Oasis Petroleum Inc. (Form: 8-K, Received: 02/25/2021 06:05:02)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________

FORM 8-K

____________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2021

____________________________________________________________________

OASIS PETROLEUM INC.

(Exact name of registrant as specified in its charter)

____________________________________________________________________

Delaware

001-34776

80-0554627

(State or other jurisdiction of
incorporation or organization)

(Commission
File Number)

(I.R.S. Employer
Identification No.)



1001 Fannin Street, Suite 1500
Houston, Texas						77002
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (281) 404-9500

Not Applicable.

(Former name or former address, if changed since last report)

____________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


			☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


			☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


			☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


			☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

OAS

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 – Entry into a Material Definitive Agreement.

On February 19, 2021, Oasis Petroleum Inc., as parent (the “Parent”), Oasis Petroleum North America LLC, as borrower (the “Borrower”) and Oasis Petroleum LLC, as OP LLC (“OP LLC”), entered into that certain First Amendment to Credit Agreement (the “Amendment”) with Wells Fargo Bank, N.A., as administrative agent (the “Agent”) and the lenders party thereto, which amends the Credit Agreement (the “Credit Agreement), dated as of November 19, 2020 among the Borrower, the guarantors party thereto, the Agent and the lenders party thereto.

The Amendment amends the existing restricted payments negative covenant in the Credit Agreement to provide additional restricted payment capacity under the Credit Agreement for the Parent, OP LLC and the Borrower (collectively, the “Parties”) until October 1, 2021. Use by the Parties of the additional restricted payment capacity is subject to certain restrictions, including, but not limited to, (i) compliance with the total net debt to EBITDAX ratio and (ii) pro forma available lender commitments under the Credit Agreement being no less than 25% of the total lender commitments then in effect. The additional restricted payment capacity permits restricted payments in an aggregate amount not to exceed $25,000,000, of which, no more than $10,000,000 of the added capacity may be used during any single fiscal quarter.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment filed as Exhibit 10.1 hereto and incorporated herein by reference.

Item 2.02 Results of Operations and Financial Condition.

On February 24, 2021, Oasis Petroleum Inc. (the “Company”) announced select financial and operational results for the quarter and year ended December 31, 2020 and provided its 2021 outlook. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 2.03 – Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.



Exhibit No.						Description of Exhibit

10.1*						First Amendment to Credit Agreement, dated as of February 19, 2021, among Oasis Petroleum Inc., as parent, Oasis Petroleum North America LLC, as borrower, Oasis Petroleum LLC, as OP LLC, the lenders party thereto and Wells Fargo Bank, N.A., as administrative agent.

23.1						Consent of DeGolyer and MacNaughton.

99.1						News Release, dated February 24, 2021, titled “Oasis Petroleum Inc. Announces Financial and Operational Update and 2021 Outlook and Declares First Dividend.”

99.2						Report of DeGolyer and MacNaughton.

104						Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

THE INFORMATION CONTAINED IN ITEM 2.02 OF THIS CURRENT REPORT, INCLUDING EXHIBIT 99.1 ATTACHED HERETO, SHALL NOT BE DEEMED “FILED” FOR THE PURPOSES OF SECTION 18 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, NOR SHALL IT BE DEEMED INCORPORATED BY REFERENCE INTO ANY REGISTRATION STATEMENT OR OTHER FILING PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, EXCEPT AS OTHERWISE EXPRESSLY STATED IN SUCH FILING.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

OASIS PETROLEUM INC.

(Registrant)

Date: February 24, 2021

By:

/s/ Nickolas J. Lorentzatos

Nickolas J. Lorentzatos

Executive Vice President, General Counsel and Corporate Secretary

First Amendment

Credit Agreement

Dated as of February 19, 2021

Among

Oasis Petroleum Inc.,

as Parent,

Oasis Petroleum North America LLC,

As Borrower,

the other Credit Parties party hereto,

Wells Fargo Bank, N.A.,

as Administrative Agent, Issuing Bank and Swingline Lender

and

The Lenders Party Hereto

FIRST AMENDMENT TO

CREDIT AGREEMENT

THIS FIRST AMENDMENT to Credit Agreement (this “First Amendment”) dated as of February 19, 2021, is among: Oasis Petroleum Inc., a Delaware corporation (the “Parent”); Oasis Petroleum LLC, a Delaware limited liability company (“OP LLC”), Oasis Petroleum North America LLC, a Delaware limited liability company (the “Borrower”); each of the Lenders from time to time party hereto; and Wells Fargo Bank, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”).

R E C I T A L S:

A. Parent, OP LLC, the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of November 19, 2020 (as amended, amended and restated, restated, supplemented or otherwise modified, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

B. The Borrower, the Guarantors, the Administrative Agent and the Lenders party hereto desire to amend certain provisions of the Credit Agreement as set forth herein effective as of the First Amendment Effective Date (as defined below).

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this First Amendment. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.

Section 2. Amendments to Credit Agreement. In reliance on the representations, warranties, covenants and agreements contained in this First Amendment, and subject to the conditions precedent contained in Section 3 hereof, the Credit Agreement shall be amended effective as of the date hereof in the manner provided in this Section 2.

2.1 Amendments to Section 1.02 (Certain Defined Terms).

(a) The following definitions contained in Section 1.02 of the Credit Agreement are hereby amended and restated as follows:

“Agreement” means this Credit Agreement, as amended by the First Amendment, and as the same may from time to time be further amended, restated, amended and restated, supplemented or modified.

