U.S. Markets close in 4 hrs 3 mins
  • S&P 500

    +53.59 (+1.34%)
  • Dow 30

    +231.33 (+0.72%)
  • Nasdaq

    +226.00 (+1.94%)
  • Russell 2000

    +40.83 (+2.29%)
  • Crude Oil

    -0.30 (-0.26%)
  • Gold

    +4.00 (+0.22%)
  • Silver

    +0.16 (+0.74%)

    +0.0098 (+0.9377%)
  • 10-Yr Bond

    +0.0850 (+2.95%)
  • Vix

    -1.25 (-4.55%)

    +0.0150 (+1.2174%)

    +0.2460 (+0.1906%)

    +510.61 (+1.73%)
  • CMC Crypto 200

    +434.00 (+178.84%)
  • FTSE 100

    +53.55 (+0.72%)
  • Nikkei 225

    +112.70 (+0.42%)

Oasis (OMP) Closes Midstream Asset Purchase of Oasis Petroleum

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Oasis Midstream Partners LP OMP recently completed the contribution and simplification agreement with Oasis Petroleum OAS 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 and Diamondback Energy, Inc. FANG, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Oasis Midstream Partners LP (OMP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research