)(86,831)(z)92,816 
Total stockholders’ equity (deficit)(726,614)1,911,068 (126,023)1,058,431 
Total liabilities and stockholders’ equity (deficit)$2,433,755 $(50,825)$(144,939)$2,237,991 
Reorganization Adjustments
(a)The table below reflects the uses of cash on the Emergence Date from the implementation of the Plan:
(In thousands)
Payment of Oasis Credit Facility principal(1)
$20,640 
Payment pursuant to the Mirada Settlement Agreement20,000 
Funding of the professional fees escrow account11,800 
Payment of Oasis Credit Facility fees
6,900 
Payment of professional fees3,766 
Payment of DIP Credit Facility accrued interest and fees1,375 
Payment of Predecessor Credit Facility accrued interest and fees
836 
Total uses of cash$65,317 
_________________ 
(1)On the Emergence Date, the principal amounts under the Senior Secured Superpriority Debtor-in-Possession Credit Agreement (the “DIP Credit Facility”) and the Amended and Restated Credit Agreement (as amended prior to the Emergence Date, the “Predecessor Credit Facility”) of $300.0 million and $60.6 million, respectively, were converted to principal amounts of revolving loans under the Oasis Credit Facility in accordance with the Plan.
(b)Reflects the funding of an escrow account for professional fees associated with the Chapter 11 Cases, as required by the Plan.
(c)Reflects the remaining unamortized amount of prepaid cash incentives under the 2020 Incentive Compensation Program (as defined in Note 17—Equity-Based Compensation), which vested on the Emergence Date as a result of implementing the Plan, and was recorded in general and administrative expenses.
(d)Represents $7.3 million of fees related to the Oasis Credit Facility paid or accrued on the Emergence Date, which were capitalized as deferred financing costs and are being amortized to interest expense through the maturity date of May 19, 2024, offset by approximately $0.2 million of deferred financing costs related to the Predecessor Credit Facility, which were eliminated with a corresponding charge to reorganization items, net.
(e)Represents the reinstatement of $19.9 million of accounts payable included in liabilities subject to compromise to be satisfied in the ordinary course of business, coupled with a $1.9 million reclassification from accrued liabilities to accounts payable related to certain equity-based compensation awards classified as liabilities that vested on the Emergence Date.
(f)Changes in accrued liabilities include the following:
(In thousands)
Reinstatement of accrued expenses from liabilities subject to compromise$73,778 
Accrual for professional fees incurred upon Emergence Date4,603 
Vesting of equity-based compensation awards classified as liabilities
1,142 
Payment pursuant to Mirada Settlement Agreement(20,000)
Reclassification of payable for vested liability awards to accounts payable(1,913)
Payment of certain professional fees accrued prior to Emergence Date(140)
Net impact to accrued liabilities$57,470 
(g)Reflects the refinancing of the borrowings outstanding under the DIP Credit Facility and Predecessor Credit Facility of $300.0 million and $60.6 million, respectively, through the Oasis Credit Facility on the Emergence Date.
(h)Reflects the write-off of Specified Default Interest of $30.3 million which was waived on the Emergence Date, and the payment of accrued interest for the DIP Credit Facility and Predecessor Credit Facility of $1.4 million and $0.8 million, respectively, on the Emergence Date.
(i)Reflects the reinstatement of obligations that were classified as liabilities subject to compromise.
(j)Reflects the write-off of Specified Default Interest of $28.0 million related to the OMP Credit Facility that was waived on the Emergence Date.
(k)Reflects borrowings drawn under the Oasis Credit Facility on the Emergence Date, consisting of principal amounts that were converted from principal amounts under the DIP Credit Facility and the Predecessor Credit Facility of $300.0 million and $60.6 million, respectively, in accordance with the Plan, partially offset by a principal repayment amount of $20.6 million.
(l)Reflects an increase in the deferred tax liability recorded as a result of an ownership change under Section 382 (as defined in Note 17—Income Taxes).
(m)On the Emergence Date, liabilities subject to compromise were settled in accordance with the Plan as follows:
(In thousands)
Notes$1,825,757 
Accrued interest on Notes50,337 
Asset retirement obligations57,306 
Accounts payable and accrued liabilities93,674 
Other liabilities24,220 
Total liabilities subject to compromise of the Predecessor2,051,294 
Reinstatement of liabilities for general unsecured claims(175,200)
Issuance of common stock to Notes holders(941,810)
Gain on settlement of liabilities subject to compromise$934,284 
(n)Reflects the cancellation of the Predecessor’s accumulated deficit, common stock and treasury stock and changes in the Predecessor’s additional paid-in capital as follows:
 (In thousands)
Cancellation of accumulated deficit$(3,086,292)
Cancellation of common stock3,233 
Cancellation of treasury stock(36,637)
Equity-based compensation for vesting of awards classified as equity12,055 
Issuance of Warrants to Predecessor common stockholders(23,805)
Net impact to Predecessor additional paid-in capital$(3,131,446)
(o)Reflects the distribution of Successor equity instruments in accordance with the Plan, including the issuance of 20,000,000 shares of common stock at a par value of $0.01 per share and 1,621,622 Warrants. The fair value of the Warrants was estimated at $14.68 per Warrant using a Black-Scholes model.
