HOUSTON, Dec. 23, 2020 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced that Thomas Nusz, Oasis Petroleum Inc.'s ("Oasis") Chief Executive Officer, retired from his position as Chief Executive Officer of Oasis and its Board of Directors effective December 22, 2020. He will remain employed by Oasis through December 30, 2020. At the same time, Mr. Nusz also retired from his position as the Chairman of the board of directors of the general partner of OMP. Douglas E. Brooks, Oasis' Board Chair, has been elected to serve on the board of directors of the general partner of OMP, and he is expected to be elected by the board of directors of the general partner (the "GP Board") to serve as Chairman of the GP Board. Mr. Brooks has been appointed to the additional role of Chief Executive Officer ("CEO") of Oasis effective December 22nd. The Oasis Board of Directors will conduct a search for a new CEO, which it expects will be complete over the next few months.
Douglas E. Brooks commented, "We want to thank Tommy for his tireless efforts and leadership since our IPO in 2017. He founded and guided Oasis through numerous commodity cycles and uniquely positioned OMP for differential performance over the past several years. The midstream team continues to be focused on capturing third party business while taking a prudent approach to capital spending given the current market environment."
Mr. Brooks has over 35 years of experience in the oil and gas industry. He has had successful CEO roles at Energy XXI Gulf Coast, Inc., Yates Petroleum Corporation and Aurora Oil & Gas Limited, in addition to his 24-year tenure at Marathon Oil Company. Mr. Brooks has also built two private equity-sponsored firms focused on unconventional resource projects in the western U.S. He is currently a board member of California Resources Corporation and has served as a board member for Chaparral Energy, Inc., Energy XXI Gulf Coast, Inc., Aurora Oil & Gas Limited, Magdalena Energy Company, Yates Petroleum and the Houston Producers' Forum.
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 may 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 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 is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9638
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-retirement-of-thomas-nusz-and-appointment-of-douglas-e-brooks-to-board-of-directors-301198053.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Aug. 5, 2020 /PRNewswire/ -- Oasis Midstream Partners LP (Nasdaq: OMP) ("OMP" or the "Partnership") today announced financial and operating results for the second quarter of 2020.
Second Quarter 2020 Highlights
(1) Non-GAAP measure. See "Non-GAAP Financial Measures" below for definitions of all non-GAAP measures included herein and reconciliations to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP").
(2) DCF for the second quarter of 2020 was reduced by an additional interest charge of $2.1 million pursuant to the Limited Waiver (defined below). Excluding the impact of the additional interest, DCF and DCF coverage would have been $22.5 million and 1.2x for the three months ended June 30, 2020, respectively.
Chief Executive Officer, Taylor Reid, commented, "The second quarter was marked by unprecedented volatility and disruption in the energy sector. Considering this difficult environment, the OMP team executed exceptionally well by maintaining strong operational reliability and effectively managing costs. While macro conditions have improved significantly relative to the April lows, including a faster than anticipated restart of shut-in production, OMP is retaining a prudent spending outlook given continued uncertainty. Second quarter performance coupled with stabilizing conditions allowed OMP to declare a distribution of $0.54 per unit. OMP will continue to monitor market conditions and adjust its operational and financial strategy as appropriate. Additionally, OMP remains focused on the health and safety of our employees, contractors, and communities."
Outlook Update
Operational and Financial Update
The following table presents select operational and financial data
2Q20 | |||||||||||
OMP | Gross | Net | |||||||||
(In millions) | |||||||||||
Bighorn DevCo | |||||||||||
Operating income | 100 | % | $ | 8.9 | $ | 8.9 | |||||
Depreciation and amortization | 100 | % | 5.3 | 5.3 | |||||||
Total CapEx | 100 | % | 1.7 | 1.7 | |||||||
Bobcat DevCo | |||||||||||
Operating income | 35.3 | % | $ | 15.8 | $ | 5.6 | |||||
Depreciation, amortization and impairment | 35.3 | % | 4.2 | 1.5 | |||||||
Total CapEx | 35.3 | % | 0.3 | 0.1 | |||||||
Beartooth DevCo | |||||||||||
Operating income | 70 | % | $ | 2.0 | $ | 1.4 | |||||
Depreciation and amortization | 70 | % | 2.3 | 1.6 | |||||||
Total CapEx | 70 | % | 0.3 | 0.2 | |||||||
Panther DevCo | |||||||||||
Operating income | 100 | % | $ | 2.4 | $ | 2.4 | |||||
Depreciation, amortization and impairment | 100 | % | 0.3 | 0.3 | |||||||
Total CapEx | 100 | % | 0.2 | 0.2 | |||||||
Total OMP | |||||||||||
DevCo operating income | $ | 29.1 | $ | 18.3 | |||||||
Public company expenses | 1.2 | 1.2 | |||||||||
Partnership operating income | 27.9 | 17.1 | |||||||||
Depreciation, amortization and impairment | 12.1 | 8.7 | |||||||||
Equity-based compensation expense | 0.1 | 0.1 | |||||||||
Capitalized interest | 0.1 | 0.1 | |||||||||
Maintenance CapEx | 0.3 | 0.5 | |||||||||
Expansion CapEx | 2.1 | 1.7 | |||||||||
Total CapEx | 2.5 | 2.3 | |||||||||
(1) Represents OMP's ownership in each DevCo as of June 30, 2020. |
The following table presents throughput volumes for the second quarter of 2020:
Metric | 2Q20 Actual | |||
Bighorn DevCo | ||||
Crude oil service volumes | MBopd | 26.0 | ||
Natural gas service volumes | MMscfpd | 155.2 | ||
Bobcat DevCo | ||||
Crude oil service volumes | MBopd | 21.1 | ||
Natural gas service volumes | MMscfpd | 193.0 | ||
Water service volumes | MBowpd | 44.3 | ||
Beartooth DevCo | ||||
Water service volumes | MBowpd | 53.7 | ||
Panther DevCo | ||||
Crude oil service volumes | MBopd | 12.6 | ||
Water service volumes | MBowpd | 50.7 |
Liquidity
As of June 30, 2020, the Partnership had cash and cash equivalents of $27.1 million and $487.5 million of borrowings outstanding under its revolving credit facility. The aggregate commitments under the Partnership's revolving credit facility were $575.0 million at June 30, 2020, and the Partnership had an unused borrowing capacity of $87.5 million. The Partnership has the ability to further increase the commitments on the revolving credit facility to $775.0 million.
As a result of ongoing internal oversight processes during the six months ended June 30, 2020, the Partnership identified that a Control Agreement (as defined in the Partnership's amended credit agreement) had not been executed for a certain bank account (the "JPM Account") held at JPMorgan Chase Bank, N.A. ("JPMorgan"), who is a lender under the Partnership's revolving credit facility. The Control Agreement serves to establish a lien in favor of the lenders under the Partnership's revolving credit facility with respect to the JPM Account. On May 11, 2020, the Partnership executed a Control Agreement with both Wells Fargo Bank, N.A., as administrative agent under the revolving credit facility, and JPMorgan, thereby completing the documentation required under the revolving credit facility. Despite the Control Agreement's execution, the failure to have had it in place before the JPM Account was initially funded with cash represented a past Event of Default (as defined in the Partnership's amended credit agreement). On May 15, 2020, the Partnership entered into a limited waiver (the "Limited Waiver") of this past Event of Default with the Majority Lenders (as defined in the Partnership's amended credit agreement), which provides forbearance of additional interest owed arising from this past Event of Default until the earlier of (i) November 10, 2020 and (ii) an Event of Default. Pursuant to the Limited Waiver, the Partnership recorded additional interest charges during the three and six months ended June 30, 2020 of $2.1 million and $28.0 million, respectively. The Limited Waiver excludes the additional interest from the calculation of the interest coverage ratio financial covenant.
The Partnership was in compliance with the covenants under its revolving credit facility at June 30, 2020.
Quarterly Distribution
On August 4, 2020, the board of directors of OMP GP LLC (our "General Partner") declared the quarterly cash distribution for the second quarter of 2020 of $0.54 per unit. In addition, the General Partner will receive a cash distribution of $1.0 million attributable to the incentive distribution rights related to earnings for the second quarter of 2020. These distributions will be payable on August 27, 2020 to unitholders of record as of August 14, 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, August 5, 2020 | |
Time: | 11:30 a.m. Central Time | |
Live Webcast: | ||
Website: | ||
Or: | ||
Dial-in: | 888-317-6003 | |
Intl. Dial in: | 412-317-6061 | |
Conference ID: | 4983726 | |
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, August 12, 2020 by dialing: | ||
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10146772 | |
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. 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, developments in the global economy, particularly the public health crisis related to the novel coronavirus 2019 ("COVID-19") pandemic and the adverse impact thereof on demand for crude oil and natural gas and our customers' demand for our services, the risk of further impairments, 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, an inability of Oasis Petroleum Inc. ("Oasis Petroleum") or our other customers to meet their operational and development plans on a timely basis or at all 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. In addition, certain of our forward-looking statements address the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the COVID-19 pandemic and the actions of foreign oil producers (most notably Saudi Arabia and Russia) to increase crude oil production and the expected impact on our businesses, operations, earnings and results. Because considerable uncertainty exists with respect to foreign oil production and the future pace and extent of a global economic recovery from the effects of the COVID-19 pandemic, we cannot predict whether or when crude oil production and economic activities will return to normalized levels.
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.
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
June 30, 2020 | December 31, 2019 | ||||||
(In thousands, except unit data) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 27,141 | $ | 4,168 | |||
Accounts receivable | 7,448 | 5,969 | |||||
Accounts receivable – Oasis Petroleum | 51,518 | 77,571 | |||||
Inventory | 7,608 | — | |||||
Prepaid expenses | 2,697 | 1,923 | |||||
Other current assets | 1,674 | 138 | |||||
Total current assets | 98,086 | 89,769 | |||||
Property, plant and equipment | 1,182,552 | 1,155,503 | |||||
Less: accumulated depreciation, amortization and impairment | (222,771) | (98,982) | |||||
Total property, plant and equipment, net | 959,781 | 1,056,521 | |||||
Operating lease right-of-use assets | 3,709 | 5,207 | |||||
Other assets | 2,616 | 3,172 | |||||
Total assets | $ | 1,064,192 | $ | 1,154,669 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 843 | $ | 2,478 | |||
Accounts payable – Oasis Petroleum | 24,010 | 27,139 | |||||
Accrued liabilities | 26,399 | 50,210 | |||||
Accrued interest payable | 28,496 | 508 | |||||
Current operating lease liabilities | 2,524 | 3,005 | |||||
Other current liabilities | 629 | 594 | |||||
Total current liabilities | 82,901 | 83,934 | |||||
Long-term debt | 487,500 | 458,500 | |||||
Asset retirement obligations | 1,788 | 1,747 | |||||
Operating lease liabilities | 1,210 | 2,216 | |||||
Other liabilities | 5,094 | 3,644 | |||||
Total liabilities | 578,493 | 550,041 | |||||
Equity | |||||||
Limited partners | |||||||
Common units (20,061,366 and 20,045,196 issued and outstanding at June 30, 2020 and December 31, 2019, respectively) | 167,292 | 225,339 | |||||
Subordinated units (13,750,000 units issued and outstanding at June 30, 2020 and December 31, 2019) | 26,109 | 66,005 | |||||
General Partner | 1,027 | 1,026 | |||||
Total partners' equity | 194,428 | 292,370 | |||||
Non-controlling interests | 291,271 | 312,258 | |||||
Total equity | 485,699 | 604,628 | |||||
Total liabilities and equity | $ | 1,064,192 | $ | 1,154,669 |
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In thousands, except per unit data) | |||||||||||||||
Revenues | |||||||||||||||
Midstream services – Oasis Petroleum | $ | 56,946 | $ | 74,211 | $ | 138,939 | $ | 151,274 | |||||||
Midstream services – third parties | 5,242 | 1,825 | 9,088 | 2,952 | |||||||||||
Product sales – Oasis Petroleum | 3,869 | 24,348 | 24,657 | 40,000 | |||||||||||
Product sales – third parties | 6 | 19 | 6 | 29 | |||||||||||
Total revenues | 66,063 | 100,403 | 172,690 | 194,255 | |||||||||||
Operating expenses | |||||||||||||||
Costs of product sales | 2,215 | 12,022 | 10,647 | 20,087 | |||||||||||
Operating and maintenance | 14,508 | 17,276 | 31,348 | 36,966 | |||||||||||
Depreciation and amortization | 11,881 | 8,691 | 22,078 | 17,682 | |||||||||||
Impairment | 216 | — | 101,983 | — | |||||||||||
General and administrative | 9,286 | 7,834 | 17,737 | 16,557 | |||||||||||
Total operating expenses | 38,106 | 45,823 | 183,793 | 91,292 | |||||||||||
Operating income (loss) | 27,957 | 54,580 | (11,103) | 102,963 | |||||||||||
Other expenses | |||||||||||||||
Interest expense, net of capitalized interest | (5,186) | (4,330) | (35,443) | (8,299) | |||||||||||
Other expenses | (101) | (4) | (143) | (4) | |||||||||||
Total other expenses | (5,287) | (4,334) | (35,586) | (8,303) | |||||||||||
Net income (loss) | 22,670 | 50,246 | (46,689) | 94,660 | |||||||||||
Less: Net income attributable to Delaware Predecessor | — | 1,211 | — | 2,286 | |||||||||||
Less: Net income attributable to non-controlling interests | 10,796 | 22,837 | 12,836 | 44,633 | |||||||||||
Net income (loss) attributable to Oasis Midstream Partners LP | 11,874 | 26,198 | (59,525) | 47,741 | |||||||||||
Less: Net income attributable to General Partner | 1,027 | 491 | 2,034 | 729 | |||||||||||
Net income (loss) attributable to limited partners | $ | 10,847 | $ | 25,707 | $ | (61,559) | $ | 47,012 | |||||||
Earnings (loss) per limited partner unit | |||||||||||||||
Common units – basic | $ | 0.32 | $ | 0.76 | $ | (1.82) | $ | 1.39 | |||||||
Common units – diluted | 0.32 | 0.76 | (1.82) | 1.39 | |||||||||||
Weighted average number of limited partner units outstanding | |||||||||||||||
Common units – basic | 20,045 | 20,024 | 20,043 | 20,020 | |||||||||||
Common units – diluted | 20,045 | 20,034 | 20,043 | 20,037 |
Non-GAAP Financial Measures
Cash Interest, Adjusted EBITDA and DCF are supplemental non-GAAP financial measures that are used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP financial measures should not be considered in isolation or as a substitute for interest expense, net income, operating income, net cash provided by operating activities or any other measures prepared under GAAP. Because Cash Interest, Adjusted EBITDA and DCF exclude some but not all items that affect interest expense, net income and net cash provided by operating activities and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies.
