NEW YORK (TheStreet) -- Shares of Oasis Petroleum (OAS) - Get Oasis Petroleum Inc Report are higher by 3.43% to $11.75 in early afternoon trading on Monday, as some energy and related stocks get a boost from the rally in oil prices.
Oasis petroleum is a Houston-based acquirer and developer of oil and natural gas resources in North Dakota and Montana.
The commodity's price is climbing following comments out of Saudi Arabia in which the Middle Eastern nation vowed to work on price stability, offsetting some concerns regarding the continuing global supply glut, Reuters reports.
Crude oil (WTI) is gaining by 0.95% to $42.30 per barrel this afternoon and Brent crude is climbing by 1.68% to $45.41 per barrel, according to the CNBC.com index.
"The Saudis' past promises on working for price stability has led to nothing, so it wasn't surprising there was as much disbelief as initial excitement over today's announcement. But all said, they are the biggest movers in OPEC, so their statement is having a positive impact," energy hedge fund Again Capital partner John Kilduff told Reuters.
Separately, TheStreet Ratings team rates OASIS PETROLEUM INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate OASIS PETROLEUM INC (OAS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for OASIS PETROLEUM INC is rather high; currently it is at 64.09%. Regardless of OAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OAS's net profit margin of 13.71% significantly outperformed against the industry.
- OAS, with its decline in revenue, slightly underperformed the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 46.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, OAS has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OASIS PETROLEUM INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: OAS
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.