(b) The following definition is hereby added to Section 1.02 of the Credit Agreement where alphabetically appropriate to read as follows:

“First Amendment” means that certain First Amendment to Credit Agreement, dated as of February 19, 2021 among the Parent, the Borrower, the other Guarantors, the Administrative Agent, the Issuing Bank and the Lenders party thereto.

2.2 Amendments to Section 9.04.

(a) Section 9.04(a)(x) of the Credit Agreement is hereby amended by (i) deleting the second reference to “pursuant to this clause (x)” therein and inserting in lieu thereof “pursuant to this clause (x) and clause (xii) of this Section 9.04(a)” and (ii) deleting the last reference to “and” at the end of such section.

(b) Section 9.04(a)(xi) of the Credit Agreement is hereby amended by deleting the “.” therein and inserting in lieu thereof “, and”.

(c) Section 9.04(a) of the Credit Agreement is hereby amended by adding a new clause (xii) thereto immediately following clause (xi) thereof to read as follows:

“(xii) commencing on the Test Period ending December 31, 2020, each of the Parent, OP LLC and the Borrower shall be permitted to make other Restricted Payments provided that (A) no Event of Default is continuing or would result therefrom, (B) the pro forma Leverage Ratio after giving effect thereto for the most recent Test Period ending on or after such date is less than 2.0 to 1.0, (C) the pro forma Available Commitment after giving effect thereto is not less than 25% of the total Commitments then in effect, (D) if the pro forma Leverage Ratio after giving effect thereto for the most recent Test Period exceeds 1.5 to 1.0, the amount of such Restricted Payments made since the Effective Date pursuant to this clause (xii) shall not exceed the amount of positive Free Cash Flow (including after giving effect to any other Restricted Payments pursuant to this clause (xii), Investments pursuant to Section 9.05(l) and Capital Expenditures pursuant to Section 9.22(a) made since the Effective Date and prior to the date of determination that would otherwise reduce the amount of Free Cash Flow), (E) the aggregate amount of Restricted Payments made pursuant to this clause (xii) during any fiscal quarter shall not exceed $10,000,000 and the aggregate amount of Restricted Payments made pursuant to this clause (xii) at any time shall not exceed $25,000,000, and (F) any Restricted Payments made pursuant to this clause (xii) shall be made prior to October 1, 2021.”

2.3 Amendment to Section 9.05. Section 9.05(l) of the Credit Agreement is hereby amended by adding a reference to “and Section 9.04(a)(xii)” immediately after the reference to “Section 9.04(a)(x)” therein.

2.4 Amendment to Section 9.22. Section 9.22(a) of the Credit Agreement is hereby amended by adding a reference to “and Section 9.04(a)(xii)” immediately after the reference to “Section 9.04(a)(x)” therein.

Section 3. Conditions Precedent. This First Amendment shall become effective as of the date when each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “First Amendment Effective Date”):

3.1 Executed Counterparts of First Amendment. The Administrative Agent shall have received from the Borrower, each Guarantor and the Lenders constituting the Majority Lenders (in such number as may be requested by the Administrative Agent) executed counterparts of this First Amendment signed on behalf of such Person.

3.2 No Default. No Default shall have occurred and be continuing as of the date hereof prior to and after giving effect to the terms of this First Amendment.

The Administrative Agent is hereby authorized and directed to declare this First Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3 or the waiver of such conditions as permitted hereby. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

Section 4. Miscellaneous.

4.1 Confirmation and Effect. The provisions of the Credit Agreement, as amended by this First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment. Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.

4.2 No Waiver. Neither the execution by the Administrative Agent or the Lenders of this First Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this First Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents. Similarly, nothing contained in this First Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b) except as expressly provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the

Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.

4.3 Ratification and Affirmation; Representations and Warranties. Each Credit Party hereby (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, the Guaranty and Security Agreement, the Mortgages and each other Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) as of such specified earlier date and (ii) no Default or Event of Default has occurred and is continuing.

4.4 Counterparts. This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this First Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.

4.5 No Oral Agreement. This First Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral agreements between the parties.

4.6 GOVERNING LAW. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

4.7 Payment of Expenses. In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.

4.8 Severability. Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and

any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

4.9 Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

4.10 Loan Document. This First Amendment shall constitute a “Loan Document” under and as defined in Section 1.02 of the Credit Agreement.

4.11 No Novation. The parties hereto agree that this First Amendment does not in any way constitute a novation of the existing Credit Agreement, but is an amendment of the Credit Agreement.

[Signatures Begin Next Page]

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the date first written above.

BORROWER: OASIS PETROLEUM NORTH AMERICA LLC

By: /s/ Michael Lou

Name: Michael Lou

Title: Executive Vice President and Chief

Financial Officer

GUARANTORS: OASIS PETROLEUM INC.