Cash Interest
Cash Interest is defined as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Partnership's debt, excluding non-cash amortization, and the Partnership's ability to maintain compliance with its debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020(1) | 2019 | 2020(1) | 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense, net of capitalized interest | $ | 5,186 | $ | 4,330 | $ | 35,443 | $ | 8,299 | |||||||
Capitalized interest | 68 | 240 | 317 | 302 | |||||||||||
Amortization of deferred financing costs | (271) | (226) | (541) | (417) | |||||||||||
Cash Interest | $ | 4,983 | $ | 4,344 | $ | 35,218 | $ | 8,184 | |||||||
Less: Cash Interest attributable to Delaware Predecessor | — | (208) | — | (456) | |||||||||||
Less: Cash Interest attributable to non-controlling interests | (3) | (3) | (6) | (5) | |||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | $ | 4,980 | $ | 4,133 | $ | 35,212 | $ | 7,723 |
(1) | For the three and six months ended June 30, 2020, interest expense, Cash Interest and Cash Interest attributable to Oasis Midstream Partners LP each include additional interest charges of $2.1 million and $28.0 million pursuant to the Limited Waiver, respectively. Excluding these additional interest charges, Cash Interest attributable to Oasis Midstream Partners LP would have been $2.8 million for the three months ended June 30, 2020 and $7.2 million for the six months ended June 30, 2020. |
Adjusted EBITDA
Adjusted EBITDA is defined as earnings (loss) before interest expense (net of capitalized interest), income taxes, depreciation, amortization, impairment, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA attributable to Oasis Midstream Partners LP is defined as Adjusted EBITDA less Adjusted EBITDA attributable to Oasis Petroleum's retained interests in two of the Partnership's DevCos, Bobcat DevCo and Beartooth DevCo. Adjusted EBITDA should not be considered an alternative to net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income (loss) and net cash provided by operating activities.
Distributable Cash Flow
DCF is defined as Adjusted EBITDA attributable to Oasis Midstream Partners LP less Cash Interest attributable to Oasis Midstream Partners LP and maintenance capital expenditures attributable to Oasis Midstream Partners LP. DCF should not be considered an alternative to net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income (loss) and net cash provided by operating activities.
The following table presents reconciliations of the GAAP financial measures of net income (loss) and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) | $ | 22,670 | $ | 50,246 | $ | (46,689) | $ | 94,660 | |||||||
Depreciation and amortization | 11,881 | 8,691 | 22,078 | 17,682 | |||||||||||
Impairment | 216 | — |
101,983
| — | |||||||||||
Equity-based compensation expense | 67 | 100 | 133 | 219 | |||||||||||
Interest expense, net of capitalized interest | 5,186 | 4,330 | 35,443 | 8,299 | |||||||||||
Adjusted EBITDA | 40,020 | 63,367 | 112,948 | 120,860 | |||||||||||
Less: Adjusted EBITDA attributable to Delaware Predecessor | — | 1,461 | — |
2,819
| |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 14,208 | 25,836 | 40,746 | 50,483 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 25,812 | 36,070 | 72,202 | 67,558 | |||||||||||
Less: Cash Interest attributable to Oasis Midstream Partners LP | 4,980 | 4,133 | 35,212 | 7,723 | |||||||||||
Less: Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 460 | 3,167 | 1,893 | 4,834 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP(1) | $ | 20,372 | $ | 28,770 | $ | 35,097 | $ | 55,001 | |||||||
Net cash provided by operating activities | $ | 51,479 | $ | 58,611 | $ | 113,145 | $ | 115,704 | |||||||
Interest expense, net of capitalized interest | 5,186 | 4,330 | 35,443 | 8,299 | |||||||||||
Changes in working capital | (16,375) | 648 | (35,099) | (2,729) | |||||||||||
Other non-cash adjustments | (270) | (222) | (541) | (414) | |||||||||||
Adjusted EBITDA | 40,020 | 63,367 | 112,948 | 120,860 | |||||||||||
Less: Adjusted EBITDA attributable to Delaware Predecessor | — | 1,461 | — | 2,819 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 14,208 | 25,836 | 40,746 | 50,483 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 25,812 | 36,070 | 72,202 | 67,558 | |||||||||||
Less: Cash Interest attributable to Oasis Midstream Partners LP | 4,980 | 4,133 | 35,212 | 7,723 | |||||||||||
Less: Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 460 | 3,167 | 1,893 | 4,834 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP(1) | $ | 20,372 | $ | 28,770 | $ | 35,097 | $ | 55,001 | |||||||
Distributions declared | |||||||||||||||
Limited partners | $ | 18,258 | $ | 16,560 | $ | 36,516 | $ | 32,443 | |||||||
Incentive distribution rights | 1,027 | 491 | 2,054 | 729 | |||||||||||
Total distributions | $ | 19,285 | $ | 17,051 | $ | 38,570 | $ | 33,172 | |||||||
DCF coverage ratio(1) | 1.1 | x | 1.7 | x | 0.9 | x | 1.7 | x |
(1) | DCF attributable to Oasis Midstream Partners LP for the three and six months ended June 30, 2020 was reduced by additional interest charges of $2.1 million and $28.0 million, respectively, pursuant to the Limited Waiver. Excluding the impact of these additional interest charges, DCF attributable to Oasis Midstream Partners LP and the DCF coverage ratio would have been $22.5 million and 1.2x for the three months ended June 30, 2020, respectively, and $63.1 million and 1.6x for the six months ended June 30, 2020, respectively. |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-june-30-2020-earnings-301106532.html
SOURCE Oasis Midstream Partners LP
HOUSTON, July 31, 2020 /PRNewswire/ -- Oasis Midstream Partners LP (Nasdaq: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Second Quarter 2020 financial and operational results on Wednesday, August 5, 2020 before market open. Additionally, the Company will host a live webcast and conference call on Wednesday, August 5, 2020 at 11:30 a.m. Central Time to discuss Second Quarter 2020 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Wednesday, August 5, 2020 |
Time: | 11:30 a.m. Central Time |
Live Webcast: | |
OR: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 4983726 |
Website: |
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, August 12, 2020 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10146772 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Additionally, Oasis Petroleum and Oasis Midstream Partners plan to participate in the following energy conferences and investor events:
August 12: | Citi's 2020 One-on-One Midstream / Energy Infrastructure Virtual Conference |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (Nasdaq: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-second-quarter-2020-conference-call-for-august-5-2020-301104140.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Dec. 12, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that it is transferring the listing of its units from the New York Stock Exchange to The NASDAQ Stock Market LLC ("Nasdaq"). OMP expects its units to begin trading on Nasdaq at market open on December 24, 2019. The units will continue to be listed under the ticker symbol "OMP."
"With our switch to Nasdaq, OMP is pleased to join many prominent U.S. energy companies," said Taylor Reid, Chief Executive Officer of OMP. "We believe this transition will provide OMP with greater cost-effectiveness and access to Nasdaq's unique portfolio of tools and services to connect with our investors. We would also like to thank the NYSE for their valued relationship since our IPO."
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-to-switch-listing-to-nasdaq-stock-exchange-300974276.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Nov. 5, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("OMP" or the "Partnership") today announced financial and operating results for the third quarter of 2019.
Highlights
(1) Non-GAAP measure. See "Non-GAAP Financial Measures" below for definitions of all non-GAAP measures included herein and reconciliations to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP").
"Oasis Midstream Partners executed extremely well in the third quarter, with the continued ramp up of our gas complex driving record high EBITDA and distribution coverage," said Taylor Reid, Chief Executive Officer of OMP. "We exceeded guidance across most commodity streams and remain on track to deliver a strong fourth quarter of 2019, while growing the distribution 20% year over year. The team has done an exceptional job growing third-party business, which is approximately 20% of our third quarter EBITDA and is projected to be approximately 20% in the fourth quarter as well. Looking forward, OMP stands to benefit from its diversified asset base, growing third-party business and strong operational momentum heading into 2020."
Outlook Update
Operational and Financial Update
The following table presents select operational and financial data:
3Q 2019 | ||||||||
OMP | Gross | Net | ||||||
(In millions) | ||||||||
Bighorn DevCo | ||||||||
Operating income | 100 | % | $ | 17.1 | $ | 17.1 | ||
Depreciation and amortization | 100 | % | 3.1 | 3.1 | ||||
Total CapEx | 100 | % | 2.1 | 2.1 | ||||
Bobcat DevCo | ||||||||
Operating income | 34.4 | % | $ | 29.4 | $ | 9.8 | ||
Depreciation and amortization | 34.4 | % | 3.5 | 1.2 | ||||
Total CapEx(2) | 34.4 | % | 22.9 | 22.5 | ||||
Beartooth DevCo | ||||||||
Operating income | 70 | % | $ | 14.1 | $ | 9.9 | ||
Depreciation and amortization | 70 | % | 2.4 | 1.7 | ||||
Total CapEx | 70 | % | 4.1 | 2.8 | ||||
Total OMP | ||||||||
DevCo operating income | $ | 60.6 | $ | 36.8 | ||||
Public company expenses | 0.9 | 0.9 | ||||||
Partnership operating income | 59.7 | 35.9 | ||||||
Depreciation and amortization | 9.0 | 6.0 | ||||||
Equity-based compensation expense | 0.1 | 0.1 | ||||||
Capitalized interest | 0.2 | 0.2 | ||||||
Total CapEx(3) | 29.3 | 27.6 | ||||||
Maintenance CapEx | 2.7 | 1.8 | ||||||
Expansion CapEx | 26.6 | 25.9 |
__________________ |
(1) Represents OMP's ownership in each DevCo as of September 30, 2019. |
(2) Pursuant to the 2019 Capital Expenditures Arrangement, OMP is funding up to $80.0 million of expansion capital expenditures to Bobcat DevCo that Oasis Petroleum would otherwise be required to contribute during the 2019 calendar year. See "2019 Capital Expenditures Arrangement" below. |
(3) Includes capitalized interest recorded on OMP Operating LLC of $0.2 million for 3Q 2019. |
The following table shows actual volumes for 3Q 2019 and provides volumes guidance for 4Q 2019:
Metric | 3Q 2019 Actual | 4Q 2019 Guidance | ||||
Bighorn DevCo | ||||||
Crude oil service volumes | MBopd | 47.0 | 39 - 44 | |||
Natural gas service volumes | MMscfpd | 236.0 | 240 - 250 | |||
Bobcat DevCo | ||||||
Crude oil service volumes | MBopd | 36.9 | 34 - 36 | |||
Natural gas service volumes | MMscfpd | 277.7 | 280 - 295 | |||
Water service volumes | MBowpd | 54.5 | 48 - 50 | |||
Beartooth DevCo | ||||||
Water service volumes | MBowpd | 143.9 | 120 - 140 |
2019 Capital Expenditures Arrangement
On February 22, 2019, the Partnership entered into a capital expenditures arrangement with Oasis Petroleum (the "2019 Capital Expenditures Arrangement"). Pursuant to this arrangement, in exchange for increasing its percentage ownership interest in Bobcat DevCo, the Partnership will cover up to $80.0 million of the capital contributions that Oasis Petroleum would otherwise be required to contribute to Bobcat DevCo during the 2019 calendar year. This arrangement provides an opportunity for the Partnership to increase its scale in an accretive manner while lowering the capital requirements of its sponsor. During the nine months ended September 30, 2019, the Partnership made capital contributions to Bobcat DevCo pursuant to the 2019 Capital Expenditures Arrangement of $66.2 million, and the Partnership's ownership interest in Bobcat DevCo increased from 25% as of December 31, 2018 to 34.4% as of September 30, 2019. The Partnership's average ownership interest in Bobcat DevCo during the third quarter of 2019 was approximately 33%.
Liquidity and CapEx
As of September 30, 2019, the Partnership had cash and cash equivalents of $4.7 million, $431.0 million of borrowings outstanding under its revolving credit facility and an $8.2 million outstanding letter of credit. On August 16, 2019, the Partnership entered an amendment to the credit agreement governing its revolving credit facility to (i) increase the aggregate amount of commitments from $475.0 million to $575.0 million and (ii) provide for the ability to further increase commitments to $775.0 million. The Partnership's unused borrowing capacity as of September 30, 2019 was $135.8 million.
Quarterly Distribution
On August 28, 2019, the Partnership paid the quarterly cash distribution of $0.49 per unit related to the second quarter of 2019.
On November 5, 2019, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2019 of $0.515 per unit. This distribution will be payable on November 27, 2019 to unitholders of record as of November 15, 2019. In addition, the General Partner will receive a cash distribution of $0.7 million attributable to the incentive distribution rights related to the earnings for the third quarter of 2019.
Delaware Midstream Assets
Effective on November 1, 2019, Oasis Petroleum agreed to assign to Panther DevCo LLC ("Panther DevCo"), an indirect, wholly-owned subsidiary of the Partnership, certain crude oil gathering and produced water gathering and disposal assets (the "Delaware Midstream Assets") under development to support Oasis Petroleum's production in the Delaware Basin. The Partnership has agreed to reimburse Oasis Petroleum for all capital expenditures previously made with respect to the Delaware Midstream Assets, which the Partnership expects to fund with borrowings under its revolving credit facility. Also effective November 1, 2019, Panther DevCo entered into long-term commercial agreements with Oasis Petroleum, including a Crude Oil Gathering Agreement and a Produced Water Gathering and Disposal Agreement, for crude oil and produced water midstream services in the Delaware Basin, which generally contain terms similar to those contained in the existing commercial agreements between the Partnership and Oasis Petroleum for midstream services in the Williston Basin.
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, November 6, 2019 | |
Time: | 11:30 a.m. Central Time | |
Live Webcast: | ||
Website: |
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: | 1033646 |
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, November 13, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10136377 |
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. 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, the ability to integrate the Delaware Midstream Assets and realize the anticipated benefits therefrom, 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.
