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Oasis (OMP) Closes Midstream Asset Purchase of Oasis Petroleum

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Oasis Midstream Partners LP recently completed the contribution and simplification agreement with Oasis Petroleum by acquiring all the remaining interests of the latter in Bobcat DevCo LLC and Beartooth DevCo LLC.

Via simplification, the midstream partnership (formed by Oasis Petroleum) expanded its stake in Bobcat DevCo from 35% to 100% and in Beartooth DevCo from 70% to 100%.

Oasis Petroleum, which recently came out of a pandemic-forced bankruptcy, anticipates $81 million in cash flows from Oasis Midstream limited partner distributions during 2021 post the simplification.

Further, in an effort to simplify its corporate structure, Oasis Petroleum withdrew its incentive-distribution rights under the MLP in exchange for $512.5 million ($231.5 million in cash and 14.8 million Oasis Midstream common units).

In addition, on Mar 30, Oasis Midstream completed a private placement of $450 million in aggregate principal amount of 8% senior unsecured notes due 2029 to qualifying purchasers.

The firm’s CEO Taylor Reid said, "This accretive transaction enhances our scale and strengthens OMP's attractive position in the core of the Williston Basin. OMP is uniquely positioned to benefit from Oasis's development program and capture additional third party business. Volumes from both Oasis and third parties provide a solid foundation through 2021 and beyond. This transaction is extremely attractive for our investors by allowing OMP to increase its scale in an accretive manner, while improving its competitive position to capitalize on future opportunities.”

About Oasis Midstream

Oasis Midstream is a master limited partnership company. It owns, develops, operates and acquires a diversified portfolio of midstream assets, primarily in North America. The firm’s midstream services include gas gathering, compression, processing and gas lift services; crude gathering, stabilization, blending, storage and transportation services; produced water gathering and disposal services; and freshwater distribution services. Its principally operated primary areas include Wild Basin and Outside of the Wild Basin.

Zacks Rank & Other Key Picks

Oasis Midstream currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the energy space include Matador Resources Company (MTDR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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