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Oasis Midstream (OMP) Bumps Up EBITDA & Expenditure Guidance

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Oasis Midstream Partners LP (OMP - Free Report) recently announced that the partnership has inked several third-party deals in the Williston Basin, which involves its three development companies. The partnership also raised its 2019 EBITDA guidance, courtesy of the third-party projects.

The growth-oriented master limited partnership was created by Oasis Petroleum Inc. (OAS - Free Report) , which holds 68.6% ownership interest. Oasis Midstream expects the agreements along with growth at Oasis Petroleum to set its course for 20% growth in its long-term annualized distribution.

While the partnership reaffirmed EBITDA guidance for 2018 within $61-$65 million, it revised the same upward for 2019 (incorporating growth activities) by 14% to $94-$97 million. Moreover, the partnership expects the new agreements to increase its 2019 estimated distribution coverage from 1.3x to 1.5x.

Additionally, the fee-based midstream firm increased gross capital expenditure guidance for 2018 from $230-$270 million to $285-$300 million, incorporating the funds required to support the third-party projects. The partnership started capital investment for the projects in the second quarter.

Price Performance

Houston, TX-based Oasis Midstream has gained 2.7% in the past year against the 7% fall of its industry.

 

Zacks Rank and Stocks to Consider

Currently, Oasis Midstream carries a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like Continental Resources, Inc. (CLR - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oklahoma City, OK-based Continental Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 57.7% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 80.5%.

Brentwood, TN-based Delek is an energy company. The company’s top line is anticipated to improve 39.2% year over year and bottom line is expected to increase 293.7% in 2018.

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