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||
September 30, 2019 | December 31, 2018 | ||||
(In thousands, except unit data) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 4,672 | $ | 6,649 | |
Accounts receivable | 7,793 | 2,481 | |||
Accounts receivable – Oasis Petroleum | 77,393 | 80,805 | |||
Prepaid expenses | 964 | 1,418 | |||
Other current assets | 1,810 | 22 | |||
Total current assets | 92,632 | 91,375 | |||
Property, plant and equipment | 1,089,696 | 933,155 | |||
Less: accumulated depreciation and amortization | (89,129) | (62,730) | |||
Total property, plant and equipment, net | 1,000,567 | 870,425 | |||
Operating lease right-of-use assets | 5,945 | — | |||
Other assets | 3,383 | 2,452 | |||
Total assets | $ | 1,102,527 | $ | 964,252 | |
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 2,855 | $ | 2,180 | |
Accounts payable – Oasis Petroleum | 26,769 | 33,014 | |||
Accrued liabilities | 47,533 | 57,657 | |||
Accrued interest payable | 273 | 442 | |||
Current operating lease liabilities | 2,973 | — | |||
Other current liabilities | 9 | — | |||
Total current liabilities | 80,412 | 93,293 | |||
Long-term debt | 431,000 | 318,000 | |||
Asset retirement obligations | 1,596 | 1,514 | |||
Operating lease liabilities | 2,979 | — | |||
Other liabilities | 557 | — | |||
Total liabilities | 516,544 | 412,807 | |||
Equity | |||||
Limited partners | |||||
Common units (20,045,196 and 20,029,026 issued and outstanding at September 30, 2019 and December 31, 2018, respectively) | 213,468 | 192,581 | |||
Subordinated units (13,750,000 units issued and outstanding at September 30, 2019 and December 31, 2018) | 57,989 | 45,937 | |||
General Partner | 745 | 112 | |||
Total partners' equity | 272,202 | 238,630 | |||
Non-controlling interests | 313,781 | 312,815 | |||
Total equity | 585,983 | 551,445 | |||
Total liabilities and equity | $ | 1,102,527 | $ | 964,252 |
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands, except per unit data) | |||||||||||
Revenues | |||||||||||
Midstream services – Oasis Petroleum | $ | 78,327 | $ | 65,674 | $ | 224,641 | $ | 184,103 | |||
Midstream services – third parties | 1,840 | 567 | 4,792 | 1,438 | |||||||
Product sales – Oasis Petroleum | 20,517 | 3,189 | 60,517 | 10,591 | |||||||
Product sales – third parties | 9 | 2,037 | 38 | 3,314 | |||||||
Total revenues | 100,693 | 71,467 | 289,988 | 199,446 | |||||||
Operating expenses | |||||||||||
Costs of product sales | 7,001 | 2,704 | 27,088 | 5,465 | |||||||
Operating and maintenance | 17,316 | 17,112 | 52,169 | 47,801 | |||||||
Depreciation and amortization | 8,983 | 7,189 | 26,474 | 20,212 | |||||||
General and administrative | 7,579 | 5,449 | 24,108 | 17,496 | |||||||
Total operating expenses | 40,879 | 32,454 | 129,839 | 90,974 | |||||||
Operating income | 59,814 | 39,013 | 160,149 | 108,472 | |||||||
Other expense | |||||||||||
Interest expense, net of capitalized interest | (4,512) | (163) | (12,469) | (608) | |||||||
Other expense | — | (15) | (4) | (15) | |||||||
Total other expense | (4,512) | (178) | (12,473) | (623) | |||||||
Net income | 55,302 | 38,835 | 147,676 | 107,849 | |||||||
Less: Net income attributable to non-controlling interests | 23,866 | 26,459 | 68,499 | 73,075 | |||||||
Net income attributable to Oasis Midstream Partners LP | 31,436 | 12,376 | 79,177 | 34,774 | |||||||
Less: Net income attributable to General Partner | 745 | — | 1,474 | — | |||||||
Net income attributable to limited partners | $ | 30,691 | $ | 12,376 | $ | 77,703 | $ | 34,774 | |||
Earnings per limited partner unit | |||||||||||
Common units – basic | $ | 0.91 | $ | 0.45 | $ | 2.30 | $ | 1.27 | |||
Common units – diluted | 0.91 | 0.45 | 2.30 | 1.26 | |||||||
Weighted average number of limited partner units outstanding | |||||||||||
Common units – basic | 20,027 | 13,751 | 20,022 | 13,750 | |||||||
Common units – diluted | 20,038 | 13,769 | 20,039 | 13,764 |
Non-GAAP Financial Measures
Cash Interest, Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP financial measures should not be considered in isolation or as a substitute for interest expense, net income, operating income, net cash provided by operating activities or any other measures prepared under GAAP. Because Cash Interest, Adjusted EBITDA and Distributable Cash Flow exclude some but not all items that affect interest expense, net income and net cash provided by operating activities and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies.
Cash Interest
Cash Interest is defined as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Partnership's debt, excluding non-cash amortization, and the Partnership's ability to maintain compliance with its debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended | Nine Months Ended | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Interest expense, net of capitalized interest | $ | 4,512 | $ | 163 | $ | 12,469 | $ | 608 | |||
Capitalized interest | 235 | 1,708 | 423 | 3,905 | |||||||
Amortization of deferred financing costs | (243) | (128) | (660) | (361) | |||||||
Cash Interest | 4,504 | 1,743 | 12,232 | 4,152 | |||||||
Less: Cash Interest attributable to non-controlling interests(1) | (3) | — | (8) | — | |||||||
Cash Interest attributable to Oasis Midstream Partners LP | $ | 4,501 | $ | 1,743 | $ | 12,224 | $ | 4,152 |
__________________ |
(1) Amounts represent Cash Interest attributable to non-controlling interests associated with finance leases. |
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, impairment, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA attributable to Oasis Midstream Partners LP is defined as Adjusted EBITDA less Adjusted EBITDA attributable to Oasis Petroleum's retained interests in two of the Partnership's DevCos, Bobcat DevCo and Beartooth DevCo. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Distributable Cash Flow
Distributable Cash Flow ("DCF") is defined as Adjusted EBITDA attributable to Oasis Midstream Partners LP less Cash Interest attributable to Oasis Midstream Partners LP and maintenance capital expenditures attributable to Oasis Midstream Partners LP. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended | Nine Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 55,302 | $ | 38,835 | $ | 147,676 | $ | 107,849 | |||||||
Depreciation and amortization | 8,983 | 7,189 | 26,474 | 20,212 | |||||||||||
Equity-based compensation expense | 84 | 114 | 303 | 280 | |||||||||||
Interest expense, net of capitalized interest | 4,512 | 163 | 12,469 | 608 | |||||||||||
Adjusted EBITDA | 68,881 | 46,301 | 186,922 | 128,949 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 26,913 | 29,739 | 77,396 | 82,250 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 41,968 | 16,562 | 109,526 | 46,699 | |||||||||||
Less: Cash Interest attributable to Oasis Midstream Partners LP | 4,501 | 1,743 | 12,224 | 4,152 | |||||||||||
Less: Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 1,760 | 418 | 6,594 | 1,711 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 35,707 | $ | 14,401 | $ | 90,708 | $ | 40,836 | |||||||
Net cash provided by operating activities | $ | 58,094 | $ | 40,753 | $ | 170,186 | $ | 156,900 | |||||||
Interest expense, net of capitalized interest | 4,512 | 163 | 12,469 | 608 | |||||||||||
Changes in working capital | 6,518 | 5,516 | 4,927 | (28,324) | |||||||||||
Other non-cash adjustments | (243) | (131) | (660) | (235) | |||||||||||
Adjusted EBITDA | 68,881 | 46,301 | 186,922 | 128,949 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 26,913 | 29,739 | 77,396 | 82,250 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 41,968 | 16,562 | 109,526 | 46,699 | |||||||||||
Less: Cash Interest attributable to Oasis Midstream Partners LP | 4,501 | 1,743 | 12,224 | 4,152 | |||||||||||
Less: Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 1,760 | 418 | 6,594 | 1,711 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 35,707 | $ | 14,401 | $ | 90,708 | $ | 40,836 | |||||||
Distributions declared | |||||||||||||||
Limited partners | $ | 17,405 | $ | 11,837 | $ | 49,848 | $ | 33,928 | |||||||
Incentive distribution rights | 745 | — | 1,474 | — | |||||||||||
Total distributions | $ | 18,149 | $ | 11,837 | $ | 51,321 | $ | 33,928 | |||||||
DCF coverage ratio | 2.0x | 1.2x | 1.8x | 1.2x | |||||||||||
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-september-30-2019-earnings-300952243.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Oct. 21, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2019 financial and operational results on Tuesday, November 5, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, November 6, 2019 at 11:30 a.m. Central Time to discuss Third Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Wednesday, November 6, 2019
Time: 11:30 a.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1777/32113
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 1033646
Website: www.oasismidstream.com
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, November 13, 2019 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Replay access: 10136377
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
November 13-14: BAML's 2019 Global Energy Conference – Miami, FL
November 20: RBC Capital Market's Midstream Conference – Dallas, TX
December 11: Capital One Securities' 14th Annual Energy Conference – Houston, TX
December 12: Wells Fargo's 18th Annual Midstream and Utility Symposium – New York, NY
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-third-quarter-2019-conference-call-for-november-6-2019-300942252.html
SOURCE Oasis Midstream Partners LP
DALLAS, Aug. 9, 2019 /PRNewswire/ -- Alerian reported, as of June 28, 2019, total products directly tied to and tracking the Alerian indices was $13.7 billion.
Exchange traded funds, exchange traded notes, return of capital notes, and variable insurance portfolios represent $12.7 billion of the total $13.7 billion. Below is a list of energy master limited partnership (MLP) positions, as of June 28, 2019, in the $12.7 billion of such assets tracking Alerian's indices.
Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | |
AM | 2,402,831 | 209,671 | HESM | 7,694,422 | 394,586 | |
AMID | 4,919,211 | 951,492 | MMLP | 5,598,671 | 784,128 | |
ANDX | 403,075,523 | 11,094,840 | MMP | 1,276,581,260 | 19,946,582 | |
BPL | 782,332,474 | 19,058,038 | MPLX | 1,273,711,451 | 39,568,545 | |
BPMP | 18,205,543 | 1,176,069 | NBLX | 89,522,800 | 2,691,606 | |
CEQP | 220,495,699 | 6,164,263 | NGL | 214,053,630 | 14,492,460 | |
CNXM | 14,513,491 | 1,032,989 | NS | 331,580,260 | 12,217,401 | |
CQP | 214,074,794 | 5,075,268 | OMP | 5,663,726 | 263,429 | |
DCP | 329,731,673 | 11,253,641 | PAA | 1,305,749,277 | 53,624,200 | |
DKL | 6,791,101 | 212,222 | PAGP | 7,638,294 | 305,899 | |
ENBL | 153,164,680 | 11,171,749 | PBFX | 16,284,545 | 770,319 | |
ENLC | 327,210,823 | 32,429,219 | PSXP | 342,743,828 | 6,945,164 | |
EPD | 1,277,755,891 | 44,258,950 | SHLX | 319,209,192 | 15,405,849 | |
EQM | 462,044,829 | 10,341,200 | SMLP | 7,589,588 | 1,020,106 | |
ET | 1,262,122,882 | 89,639,409 | TCP | 253,540,259 | 6,739,507 | |
GEL | 298,090,775 | 13,611,451 | TGE | 419,509,147 | 19,872,532 | |
GPP | 3,882,098 | 277,293 | USDP | 3,861,679 | 342,044 | |
HEP | 156,422,759 | 5,688,100 | WES | 773,416,245 | 25,135,400 |
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 28, 2019, nearly $14 billion of products, including exchange traded funds and notes, are directly tied to and tracking the Alerian Index Series. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2019-index-linked-product-positions-300899499.html
SOURCE Alerian
HOUSTON, Aug. 6, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("OMP" or the "Partnership") today announced financial and operating results for the second quarter of 2019.
2Q 2019 Highlights:
(1) Non-GAAP measure. See "Non-GAAP Financial Measures" below for definitions of all non-GAAP measures included herein and reconciliations to the most directly comparable measures under United States generally accepted accounting principles ("GAAP").
"Oasis Midstream Partners remains on track to deliver our targeted 20% annual growth in distributions per unit while simultaneously increasing coverage in coming quarters," said Taylor Reid, Chief Executive Officer of OMP. "We successfully delivered a strong second quarter performance, despite operational downtime at our gas complex. Our resilient financial results highlight the strength and diversity of our portfolio, with strong performance in most commodities offsetting transitory weakness in natural gas. Our coverage outlook remains strong and on track to range from 1.9x to 2.0x exiting 2019. We are ahead of schedule on most infrastructure projects and we continue to build out our Panther DevCo, which will support growth for years to come while maintaining strong coverage."
Outlook Update
Operational and Financial Update
The following table presents select operational and financial data for the periods presented:
Three Months Ended June 30, 2019 | ||||||||
OMP | Gross | Net | ||||||
(In millions) | ||||||||
Bighorn DevCo | ||||||||
Operating income | 100 | % | $ | 13.1 | $ | 13.1 | ||
Depreciation and amortization | 100 | % | 3.0 | 3.0 | ||||
Total CapEx | 100 | % | 5.8 | 5.8 | ||||
Bobcat DevCo | ||||||||
Operating income | 32.5 | % | $ | 26.0 | $ | 7.6 | ||
Depreciation and amortization | 32.5 | % | 3.2 | 1.0 | ||||
Total CapEx(2) | 32.5 | % | 63.7 | 60.0 | ||||
Beartooth DevCo | ||||||||
Operating income | 70 | % | $ | 15.0 | $ | 10.5 | ||
Depreciation and amortization | 70 | % | 2.4 | 1.6 | ||||
Total CapEx | 70 | % | 7.0 | 4.9 | ||||
Total OMP | ||||||||
DevCo operating income | $ | 54.1 | $ | 31.2 | ||||
Public company expenses | 0.8 | 0.8 | ||||||
Partnership operating income | 53.3 | 30.4 | ||||||
Depreciation and amortization | 8.6 | 5.6 | ||||||
Equity-based compensation expense | 0.1 | 0.1 | ||||||
Capitalized interest | 0.2 | 0.2 | ||||||
Total CapEx(3) | 76.7 | 70.9 | ||||||
Maintenance CapEx | 7.2 | 3.2 | ||||||
Expansion CapEx | 69.5 | 67.7 |
__________________ |
(1) Represents OMP's ownership in each DevCo as of June 30, 2019. |
(2) Pursuant to the 2019 Capital Expenditures Arrangement, OMP is funding up to $80.0 million of expansion capital expenditures to Bobcat DevCo that Oasis Petroleum would otherwise be required to contribute to Bobcat DevCo during the 2019 calendar year. See "2019 Capital Expenditures Arrangement" below. |
(3) Includes capitalized interest recorded on OMP Operating LLC of $0.2 million for the three months ended June 30, 2019. |
The following table shows actual volumes for the second quarter of 2019, provides volumes guidance for the third quarter of 2019 and updates volumes guidance for the full year 2019:
Metric | 2Q19 Actual | 3Q19 Guidance | FY19 Guidance | |||||
Bighorn DevCo | ||||||||
Crude oil service volumes | MBopd | 51.8 | 43 - 48 | 46 - 49 | ||||
Natural gas service volumes | MMscfpd | 201.6 | 220 - 235 | 215 - 225 | ||||
Bobcat DevCo | ||||||||
Crude oil service volumes | MBopd | 41.3 | 38 - 43 | 39 - 42 | ||||
Natural gas service volumes | MMscfpd | 241.7 | 270 - 290 | 260 - 270 | ||||
Water service volumes | MBowpd | 52.4 | 47 - 50 | 49 - 52 | ||||
Beartooth DevCo | ||||||||
Water service volumes | MBowpd | 143.7 | 110 - 120 | 120 - 130 |
2019 Capital Expenditures Arrangement
On February 22, 2019, the Partnership entered into a capital expenditures arrangement with Oasis Petroleum (the "2019 Capital Expenditures Arrangement"). Pursuant to this arrangement, in exchange for increasing its percentage ownership interest in Bobcat DevCo, the Partnership will cover up to $80.0 million of the capital contributions that Oasis Petroleum would otherwise be required to contribute to Bobcat DevCo during the 2019 calendar year. This arrangement provides an opportunity for the Partnership to increase its scale in an accretive manner while lowering the capital requirements of its sponsor. During the six months ended June 30, 2019, the Partnership made capital contributions to Bobcat DevCo pursuant to the 2019 Capital Expenditures Arrangement of $52.8 million, and the Partnership's ownership interest in Bobcat DevCo increased from 25% as of December 31, 2018 to 32.5% as of June 30, 2019. The Partnership's average ownership interest in Bobcat DevCo during the second quarter of 2019 was approximately 31.2%.
