Estimates for Oasis Midstream Partners LP (OMP - Free Report) have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 4.6% and 8.9% north to $1.82 and $2.91, respectively.
Units of Oasis Midstream have rallied nearly 28.9% over a year compared with its industry’s growth of 1.3%. Oasis Midstream, a growth-oriented, fee-based master limited partnership formed by Oasis Petroleum Inc. (OAS - Free Report) , operates a diversified portfolio of midstream infrastructure assets with a focus on the Williston Basin.
Let’s delve deeper into the factors that make Oasis Midstream a good investment option.
Growth Projections: The Zacks Consensus Estimate for 2018 and 2019 earnings per unit is pegged at $1.82 and $2.91, reflecting a year-over-year improvement of 323.3% and 60.3%, respectively.
The company’s expected long-term earnings growth rate is pegged at 11%, much higher than the industry average of 6.7%.
The Zacks Consensus Estimate for 2018 and 2019 total revenues is pegged at $281.1 million and $359.2 million, reflecting a year-over-year improvement of 54.3% and 27.8%, respectively.
Presence in Williston Basin: The partnership has gathering and processing infrastructure in the heart of the Williston Basin, one of the prolific resource-rich basins in North America. The partnership already has long-term, fixed fee contracts with Oasis Petroleum and is also working with a third party to forge long-term contracts for providing midstream services.
Distribution Growth: The ongoing organic growth of the partnership will support management’s target to increase cash distribution annually by 20% through 2020. The partnership is bringing online Wild Basin gas plant, which has a capacity to process 200 million cubic feet per day by the end of this year. This project is also going to contribute to its top-line growth.
VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with an impressive VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Zacks Rank & Other Key Picks
Oasis Midstream currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.. Other top-ranked stocks from the sector are TC PipeLines, LP (TCP - Free Report) and Solaris Oilfield Infrastructure, Inc. (SOI - Free Report) , each sporting a Zacks Rank #1.
TC PipeLines and Solaris Oilfield Infrastructure’s Zacks Consensus Estimate for 2018 has moved up 10.4% and 4.1%, respectively, in the past 60 days.
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