 (In thousands)
Common stock to Notes holders$941,810 
Warrants to Predecessor common stockholders23,805 
Total fair value of Successor equity$965,615 
(p)The table below reflects the cumulative impact of the reorganization adjustments discussed above:
 (In thousands)
Gain on settlement of liabilities subject to compromise$934,284 
Write-off of Specified Default Interest30,285 
Gain on debt discharge964,569 
Professional fees incurred on the Emergence Date(7,869)
Write-off of Predecessor Credit Facility deferred financing costs(243)
Total reorganization items from reorganization adjustments956,457 
Equity-based compensation expense for vesting of awards on Emergence Date(13,197)
Vesting of prepaid cash incentive compensation(4,325)
Income from reorganization adjustments from continuing operations before income taxes938,935 
Income tax expense(9,746)
Net income from reorganization adjustments from continuing operations$929,189 
Gain on debt discharge from discontinued operations28,014 
Less: Net income from reorganization adjustments attributable to non-controlling interests(9,094)
Net income from reorganization adjustments from discontinued operations$18,920 
Net income from reorganization adjustments attributable to Oasis$948,109 
Cancellation of accumulated deficit3,086,292 
Net impact to Predecessor retained earnings (accumulated deficit)$4,034,401 
Fresh Start Adjustments
(q)Reflects fair value adjustments to the Company’s crude oil inventory, equipment inventory, and long-term linefill inventory of $1.6 million, $0.5 million and $(0.3) million, respectively, based on market prices as of the Emergence Date. Crude oil prices were estimated using NYMEX West Texas Intermediate crude oil index prices (“NYMEX WTI”) based on the estimated timing of liquidation and adjusted for quality and location differentials.
(r)Reflects adjustments to present the Company's proved oil and gas properties, unproved acreage and other property and equipment at their estimated fair values based on the valuation methodology discussed above as well as the elimination of accumulated depreciation, depletion, amortization and impairment. The following table summarizes the components of property, plant and equipment as of the Emergence Date:
 Fair ValueHistorical Book Value
(In thousands)
Proved oil and gas properties$755,247 $9,126,507 
Less: Accumulated depreciation, depletion, amortization and impairment— (8,259,334)
Proved oil and gas properties, net755,247 867,173 
Unproved oil and gas properties40,000 174,558 
Other property and equipment44,999 105,410 
Less: Accumulated depreciation and impairment— (73,200)
Other property and equipment, net44,999 32,210 
Total property, plant and equipment, net$840,246 $1,073,941 
(s)Reflects adjustments required to present operating lease right-of-use assets and operating and finance lease liabilities at fair value. The Company's remaining lease obligations were remeasured using incremental borrowing rates applicable to the Company as of the Emergence Date and commensurate with the Successor's capital structure. The incremental borrowing rates ranged from 3.06% to 6.58% based on the tenor of the leases. Finance lease liabilities are included in other current liabilities and other liabilities on the Company’s Consolidated Balance Sheet.
(t)Reflects adjustments to eliminate certain deferred costs determined to have no fair value, including electrical infrastructure costs of $8.1 million and a $0.1 million adjustment to present finance lease right-of-use assets at fair value.
(u)Reflects the adjustments to non-current assets held for sale as follows:
(In thousands)
Proved oil and gas properties$44,533 
Other property and equipment(312,657)
Accumulated depreciation and impairment247,162 
Goodwill70,534 
Interest in OMP GP28,000 
Customer contracts15,000 
Equipment inventory705 
Deferred financing costs related to the OMP Credit Facility(1,515)
Non-current assets held for sale from discontinued operations, net91,762 
Non-current assets held for sale from continuing operations4,120 
Total non-current assets held for sale, net$95,882 
_________________ 
(1)Represents the adjustment to certain assets from continuing operations held for sale as of the Emergence Date for the sales price agreed upon with the buyer, less estimated costs to sell.
(v)Reflects the adjustment to present the Company's asset retirement obligations (“ARO”) at fair value using assumptions as of the Emergence Date, including an inflation factor of 2% and an estimated 30-year credit-adjusted risk-free rate of 8.5%.
(w)Reflects the fair value adjustment to the Company’s derivative instruments using the Company’s estimated credit-adjusted risk-free rate as of the Emergence Date of 5.12%.
(x)Reflects the adjustment to deferred income taxes to reflect the change in the financial reporting basis of assets as a result of the adoption of fresh start accounting.
(y)Reflects the adjustment to present ARO from discontinued operations at fair value.
(z)The table below reflects the cumulative impact of the fresh start adjustments discussed above:
 (In thousands)
Loss on revaluation adjustments from continuing operations$(225,336)
Income tax benefit6,412 
Net loss from fresh start adjustments from continuing operations$(218,924)
Gain on revaluation adjustments from discontinued operations$92,901 
Less: Net loss from fresh start adjustments attributable to non-controlling interests86,831 
Net gain from fresh start adjustments from discontinued operations$179,732 
Net loss from fresh start adjustments attributable to Oasis$(39,192)

Reorganization Items, Net
Any expenses, gains and losses that were realized or incurred between the Petition Date and the Emergence Date and as a direct result of the Chapter 11 Cases and the implementation of the Plan were recorded in reorganization items, net in the Company’s Consolidated Statement of Operations for the period from January 1, 2020 through November 19, 2020 (Predecessor). The
following table summarizes the components of reorganization items, net:
(In thousands)
Continuing operations:
Gain on debt discharge$964,569 
Loss on revaluation adjustments(225,336)
Write-off of unamortized debt discount(38,373)
Professional fees(16,352)
Write-off of unamortized deferred financing costs(12,739)
DIP Credit Facility fees(5,853)
Total reorganization items from continuing operations, net$665,916 
Discontinued operations:
Gain on debt discharge$28,014 
Gain on revaluation adjustments92,901 
Total reorganization items from discontinued operations$120,915