Over the last two years, OAS has managed to increase its reserves in the Bakken by more than 80% via drilling and strategic acquisitions of smaller wildcatters. More importantly, those reserves are predominately oil-rich — with about 90% of them being high valued crude oil. This fact, plus higher actual production, has allowed OAS to produce some mammoth profit gains relative to its midcap size. OAS profit estimates are nearly 16% higher in 2014 vs. this year’s number.
Those profits and its oily reserves have made OAS stock one of the best-performing oil stocks in the sector. And 2014 could be similar.
OAS’s midcap size makes it perfect for a larger energy stock to swallow up. As these larger energy firms grapple with falling production, midcaps like OAS are perfect and relatively easy ways to gain instant oil reserves.
Even if the buyout doesn’t happen, OAS shareholders should be pleased in the New Year as the firm racks ups production gains.