OASIS PETROLEUM LLC

OASIS PETROLEUM MARKETING LLC

OASIS WELL SERVICES LLC

OASIS MIDSTREAM SERVICES LLC

OMS HOLDINGS LLC

OASIS PETROLEUM PERMIAN LLC

By: /s/ Michael Lou

Name: Michael Lou

Title: Executive Vice President and Chief

Financial Officer

OMP GP LLC

By: /s/ Michael Lou

Name: Michael Lou

Title: President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

ADMINISTRATIVE AGENT,

SWINGLINE LENDER,

ISSUING BANK AND LENDER: WELLS FARGO BANK, N.A.,

as Administrative Agent, Issuing Bank, a Swingline Lender and a Lender

By: /s/ Edward Pak

Name: Edward Pak

Title: Director

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

LENDERS: CITIBANK, N.A., as a Lender

By: /s/ Cliff Vaz

Name: Cliff Vaz

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

JPMORGAN CHASE BANK, N.A.,

as a Lender

By: /s/ Anson Williams

Name: Anson Williams

Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

ROYAL BANK OF CANADA, as a Lender

By: /s/ Jay Sartain

Name: Jay Sartain

Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

CAPITAL ONE, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Matthew Brice

Name: Matthew Brice

Title: Director

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

CANADIAN IMPERIAL BANK OF

COMMERCE, NEW YORK BRANCH,

as a Lender

By: /s/ Trudy Nelson

Name: Trudy Nelson

Title: Authorized Signatory

By: /s/ Anson Williams

Name: Scott W. Danvers

Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

ING CAPITAL LLC, as a Lender

By: /s/ Juli Bieser

Name: Julie Bieser

Title: Managing Director

By: /s/ Lauren Gutterman

Name: Lauren Gutterman

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

CITIZENS BANK, N.A., as a Lender

By: /s/ Kelly Graham

Name: Kelly Graham

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

ZIONS BANCORPORATION, N.A. DBA AMEGY BANK, as a Lender

By: /s/ John Moffitt

Name: John Moffitt

Title: Senior Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

BOKF, NA dba Bank of Texas, as a Lender

By: /s/ Clayton W. Williford

Name: Clayton W. Williford

Title: Assistant Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

TRUIST BANK, FORMERLY BRANCH BANKING AND TRUST COMPANY,

as a Lender

By: /s/ James Giordano

Name: James Giordano

Title: Managing Director

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

COMERICA BANK, as a Lender

By: /s/ Garrett Merrell

Name: Mr. Garrett Merrell

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH,

as a Lender

By: /s/ Nurpur Kumar

Name: Nurpur Kumar

Title: Authorized Signatory

By: /s/ Christopher Zybrick

Name: Christopher Zybrick

Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

IBERIABANK, a Division of First Horizon Bank, as a Lender

By: /s/ W. Bryan Chapman

Name: W. Bryan Chapman

Title: Market President – Energy Lending

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

GOLDMAN SACHS BANK USA, as a Lender

By: /s/ Dan Martis

Name: Dan Martis

Title: Authorized Signatory

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

MANNINGTREE INVESTMENTS LIMITED, as a Lender

By: /s/ Elliot Greenberg

Name: Elliot Greenberg

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

ELLIOTT ASSOCIATES, L.P., as a Lender

By: Elliot Investment Management, L.P., as attorney-in-fact

By: /s/ Elliot Greenberg

Name: Elliot Greenberg

Title: Vice President

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender

By: /s/ Dan Condley

Name: Dan Condley

Title: Managing Director

Signature Page to First Amendment to Credit Agreement

(Oasis Petroleum North America LLC)

MIZUHO BANK, LTD., as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

Exhibit 23.1

DEGOLYER AND MACNAUGHTON

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

February 24, 2021

Oasis Petroleum Inc.

1001 Fannin Street, Suite 1500

Houston, Texas 77002

Ladies and Gentlemen:

We hereby consent to the references to DeGolyer and MacNaughton and to the incorporation of the estimates contained in our report entitled “Report as of December 31, 2020 on Reserves and Revenue of Certain Properties with interests attributable to Oasis Petroleum Inc.” (our Report) in the Current Report on Form 8-K of Oasis Petroleum Inc. dated as of February 24, 2021. In addition, we hereby consent to the incorporation by reference of our report of third party dated January 28, 2021, in the “Financial Statements and Exhibits” portion of the Current Report.


Very truly yours,

/s/ DeGolyer and MacNaughton

DeGOLYER and MacNAUGHTON Texas Registered Engineering Firm F-716

Exhibit 99.1

Oasis Petroleum Inc. Announces Financial and Operational Update and 2021 Outlook and Declares First Dividend

Houston, Texas — February 24, 2021 — Oasis Petroleum Inc. (Nasdaq: OAS) (“Oasis” or the “Company”) today announced select financial and operational results for the quarter and year ended December 31, 2020 and provided its 2021 outlook. Due to impacts from the recent winter storms in Texas, Oasis plans to provide an updated investor presentation and file its Form 10-K for the year ended December 31, 2020 on March 8, 2021.

Highlights:

•Best-in-class balance sheet with leverage significantly below target of 1.0x;

•Generated significant free cash flow during 4Q20, and reduced net borrowings by approximately $80MM since November 19, 2020. Revolver borrowings below $200MM as of February 24, 2021;

•Declared a $0.375 per share dividend ($1.50/share annualized) payable on March 22, 2021 to shareholders of record as of March 8, 2021. Amended Oasis Credit Facility to allow for dividends earlier than originally structured;

•Positioned Company for long-term returns-focused success. Announced a peer-leading shareholder-aligned management compensation program, which focuses on fostering long-term value creation through returns-based awards;

•Formed a new Board capital allocation committee that developed a framework focused on systematic evaluation and screening of capital investments to ensure strong returns, which forms the foundation for the Company’s budgeting process;

•Developed a compelling 2021 program with strong returns, attractive reinvestment rates (~60% at $50/bbl WTI), and strong free cash flow ($155-$175MM before dividend at $50/bbl WTI, $2.50/MMBtu NYMEX gas);