Liquidity and CapEx
As of June 30, 2019, the Partnership had cash and cash equivalents of $6.2 million, $408.0 million of borrowings outstanding under its revolving credit facility and an $8.2 million outstanding letter of credit under its revolving credit facility. The Partnership's unused borrowing capacity as of June 30, 2019 was $58.8 million.
Quarterly Distribution
On May 29, 2019, the Partnership paid the quarterly cash distribution of $0.47 per unit related to the first quarter of 2019. On August 6, 2019, the Board of Directors of the General Partner declared the quarterly cash distribution for the second quarter of 2019 of $0.49 per unit. In addition, the General Partner will receive a cash distribution of $0.5 million attributable to the incentive distribution rights related to the earnings for the second quarter of 2019. These distributions will be payable on August 28, 2019 to unitholders of record as of August 16, 2019.
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, August 7, 2019 | |
Time: | 11:30 a.m. Central Time | |
Live Webcast: | ||
Website: |
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: | 5196987 |
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, August 14, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10133702 |
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. 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, the ability to consummate the Delaware Midstream Opportunity and realize the anticipated benefits therefrom, 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.
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||
June 30, 2019 | December 31, 2018 | ||||
(In thousands, except unit data) | |||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 6,246 | $ | 6,649 | |
Accounts receivable | 6,010 | 2,481 | |||
Accounts receivable - Oasis Petroleum | 80,088 | 80,805 | |||
Prepaid expenses | 1,267 | 1,418 | |||
Other current assets | — | 22 | |||
Total current assets | 93,611 | 91,375 | |||
Property, plant and equipment | 1,060,379 | 933,155 | |||
Less: accumulated depreciation and amortization | (80,160) | (62,730) | |||
Total property, plant and equipment, net | 980,219 | 870,425 | |||
Operating lease right-of-use assets | 3,642 | — | |||
Other assets | 3,385 | 2,452 | |||
Total assets | $ | 1,080,857 | $ | 964,252 | |
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,522 | $ | 2,180 | |
Accounts payable - Oasis Petroleum | 34,873 | 33,014 | |||
Accrued liabilities | 56,930 | 57,657 | |||
Accrued interest payable | 293 | 442 | |||
Current operating lease liabilities | 2,051 | — | |||
Other current liabilities | 610 | — | |||
Total current liabilities | 96,279 | 93,293 | |||
Long-term debt | 408,000 | 318,000 | |||
Asset retirement obligations | 1,564 | 1,514 | |||
Operating lease liabilities | 1,597 | — | |||
Other liabilities | 553 | — | |||
Total liabilities | 507,993 | 412,807 | |||
Equity | |||||
Limited partners | |||||
Common units (20,045,196 and 20,029,026 issued and outstanding at June 30, 2019 and December 31, 2018, respectively) | 205,009 | 192,581 | |||
Subordinated units (13,750,000 units issued and outstanding at June 30, 2019 and December 31, 2018) | 52,233 | 45,937 | |||
General Partner | 491 | 112 | |||
Total partners' equity | 257,733 | 238,630 | |||
Non-controlling interests | 315,131 | 312,815 | |||
Total equity | 572,864 | 551,445 | |||
Total liabilities and equity | $ | 1,080,857 | $ | 964,252 |
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands, except per unit data) | |||||||||||
Revenues | |||||||||||
Midstream services – Oasis Petroleum | $ | 71,452 | $ | 60,715 | $ | 146,314 | $ | 118,344 | |||
Midstream services – third parties | 1,825 | 663 | 2,952 | 957 | |||||||
Product sales – Oasis Petroleum | 24,348 | 3,909 | 40,000 | 7,393 | |||||||
Product sales – third parties | 19 | 1,271 | 29 | 1,285 | |||||||
Total revenues | 97,644 | 66,558 | 189,295 | 127,979 | |||||||
Operating expenses | |||||||||||
Costs of product sales | 12,022 | 1,641 | 20,087 | 2,761 | |||||||
Operating and maintenance | 16,003 | 14,693 | 34,853 | 30,689 | |||||||
Depreciation and amortization | 8,562 | 6,659 | 17,491 | 13,023 | |||||||
General and administrative | 7,809 | 5,897 | 16,529 | 12,047 | |||||||
Total operating expenses | 44,396 | 28,890 | 88,960 | 58,520 | |||||||
Operating income | 53,248 | 37,668 | 100,335 | 69,459 | |||||||
Other expense | |||||||||||
Interest expense, net of capitalized interest | (4,209) | (183) | (7,957) | (445) | |||||||
Other expense | (4) | — | (4) | — | |||||||
Total other expense | (4,213) | (183) | (7,961) | (445) | |||||||
Net income | 49,035 | 37,485 | 92,374 | 69,014 | |||||||
Less: Net income attributable to non-controlling interests | 22,837 | 25,041 | 44,633 | 46,616 | |||||||
Net income attributable to Oasis Midstream Partners LP | 26,198 | 12,444 | 47,741 | 22,398 | |||||||
Less: Net income attributable to General Partner | 491 | — | 729 | — | |||||||
Net income attributable to limited partners | $ | 25,707 | $ | 12,444 | $ | 47,012 | $ | 22,398 | |||
Earnings per limited partner unit | |||||||||||
Common units – basic and diluted | $ | 0.76 | $ | 0.45 | $ | 1.39 | $ | 0.81 | |||
Weighted average number of limited partner units outstanding | |||||||||||
Common units – basic | 20,024 | 13,750 | 20,020 | 13,750 | |||||||
Common units – diluted | 20,034 | 13,761 | 20,037 | 13,761 |
Non-GAAP Financial Measures
Cash Interest, Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP financial measures should not be considered in isolation or as a substitute for interest expense, net income (loss), operating income (loss), net cash provided by (used in) operating activities or any other measures prepared under United States generally accepted accounting principles, or GAAP. Because Cash Interest, Adjusted EBITDA and Distributable Cash Flow exclude some but not all items that affect interest expense, net income and net cash provided by operating activities and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies.
Cash Interest
Cash Interest is defined as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Partnership's debt, excluding non-cash amortization, and the Partnership's ability to maintain compliance with its debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In thousands) | |||||||||||
Interest expense, net of capitalized interest | $ | 4,209 | $ | 183 | $ | 7,957 | $ | 445 | |||
Capitalized interest | 153 | 1,362 | 188 | 2,197 | |||||||
Amortization of deferred financing costs | (226) | (117) | (417) | (233) | |||||||
Cash Interest | 4,136 | 1,428 | 7,728 | 2,409 | |||||||
Less: Cash Interest attributable to non-controlling interests(1) | (3) | — | (5) | — | |||||||
Cash Interest attributable to Oasis Midstream Partners LP | $ | 4,133 | $ | 1,428 | $ | 7,723 | $ | 2,409 |
__________________ |
(1) Amounts represent Cash Interest attributable to non-controlling interests associated with finance leases. |
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA attributable to Oasis Midstream Partners LP is defined as Adjusted EBITDA less Adjusted EBITDA attributable to Oasis Petroleum's retained interests in two of the Partnership's DevCos, Bobcat DevCo and Beartooth DevCo. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Distributable Cash Flow ("DCF")
DCF is defined as Adjusted EBITDA attributable to Oasis Midstream Partners LP less Cash Interest attributable to Oasis Midstream Partners LP and maintenance capital expenditures attributable to Oasis Midstream Partners LP. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 49,035 | $ | 37,485 | $ | 92,374 | $ | 69,014 | |||||||
Depreciation and amortization | 8,562 | 6,659 | 17,491 | 13,023 | |||||||||||
Equity-based compensation expense | 100 | 103 | 219 | 166 | |||||||||||
Interest expense, net of capitalized interest | 4,209 | 183 | 7,957 | 445 | |||||||||||
Adjusted EBITDA | 61,906 | 44,430 | 118,041 | 82,648 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 25,836 | 28,015 | 50,483 | 52,511 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 36,070 | 16,415 | 67,558 | 30,137 | |||||||||||
Less: | |||||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | 4,133 | 1,428 | 7,723 | 2,409 | |||||||||||
Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 3,167 | 497 | 4,834 | 1,293 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 28,770 | $ | 14,490 | $ | 55,001 | $ | 26,435 | |||||||
Net cash provided by operating activities | $ | 56,043 | $ | 41,396 | $ | 112,093 | $ | 116,147 | |||||||
Interest expense, net of capitalized interest | 4,209 | 183 | 7,957 | 445 | |||||||||||
Changes in working capital | 1,880 | 2,841 | (1,592) | (33,840) | |||||||||||
Other non-cash adjustments | (226) | 10 | (417) | (104) | |||||||||||
Adjusted EBITDA | 61,906 | 44,430 | 118,041 | 82,648 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 25,836 | 28,015 | 50,483 | 52,511 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 36,070 | 16,415 | 67,558 | 30,137 | |||||||||||
Less: | |||||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | 4,133 | 1,428 | 7,723 | 2,409 | |||||||||||
Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 3,167 | 497 | 4,834 | 1,293 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 28,770 | $ | 14,490 | $ | 55,001 | $ | 26,435 | |||||||
Distributions declared | |||||||||||||||
Limited partners | $ | 16,560 | $ | 11,287 | $ | 32,443 | $ | 22,090 | |||||||
Incentive distribution rights | 491 | — | 729 | — | |||||||||||
Total distributions | $ | 17,051 | $ | 11,287 | $ | 33,172 | $ | 22,090 | |||||||
DCF coverage ratio | 1.7x | 1.3x | 1.7x | 1.2x | |||||||||||
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-june-30-2019-earnings-300897559.html
SOURCE Oasis Midstream Partners LP
HOUSTON, July 22, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Second Quarter 2019 financial and operational results on Tuesday, August 6, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, August 7, 2019 at 11:30 a.m. Central Time to discuss Second Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call: | |
Date: | Wednesday, August 7, 2019 |
Time: | 11:30 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 5196987 |
Website: |
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, August 14, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10133702 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
August 14: | Heikkinen's 5th Annual Energy Conference – Houston, TX |
August 14-15: | Citi's 2019 1:1 Midstream/Energy Infrastructure Conference – Las Vegas, NV |
September 24: | Johnson Rice's 2019 Energy Conference – New Orleans, LA |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-second-quarter-2019-conference-call-for-august-7-2019-300888711.html
SOURCE Oasis Midstream Partners LP
HOUSTON, May 7, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results for the quarter ended March 31, 2019 and provided an operational update.
Recent Highlights:
"Oasis Midstream Partners delivered another record quarter, topping all expectations while spending below our plan during the first quarter," said Taylor Reid, Chief Executive Officer of OMP. "The team delivered volumes that exceeded guidance, which resulted in EBITDA outpacing our guidance by approximately $2 million. Our distribution coverage of 1.6x surpassed our first quarter guidance of 1.5x. We continue to expect distribution coverage to grow rapidly this year to 1.75x to 1.9x in the second quarter of 2019, and to 1.9x to 2.0x in the fourth quarter of 2019, which is an increase to our February 2019 outlook. Our new 200 MMscfpd and our original 80 MMscfpd gas processing plants are running extremely well, as the overall complex services both Oasis Petroleum and third party volumes."
Delaware Midstream Opportunity
Mr. Reid added, "Our teams at Oasis Petroleum and OMP have worked diligently to create a mutually beneficial outcome for both parties in the development of the midstream assets in the Delaware Basin. Oasis Petroleum's highly-economic position in the heart of the over-pressured oil window is a coveted asset from both an upstream and a midstream perspective. The infrastructure development plan is extremely capital efficient for OMP, as capital is spread out over time and produces very competitive build multiples in a few years as cash flows quickly ramp based on Oasis Petroleum's drilling schedule. The robust inventory life of the Oasis Petroleum asset, coupled with the opportunity to capitalize on third party business make this investment the right next step in the evolution and growth of OMP."
Outlook Update (including Delaware Midstream)
Operational and Financial Update
Select operational and financial statistics are in the following table:
Three Months Ended March 31, 2019 | ||||||||||
OMP | Gross | Net | ||||||||
Bighorn DevCo | (In millions) | |||||||||
Operating income | 100 | % | $ | 10.6 | $ | 10.6 | ||||
Depreciation and amortization | 100 | % | 3.7 | 3.7 | ||||||
Total CapEx | 100 | % | 7.0 | 7.0 | ||||||
Bobcat DevCo | ||||||||||
Operating income | 27.4 | % | $ | 23.9 | $ | 6.2 | ||||
Depreciation and amortization | 27.4 | % | 2.9 | 0.8 | ||||||
Total CapEx | 27.4 | % | 34.5 | 32.0 | ||||||
Beartooth DevCo | ||||||||||
Operating income | 70 | % | $ | 13.5 | $ | 9.5 | ||||
Depreciation and amortization | 70 | % | 2.3 | 1.6 | ||||||
Total CapEx | 70 | % | 9.0 | 6.3 | ||||||
Total OMP | ||||||||||
DevCo operating income | $ | 48.0 | $ | 26.3 | ||||||
Public company expenses | 0.9 | 0.9 | ||||||||
Partnership operating income | 47.1 | 25.4 | ||||||||
Depreciation and amortization | 8.9 | 6.1 | ||||||||
Equity-based compensation expense | 0.1 | 0.1 | ||||||||
Total CapEx | 50.5 | 45.3 | ||||||||
Maintenance CapEx | 4.4 | 1.7 | ||||||||
Expansion CapEx | 46.1 | 43.6 |
__________________ |
(1) Represents OMP's ownership in each DevCo as of March 31, 2019. |
The following table shows actual volumes for the first quarter of 2019, provides volumes guidance for the second quarter of 2019 and updates volumes guidance for the full year 2019:
Metric | 1Q19 Actual | 2Q19 Guidance | FY19 Guidance | ||||||
Bighorn DevCo | |||||||||
Crude oil service volumes | Mbopd | 50.6 | 45 - 50 | 45 - 50 | |||||
Natural gas service volumes | MMscfpd | 193.0 | 230 - 250 | 220 - 245 | |||||
Bobcat DevCo | |||||||||
Crude oil service volumes | Mbopd | 42.5 | 40 - 43 | 40 - 43 | |||||
Natural gas service volumes | MMscfpd | 241.0 | 270 - 290 | 270 - 290 | |||||
Water service volumes | Mbowpd | 51.2 | 47 - 50 | 49 - 52 | |||||
Beartooth DevCo | |||||||||
Water service volumes | Mbowpd | 133.1 | 115 - 125 | 115 - 125 |
2019 Bobcat Capital Expenditures Arrangement
On February 22, 2019, the Partnership entered into a capital expenditures arrangement with Oasis Petroleum (the "2019 Capital Expenditures Arrangement"). Pursuant to this arrangement, in exchange for increasing its percentage ownership interest in Bobcat DevCo, the Partnership will cover up to $80.0 million of the capital contributions that Oasis Petroleum would otherwise be required to contribute to Bobcat DevCo during the 2019 calendar year. The arrangement provides an opportunity for the Partnership to increase its scale in an accretive manner while lowering the capital requirements of its sponsor. During the three months ended March 31, 2019, the Partnership made capital contributions to Bobcat DevCo pursuant to the 2019 Capital Expenditures Arrangement of $17.1 million, and the Partnership's ownership interest in Bobcat DevCo increased from 25% as of December 31, 2018 to 27.4% as of March 31, 2019. The Partnership's average ownership interest in Bobcat DevCo during the first quarter of 2019 was approximately 26%.
