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Feb 26, 2020 2:30 AM ET

Oasis Midstream Partners LP Announces Year Ended December 31, 2019 Earnings


iCrowd Newswire - Feb 26, 2020

HOUSTON,– Oasis Midstream Partners LP (Nasdaq: OMP) (the “Partnership” or “OMP”) today announced financial results for the quarter and year ended December 31, 2019 and updated its 2020 outlook.

2019 Highlights:

(1) Recast for assignment of Delaware Basin assets to Panther DevCo LLC (“Panther DevCo”) for the transfer of net assets between entities under common control in accordance with GAAP.
(2) Excludes $9.4 million of capital expenditures incurred in 2018 which were reimbursed to Oasis Petroleum in 4Q19 as part of the assignment of Delaware Basin assets to Panther DevCo. Delaware Basin capital expenditures incurred in 2018 were recast to the 2018 consolidated financial statements in accordance with GAAP.

“Fourth quarter results exceeded expectations for both operating and financial performance,” said Taylor Reid, Chief Executive Officer of OMP. “It’s been over a year since we commissioned our second gas plant at the Wild Basin complex and progress has been substantial. The gas processing complex ran at a high utilization in the fourth quarter and third-party volumes averaged over 30% of throughput. This strong performance along with continued success across water and oil led OMP to exceed EBITDA expectations, as well as coverage expectations.  OMP is now operating in both the Williston and Delaware Basins, where we continue to benefit from our relationships with our anchor tenant, Oasis, and numerous third parties across both positions. The team looks forward to capitalizing on the diversified asset base across two top oil plays in the U.S. and across numerous commodity streams, while delivering additional value to our unitholders.”

2020 Capital Spending and Outlook:

The following table depicts our full-year 2020 guidance for capital expenditures (“CapEx”):

       

2020 CapEx

DevCo

 

OMP Ownership

 

Gross

 

Net

       

(In millions)

Bighorn DevCo

 

100%

 

$7 – 9

 

$7 – 9

Bobcat DevCo

 

35.3%

 

62 – 66

 

22 – 24

Beartooth DevCo

 

70%

 

7 – 9

 

5 – 6

Total Williston CapEx

     

76 – 84

 

34 – 39

Panther DevCo

 

100%

 

34 – 36

 

34 – 36

Total CapEx

     

$110 – 120

 

$68 – 75

2020 highlights include:

Throughput Volumes:

The following table shows gross volumes for 4Q19 compared to guidance, as well as volumes guidance for 1Q20 and full-year 2020.

   

Metric

 

4Q19
Actual

 

4Q19
Guidance

     

1Q20
Guidance

 

FY20
Guidance

Bighorn DevCo

                       

Crude oil service volumes

 

Mbopd

 

47.5

 

39 – 44

     

40 – 44

 

43 – 47

Natural gas service volumes

 

MMscfpd

 

254.9

 

240 – 250

     

225 – 230

 

240 – 245

Bobcat DevCo

                       

Crude oil service volumes

 

Mbopd

 

36.1

 

34 – 36

     

31 – 33

 

36 – 38

Natural gas service volumes

 

MMscfpd

 

302.1

 

280 – 295

     

250 – 260

 

275 – 285

Water service volumes

 

Mbwpd

 

55.4

 

48 – 50

     

51 – 54

 

49 – 52

Beartooth DevCo

                       

Water service volumes

 

Mbwpd

 

125.4

 

120 – 140

     

120 – 130

 

100 – 110

Operational and Financial Update

Select financial statistics are presented in the following table for the periods presented:

     

Three Months Ended
December 31, 2019

 

Year Ended
December 31, 2019

 

OMP
Ownership(1)

 

Gross

 

Net

 

Gross

 

Net

     

(In millions)

Bighorn DevCo

                 

Operating income

100%

 

$

21.8

   

$

21.8

   

$

62.7

   

$

62.7

 

Depreciation and amortization

100%

 

3.2

   

3.2

   

13.0

   

13.0

 

Bobcat DevCo

                 

Operating income

35.3%

 

$

31.2

   

$

10.8

   

$

110.6

   

$

34.4

 

Depreciation and amortization

35.3%

 

3.5

   

1.2

   

13.2

   

4.1

 

Beartooth DevCo

                 

Operating income

70%

 

$

14.1

   

$

9.8

   

$

56.6

   

$

39.6

 

Depreciation and amortization

70%

 

2.4

   

1.7

   

9.4

   

6.6

 

Panther DevCo

                 

Operating income

100%

 

$

1.3

   

$

1.3

   

$

5.8

   

$

5.8

 

Depreciation and amortization

100%

 

0.3

   

0.3

   

0.7

   

0.7

 

Total OMP

                 

DevCo operating income

   

$

68.3

   

$

43.7

   

$

235.6

   

$

138.0

 

Public company expenses

   

0.3

   

0.3

   

2.9

   

2.9

 

OMP operating income

   

68.1

   

43.5

   

232.8

   

135.1

 
 

___________________

(1) OMP ownership interest as of December 31, 2019.

