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Oasis Petroleum Inc. (OAS)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$63.79 - $91.81$77.47
Multi-Stage$108.70 - $119.07$113.79
Blended Fair Value$95.63
Current Price$109.30
Upside-12.51%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202120202019201820162015201420132012
DPS0.00%0.00%9.320.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--8.53%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)513.27
(-) Cash Dividends Paid (M)335.67
(=) Cash Retained (M)177.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)102.6564.1638.50
Cash Retained (M)177.60177.60177.60
(-) Cash Required (M)-102.65-64.16-38.50
(=) Excess Retained (M)74.95113.44139.11
(/) Shares Outstanding (M)56.8456.8456.84
(=) Excess Retained per Share1.322.002.45
LTM Dividend per Share5.915.915.91
(+) Excess Retained per Share1.322.002.45
(=) Adjusted Dividend7.227.908.35
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$63.79$77.47$91.81
Upside / Downside-41.64%-29.13%-16.00%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)513.27508.14503.06498.03493.05488.12502.76
Payout Ratio65.40%70.32%75.24%80.16%85.08%90.00%92.50%
Projected Dividends (M)335.67357.32378.50399.22419.48439.30465.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)324.21327.52330.83
Year 2 PV (M)311.61318.00324.46
Year 3 PV (M)298.21307.44316.85
Year 4 PV (M)284.32296.11308.25
Year 5 PV (M)270.17284.24298.89
PV of Terminal Value (M)4,690.144,934.365,188.66
Equity Value (M)6,178.666,467.666,767.93
Shares Outstanding (M)56.8456.8456.84
Fair Value$108.70$113.79$119.07
Upside / Downside-0.54%4.11%8.94%

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