Why the Selloff in Oasis Petroleum Shares May Be Overdone

This article was first published by TheStreet on December 16, 2014

By Sarfaraz A. Khan

NEW YORK (TheStreet) - With oil below $55 a barrel, Oasis Petroleum (OAS) hasn't seen these kind of prices since it went public in mid-2010, but that doesn't mean the Houston-based company that operates in North Dakota and Montana's Bakken shale-oil formation can't withstand the downturn.

During the last few years, when crude prices were mostly between $70 and $110 a barrel, Oasis increased its production from about 8,000 barrels of oil equivalents a day in 2011 to about 45,400 barrels a day, its target for this year. It's understandable, therefore, that investors are concerned about the company's ability to survive plunging oil prices. The company's shares have fallen by about 70% to around $13.50 this year.

Three Energy Firms to Watch This Earnings Season

From The Motley Fool
By Sarfaraz A. Khan
Research Assistant: G. Yousuf

Oil and gas Exploration and Production (E&P) companies Newfield Exploration (NYSE:NFX) and Hess Corporation are among those American energy firms which, amid pressure from shareholders, have been divesting from less lucrative international oil and gas ventures and investing in more profitable areas closer to their home market. I have already discussed about Hess Corporation’s strategic change and its implications in my previous article.

Here, I will discuss Newfield Exploration and two other E&P plays – the rapidly growing Oasis Petroleum (NYSE: OAS) and Wall Street favorite Anadarko Petroleum (NYSE: APC) – which can beat the market’s expectations in their upcoming earnings release.