HOUSTON, Nov. 20, 2018
/PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP)
("Oasis Midstream" or the "Partnership") successfully closed the
acquisition of additional interests in Bobcat DevCo LLC ("Bobcat
DevCo") and Beartooth DevCo LLC ("Beartooth DevCo") from Oasis
Petroleum Inc. (NYSE: OAS) ("Oasis"). Closing occurred on
Monday, November 19, 2018. The
acquisition increased OMP's interest in the Bobcat DevCo to 25%
from 10% and increased OMP's interest in the Beartooth DevCo to 70%
from 40%.
Additionally, on November 14,
2018, OMP successfully closed its public offering of
2,300,000 common units representing limited partnership interests
in the company. Total gross proceeds (before the underwriters'
discounts and commissions and estimated offering expenses) were
$46,000,000. Both the 2,300,000
common units placed and $46,000,000
in gross proceeds reflect a complete exercise of the underwriter's
option to purchase 300,000 units.
Of the total $250 million purchase
consideration, $125 million was
financed under OMP's revolver. The remaining $125 million was funded through the issuance of
6,250,000 common units, 2,300,000 of which were issued to the
public with the remaining 3,950,000 units issued directly to Oasis.
Upon closing, Oasis retains 68.5% ownership interest in OMP,
including common and subordinated units, with the public owning the
remaining 31.5%.
"The closing of Oasis Midstream Partners' acquisition of
additional interests in the Bobcat and Beartooth DevCos represents
a strong end to an amazing year," said Taylor Reid, Chief Executive Officer of
OMP. "This accretive purchase substantially increases OMP's
scale while enhancing the coverage outlook. It's been a little over
a year since OMP's IPO, and the team has done a fabulous job
executing our strategy, growing cash flow, and diversifying our
customer base through third-party agreements. Since our IPO, we've
increased the 2019 EBITDA outlook almost 70% organically, and the
completion of our first drop increases the 2019 EBITDA estimate
even further, now more than double our original projections. We're
excited about the future at OMP and look forward to delivering for
our investors."
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements regarding the
intended use of offering proceeds and other aspects of the common
unit offering. These statements are based on certain assumptions
made by the Partnership based on management's experience and
perception of historical trends, current conditions, anticipated
future developments and other factors believed to be appropriate.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the
Partnership, which may cause actual results to differ materially
from those implied or expressed by the forward-looking statements.
These include, but are not limited to, the Partnership's ability to
integrate acquisitions into its existing business, changes in oil
and natural gas prices, weather and environmental conditions, the
timing of planned capital expenditures, availability of
acquisitions, the closing of the Acquisition, uncertainties in the
estimates of proved reserves and forecasted production results of
the Partnership's customers, operational factors affecting the
commencement or maintenance of producing wells, the condition of
the capital markets generally, as well as the Partnership's ability
to access them, the proximity to and capacity of transportation
facilities, and uncertainties regarding environmental regulations
or litigation and other legal or regulatory developments affecting
the Partnership's business and other important factors. Should one
or more of these risks or uncertainties occur, or should underlying
assumptions prove incorrect, the Partnership's actual results and
plans could differ materially from those expressed in any
forward-looking statements.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Partnership undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited
partnership initially formed by Oasis Petroleum to own, develop,
operate and acquire a diversified portfolio of midstream assets in
North America that are integral to
the oil and natural gas operations of Oasis Petroleum and
strategically positioned to capture volumes from other producers.
Oasis Midstream's initial assets are located in the Williston Basin area of North Dakota and Montana.
For further information: Oasis Midstream Partners LP,
Bob Bakanauskas, (281) 404-9600,
Director, Investor Relations
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SOURCE Oasis Midstream Partners LP