Houston-based Oasis Petroleum Inc. completed multiple bolt-on acquisitions during the third quarter in order to beef up its assets in the Permian Basin’s Delaware sub-basin.

“We've been able to do multiple small bolt-on acquisitions, at attractive prices, allowing us to increase ownership and block up [drilling spacing units] for longer laterals,” said CEO Tommy Nusz on a conference call Wednesday.

Oasis did not disclose the total cost of the acquisitions, but did indicate it was looking for opportunities to continue shoring up its Permian acreage.

“These smaller deals and trades, we think there's more opportunities to do that. So, we will continue to work that front,” said CFO Michael Lou.

Oasis’ average daily production in the Delaware reached 8,521 boe/d for the quarter, an 83% year/year increase and a 41% sequential increase. Natural gas production totaled 909 MMcf for the quarter, a 77% year/year increase and a 40% sequential increase. Delaware crude output reached 632,000 bbl, 84% higher than the year-earlier period and 45% higher than the previous quarter.

“Oasis has essentially shifted to development mode, with our next completions focused on the Bighorn and Arrowhead pads in early 2020. These units will be focused on the Wolfcamp A in the Bone Springs,” said COO Taylor Reid.

The build-out of its Permian program is part of Oasis’ plan to monetize assets and production from its Williston Basin assets.

“Our priorities remain running an efficient core Williston program [and] harvesting free cash flow to fund the Delaware [program] while paying down debt,” said Reid.

Oasis completed multiple Williston Basin asset sales late in the third quarter for $41 million.

The Williston sales “contributed to our overall significant debt reduction during the quarter,” said Lou, noting that wells associated with the divestments came online “very recently.”

Oasis also dropped one of two fracture crews that were operating in the basin, resulting in a 13% workforce reduction in the Oasis Well Services LLC business segment during the quarter.

Despite the monetization moves, the company’s commitment to the Williston is steadfast on the heels of sequential output gains.

Williston output averaged 80,194 boe/d in the third quarter, a 2.4% sequential increase, but a slight decline from the 80,793 boe/d averaged in 3Q2018. Natural gas output rose 30% year/year to 13.4 Bcf for the quarter, marking a 1% sequential increase. Total Williston crude production in the quarter reached 5.2 million bbl, a 10% drop year/year and a 6.5% decline sequentially.

“Oasis will be focused on the heart of the Williston for quite some time. We're impressed by the results observed in these step-out areas,” said Reid.

“Substantially all of our 414,000-acre Williston position is held by production, and with the benefit of our position being dominated by fee acreage, we have significant optionality on the pace of development and speed of permitting with only about 3% of our acreage on federal lands. We have limited exposure to longer permitting cycle times,” Reid said.

Total 3Q2019 company production totaled 88,715 boe/d, a 4% increase from 3Q2018 production, but a 3% sequential decline.

The company reported net income of $20.3 million (6 cents/share) in 3Q2019, down from $62.3 million (20 cents) in the year-ago period.