•Integrated ESG strategy into expanded Board committee now titled Nominating, Environmental, Social & Governance Committee. Developed framework to ensure that Oasis implements the right measures to respect our environment, our social fabric, and Oasis’s governance;

•Generated a total of $30.5MM in cash flow from midstream ownership ($17.3MM from retained interests and $13.2MM in distributions from Oasis Midstream Partners (OMP)) in 4Q20. Please refer to OMP’s press release for more details(1)

“Led by a newly installed, diverse Board along with our dedicated Oasis team members, we achieved outstanding operational and financial results and installed material new strategic initiatives. These results exemplify the first steps that Oasis is taking to demonstrate to our stakeholders our commitment to our new strategy of strong capital discipline and significant free cash flow generation as well as commitments to our environment, our social responsibilities and the sustainability of our enterprise. Consistent with this strategy and the commitment of the Board of Directors to shareholders, we declared our first fixed dividend,” said Douglas E. Brooks, Oasis’s Board Chair and Chief Executive Officer.

“Oasis generated significant free cash flow during the quarter and significantly reduced its RBL revolver balance and improved liquidity. Separately, the organization has already made tremendous progress on reducing operating, capital and general and administrative costs, and the work it has done with an outside consultant will further enhance our overall cost structure.” With our cash flow profile and peer leading leverage of 0.6x(2) based on YE20 net debt and implied 2021 EBITDA guidance ($50/bbl WTI, $2.50/MMBtu NYMEX gas), Oasis is able to immediately return capital to its shareholders. Along these lines, our 2021 capital program was developed through the rigorous framework of the capital allocation committee and supports a disciplined reinvestment rate, strong returns, and sustainable distributions of capital to shareholders.”

4Q20 and 2020 Highlights

•Produced 59.2 MBoepd in 4Q20, with oil volumes at 38.6 MBopd.

•E&P CapEx(3) was between $12.6MM and $16.6MM for 4Q20, approximately 61-71% below 4Q20 guidance. FY2020 E&P CapEx was between $207MM and $211MM, approximately 64% below the original budget.

(1) Refer to Oasis Midstream Partners press release dated February 24, 2021.

(2) Leverage estimation based on estimated OAS YE20 net debt of $245MM and estimated 2021 OAS EBITDA based on midpoint guidance and $50/bbl WTI and $2.50/mmBtu NYMEX gas. OAS EBITDA defined as E&P EBITDA + retained midstream cash flow + LP/GP distributions to OAS from OMP.

(3) E&P CapEx excludes capitalized interest, midstream CapEx and acquisitions. The preliminary financial data has been prepared by, and is the responsibility of, Oasis's management. The preliminary financial data has not been audited or reviewed by an independent registered public accounting firm.

Mr. Brooks continued, "We entered 2021 with a returns-focused, capital efficient program, which in combination with our high-quality asset base supports significant free cash flow generation. Additionally, we have made important strides in aligning the Board and management with shareholders through our peer-leading returns-focused compensation program. As we look forward, the Oasis team is focused on executing our strategic objectives while maintaining a strong ESG culture to provide value to all stakeholders. Oasis is uniquely positioned with a strong 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."

Progress on Strategy since Emergence

•Governance: Consistent with dedication to ESG-related opportunities, shareholders have selected a diverse, experienced Board of Directors which is 83% independent. Additionally, Oasis has enacted a peer-leading executive compensation program with 75% of incentive pay tied to returns.

•Best-in-class balance sheet: Oasis is 0.6x levered (see note 2 above) on 2021 estimates (based on $50/bbl WTI and $2.50/mmBtu NYMEX gas). The Company is targeting leverage below 1.0x to ensure financial strength, sustainability of operations, and return of capital to shareholders.

•Capital allocation committee: The Board of Directors implemented a capital allocation committee, which serves as a rigorous, systematic framework for evaluating and approving projects to enhance returns. Efficiently developing Oasis’s high-quality asset base is paramount to delivering sustainable returns of cash to shareholders.

•Cost reductions: Oasis has dramatically reduced its capital, operating, and overhead cost structure over the past two years. Additionally, the Company has identified significant further cost reductions and operating efficiencies through its work with a third party. These savings are incorporated into the Company’s 2021 guidance and are expected to be outlined in more detail in the near-term.

•Commitment to sustainability: Oasis is dedicated to producing a cleaner, low-cost barrel, while being engaged with local communities and conscious of stakeholder interests. The Company’s peer-leading gas capture through 2020 in the Williston Basin exemplifies Oasis’s commitment on this front.

•Enterprise risk management: Oasis has codified an enterprise risk management system to ensure organizational reliability and to protect against possible disruptions. Oasis has implemented new systems to effectively manage processes and mitigate risk.

•Midstream optionality: Oasis is differentiated by significant ownership in OMP, a premier gathering and processing midstream company. Management believes its ownership in OMP is a source of unrecognized value and has prioritized assessing optimal structure and value creation options in the near-term.

2021 Plan

Oasis constructed its 2021 plan to maximize capital returns, productivity and efficiency while generating significant free cash flow at $40/bbl NYMEX WTI. At current strip pricing, the Company intends to maintain a similar program and generate even higher amounts of free cash flow. Oasis expects to generate approximately $155MM to $175MM of free cash flow in 2021 at $50/bbl WTI and $2.50/MMBtu NYMEX gas, including the impact of derivatives but excluding dividends. The 2021 reinvestment rate is expected to be at or below 60% using the same pricing. Oasis is directing approximately 65-70% of its capital to the Williston Basin and approximately 30-35% of its capital to the Permian Basin. The Company expects approximately 80-85% of its E&P and Other CapEx to be invested in drilling and completions activities, including:

•Completing 23 to 25 gross operated wells with a working interest of approximately 86% in the Williston Basin.