Liquidity and Capital Expenditures

As of December 31, 2019, OMP had cash and cash equivalents of $4.2 million and $458.5 million of borrowings outstanding under its revolving credit facility with an unused borrowing capacity of $114.8 million. OMP has the flexibility to expand the aggregate commitment amount under its revolving credit facility from $575.0 million to $775.0 million, subject to certain conditions.

The following tables depict the Partnership’s CapEx for the periods presented:

 

1Q 2019 – 3Q 2019

 

4Q 2019

 

Year Ended December 31, 2019

 

(In millions)

Capital expenditures

Gross

 

Net

 

Gross

 

Net

 

Gross

 

Net

Maintenance CapEx

$

14.3

   

$

6.6

   

$

3.3

   

$

1.8

   

$

17.6

   

$

8.4

 

Expansion CapEx

162.0

   

156.9

   

32.4

   

32.4

   

194.4

   

189.3

 

Capitalized interest

0.6

   

0.6

   

0.3

   

0.3

   

0.9

   

0.9

 

Total(1)

$

176.9

   

$

164.1

   

$

36.0

   

$

34.5

   

$

212.9

   

$

198.6

 
 

___________________

(1) Retrospectively adjusted for transfer of net assets between entities under common control in accordance with GAAP. Excludes $9.4 million of capital expenditures incurred in 2018 which were reimbursed to Oasis Petroleum in 4Q19 as part of the assignment of Delaware Basin assets to Panther DevCo. Delaware Basin capital expenditures incurred in 2018 were recast to the 2018 consolidated financial statements in accordance with GAAP.

     

Year Ended December 31, 2019

   

(In millions)

DevCo

OMP Ownership

 

Gross

 

Net

Bighorn DevCo

100%

 

$

17.9

   

$

17.9

 

Bobcat DevCo

35.3%

 

134.5

   

126.1

 

Beartooth DevCo

70%

 

19.6

   

13.7

 

Panther DevCo(1)

100%

 

40.0

   

40.0

 

OMP Operating(2)

100%

 

0.9

   

0.9

 

Total

   

$

212.9

   

$

198.6

 
 

___________________

(1) Retrospectively adjusted for transfer of net assets between entities under common control in accordance with GAAP. Excludes $9.4 million of capital expenditures incurred in 2018 which were reimbursed to Oasis Petroleum in 4Q19 as part of the assignment of Delaware Basin assets to Panther DevCo. Delaware Basin capital expenditures incurred in 2018 were recast to the 2018 consolidated financial statements in accordance with GAAP.

(2) Amounts represent capitalized interest related to borrowings under the OMP revolving credit facility.

Quarterly Distribution

On January 30, 2020, the Board of Directors of the General Partner declared the quarterly distribution for 4Q19 of $0.54 per unit. In addition, the General Partner will receive a cash distribution of $1.0 million attributable to its incentive distribution rights related to earnings for 4Q19. These distributions will be paid on February 27, 2020 to unitholders of record as of February 13, 2020.

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Conference Call Information

Investors, analysts and other interested parties are invited to listen to the webcast and call:

Date:

 

Wednesday, February 26, 2020

Time:

 

11:30 a.m. Central Time

Live Webcast:

 

https://www.webcaster4.com/Webcast/Page/1777/32924

Website:

 

www.oasismidstream.com

Sell-side analysts with a question may use the following dial-in:

Dial-in:

 

888-317-6003

Intl. Dial in:

 

412-317-6061

Conference ID:

 

7445441

A recording of the conference call will be available beginning at 1:30 p.m. Central Time on the day of the call and will be available until Wednesday, March 4, 2020 by dialing:

Replay dial-in:

 

877-344-7529

Intl. replay:

 

412-317-0088

Replay code:

 

10138756

The conference call will also be available for replay for approximately 30 days at www.oasismidstream.com.

Contact:

Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations

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 the expectations of plans, strategies, objectives and anticipated financial and operating results of the Partnership, including the Partnership’s capital expenditure levels and other guidance included in this press release. 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 crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, 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 Partners LP is a growth-oriented, fee-based master limited partnership formed by its sponsor, Oasis Petroleum Inc. to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the crude oil and natural gas operations of Oasis Petroleum Inc. and are strategically positioned to capture volumes from other producers. For more information, please visit the Partnership’s website at www.oasismidstream.com.

Contact Information:

Oasis Midstream Partners LP








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