![]() The company has more than 6,000 gross producing wells, primarily in the Bakken. (NYSE:NOG) has a rather unique modus operandi in that it invests in oil-producing properties, acting as a financial partner to exploration and production names. Just be sure to get your timing right and avoid holding the shares prior to any bankruptcy event, or you run the risk of receiving a single share for every 75 shares you hold a la Whiting.Īnother caveat: OAS has a high short interest of 25%, which could create an opportunity for a nice short squeeze but also means the odds are definitely stacked against this stock. Who knows, maybe Oasis will borrow a leaf from Whiting Petroleum (NYSE:WLL) whose stock surged more than 4,000% in the space of just 48 hours after it emerged from bankruptcy just four months after filing for Chapter 11. Interestingly, Oasis' management is adamant that the company has "sufficient liquidity" and says it has entered a 30-day grace period that will allow it to defer interest payments that are due Sept. Related: Tesla Shares Plunge After Underwhelming Battery Day Bloomberg has reported that Oasis owed interest on $244.8M of convertible notes and $834.5M of unsecured notes maturing in 2022. It's been from the frying pan to the fire for Oasis after it recently defaulted on its debt repayments leading to yet another selloff. ![]() With a long-term debt of $2.7B and negative shareholder equity, investors have been bailing on this company leading to the stock crashing 97% from its September 2018 peak. But investors hardly seem to care about Oasis' apparently undervalued resources, instead choosing to focus on its debt conundrum. As of the end of 2019, Oasis held approximately 286.4 million barrels of oil equivalent of estimated net proved reserves. (NYSE:OAS) is an oil and gas shale producer operating from the North Dakota and Montana regions of the Williston Basin and the Texas region of the Delaware Basin. If you belong to the latter camp, here are three beaten down small-cap oil and gas stocks worth a second look. On the opposite end of the spectrum are contrarian investors who remain skeptical about the terminal decline thesis and are optimistic that yet another government bailout package could set the sector on a recovery path. On the one hand, companies like Shell and BP have issued a really gloomy long-term outlook with BP recently coming out and saying that oil demand might never fully recover if the world's governments begin to get aggressive with their climate change goals. Yet, at the same time, the massive selloff provides good opportunities for dumpster diving value investors. This makes them high-risk investments only fit for investors who can withstand their stomach-churning volatility. ![]() This comes to nobody's surprise, really, considering that small-cap oil and gas stocks tend to have higher leverage than their bigger brethren. ![]()
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