•Completing 6 to 8 gross operated wells with a working interest of approximately 100% in the Permian Basin.

Other highlights of the 2021 plan include:

•4Q20 CapEx is expected to be approximately 66% below original expectations as Oasis deferred activity to evaluate capital allocation options and maximize returns. These actions are expected to improve project returns, but modestly defer the 2021 volume trajectory.

•1Q21 CapEx is expected to approximate 20% of full-year guidance.

•2021 E&P CapEx is expected to range between $225MM and $235MM. In addition, Oasis’s portion of midstream is expected to range between $6MM and $8MM.

•1Q21 total volumes are expected to approximate 54 to 57 MBoepd (~65% oil cut), impacted by deferred activity and weather impacts. Full year volumes are expected to approximate 57 to 60 MBoepd (~66% oil cut). 4Q21 volumes are expect to range between 62 to 65 MBoepd (~67% oil cut), as normalized capital activity supports production volumes.

•Full-year 2022 volumes are expected to be flat to slightly higher with similar E&P CapEx levels as 2021.

•Approximately 74% of expected 2021 oil production hedged at an average swap price of $42/bbl WTI.

•Oasis has proactively secured alternative outlets for approximately one-third of its expected April through September Williston crude to mitigate risk associated with any potential Dakota Access Pipeline (DAPL) disruption.

•E&P Cash G&A was reduced to a run-rate of $49MM in May of 2020, and the Company currently expects to further reduce it to $42MM-45MM in 2021. Exiting 2021, Oasis plans to be below $37MM on a run-rate basis.


E&P Metrics(1)			2021 Range
Production (MBoepd)(2)			57 - 60
Financial Metrics
Differential to NYMEX WTI ($ per bbl)			$2.00 - $3.00
Natural gas realized price (as a % of Henry Hub)			~100%
LOE ($ per Boe)			$9.50 - $10.50

MT&G ($ per Boe)			$4.00 - $4.25

E&P Cash G&A ($ in millions)(3)			$42 - $45
Production taxes (% of oil and gas revenues)			7.2% - 7.4%
CapEx Plan ($ in millions)
E&P & Other CapEx(4)			$225 - $235
Midstream CapEx attributable to Oasis			6 - 8
Total Oasis E&P & Other CapEx and Midstream attributable to Oasis(5)			$231 - $243
Cash interest ($ in millions)			$9 - $10
Cash taxes ($ in millions)			$14 - $26

__________________

(1)E&P only metrics are a non-GAAP financial measure reflecting the underlying E&P business (assumes no midstream ownership). Further detail can be found within the appendix of the Company’s investor presentation on our website at www.oasispetroleum.com. Midstream Cash Flow Attributable to Oasis can be found in the table below.

(2)Average oil production percentage of approximately 66% in 2021.

(3)E&P Cash G&A represents general and administrative expenses less non-cash equity-based compensation expenses and other non-cash charges included in the Company’s exploration and production segment.

(4)Other CapEx includes administrative capital and excludes capitalized interest of approximately $6MM.

(5)Excludes midstream capital funded by OMP.

Midstream Cash Flow Attributable to Oasis


		EBITDA
DevCo	OAS Ownership	1Q21 Net to OAS	2021 Net to OAS
Bobcat DevCo	64.7%	$16 - 20	$69 - 71
Beartooth DevCo	30.0%	$2 - 3	$12 - 13
Total		$18 - 23	$81 - 84

Additionally, OAS owns 22.8MM units of OMP and Incentive Distribution Rights. OMP declared a distribution of $0.54 per unit today, which was flat quarter over quarter. Assuming the distribution from OMP stays flat for 2021, OAS will received approximately $49MM in LP distributions and $4MM in GP distributions in 2021.

South Nesson Dedication to OMP

Oasis Petroleum has approved an expansion of its dedication to OMP in South Nesson to now include crude oil and produced water services. OMP already received the dedication for natural gas gathering and processing as well as gas lift in 2019, and OMP expects volumes under each service offering to flow in 2022. South Nesson is located between Johnson’s Corner and OMP’s gas plant complex, and is one of Oasis Petroleum’s top operating areas. As part of the arrangement, Oasis Petroleum agreed to assign to Bighorn DevCo, which is 100% owned by OMP, certain assets in Bobcat DevCo specifically built to support both existing third-party customers in South Nesson and future development for Oasis Petroleum. All future assets for the South Nesson project will be built at Bighorn DevCo and all future revenue from Oasis Petroleum and third parties in South Nesson will accrue to Bighorn DevCo.

Balance Sheet and Liquidity

The following table depicts the Company’s key balance sheet statistics and liquidity. Debt is calculated in accordance with respective credit facility definitions. The debt held at Oasis and OMP is not cross-collateralized and guarantors under the Oasis Credit Facility are not responsible for OMP debt.


YE20 ($ in millions)	OAS		OMP		Consolidated
Borrowing Base	$	575.0	$	575.0	$	1,150.0
Borrowings under revolver	260.0		450.0		710.0
LCs	6.8		—		6.8
Total revolver exposure	266.8		450.0		716.8
Other debt	5.4		3.0		8.4
Total debt	272.2		453.0		725.2
Cash	15.1		5.1		20.2
Liquidity	323.3		130.1		453.4

Dividend Declaration

Oasis declared a $0.375 per share dividend for the fourth quarter of 2020 ($1.50/share annualized) for shareholders of record as of March 8, 2021, payable on March 22, 2021.