Liquidity and CapEx
As of March 31, 2019, the Partnership had cash and cash equivalents of $5.3 million and had $345.0 million of borrowings outstanding under its revolving credit facility, with an unused borrowing capacity of $55.0 million. Expansion CapEx attributable to OMP during the first quarter of 2019 of $43.6 million was below OMP's first quarter plan.
Quarterly Distribution
On February 28, 2019, the Partnership paid the quarterly cash distribution of $0.45 per unit related to the fourth quarter of 2018. On May 7, 2019, the Board of Directors of the General Partner declared the quarterly cash distribution for the first quarter of 2019 of $0.47 per unit. In addition, the General Partner will receive a cash distribution of $0.2 million attributable to the incentive distribution rights related to the earnings for the first quarter of 2019. These distributions will be payable on May 29, 2019 to unitholders of record as of May 17, 2019.
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, May 8, 2019 | |
Time: | 11:30 a.m. Central Time | |
Live Webcast: | ||
Website: |
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: | 0411301 |
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, May 15, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10131114 |
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. 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, the ability to consummate the Delaware Midstream Opportunity and realize the anticipated benefits therefrom, 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.
OASIS MIDSTREAM PARTNERS LP | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
March 31, 2019 | December 31, 2018 | ||||||
(In thousands, except unit data) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 5,259 | $ | 6,649 | |||
Accounts receivable | 3,419 | 2,481 | |||||
Accounts receivable - Oasis Petroleum | 79,659 | 80,805 | |||||
Prepaid expenses | 1,366 | 1,418 | |||||
Other current assets | 272 | 22 | |||||
Total current assets | 89,975 | 91,375 | |||||
Property, plant and equipment | 983,632 | 933,155 | |||||
Less: accumulated depreciation and amortization | (71,637) | (62,730) | |||||
Total property, plant and equipment, net | 911,995 | 870,425 | |||||
Operating lease right-of-use assets | 3,102 | — | |||||
Other assets | 2,680 | 2,452 | |||||
Total assets | $ | 1,007,752 | $ | 964,252 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 557 | $ | 2,180 | |||
Accounts payable - Oasis Petroleum | 32,871 | 33,014 | |||||
Accrued liabilities | 63,698 | 57,657 | |||||
Accrued interest payable | 624 | 442 | |||||
Current operating lease liabilities | 2,339 | — | |||||
Other current liabilities | 16 | — | |||||
Total current liabilities | 100,105 | 93,293 | |||||
Long-term debt | 345,000 | 318,000 | |||||
Asset retirement obligations | 1,533 | 1,514 | |||||
Operating lease liabilities | 785 | — | |||||
Other liabilities | 311 | — | |||||
Total liabilities | 447,734 | 412,807 | |||||
Partners' equity | |||||||
Limited partners | |||||||
Common units (20,045,196 and 20,029,026 issued and outstanding at March 31, 2019 and December 31, 2018, respectively) | 199,191 | 192,581 | |||||
Subordinated units (13,750,000 units issued and outstanding at March 31, 2019 and December 31, 2018) | 48,345 | 45,937 | |||||
General Partner | 238 | 112 | |||||
Total partners' equity | 247,774 | 238,630 | |||||
Non-controlling interests | 312,244 | 312,815 | |||||
Total equity | 560,018 | 551,445 | |||||
Total liabilities and equity | $ | 1,007,752 | $ | 964,252 |
OASIS MIDSTREAM PARTNERS LP | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(UNAUDITED) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In thousands, except per unit data) | |||||||
Revenues | |||||||
Midstream services – Oasis Petroleum | $ | 74,862 | $ | 57,360 | |||
Midstream services – third parties | 1,127 | 563 | |||||
Product sales – Oasis Petroleum | 15,652 | 3,493 | |||||
Product sales – third parties | 10 | 5 | |||||
Total revenues | 91,651 | 61,421 | |||||
Operating expenses | |||||||
Costs of product sales | 8,065 | 1,120 | |||||
Operating and maintenance | 18,850 | 15,996 | |||||
Depreciation and amortization | 8,929 | 6,364 | |||||
General and administrative | 8,720 | 6,150 | |||||
Total operating expenses | 44,564 | 29,630 | |||||
Operating income | 47,087 | 31,791 | |||||
Other expense | |||||||
Interest expense, net of capitalized interest | (3,748) | (262) | |||||
Net income | 43,339 | 31,529 | |||||
Less: Net income attributable to non-controlling interests | 21,796 | 21,575 | |||||
Net income attributable to Oasis Midstream Partners LP | 21,543 | 9,954 | |||||
Less: Net income attributable to General Partner | 238 | — | |||||
Net income attributable to limited partners | $ | 21,305 | $ | 9,954 | |||
Earnings per limited partner unit | |||||||
Common units – basic and diluted | $ | 0.63 | $ | 0.36 | |||
Weighted average number of limited partner units outstanding | |||||||
Common units – basic | 20,016 | 13,750 | |||||
Common units – diluted | 20,033 | 13,754 |
Non-GAAP Financial Measures
Cash Interest, Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP financial measures should not be considered in isolation or as a substitute for interest expense, net income (loss), operating income (loss), net cash provided by (used in) operating activities or any other measures prepared under United States generally accepted accounting principles, or GAAP. Because Cash Interest, Adjusted EBITDA and Distributable Cash Flow exclude some but not all items that affect interest expense, net income and net cash provided by operating activities and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies.
Cash Interest
Cash Interest is defined as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on the Partnership's debt, excluding non-cash amortization, and the Partnership's ability to maintain compliance with its debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Interest expense, net of capitalized interest | $ | 3,748 | $ | 262 | |||
Capitalized interest | 35 | 835 | |||||
Amortization of deferred financing costs | (191) | (116) | |||||
Cash Interest | 3,592 | 981 | |||||
Less: Cash Interest attributable to non-controlling interests(1) | (2) | — | |||||
Cash Interest attributable to Oasis Midstream Partners LP | $ | 3,590 | $ | 981 |
__________________ |
(1) Amount represents Cash Interest attributable to non-controlling interests associated with finance leases. |
Adjusted EBITDA
Adjusted EBITDA is defined as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA attributable to Oasis Midstream Partners LP is defined as Adjusted EBITDA less Adjusted EBITDA attributable to Oasis Petroleum's retained interests in two of the Partnership's DevCos, Bobcat DevCo and Beartooth DevCo. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities, respectively.
Distributable Cash Flow ("DCF")
DCF is defined as Adjusted EBITDA attributable to Oasis Midstream Partners LP less Cash Interest attributable to Oasis Midstream Partners LP and maintenance capital expenditures attributable to Oasis Midstream Partners LP. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and the Partnership's ability to generate cash from its business operations without regard to the Partnership's financing methods or capital structure, coupled with the Partnership's ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities, respectively.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Net income | $ | 43,339 | $ | 31,529 | |||
Depreciation and amortization | 8,929 | 6,364 | |||||
Equity-based compensation expense | 119 | 63 | |||||
Interest expense, net of capitalized interest | 3,748 | 262 | |||||
Adjusted EBITDA | 56,135 | 38,218 | |||||
Less: Adjusted EBITDA attributable to non-controlling interests | 24,647 | 24,496 | |||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 31,488 | 13,722 | |||||
Less: | |||||||
Cash Interest attributable to Oasis Midstream Partners LP | 3,590 | 981 | |||||
Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 1,667 | 796 | |||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 26,231 | $ | 11,945 | |||
Net cash provided by operating activities | $ | 56,050 | $ | 74,751 | |||
Interest expense, net of capitalized interest | 3,748 | 262 | |||||
Changes in working capital | (3,472) | (36,681) | |||||
Other non-cash adjustments | (191) | (114) | |||||
Adjusted EBITDA | 56,135 | 38,218 | |||||
Less: Adjusted EBITDA attributable to non-controlling interests | 24,647 | 24,496 | |||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 31,488 | 13,722 | |||||
Less: | |||||||
Cash Interest attributable to Oasis Midstream Partners LP | 3,590 | 981 | |||||
Maintenance capital expenditures attributable to Oasis Midstream Partners LP | 1,667 | 796 | |||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 26,231 | $ | 11,945 | |||
Distributions Declared | |||||||
Limited partners | $ | 15,884 | $ | 10,803 | |||
Incentive distribution rights | 238 | — | |||||
Total distributions | $ | 16,122 | $ | 10,803 | |||
DCF coverage ratio | 1.6 | x | 1.1 | x |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-march-31-2019-earnings-300845693.html
SOURCE Oasis Midstream Partners LP
HOUSTON, May 7, 2019 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis" or the "Company") today announced financial results for the quarter ended March 31, 2019 and provided an operational update.
Recent Highlights:
"Oasis delivered a strong start to 2019, exceeding our volume expectations while maintaining capital discipline," said Thomas B. Nusz, Oasis's Chairman and Chief Executive Officer. "Our solid execution gives us confidence we can hit or exceed our operational targets, and generate free cash flow at the E&P business. In the Williston, our deep inventory and emphasis on operating efficiency supports rapid growth in the Delaware and overall E&P free cash flow. In the Delaware, well performance remains impressive, and we continue to advance our understanding of the subsurface as we prepare for full-field development. Oasis Midstream Services performed well over the quarter as internally controlled infrastructure supported flow assurance, reduced costs and provided access to liquid marketing points. Our strategy continues to serve us well as Oasis is built to withstand and prosper through volatile commodity prices."
Financial and Operational Update and Outlook
Midstream Update
Operational and Financial Update | ||||||
The following table presents select operational and financial data for the periods presented: | ||||||
Quarter Ended: | ||||||
3/31/2019 | 12/31/2018 | 3/31/2018 | ||||
Production data: | ||||||
Crude Oil (Bopd) | 66,046 | 67,266 | 58,713 | |||
Natural gas (Mcfpd) | 154,005 | 126,135 | 108,635 | |||
Total production (Boepd) | 91,714 | 88,288 | 76,819 | |||
Percent Crude Oil | 72.0% | 76.2% | 76.4% | |||
Average sales prices: | ||||||
Crude oil, without derivative settlements ($ per Bbl) | $ | 53.52 | $ | 52.01 | $ | 61.75 |
Differential to NYMEX WTI ($ per Bbl) | 1.30 | 6.79 | 1.12 | |||
Crude oil, with derivative settlements ($ per Bbl)(1) | 55.79 | 44.14 | 54.73 | |||
Crude oil derivative settlements - net cash receipts (payments) ($ in millions)(2) | 13.5 | (48.7) | (37.1) | |||
Natural gas, without derivative settlements ($ per Mcf)(2) | 3.66 | 4.27 | 4.12 | |||
Natural gas, with derivative settlements ($ per Mcf)(1)(2) | 3.65 | 4.02 | 4.13 | |||
Natural gas derivative settlements - net cash receipts (payments) ($ in millions)(2) | (0.1) | (2.9) | 0.1 | |||
Selected financial data ($ in millions): | ||||||
Revenues: | ||||||
Crude oil revenues(3) | $ | 318.1 | $ | 321.8 | $ | 326.3 |
Natural gas revenues | 50.7 | 49.6 | 40.3 | |||
Purchased oil and gas sales(3)(4) | 148.5 | 181.6 | 67.7 | |||
Midstream revenues(4) | 48.0 | 32.1 | 27.9 | |||
Well services revenues | 10.4 | 14.7 | 11.6 | |||
Total revenues | $ | 575.7 | $ | 599.8 | $ | 473.8 |
Net cash provided by operating activities | 174.9 | 234.4 | 228.4 | |||
Adjusted EBITDA(5) | 269.3 | 214.1 | 232.9 | |||
Select operating expenses: | ||||||
LOE | $ | 58.4 | $ | 56.5 | $ | 44.8 |
Midstream expenses(4) | 16.7 | 8.4 | 8.0 | |||
Well services expenses | 7.0 | 8.8 | 7.4 | |||
MT&G(6) | 32.7 | 28.9 | 20.8 | |||
Non-cash valuation charges | 2.3 | 3.8 | 0.2 | |||
Purchased oil and gas expenses(3)(4) | 149.9 | 179.1 | 70.6 | |||
Production taxes | 29.6 | 29.9 | 31.0 | |||
Depreciation, depletion and amortization ("DD&A") | 189.8 | 170.5 | 149.3 | |||
Total select operating expenses | $ | 486.4 | $ | 485.9 | $ | 332.1 |
Select operating expenses data: | ||||||
LOE ($ per Boe) | $ | 7.08 | $ | 6.95 | $ | 6.48 |
MT&G ($ per Boe)(6) | 3.96 | 3.55 | 3.01 | |||
DD&A ($ per Boe) | 23.00 | 20.99 | 21.59 | |||
E&P G&A ($ per Boe) | 3.33 | 3.08 | 3.40 | |||
E&P Cash G&A ($ per Boe)(5) | 2.30 | 2.18 | 2.46 | |||
Production taxes (% of oil and gas revenue) | 8.0% | 8.1% | 8.5% |
(1) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
(2) | Natural gas prices include the value for natural gas and natural gas liquids. | |||||
(3) | For the three months ended March 31, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised as described in Revision of Prior Period Financial Statements below. | |||||
(4) | For the fourth quarter of 2018, midstream revenues and midstream expenses have been adjusted to include $1.5 million and $0.8 million, respectively, for certain natural gas product sales and expenses, which were previously recognized in purchased oil and gas sales and purchased oil and gas expenses on the Company's Condensed Consolidated Statements of Operations. | |||||
(5) | Adjusted EBITDA and E&P Cash G&A represent non-GAAP measures. See "Non-GAAP Financial Measures" below for further information and reconciliations to the most directly comparable financial measures under United States generally accepted accounting principles ("GAAP"). | |||||
(6) | Excludes non-cash valuation charges on pipeline imbalances. |
G&A totaled $34.5 million in the first quarter of 2019, $27.9 million in the first quarter of 2018 and $30.3 million in the fourth quarter of 2018. Amortization of equity-based compensation, which is included in G&A, was $9.0 million, or $1.09 per Boe, in the first quarter of 2019 as compared to $6.8 million, or $0.98 per Boe, in the first quarter of 2018 and $7.7 million, or $0.95 per Boe, in the fourth quarter of 2018. G&A for the Company's E&P segment totaled $27.5 million in the first quarter of 2019, $23.5 million in the first quarter of 2018 and $25.1 million in the fourth quarter of 2018.
MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $11.9 million to $32.7 million in the first quarter of 2019, as compared to $20.8 million in the first quarter of 2018, primarily attributable to higher crude oil gathering and transportation expenses related to an increase in volumes being transported on the Dakota Access Pipeline to market the Company's equity barrels, which resulted in improved price realizations. MT&G, excluding non-cash valuation charges on pipeline imbalances, increased $3.8 million as compared to $28.9 million in the fourth quarter of 2018 primarily due to the higher aforementioned costs.
