Shares of Oasis Petroleum are down another 14% in Thursday's pre-market trading after plunging 31.6% yesterday, as the company filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. As part of the the bankruptcy proceedings, Oasis is working on a plan with creditors to reduce its debt by $1.8 billion and strengthen its balance sheet. The energy company expects to emerge from bankruptcy in November, subject to court approval.Oasis (OAS) said that it “has received a commitment for $450 million in debtor-in-possession financing from its existing lenders,” which is expected to provide sufficient liquidity to maintain operations. The company will have about $340 million of borrowings under its credit facility.The company said “In light of a volatile market environment that drove a severe downturn in oil and gas prices, as well as the unprecedented impact of the COVID-19 pandemic, Oasis Petroleum engaged with its lenders and an ad hoc committee of noteholders regarding restructuring alternatives to reduce debt, increase financial flexibility and position the business for long-term success.” (See OAS stock analysis on TipRanks)On Aug. 6, MKM Partners analyst John Gerdes downgraded the stock to Hold from Buy and maintained a price target of $1 (257.1% upside potential), citing “increasingly uncertain” viability of the company's capital structure.Currently, the Street has a cautiously bearish outlook on the stock. The Moderate Sell analyst consensus is based on 3 Sells and 2 Holds. With shares down about 91.4% year-to-date, the average price target of $0.56 implies upside potential of about 100% to current levels.Related News: Oasis Petroleum Drops 8% After Deferring Interest Payments Dave & Buster’s Sinks 26% On Bankruptcy Threat Report; Truist Says Buy Garrett Motion Files For Bankruptcy; Inks Potential $2.1B KPS Deal More recent articles from Smarter Analyst: * American Airlines To Furlough 19,000 Workers As US Aid Ends * AstraZeneca’s Covid-19 Vaccine Put On Fast Track By EU Regulator * Bed Bath & Beyond Soars 31% As 2Q Sales Outperform * PepsiCo To Beat Annual Profit Bets As Pandemic Fuels Demand For Snacks