Hedging Activity

As of February 24, 2021, the Company had the following outstanding commodity derivative contracts, which settle monthly and are priced off of WTI for crude oil and NYMEX Henry Hub for natural gas:


	1H21		2H21		1H22		2H22		2023
Crude Oil (Volume in MBopd)
Fixed Price Swaps
Volume	29.0		29.0		19.0		19.0		14.0
Price ($ per Bbl)	$	42.09	$	42.09	$	42.74	$	42.74	$	43.68
Two-Way Collars
Volume	—		3.0		3.0		—		—
Floor ($ per Bbl)	$	—	$	45.00	$	45.00	$	—	$	—
Ceiling ($ per Bbl)	$	—	$	63.82	$	63.82	$	—	$	—





Total Crude Oil Volume	29.0		32.0		22.0		19.0		14.0

Natural Gas (Volume in MMBtupd)
Fixed Price Swaps
Volume	40,000.0		40,000.0		30,000.0		—		—
Price ($ per Btu)	$	2.84	$	2.84	$	2.82	$	—	$	—
Total Natural Gas Volume	40,000.0		40,000.0		30,000.0		—		—

The December 2020 crude oil derivative contracts settled at a net $0.4MM paid in January 2021 and will be included in the Company’s 1Q21 derivative settlements.

Net Proved Reserves

The Company's estimated net proved reserves and related PV-10 at December 31, 2020 (“YE20”) are based on reports prepared by DeGolyer and MacNaughton, independent reserve engineers. In preparing its reports, DeGolyer and MacNaughton evaluated properties representing all of the Company’s PV-10 at YE20 in accordance with rules and regulations of the Securities and Exchange Commission applicable to companies involved in crude oil and natural gas producing activities. The following reserve information does not give any effect to or reflect Oasis’s commodity hedges and utilizes an average NYMEX WTI crude oil price of $39.54 per barrel and an average natural gas price of $2.03 per MMBtu. These prices were adjusted by lease for quality, transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the wellhead. All of the Company’s estimated proved undeveloped reserves at YE20 are expected to be developed within five years. Oasis’s estimated net proved crude oil and natural gas reserves at YE20 were 182.5 million barrels of oil equivalents (“MMBoe”) and consisted of 119.8 million barrels of crude oil and 376.2 billion cubic feet of natural gas. The table below summarizes the Company's estimated net proved reserves and related PV-10 at YE20:


	December 31, 2020
	Net Estimated Reserves (MMBoe)	PV-10 (in millions)
Proved Developed	129.2	$	936.9
Proved Undeveloped	53.3	178.1
Total Proved	182.5	$	1,115.0

PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net cash flows.

Conference Call Information

Investors, analysts and other interested parties are invited to listen to the conference call:


Date:						Thursday, February 25, 2021
Time:						10:00 a.m. Central Time
Live Webcast:						https://www.webcaster4.com/Webcast/Page/1052/39882
OR:
Dial-in:						888-317-6003
Intl. Dial in:						412-317-6061
Conference ID:						1269252
Website:						www.oasispetroleum.com

A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, March 4, 2021 by dialing:


Replay dial-in:						877-344-7529
Intl. replay:						412-317-0088
Replay code:						10152152

The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.

Contact:

Oasis Petroleum Inc.

Douglas E. Brooks, Chief Executive Officer and Board Chair

Michael H. Lou, Chief Financial Officer and Executive Vice President

Bob Bakanauskas, Director, Investor Relations

(281) 404-9600

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements

contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company’s drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, changes in crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company’s ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company’s business and other important factors that could cause actual results to differ materially from those projected as described in the Company’s reports filed with the Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Oasis Petroleum Inc.

Oasis Petroleum, Inc. is an independent exploration and production company with quality and sustainable long-lived assets in the Williston and Delaware Basins. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. For more information, please visit the Company's website at www.oasispetroleum.com.

DeGolyer and MacNaughton

5001 Spring Valley Road

Suite 800 East

Dallas, Texas 75244

This is a digital representation of a DeGolyer and MacNaughton report.

Each file contained herein is intended to be a manifestation of certain data in the subject report and as such is subject to the definitions, qualifications, explanations, conclusions, and other conditions thereof. The information and data contained in each file may be subject to misinterpretation; therefore, the signed and bound copy of this report should be considered the only authoritative source of such information.

DeGolyer and MacNaughton

5001 Spring Valley Road

Suite 800 East

Dallas, Texas 75244

January 28, 2021

Oasis Petroleum Inc.

1001 Fannin, Suite 1500

Houston, Texas 77002

Ladies and Gentlemen:

Pursuant to your request, this report of third party presents an independent evaluation, as of December 31, 2020, of the extent and value of the estimated net proved oil and gas reserves of certain properties in which Oasis Petroleum Inc. (Oasis) has represented it holds an interest. This evaluation was completed on January 28, 2021. The properties evaluated herein consist of working and royalty interests located in Montana, North Dakota, and Texas. Oasis has represented that these properties account for 100 percent on a net equivalent barrel basis of Oasis’ net proved reserves as of December 31, 2020. The net proved reserves estimates have been prepared in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the Securities and Exchange Commission (SEC) of the United States. This report was prepared in accordance with guidelines specified in Item 1202 (a)(8) of Regulation S–K and is to be used for inclusion in certain SEC filings by Oasis.