Interest expense was $44.5 million for the first quarter of 2019 as compared to $37.1 million for the first quarter of 2018 and $41.5 million for the fourth quarter of 2018. Capitalized interest totaled $2.8 million for the first quarter of 2019, $4.5 million for the first quarter of 2018 and $4.0 million for the fourth quarter of 2018. Cash Interest totaled $42.6 million for the first quarter of 2019, $37.2 million for the first quarter of 2018 and $40.5 million for the fourth quarter of 2018. For a definition of Cash Interest and a reconciliation of interest expense to Cash Interest, see "Non-GAAP Financial Measures" below.
For the three months ended March 31, 2019, the Company recorded an income tax benefit of $3.7 million, resulting in a 3.3% effective tax rate as a percentage of its pre-tax loss for the quarter. The Company recorded an income tax expense of $69.5 million, resulting in a 23.5% effective tax rate as a percentage of its pre-tax income for the three months ended December 31, 2018.
For the first quarter of 2019, the Company reported net loss of $114.9 million, or $0.37 per diluted share, as compared to a net income of $0.6 million, or $0.00 per diluted share, for the first quarter of 2018. Excluding certain non-cash items and their tax effect, Adjusted Net Loss Attributable to Oasis (non-GAAP) was $6.9 million, or $0.02 per diluted share, in the first quarter of 2019, as compared to Adjusted Net Income Attributable to Oasis of $30.2 million, or $0.10 per diluted share, in the first quarter of 2018. Adjusted EBITDA for the first quarter of 2019 was $269.3 million, as compared to Adjusted EBITDA of $232.9 million for the first quarter of 2018. For definitions of Adjusted Net Income (Loss) Attributable to Oasis and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
Revision of Prior Period Financial Statements. As previously disclosed in the Company's February press release, in connection with the preparation of the Company's 2018 Annual Report, the Company identified errors in its previously issued 2017 annual consolidated financial statements and in each of the interim periods within 2018 and 2017. These prior period errors related to the manner in which it accounted for certain crude oil purchase and sale arrangements. Specifically, although the Company previously presented the transactions on a net basis in oil and gas revenues, the Company was required to present these purchase and sale arrangements on a gross basis in purchased oil and gas expenses and purchased oil and gas sales. The correction of these errors had no effect on the reported consolidated net income (loss) attributable to Oasis or earnings (loss) attributable to Oasis per share data. Based on an analysis of quantitative and qualitative factors, the Company determined that the related impact was not material to its consolidated financial statements, and therefore, amendments of previously filed reports are not required.
For the quarter ended March 31, 2018, the Company revised the Condensed Consolidated Statement of Operations by increasing purchased oil and gas sales, purchased oil and gas expenses, and oil and gas revenues by $49.7 million, $52.6 million and $2.9 million, respectively. The amounts presented herein reflect the impact of this revision.
As a result of the errors noted above, the Company identified a material weakness in its internal control over financial reporting as described in "Management's report on internal control over financial reporting" in the Company's 2018 Annual Report under Part II, Item 9A. "Controls and Procedures." During the quarter ended March 31, 2019, management implemented its remediation plan and began testing the operating effectiveness of the remediated controls.
Capital Expenditures | |||
The following table depicts the Company's total CapEx by category: | |||
1Q 2019 | |||
(In millions) | |||
CapEx: | |||
E&P | $ | 165.7 | |
Well services | 0.1 | ||
Other(1) | 3.9 | ||
Total CapEx before midstream | 169.7 | ||
Midstream(2) | 57.1 | ||
Total CapEx(3) | $ | 226.8 |
(1) | Other CapEx includes such items as administrative capital and capitalized interest. | |||||
(2) | Midstream CapEx attributable to OMP was $45.2 million for the three months ended March 31, 2019. | |||||
(3) | Total CapEx reflected in the table above differs from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table above include changes in accrued liabilities from the previous reporting period for CapEx, while the amounts presented in the statements of cash flows is presented on a cash basis. |
Liquidity and Balance Sheet
As of March 31, 2019, Oasis had cash and cash equivalents of $15.4 million, total elected commitments under the Oasis credit facility of $1,350.0 million and total elected commitments under the OMP credit facility of $400.0 million. In addition, Oasis had $493.0 million of borrowings and $14.0 million of outstanding letters of credit issued under the Oasis credit facility and $345.0 million of borrowings under the OMP credit facility, resulting in a total unused borrowing base capacity of $898.0 million for both revolving credit facilities as of March 31, 2019.
On April 15, 2019, the lenders under the Oasis credit facility completed their regular semi-annual redetermination of the borrowing base scheduled for April 1, 2019, which reaffirmed the borrowing base and the aggregate elected commitment at $1,600.0 million and $1,350.0 million, respectively. In connection with the April 1, 2019 borrowing base redetermination, the Company entered into the First Amendment to the Third Amended and Restated Credit Agreement to the Oasis credit facility, dated April 15, 2019, which, among other things, incorporated the ability of the Company to request swingline loans subject to a swingline loans sublimit of $50.0 million. All other significant rates, terms and conditions of the Oasis credit facility remained the same. The next redetermination of the Oasis credit facility's borrowing base is scheduled for October 1, 2019.
On May 6, 2019, OMP entered into an amendment to its revolving credit facility to (i) increase the aggregate amount of commitments from $400.0 million to $475.0 million; (ii) provide for the ability to further increase commitments to $675.0 million; and (iii) add a new lender to the bank group. OMP believes that it will have ample debt capacity to finance the infrastructure build-out related to the Delaware Midstream Opportunity, while managing leverage below 3.0x debt to current quarter annualized EBITDA and exiting 2019 with leverage below 2.5x.
Hedging Activity
The Company's crude oil contracts will settle monthly based on the average NYMEX WTI for fixed price swaps and two-way and three-way costless collars. The Company's basis swaps for crude oil will either settle monthly based on the fixed basis differential from Intercontinental Exchange, Inc. Brent crude oil index price ("ICE Brent") to NYMEX WTI, Argus WTI Midland crude oil index price ("Midland") to NYMEX WTI or Argus WTI Houston crude oil index price ("Houston") to NYMEX WTI. The Company's natural gas contracts will settle monthly based on the average NYMEX Henry Hub natural gas index price ("NYMEX HH") for fixed price swaps. The Company's basis swaps for natural gas will settle monthly based on the fixed basis differential from Inside FERC Northern Natural Gas Ventura ("IF NNG Ventura") to NYMEX HH. As of May 7, 2019, the Company had the following outstanding commodity derivative contracts:
Three Months Ending | Six Months Ending | |||||||
June 30, 2019 | December 31, 2019 | June 30, 2020 | December 31, 2020 | |||||
Crude Oil (Volume in MBopd) | ||||||||
Fixed Price Swaps | ||||||||
Volume | 14.3 | 21.0 | 6.0 | 3.0 | ||||
Price | $ | 54.44 | $ | 57.10 | $ | 60.52 | $ | 58.85 |
Collars | ||||||||
Volume | 15.0 | 14.0 | — | — | ||||
Floor | $ | 56.93 | $ | 58.07 | $ | — | $ | — |
Ceiling | $ | 72.20 | $ | 74.64 | $ | — | $ | — |
3-Way | ||||||||
Volume | 12.0 | 12.0 | 10.0 | 6.0 | ||||
Sub-Floor | $ | 40.83 | $ | 40.00 | $ | 40.00 | $ | 40.00 |
Floor | $ | 51.25 | $ | 51.57 | $ | 55.37 | $ | 54.96 |
Ceiling | $ | 68.59 | $ | 65.40 | $ | 64.13 | $ | 62.31 |
Total Crude Oil Volume | 41.3 | 47.0 | 16.0 | 9.0 | ||||
Basis Swaps (ICE Brent-NYMEX WTI) | ||||||||
Volume | 2.0 | — | — | — | ||||
Price | $ | 9.68 | $ | — | $ | — | $ | — |
Basis Swaps (Midland-NYMEX WTI) | ||||||||
Volume | 4.0 | — | — | — | ||||
Price | $ | (6.71) | $ | — | $ | — | $ | — |
Basis Swaps (Houston-NYMEX WTI) | ||||||||
Volume | 3.0 | 1.5 | — | — | ||||
Price | $ | 4.55 | $ | 4.55 | $ | — | $ | — |
Total Crude Oil Basis Volume | 9.0 | 1.5 | — | — | ||||
Natural Gas (Volume in MMBtupd) | ||||||||
Fixed Price Swaps | ||||||||
Volume | 36,000 | 30,000 | — | — | ||||
Price | $ | 2.92 | $ | 2.92 | $ | — | $ | — |
Total Natural Gas Volume | 36,000 | 30,000 | — | — | ||||
Basis Swaps (IF NNG Ventura-NYMEX HH) | ||||||||
Volume | 25,000 | — | — | — | ||||
Price | $ | 0.02 | $ | — | $ | — | $ | — |
Total Natural Gas Basis Volume | 25,000 | — | — | — |
The March 2019 crude oil derivative contracts settled at a net $2.2 million paid in April 2019 and will be included in the Company's second quarter 2019 derivative settlements.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the conference call:
Date: | Wednesday, May 8, 2019 |
Time: | 10:00 a.m. Central Time |
Live Webcast: | |
Website: | |
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: | 0299125 |
A recording of the conference call will be available beginning at 12:00 p.m. Central Time on the day of the call and will be available until Wednesday, May 15, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay code: | 10131111 |
The conference call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
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 Company 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 Company, including the Company's drilling program, production, derivative instruments, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company 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 Company, 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, changes in crude oil and natural gas prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, the ability to consummate the Delaware Midstream Opportunity and realize the anticipated benefits therefrom, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company'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 Company's business and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the SEC.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company 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 Petroleum Inc.
Oasis is an independent exploration and production company focused on the acquisition and development of onshore, unconventional crude oil and natural gas resources in the United States. For more information, please visit the Company's website at www.oasispetroleum.com.
Oasis Petroleum Inc. | ||||
Condensed Consolidated Balance Sheets | ||||
(Unaudited) | ||||
March 31, 2019 | December 31, 2018 | |||
(In thousands, except share data) | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ | 15,442 | $ | 22,190 |
Accounts receivable, net | 456,639 | 387,602 | ||
Inventory | 36,269 | 33,128 | ||
Prepaid expenses | 8,404 | 10,997 | ||
Derivative instruments | 4,467 | 99,930 | ||
Intangible assets, net | — | 125 | ||
Other current assets | 309 | 183 | ||
Total current assets | 521,530 | 554,155 | ||
Property, plant and equipment | ||||
Oil and gas properties (successful efforts method) | 9,073,085 | 8,912,189 | ||
Other property and equipment | 1,216,763 | 1,151,772 | ||
Less: accumulated depreciation, depletion, amortization and impairment | (3,233,106) | (3,036,852) | ||
Total property, plant and equipment, net | 7,056,742 | 7,027,109 | ||
Derivative instruments | 181 | 6,945 | ||
Long-term inventory | 13,767 | 12,260 | ||
Operating right-of-use assets | 24,741 | — | ||
Other assets | 29,385 | 25,673 | ||
Total assets | $ | 7,646,346 | $ | 7,626,142 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ | 10,172 | $ | 20,166 |
Revenues and production taxes payable | 249,569 | 216,695 | ||
Accrued liabilities | 338,819 | 331,651 | ||
Accrued interest payable | 21,931 | 38,040 | ||
Derivative instruments | 27,663 | 84 | ||
Advances from joint interest partners | 5,072 | 5,140 | ||
Current operating lease liabilities | 13,135 | — | ||
Other current liabilities | 2,485 | — | ||
Total current liabilities | 668,846 | 611,776 | ||
Long-term debt | 2,791,333 | 2,735,276 | ||
Deferred income taxes | 296,508 | 300,055 | ||
Asset retirement obligations | 53,404 | 52,384 | ||
Derivative instruments | 1,271 | 20 | ||
Operating lease liabilities | 17,610 | — | ||
Other liabilities | 6,239 | 7,751 | ||
Total liabilities | 3,835,211 | 3,707,262 | ||
Commitments and contingencies | ||||
Stockholders' equity | ||||
Common stock, $0.01 par value: 900,000,000 shares authorized; 324,829,258 shares issued and 322,051,268 shares outstanding at March 31, 2019 and 320,469,049 shares issued and 318,377,161 shares outstanding at December 31, 2018 | 3,182 | 3,157 | ||
Treasury stock, at cost: 2,777,990 and 2,091,888 shares at March 31, 2019 and December 31, 2018, respectively | (33,286) | (29,025) | ||
Additional paid-in capital | 3,087,083 | 3,077,755 | ||
Retained earnings | 567,807 | 682,689 | ||
Oasis share of stockholders' equity | 3,624,786 | 3,734,576 | ||
Non-controlling interests | 186,349 | 184,304 | ||
Total stockholders' equity | 3,811,135 | 3,918,880 | ||
Total liabilities and stockholders' equity | $ | 7,646,346 | $ | 7,626,142 |
Oasis Petroleum Inc. | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands, except per share data) | ||||
Revenues | ||||
Oil and gas revenues | $ | 368,782 | $ | 366,595 |
Purchased oil and gas sales | 148,471 | 67,709 | ||
Midstream revenues | 48,021 | 27,922 | ||
Well services revenues | 10,458 | 11,586 | ||
Total revenues | 575,732 | 473,812 | ||
Operating expenses | ||||
Lease operating expenses | 58,444 | 44,781 | ||
Midstream expenses | 16,729 | 7,985 | ||
Well services expenses | 6,970 | 7,387 | ||
Marketing, transportation and gathering expenses | 34,950 | 21,013 | ||
Purchased oil and gas expenses | 149,904 | 70,594 | ||
Production taxes | 29,618 | 31,000 | ||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Exploration expenses | 830 | 769 | ||
Impairment | 629 | 93 | ||
General and administrative expenses | 34,459 | 27,940 | ||
Total operating expenses | 522,366 | 360,827 | ||
Loss on sale of properties | (2,922) | — | ||
Operating income | 50,444 | 112,985 | ||
Other income (expense) | ||||
Net loss on derivative instruments | (117,611) | (71,116) | ||
Interest expense, net of capitalized interest | (44,468) | (37,146) | ||
Other expense | (46) | (183) | ||
Total other expense | (162,125) | (108,445) | ||
Income (loss) before income taxes | (111,681) | 4,540 | ||
Income tax benefit (expense) | 3,703 | (828) | ||
Net income (loss) including non-controlling interests | (107,978) | 3,712 | ||
Less: Net income attributable to non-controlling interests | 6,904 | 3,122 | ||
Net income (loss) attributable to Oasis | $ | (114,882) | $ | 590 |
Earnings (loss) attributable to Oasis per share: | ||||
Basic | $ | (0.37) | $ | 0.00 |
Diluted | (0.37) | 0.00 | ||
Weighted average shares outstanding: | ||||
Basic | 314,464 | 290,105 | ||
Diluted | 314,464 | 291,738 |
Oasis Petroleum Inc. | ||||
Selected Financial and Operational Statistics | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Operating results (in thousands): | ||||
Revenues | ||||
Crude oil revenues(1) | $ | 318,121 | $ | 326,310 |
Natural gas revenues | 50,661 | 40,285 | ||
Purchased oil and gas sales(1) | 148,471 | 67,709 | ||
Midstream revenues | 48,021 | 27,922 | ||
Well services revenues | 10,458 | 11,586 | ||
