Discounted Cash Flow (DCF) Analysis Unlevered

Oasis Petroleum Inc (WLL)

$68.03

-4.65 (-6.40%)

All numbers are in Millions, Currency in USD

Stock DCF: -128.30 | 68.03 | overvalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Projected	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,481.43	2,081.41	1,572.24	1,698.32	1,834.50	1,981.60	2,140.50	2,312.13	2,497.53	2,697.80
Revenue (%)
EBITDA	-1,561.25	510.64	-6.24	112.62	648.12	-155.72	-168.20	-181.69	-196.26	-212
EBITDA (%)
EBIT	-1,561.25	510.64	-6.24	35.11	441.64	-312.45	-337.50	-364.56	-393.80	-425.37
EBIT (%)
Depreciation	-	-	-	77.50	206.47	156.73	169.30	182.87	197.54	213.38
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	879.38	13.61	8.65	25.61	41.25	254.91	275.35	297.43	321.28	347.05
Total Cash (%)
Account Receivables	284.21	294.47	308.25	142.83	279.86	303.60	327.94	354.24	382.64	413.32
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	32.76	42.52	80.10	23.70	48.64	53.09	57.35	61.95	66.91	72.28
Accounts Payable (%)
Capital Expenditure	-856.58	-957.80	-805.85	-2.49	-540.92	-732.10	-790.80	-854.22	-922.71	-996.70
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 68.03
Beta	4.407
Diluted Shares Outstanding	38.12
Cost of Debt
Tax Rate	0.21
After-tax Cost of Debt	27.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	24.320
Total Debt	47.12
Total Equity	2,593.24
Total Capital	2,640.35
Debt Weighting	1.78
Equity Weighting	98.22
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Projected	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,481.43	2,081.41	1,572.24	1,698.32	1,834.50	1,981.60	2,140.50	2,312.13	2,497.53	2,697.80
EBITDA	-1,561.25	510.64	-6.24	112.62	648.12	-155.72	-168.20	-181.69	-196.26	-212
EBIT	-1,561.25	510.64	-6.24	35.11	441.64	-312.45	-337.50	-364.56	-393.80	-425.37
Tax Rate	28.07%	0.40%	-42.75%	-44.53%	0.21%	-11.72%	-11.72%	-11.72%	-11.72%	-11.72%
EBIAT	-1,123	508.60	-8.91	50.75	440.71	-349.06	-377.05	-407.29	-439.95	-475.22
Depreciation	-	-	-	77.50	206.47	156.73	169.30	182.87	197.54	213.38
Accounts Receivable	-	-10.25	-13.78	165.42	-137.04	-23.73	-24.34	-26.30	-28.40	-30.68
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	9.76	37.58	-56.40	24.94	4.45	4.26	4.60	4.97	5.37
Capital Expenditure	-856.58	-957.80	-805.85	-2.49	-540.92	-732.10	-790.80	-854.22	-922.71	-996.70
UFCF	-1,979.58	-449.69	-790.95	234.78	-5.83	-943.72	-1,018.65	-1,100.33	-1,188.56	-1,283.86
WACC
PV UFCF				292	-5.83	-758.80	-658.56	-571.97	-496.77	-431.46
SUM PV UFCF										-2,917.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	24.37
Free cash flow (t + 1)	-1,309.54
Terminal Value	-5,854.01
Present Value of Terminal Value	-1,967.32

Intrinsic Value

Enterprise Value	-4,884.88
Net Debt	5.87
Equity Value	-4,890.75
Shares Outstanding	38.12
Equity Value Per Share	-128.30