Reserves estimates included herein are expressed as net reserves. Gross reserves are defined as the total estimated petroleum remaining to be produced from these properties after December 31, 2020. Net reserves are defined as that portion of the gross reserves attributable to the interests held by Oasis after deducting all interests held by others.

Values for proved reserves in this report are expressed in terms of future gross revenue, future net revenue, and present worth. Future gross revenue is defined as that revenue which will accrue to the evaluated interests from the production and sale of the estimated net reserves. Future net revenue is calculated by deducting production taxes, ad valorem taxes, operating expenses, capital costs, and abandonment costs from future gross revenue. Operating expenses include field

DeGolyer and MacNaughton

operating expenses, transportation and processing expenses, compression charges, and an allocation of overhead that directly relates to production activities. Capital costs include drilling and completion costs, facilities costs, and field maintenance costs. Abandonment costs are represented by Oasis to be inclusive of those costs associated with the removal of equipment, plugging of wells, and reclamation and restoration associated with the abandonment. At the request of Oasis, future income taxes were not taken into account in the preparation of these estimates. Present worth is defined as future net revenue discounted at a nominal discount rate of 10 percent per year compounded monthly over the expected period of realization. Present worth should not be construed as fair market value because no consideration was given to additional factors that influence the prices at which properties are bought and sold.

Estimates of reserves and revenue should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

Information used in the preparation of this report was obtained from Oasis and from public sources. In the preparation of this report we have relied, without independent verification, upon information furnished by Oasis with respect to the property interests being evaluated, production from such properties, current costs of operation and development, current prices for production, agreements relating to current and future operations and sale of production, and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

Definition of Reserves

Petroleum reserves included in this report are classified as proved. Only proved reserves have been evaluated for this report. Reserves classifications used in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC. Reserves are judged to be economically producible in future years from known reservoirs under existing economic and operating conditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to the limit of economic rates of production under existing economic and operating conditions using prices and costs consistent with the effective date of this report, including consideration of changes in existing prices provided only by contractual arrangements but not including escalations based upon future conditions. The petroleum reserves are classified as follows:

DeGolyer and MacNaughton

Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

(i) The area of the reservoir considered as proved includes:

(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.

(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.

(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.

(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:

(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved for development by all necessary parties and entities, including governmental entities.

(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12month period prior to the ending date of the period covered

DeGolyer and MacNaughton

by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.

(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidence using reliable technology establishing reasonable certainty.

Methodology and Procedures

Estimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC and with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (revised June 2019) Approved by the SPE Board on 25 June 2019” and in Monograph 3 and Monograph 4 published by the

DeGolyer and MacNaughton

Society of Petroleum Evaluation Engineers. The method or combination of methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basic data, and production history.

Based on the current stage of field development, production performance, the development plans provided by Oasis, and analyses of areas offsetting existing wells with test or production data, reserves were classified as proved. The proved undeveloped reserves estimates were based on opportunities identified in the plan of development provided by Oasis.

Oasis has represented that its senior management is committed to the development plan provided by Oasis and that Oasis has the financial capability to execute the development plan, including the drilling and completion of wells and the installation of equipment and facilities.

For the evaluation of unconventional reservoirs, a performance-based methodology integrating the appropriate geology and petroleum engineering data was utilized for this report. Performance-based methodology primarily includes (1) production diagnostics, (2) decline-curve analysis, and (3) model-based analysis (if necessary, based on availability of data). Production diagnostics include data quality control, identification of flow regimes, and characteristic well performance behavior. These analyses were performed for all well groupings (or type-curve areas).

Characteristic rate-decline profiles from diagnostic interpretation were translated to modified hyperbolic rate profiles, including one or multiple b-exponent values followed by an exponential decline. Based on the availability of data, model-based analysis may be integrated to evaluate long-term decline behavior, the effect of dynamic reservoir and fracture parameters on well performance, and complex situations sourced by the nature of unconventional reservoirs.

In the evaluation of undeveloped reserves, type-well analysis was performed using well data from analogous reservoirs for which more complete historical performance data were available.

Data provided by Oasis from wells drilled through December 31, 2020, and made available for this evaluation were used to prepare the reserves estimates herein. These reserves estimates were based on consideration of monthly production data available for certain properties only through October 2020. Estimated cumulative production, as of December 31, 2020, was deducted from the estimated gross ultimate recovery to estimate gross reserves. This required that production be estimated for up to 2 months.

Oil reserves estimated herein are those to be recovered by normal field separation and are expressed in thousands of barrels (Mbbl). In these estimates, 1 barrel equals 42 United States gallons.

Gas quantities estimated herein are expressed as sales gas. Sales gas is defined as the total gas to be produced from the reservoirs, measured at the point of delivery, after reduction for fuel usage, flare,

DeGolyer and MacNaughton

and shrinkage resulting from field separation and processing. Gas reserves estimated herein are reported as sales gas. Gas quantities are expressed at a temperature base of 60 degrees Fahrenheit (°F) and at the pressure base of the state in which the reserves are located. Gas quantities included in this report are expressed in millions of cubic feet (MMcf).

Gas quantities are identified by the type of reservoir from which the gas will be produced. Nonassociated gas is gas at initial reservoir conditions with no oil present in the reservoir. Associated gas is both gas-cap gas and solution gas. Gas-cap gas is gas at initial reservoir conditions and is in communication with an underlying oil zone. Solution gas is gas dissolved in oil at initial reservoir conditions. Gas quantities estimated herein include only associated gas.