Total revenues | $ | 575,732 | $ | 473,812 |
Production data: | ||||
Crude oil (MBbls) | 5,944 | 5,284 | ||
Natural gas (MMcf) | 13,860 | 9,777 | ||
Oil equivalents (MBoe) | 8,254 | 6,914 | ||
Average daily production (Boe per day) | 91,714 | 76,819 | ||
Average sales prices: | ||||
Crude oil, without derivative settlements (per Bbl) | $ | 53.52 | $ | 61.75 |
Crude oil, with derivative settlements (per Bbl)(2) | 55.79 | 54.73 | ||
Natural gas, without derivative settlements (per Mcf)(3) | 3.66 | 4.12 | ||
Natural gas, with derivative settlements (per Mcf)(2)(3) | 3.65 | 4.13 | ||
Costs and expenses (per Boe of production): | ||||
LOE | $ | 7.08 | $ | 6.48 |
MT&G(4) | 3.96 | 3.01 | ||
Production taxes | 3.59 | 4.48 | ||
DD&A | 23.00 | 21.59 | ||
G&A | 4.17 | 4.04 | ||
E&P G&A | 3.33 | 3.40 |
(1) | For the three months ended March 31, 2018, crude oil revenues, purchased oil and gas sales and purchased oil and gas expenses have been revised. Refer to Revision of Prior Period Financial Statements for further details. | |||||
(2) | Realized prices include gains or losses on cash settlements for commodity derivatives, which do not qualify for or were not designated as hedging instruments for accounting purposes. Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | |||||
(3) | Natural gas prices include the value for natural gas and natural gas liquids. | |||||
(4) | Excludes non-cash valuation charges on pipeline imbalances. |
Oasis Petroleum Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Cash flows from operating activities: | ||||
Net income (loss) including non-controlling interests | $ | (107,978) | $ | 3,712 |
Adjustments to reconcile net income (loss) including non-controlling interests to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Loss on sale of properties | 2,922 | — | ||
Impairment | 629 | 93 | ||
Deferred income taxes | (3,547) | 828 | ||
Derivative instruments | 117,611 | 71,116 | ||
Equity-based compensation expenses | 9,013 | 6,754 | ||
Deferred financing costs amortization and other | 6,930 | 5,475 | ||
Working capital and other changes: | ||||
Change in accounts receivable, net | (71,083) | (5,708) | ||
Change in inventory | (3,184) | (3,672) | ||
Change in prepaid expenses | 1,505 | 492 | ||
Change in accounts payable, interest payable and accrued liabilities | 36,666 | (244) | ||
Change in other assets and liabilities, net | (4,391) | 248 | ||
Net cash provided by operating activities | 174,926 | 228,359 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (237,448) | (254,838) | ||
Acquisitions | — | (520,728) | ||
Derivative settlements | 13,446 | (36,974) | ||
Other | — | (28) | ||
Net cash used in investing activities | (224,002) | (812,568) | ||
Cash flows from financing activities: | ||||
Proceeds from Revolving Credit Facilities | 420,000 | 1,470,000 | ||
Principal payments on Revolving Credit Facilities | (368,000) | (875,000) | ||
Deferred financing costs | (43) | (215) | ||
Purchases of treasury stock | (4,261) | (6,021) | ||
Distributions to non-controlling interests | (4,937) | (3,450) | ||
Other | (431) | (90) | ||
Net cash provided by financing activities | 42,328 | 585,224 | ||
Increase (decrease) in cash and cash equivalents | (6,748) | 1,015 | ||
Cash and cash equivalents: | ||||
Beginning of period | 22,190 | 16,720 | ||
End of period | $ | 15,442 | $ | 17,735 |
Supplemental non-cash transactions: | ||||
Change in accrued capital expenditures | $ | (23,686) | $ | 12,855 |
Change in asset retirement obligations | 2,016 | 3,453 | ||
Issuance of shares in connection with acquisition | — | 371,220 |
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
E&P Cash G&A
E&P Cash G&A is defined as the total general and administrative expenses included in the Company's exploration and production segment less non-cash equity-based compensation expenses included in its exploration and production segment. E&P Cash G&A is not a measure of general and administrative expenses as determined by GAAP. Management believes that the presentation of E&P Cash G&A provides useful additional information to investors and analysts to assess the Company's operating costs in comparison to peers without regard to equity-based compensation programs, which can vary substantially from company to company.
The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses included in its exploration and production segment to the non-GAAP financial measure of E&P Cash G&A for the periods presented:
Exploration and Production | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
E&P general and administrative expenses | $ | 27,527 | $ | 23,479 |
Equity-based compensation expenses | (8,580) | (6,454) | ||
E&P Cash G&A | $ | 18,947 | $ | 17,025 |
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Interest expense | $ | 44,468 | $ | 37,146 |
Capitalized interest | 2,818 | 4,451 | ||
Amortization of deferred financing costs | (1,770) | (1,761) | ||
Amortization of debt discount | (2,884) | (2,618) | ||
Cash Interest | $ | 42,632 | $ | 37,218 |
Adjusted EBITDA and Free Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, depletion, amortization, exploration expenses and other similar non-cash or non-recurring charges. The Company defines Free Cash Flow as Adjusted EBITDA attributable to Oasis less Cash Interest and CapEx, excluding capitalized interest. Adjusted EBITDA and Free Cash Flow are not measures of net income (loss) or cash flows as determined by GAAP.
The following table presents reconciliations of the GAAP financial measures of net income (loss) including non-controlling interests and net cash provided by (used in) operating activities to the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Net income (loss) including non-controlling interests | $ | (107,978) | $ | 3,712 |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 44,468 | 37,146 | ||
Depreciation, depletion and amortization | 189,833 | 149,265 | ||
Impairment | 629 | 93 | ||
Exploration expenses | 830 | 769 | ||
Equity-based compensation expenses | 9,013 | 6,754 | ||
Income tax (benefit) expense | (3,703) | 828 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | 269,346 | 232,918 | ||
Adjusted EBITDA attributable to non-controlling interests | 10,203 | 3,911 | ||
Adjusted EBITDA attributable to Oasis | 259,143 | 229,007 | ||
Cash Interest | (42,632) | (37,218) | ||
Capital expenditures(2) | (226,793) | (1,167,228) | ||
Capitalized interest | 2,818 | 4,451 | ||
Free Cash Flow | $ | (7,464) | $ | (970,988) |
Net cash provided by operating activities | $ | 174,926 | $ | 228,359 |
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 44,468 | 37,146 | ||
Exploration expenses | 830 | 769 | ||
Deferred financing costs amortization and other | (6,930) | (5,475) | ||
Current tax expense | (156) | — | ||
Changes in working capital | 40,487 | 8,884 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | 269,346 | 232,918 | ||
Adjusted EBITDA attributable to non-controlling interests | 10,203 | 3,911 | ||
Adjusted EBITDA attributable to Oasis | 259,143 | 229,007 | ||
Cash Interest | (42,632) | (37,218) | ||
Capital expenditures(2) | (226,793) | (1,167,228) | ||
Capitalized interest | 2,818 | 4,451 | ||
Free Cash Flow | $ | (7,464) | $ | (970,988) |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||
(2) | Capital expenditures (including acquisitions) reflected in the table above differ from the amounts shown in the statements of cash flows in the Company's condensed consolidated financial statements because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statements of cash flows are presented on a cash basis. Acquisitions totaled $890.9 million for the three months ended March 31, 2018. |
The following tables present reconciliations of the GAAP financial measure of income (loss) before income taxes including non-controlling interests to the non-GAAP financial measure of Adjusted EBITDA for the Company's three reportable business segments on a gross basis for the periods presented:
Exploration and Production | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands) | ||||
Loss before income taxes including non-controlling interests | $ | (156,458) | $ | (28,184) |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Interest expense, net of capitalized interest | 40,720 | 36,884 | ||
Depreciation, depletion and amortization | 184,819 | 145,203 | ||
Impairment | 629 | 93 | ||
Exploration expenses | 830 | 769 | ||
Equity-based compensation expenses | 8,580 | 6,454 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Adjusted EBITDA | $ | 215,374 | $ | 195,570 |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. |
Midstream Services | |||||
Three Months Ended March 31, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Income before income taxes including non-controlling interests | $ | 46,058 | $ | 31,979 | |
Interest expense, net of capitalized interest | 3,748 | 262 | |||
Depreciation, depletion and amortization | 9,187 | 6,629 | |||
Equity-based compensation expenses | 465 | 370 | |||
Adjusted EBITDA | $ | 59,458 | $ | 39,240 | |
Well Services | |||||
Three Months Ended March 31, | |||||
2019 | 2018 | ||||
(In thousands) | |||||
Income before income taxes including non-controlling interests | $ | 820 | $ | 8,107 | |
Depreciation, depletion and amortization | 3,929 | 3,690 | |||
Equity-based compensation expenses | 561 | 385 | |||
Adjusted EBITDA | $ | 5,310 | $ | 12,182 |
Adjusted Net Income (Loss) Attributable to Oasis and Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share are supplemental non-GAAP financial measures that are used by management and external users of the Company's financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted Net Income (Loss) Attributable to Oasis as net income (loss) after adjusting first for (1) the impact of certain non-cash items, including non-cash changes in the fair value of derivative instruments, impairment, and other similar non-cash charges, or non-recurring items, (2) the impact of net income attributable to non-controlling interests and (3) the non-cash and non-recurring items' impact on taxes based on the Company's effective tax rate applicable to those adjusting items in the same period. Adjusted Net Income (Loss)
Attributable to Oasis is not a measure of net income (loss) as determined by GAAP. The Company defines Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share as Adjusted Net Income (Loss) Attributable to Oasis divided by diluted weighted average shares outstanding.
The following table presents reconciliations of the GAAP financial measure of net income (loss) attributable to Oasis to the non-GAAP financial measure of Adjusted Net Income (Loss) Attributable to Oasis and the GAAP financial measure of diluted earnings (loss) attributable to Oasis per share to the non-GAAP financial measure of Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share for the periods presented:
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(In thousands, except per share data) | ||||
Net income (loss) attributable to Oasis | $ | (114,882) | $ | 590 |
Loss on sale of properties | 2,922 | — | ||
Net loss on derivative instruments | 117,611 | 71,116 | ||
Derivative settlements(1) | 13,446 | (36,974) | ||
Impairment | 629 | 93 | ||
Amortization of deferred financing costs | 1,770 | 1,761 | ||
Amortization of debt discount | 2,884 | 2,618 | ||
Other non-cash adjustments | 2,275 | 209 | ||
Tax impact(2) | (33,596) | (9,217) | ||
Adjusted Net Income (Loss) Attributable to Oasis | $ | (6,941) | $ | 30,196 |
Diluted earnings (loss) attributable to Oasis per share | $ | (0.37) | $ | 0.00 |
Loss on sale of properties | 0.01 | — | ||
Net loss on derivative instruments | 0.37 | 0.24 | ||
Derivative settlements(1) | 0.04 | (0.13) | ||
Impairment | — | — | ||
Amortization of deferred financing costs | 0.01 | 0.01 | ||
Amortization of debt discount | 0.01 | 0.01 | ||
Other non-cash adjustments | 0.01 | — | ||
Tax impact(2) | (0.10) | (0.03) | ||
Adjusted Diluted Earnings (Loss) Attributable to Oasis Per Share | $ | (0.02) | $ | 0.10 |
Diluted weighted average shares outstanding(3) | 314,464 | 291,738 | ||
Effective tax rate applicable to adjustment items | 23.7% | 23.7% |
(1) | Cash settlements represent the cumulative gains and losses on the Company's derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. | ||||||
(2) | The tax impact is computed utilizing the Company's effective tax rate applicable to the adjustments for certain non-cash and non-recurring items. | ||||||
(3) | No unvested stock awards were included in computing Adjusted Diluted Loss Attributable to Oasis Per Share for the three months ended March 31, 2019 because the effect was anti-dilutive due to the Adjusted Net Loss Attributable to Oasis. |
View original content:http://www.prnewswire.com/news-releases/oasis-petroleum-inc-announces-quarter-ended-march-31-2019-earnings-300845689.html
SOURCE Oasis Petroleum Inc.
HOUSTON, April 23, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its First Quarter 2019 financial and operational results on Tuesday, May 7, 2019 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Wednesday, May 8, 2019 at 11:30 a.m. Central Time to discuss First Quarter 2019 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast:
Date: | Wednesday, May 8, 2019 |
Time: | 11:30 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 0411301 |
Website: |
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, May 15, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10131114 |
The call will also be available for replay for approximately 30 days at www.oasispetroleum.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
May 15: | TPH's 15th Annual Hotter 'N Hell Energy Conference – Houston, TX |
May 16: | Citi's 2019 Global Energy & Utilities Conference – Boston, MA |
June 4: | RBC's 2019 Global Energy & Power Conference – New York, NY |
June 11-12: | Wells Fargo's 2019 West Coast Energy Conference – San Francisco, CA |
June 18-19: | J.P. Morgan's 2019 Energy Conference – New York, NY |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-first-quarter-2019-conference-call-for-may-8-2019-300836488.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Feb. 26, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results for the quarter and year ended December 31, 2018 and updated its 2019 outlook.
Recent Highlights:
"Fourth quarter results mark a strong end to an impressive year at Oasis Midstream Partners," said Taylor Reid, Chief Executive Officer of OMP. "During the quarter, we successfully started our new 200 MMscfpd gas plant and executed additional third-party deals in Wild Basin. Fourth quarter pro forma coverage of 1.43x exceeded our expectations. Additionally, OMP successfully completed its first drop as a public company, improving our scale, liquidity, and financial outlook. As we look to 2019, our sponsor's Wild Basin centered program insulates OMP's financial profile, and we are in a position to deliver our EBITDA, growth, and coverage outlook despite the decline in commodity prices. OMP exceeded expectations in 2018, and we look forward to executing our business and continuing to increase the value of our partners' investment in 2019 and beyond."
Gas Plant II Update:
OMP finished construction on Gas Plant II and began processing volumes in early December. With 320 MMscfpd of natural gas processing capacity, OMP is the second largest natural gas processor in the Williston Basin. Utilization of Gas Plant II approximated 60% through the first three weeks of February. OMP expects to run at 60% utilization in the beginning of 2019, and with additional third party deals, utilization is now expected to increase to above 90% by year end 2019 (vs. over 80% at the November 2018 update). Third party volumes are expected to account for approximately 30% to 40% of Gas Plant II's throughput by the fourth quarter of 2019.
