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Oasis (OAS) to Sell Its Midstream Assets to Simplify Structure
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Oasis Petroleum Inc. reported that it entered a contribution and simplification agreement with Oasis Midstream Partners LP , wherein the latter will purchase all remaining interests of Oasis Petroleum in Bobcat DevCo LLC and Beartooth DevCo LLC. Via simplification, the midstream partnership (formed by Oasis Petroleum) will expand its interest in Bobcat DevCo from 35% to 100% and in Beartooth DevCo from 70% to 100%.
The transaction is slated to conclude by the end of this month, contingent upon customary closing conditions. Oasis Petroleum, which recently came out of a pandemic-forced bankruptcy, anticipates $81 million in cash flows from Oasis Midstream limited partner distributions in 2021 after the simplification is completed.
Douglas E. Brooks, Oasis Petroleum’s board chair and CEO, said, "The Simplification increases transparency of Oasis' midstream ownership and highlights significant value within Oasis while improving OMP's scale and competitive positioning. This transaction is a compelling proposition for both Oasis and OMP investors and was unanimously approved by the board of directors of Oasis and the general partner of OMP as well as its conflicts committee. OMP remains a valuable investment for Oasis and we will continue evaluating additional options for further value enhancement."
Further, in an effort to simplify its corporate structure, Oasis Petroleum decided that in exchange for around $510 million ($229 million in cash and 14.8 million Oasis Midstream common units) it will withdraw its incentive-distribution rights under the MLP.
Finally, in addition to its previously announced dividend of $1.50 per share annually, Oasis Petroleum announced that its board of directors approved a new $100-million share-repurchase program. The stock repurchase policy will run out on Dec 31, 2022.
About Oasis Petroleum
Established in 2007, Houston, TX-based Oasis Petroleum is an independent explorer, engaged in acquiring and developing oil and natural gas resources. The company’s asset base primarily focuses on the Bakken shale oil play of the Williston Basin, where it has more than 400,000 net leasehold acres.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Oasis (OAS) to Sell Its Midstream Assets to Simplify Structure
Oasis Petroleum Inc. reported that it entered a contribution and simplification agreement with Oasis Midstream Partners LP , wherein the latter will purchase all remaining interests of Oasis Petroleum in Bobcat DevCo LLC and Beartooth DevCo LLC. Via simplification, the midstream partnership (formed by Oasis Petroleum) will expand its interest in Bobcat DevCo from 35% to 100% and in Beartooth DevCo from 70% to 100%.
The transaction is slated to conclude by the end of this month, contingent upon customary closing conditions. Oasis Petroleum, which recently came out of a pandemic-forced bankruptcy, anticipates $81 million in cash flows from Oasis Midstream limited partner distributions in 2021 after the simplification is completed.
Douglas E. Brooks, Oasis Petroleum’s board chair and CEO, said, "The Simplification increases transparency of Oasis' midstream ownership and highlights significant value within Oasis while improving OMP's scale and competitive positioning. This transaction is a compelling proposition for both Oasis and OMP investors and was unanimously approved by the board of directors of Oasis and the general partner of OMP as well as its conflicts committee. OMP remains a valuable investment for Oasis and we will continue evaluating additional options for further value enhancement."
Further, in an effort to simplify its corporate structure, Oasis Petroleum decided that in exchange for around $510 million ($229 million in cash and 14.8 million Oasis Midstream common units) it will withdraw its incentive-distribution rights under the MLP.
Finally, in addition to its previously announced dividend of $1.50 per share annually, Oasis Petroleum announced that its board of directors approved a new $100-million share-repurchase program. The stock repurchase policy will run out on Dec 31, 2022.
About Oasis Petroleum
Established in 2007, Houston, TX-based Oasis Petroleum is an independent explorer, engaged in acquiring and developing oil and natural gas resources. The company’s asset base primarily focuses on the Bakken shale oil play of the Williston Basin, where it has more than 400,000 net leasehold acres.
Zacks Rank & Key Picks
Oasis Petroleum currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Matador Resources Company (MTDR - Free Report) and Denbury Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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