At the request of Oasis, sales gas reserves estimated herein were converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

Primary Economic Assumptions

Revenue values in this report were estimated using initial prices, expenses, and costs provided by Oasis. Future prices were estimated using guidelines established by the SEC and the Financial Accounting Standards Board (FASB). The following economic assumptions were used for estimating the revenue values reported herein:

Oil Prices

Oasis has represented that the oil prices were based on West Texas Intermediate (WTI) pricing, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual agreements. The oil prices were calculated using differentials furnished by Oasis to the reference price of $39.54 per barrel and held constant thereafter. The volume-weighted average price attributable to the estimated proved reserves over the lives of the properties was $37.29 per barrel of oil.

Gas Prices

Oasis has represented that the gas prices were based on Henry Hub pricing, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12month period prior to the end of the reporting period, unless prices are defined by contractual agreements. The gas prices were calculated for each property using differentials furnished by Oasis to the reference price of $2.03 per million Btu and held constant thereafter. These price differentials include revenue from the sale of natural gas liquids attributable to Oasis. Btu factors provided by Oasis were used to convert prices from dollars

DeGolyer and MacNaughton

per million Btu to dollars per thousand cubic feet. The volume-weighted average price attributable to the estimated proved reserves over the lives of the properties was $1.943 per thousand cubic feet of gas.

Production and Ad Valorem Taxes

Production taxes were calculated using the tax rates for each state in which the reserves are located, including, where appropriate, abatements for enhanced recovery programs. Ad valorem taxes were calculated using rates provided by Oasis based on recent payments.

Operating Expenses, Capital Costs, and Abandonment Costs

Estimates of operating expenses, provided by Oasis and based on current expenses, were held constant for the lives of the properties. Future capital expenditures were estimated using 2020 values, provided by Oasis, and were not adjusted for inflation. In certain cases, future expenditures, either higher or lower than current expenditures, may have been used because of anticipated changes in operating conditions, but no general escalation that might result from inflation was applied. Abandonment costs, which are those costs associated with the removal of equipment, plugging of wells, and reclamation and restoration associated with the abandonment, were provided by Oasis for all properties and were not adjusted for inflation. Operating expenses, capital costs, and abandonment costs were considered, as appropriate, in determining the economic viability of undeveloped reserves estimated herein.

In our opinion, the information relating to estimated proved reserves, estimated future net revenue from proved reserves, and present worth of estimated future net revenue from proved reserves of oil and gas contained in this report has been prepared in accordance with Paragraphs 932235-50-4, 932-235-50-6, 932-235-50-7, 932-235-50-9, 932-235-50-30, and 932235-50-31(a), (b), and (e) of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the FASB and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the SEC; provided, however, that (i) future income tax expenses have not been taken into account in estimating the future net revenue and present worth values set forth herein and (ii) estimates of the proved developed and proved undeveloped reserves are not presented at the beginning of the year.

To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers, are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.

DeGolyer and MacNaughton

Summary of Conclusions

The estimated net proved reserves, as of December 31, 2020, of the properties evaluated herein were based on the definition of proved reserves of the SEC and are summarized as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent (Mboe):


	Estimated by DeGolyer and MacNaughton Net Proved Reserves as of December 31, 2020
	Oil (Mbbl)	Sales Gas (MMcf)	Oil Equivalent (Mboe)

Proved Developed	85,428	262,676	129,207
Proved Undeveloped	34,337	113,495	53,253

Total Proved	119,765	376,171	182,460

Note: Sales gas reserves estimated herein were converted to oil equivalent using an energy equivalent factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

The estimated future revenue to be derived from the production and sale of the net proved reserves, as of December 31, 2020, of the properties evaluated using the guidelines established by the SEC is summarized as follows, expressed in thousands of dollars (M$):


	Proved Developed (M$)	Total Proved (M$)

Future Gross Revenue	3,685,701	5,197,219
Production and Ad Valorem Taxes	283,651	400,670
Operating Expenses	1,908,224	2,392,249
Capital Costs	65,110	528,452
Abandonment Costs	76,571	82,206
Future Net Revenue	1,352,145	1,793,642
Present Worth at 10 Percent	936,888	1,115,025

Note: Future income taxes have not been taken into account in the preparation of these estimates.

DeGolyer and MacNaughton

While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability to recover its reserves, we are not aware of any such governmental actions which would restrict the recovery of the December 31, 2020, estimated reserves.

DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1936. DeGolyer and MacNaughton does not have any financial interest, including stock ownership, in Oasis. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Oasis. DeGolyer and MacNaughton has used all assumptions, data, procedures, and methods that it considers necessary and appropriate to prepare this report.

Submitted,

DeGolyer and MacNaughton

CERTIFICATE of QUALIFICATION

I, Dilhan Ilk, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

1.That I am a Senior Vice President with DeGolyer and MacNaughton, which firm did prepare this report of third party addressed to Oasis dated January 28, 2021, and that I, as Senior Vice President, was responsible for the preparation of this report of third party.

2.That I attended Istanbul Technical University, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 2003, a Master of Science degree from Texas A&M University in 2005, and a Doctor in Philosophy degree from Texas A&M University in 2010; that I am a Registered Professional Engineer in the State of Texas; that I am a member of the Society of Petroleum Engineers; and that I have in excess of 10 years of experience in oil and gas reservoir studies and reserves evaluations.