2019 Capital Spending and Outlook:
On February 22, 2019, OMP entered into a capital expenditures arrangement (the "Capital Expenditures Arrangement") with Oasis Petroleum. Pursuant to this arrangement, in exchange for increasing its percentage ownership interest in Bobcat DevCo, OMP will cover up to $80 million of the capital contributions that Oasis Petroleum would otherwise be required to contribute to Bobcat DevCo during the 2019 calendar year. The arrangement provides an opportunity for OMP to increase its scale in an accretive manner while lowering the capital requirements of its sponsor. Based on current market values, OMP's ownership interest in Bobcat DevCo is expected to increase from 25% as of December 31, 2018 to between approximately 34% and 36% by year end 2019. Increasing ownership in Bobcat DevCo is expected to drive EBITDA and coverage higher throughout 2019. Capital expenditures guidance and highlights for 2019 provided below includes the Capital Expenditures Arrangement for all of 2019.
The terms of the Capital Expenditures Arrangement were approved by the Board of Directors of OMP GP LLC (the "General Partner") following a unanimous recommendation for approval from the conflicts committee of the Board of Directors of the General Partner, which consists entirely of independent directors. The conflicts committee was advised by Baird on financial matters and Richards, Layton & Finger, P.A. on legal matters. Oasis Petroleum was advised by Vinson and Elkins L.L.P. on legal matters.
The following table depicts our full year 2019 guidance for capital expenditures ("CapEx"):
2019 CapEx | ||||||
DevCo | OMP Ownership(1) | Gross | Net(2) | |||
(In millions) | ||||||
Bighorn DevCo | 100% | $25 - 30 | $25 - 30 | |||
Bobcat DevCo | 30% - 31% | 100 - 110 | 94 - 104 | |||
Beartooth DevCo | 70% | 17 - 22 | 12 - 15 | |||
Total CapEx | $142 - 162 | $131 - 149 |
___________________ |
(1) OMP ownership reflects average estimated ownership during 2019. |
(2) Net CapEx range reflects 100% of estimated expansion CapEx for Bobcat DevCo pursuant to the Capital Expenditures Arrangement. Maintenance CapEx remains split by ownership. |
Highlights for 2019 include:
Operational and Financial Update
Select operational and financial statistics are in the following table:
Three Months Ended | Year Ended December 31, | ||||||||||||||||
OMP | Gross | Net | Gross | Net | |||||||||||||
(In millions) | |||||||||||||||||
Bighorn DevCo | |||||||||||||||||
Operating income | 100% | $ | 6.0 | $ | 6.0 | $ | 22.1 | $ | 22.1 | ||||||||
Depreciation and amortization | 100% | 3.3 | 3.3 | 11.4 | 11.4 | ||||||||||||
Total CapEx | 100% | 19.2 | 19.2 | 78.2 | 78.2 | ||||||||||||
Bobcat DevCo | |||||||||||||||||
Operating income | 25% | $ | 19.9 | $ | 3.4 | $ | 74.3 | $ | 8.9 | ||||||||
Depreciation and amortization | 25% | 2.7 | 0.5 | 9.0 | 1.1 | ||||||||||||
Total CapEx | 25% | 23.7 | 3.5 | 142.6 | 15.4 | ||||||||||||
Beartooth DevCo | |||||||||||||||||
Operating income | 70% | $ | 15.1 | $ | 8.2 | $ | 55.3 | $ | 24.3 | ||||||||
Depreciation and amortization | 70% | 2.2 | 1.2 | 8.0 | 3.5 | ||||||||||||
Total CapEx | 70% | 15.2 | 8.6 | 51.3 | 23.0 | ||||||||||||
Total OMP | |||||||||||||||||
DevCo operating income | $ | 40.9 | $ | 17.6 | $ | 151.7 | $ | 55.4 | |||||||||
Public company expenses | 0.6 | 0.6 | 3.0 | 3.0 | |||||||||||||
OMP operating income | 40.3 | 17.0 | 148.8 | 52.4 | |||||||||||||
Depreciation and amortization | 8.2 | 5.0 | 28.4 | 16.0 | |||||||||||||
Equity-based compensation expense | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||||
Total CapEx(2) | 58.1 | 31.3 | 272.1 | 116.6 | |||||||||||||
Maintenance CapEx | 1.6 | 1.0 | 6.9 | 2.7 | |||||||||||||
Expansion CapEx | 56.5 | 30.3 | 265.1 | 113.8 |
___________________ |
(1) OMP ownership interest as of December 31, 2018. On November 19, 2018, OMP acquired an additional 15% ownership interest in Bobcat DevCo and an additional 30% ownership interest in Beartooth DevCo. Net amounts attributable to OMP were recorded prospectively from the closing date of the dropdown acquisition on November 19, 2018. |
(2) Excludes expansion capital expenditures of approximately $172.4 million for the acquisition of additional ownership interests in Bobcat DevCo and Beartooth DevCo on November 19, 2018. |
The following table shows gross volumes for the full year 2018, fourth quarter 2018 actuals compared to fourth quarter 2018 guidance, and depicts OMP's gross volumes guidance for the first quarter 2019 and full year 2019.
Metric | FY18 | 4Q18 | 4Q18 | 1Q19 | FY19 | ||||||
Bighorn DevCo | |||||||||||
Crude oil service volumes | Mbopd | 43.6 | 45.1 | 40 - 46 | 41 - 46 | 44 - 48 | |||||
Natural gas service volumes | MMscfpd | 102.8 | 113.0 | 125 - 140 | 160 - 190 | 200 - 240 | |||||
Bobcat DevCo | |||||||||||
Crude oil service volumes | Mbopd | 36.1 | 36.9 | 35 - 40 | 37 - 40 | 38 - 42 | |||||
Natural gas service volumes | MMscfpd | 147.7 | 166.8 | 175 - 195 | 220 - 240 | 270 - 290 | |||||
Water service volumes | Mbwpd | 49.4 | 53.9 | 48 - 53 | 47 - 50 | 50 - 55 | |||||
Beartooth DevCo | |||||||||||
Water service volumes | Mbwpd | 137.7 | 151.1 | 105 - 120 | 95 - 115 | 95 - 115 |
Liquidity and CapEx
As of December 31, 2018, OMP had cash and cash equivalents of $6.6 million and $318.0 million of borrowings outstanding under its revolving credit facility with an unused borrowing capacity of $82.0 million. OMP has the flexibility to expand the aggregate commitment amount under its revolving credit facility from $400 million to $600 million, subject to certain conditions. Expansion capital expenditures attributable to OMP during the fourth quarter of 2018 of $30.3 million, which excludes expansion capital expenditures of approximately $172.4 million for OMP's acquisition of additional ownership interests in Bobcat DevCo and Beartooth DevCo, were also in-line with expectations.
Quarterly Distribution
On February 5, 2019, the Board of Directors of the General Partner declared the quarterly distribution for the fourth quarter of 2018 of $0.45 per unit, a 20% increase from the fourth quarter of 2017 and 20% above the minimum quarterly distribution. In addition, the General Partner will receive a cash distribution of $0.1 million attributable to its incentive distribution rights related to earnings for the fourth quarter of 2018. These distributions will be paid on February 28, 2019 to unitholders of record as of February 15, 2019.
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 27, 2019 | |
Time: | 11:30 a.m. Central Time | |
Live Webcast: | ||
Website: |
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: | 5081699 |
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 6, 2019 by dialing:
Replay dial-in: | 877-344-7529 | |
Intl. replay: | 412-317-0088 | |
Replay code: | 10128591 |
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.
OASIS MIDSTREAM PARTNERS LP | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
December 31, 2018 | December 31, 2017 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 6,649 | $ | 883 | |||
Accounts receivable | 2,481 | 834 | |||||
Accounts receivable - Oasis Petroleum | 80,805 | 85,818 | |||||
Prepaid expenses | 1,418 | 778 | |||||
Other current assets | 22 | — | |||||
Total current assets | 91,375 | 88,313 | |||||
Property, plant and equipment | 933,155 | 653,928 | |||||
Less: accumulated depreciation and amortization | (62,730) | (34,348) | |||||
Total property, plant and equipment, net | 870,425 | 619,580 | |||||
Other assets | 2,452 | 2,013 | |||||
Total assets | $ | 964,252 | $ | 709,906 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 2,180 | $ | — | |||
Accounts payable - Oasis Petroleum | 33,014 | 11,638 | |||||
Accrued liabilities | 57,657 | 58,818 | |||||
Accrued interest payable | 442 | 114 | |||||
Total current liabilities | 93,293 | 70,570 | |||||
Long-term debt | 318,000 | 78,000 | |||||
Asset retirement obligations | 1,514 | 1,316 | |||||
Total liabilities | 412,807 | 149,886 | |||||
Partners' Equity | |||||||
Limited Partners | |||||||
Common units (20,029 and 13,762 units issued and outstanding at December 31, 2018 and 2017, respectively) | 192,581 | 167,401 | |||||
Subordinated units (13,750 units issued and outstanding at December 31, 2018 and 2017) | 45,937 | 79,173 | |||||
General Partner | 112 | — | |||||
Total partners' equity | 238,630 | 246,574 | |||||
Non-controlling interests | 312,815 | 313,446 | |||||
Total equity | 551,445 | 560,020 | |||||
Total liabilities and equity | $ | 964,252 | $ | 709,906 |
OASIS MIDSTREAM PARTNERS LP | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands, except per unit data) | |||||||||||||||
Revenues | |||||||||||||||
Midstream services – Oasis Petroleum | $ | 64,115 | $ | 52,453 | $ | 248,216 | $ | 168,205 | |||||||
Midstream services – third parties | 1,164 | 458 | 2,604 | 1,973 | |||||||||||
Product sales – Oasis Petroleum | 6,884 | 3,620 | 17,476 | 11,644 | |||||||||||
Product sales – third parties | 14 | 352 | 3,327 | 394 | |||||||||||
Total revenues | 72,177 | 56,883 | 271,623 | 182,216 | |||||||||||
Operating expenses | |||||||||||||||
Costs of product sales | 1,968 | 1,874 | 7,433 | 6,085 | |||||||||||
Operating and maintenance | 15,322 | 12,544 | 63,123 | 39,441 | |||||||||||
Depreciation and amortization | 8,192 | 4,371 | 28,404 | 15,730 | |||||||||||
General and administrative | 6,401 | 4,729 | 23,897 | 18,597 | |||||||||||
Total operating expenses | 31,883 | 23,518 | 122,857 | 79,853 | |||||||||||
Operating Income | 40,294 | 33,365 | 148,766 | 102,363 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense, net of capitalized interest | (1,735) | — | (2,343) | (6,965) | |||||||||||
Other income (expense) | 1 | — | (14) | 7 | |||||||||||
Total other expense | (1,734) | — | (2,357) | (6,958) | |||||||||||
Income before income taxes | 38,560 | 33,365 | 146,409 | 95,405 | |||||||||||
Income tax expense | — | — | — | (22,858) | |||||||||||
Net income | 38,560 | 33,365 | 146,409 | 72,547 | |||||||||||
Less: Net income prior to initial public offering | — | — | — | 37,577 | |||||||||||
Net income subsequent to initial public offering | 38,560 | 33,365 | 146,409 | 34,970 | |||||||||||
Less: Net income attributable to non-controlling interests subsequent to initial public offering | 23,279 | 22,253 | 96,354 | 23,332 | |||||||||||
Net income attributable to Oasis Midstream Partners LP | 15,281 | 11,112 | 50,055 | 11,638 | |||||||||||
Less: Net income attributable to General Partner | 112 | — | 112 | — | |||||||||||
Net income attributable to limited partners | $ | 15,169 | $ | 11,112 | $ | 49,943 | $ | 11,638 | |||||||
Earnings per limited partner unit | |||||||||||||||
Common units - Basic and diluted | $ | 0.54 | $ | 0.41 | $ | 1.82 | $ | 0.43 | |||||||
Weighted average number of limited partners units outstanding | |||||||||||||||
Common units - Basic | 16,740 | 13,628 | 14,504 | 13,566 | |||||||||||
Common units - Diluted | 16,751 | 13,630 | 14,519 | 13,568 |
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Cash Interest as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on our debt, excluding non-cash amortization, and our ability to maintain compliance with our debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense, net of capitalized interest | $ | 1,735 | $ | — | $ | 2,343 | $ | 6,965 | |||||||
Capitalized interest | 965 | 562 | 4,870 | 1,220 | |||||||||||
Amortization of deferred financing costs | (164) | (119) | (525) | (126) | |||||||||||
Cash Interest | $ | 2,536 | $ | 443 | $ | 6,688 | $ | 8,059 | |||||||
Less: Cash Interest prior to the initial public offering | — | — | — | 7,603 | |||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | $ | 2,536 | $ | 443 | $ | 6,688 | $ | 456 |
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Adjusted EBITDA as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and its ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Distributable Cash Flow ("DCF")
DCF is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines DCF as Adjusted EBITDA attributable to the Partnership less Cash Interest and maintenance capital expenditures attributable to the Partnership. Maintenance capital expenditures are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, system operating capacity, operating income or revenue. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnerships ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 38,560 | $ | 33,365 | $ | 146,409 | $ | 72,547 | |||||||
Income tax expense | — | — | — | 22,858 | |||||||||||
Depreciation and amortization | 8,192 | 4,371 | 28,404 | 15,730 | |||||||||||
Equity-based compensation expenses | 76 | 53 | 356 | 1,052 | |||||||||||
Interest expense, net of capitalized interest | 1,735 | — | 2,343 | 6,965 | |||||||||||
Adjusted EBITDA | 48,563 | 37,789 | 177,512 | 119,152 | |||||||||||
Less: Adjusted EBITDA prior to the initial public offering | — | — | — | 79,484 | |||||||||||
Adjusted EBITDA subsequent to the initial public offering | 48,563 | 37,789 | 177,512 | 39,668 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 26,504 | 24,740 | 108,754 | 25,955 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 22,059 | 13,049 | 68,758 | 13,713 | |||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | 2,536 | 443 | 6,688 | 456 | |||||||||||
Maintenance capital expenditures | 1,036 | 1,098 | 2,747 | 1,183 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 18,487 | $ | 11,508 | $ | 59,323 | $ | 12,074 | |||||||
Net cash provided by operating activities | $ | 48,112 | $ | 8,274 | $ | 205,012 | $ | 79,843 | |||||||
Current tax expense | — | — | — | 17,618 | |||||||||||
Interest expense, net of capitalized interest | 1,735 | — | 2,343 | 6,965 | |||||||||||
Changes in working capital | (2,038) | 29,635 | (30,362) | 14,853 | |||||||||||
Other non-cash adjustments | 754 | (120) | 519 | (127) | |||||||||||
Adjusted EBITDA | 48,563 | 37,789 | 177,512 | 119,152 | |||||||||||
Less: Adjusted EBITDA prior to the initial public offering | — | — | — | 79,484 | |||||||||||
Adjusted EBITDA subsequent to the initial public offering | 48,563 | 37,789 | 177,512 | 39,668 | |||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests | 26,504 | 24,740 | 108,754 | 25,955 | |||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP | 22,059 | 13,049 | 68,758 | 13,713 | |||||||||||
Cash Interest attributable to Oasis Midstream Partners LP | 2,536 | 443 | 6,688 | 456 | |||||||||||
Maintenance capital expenditures | 1,036 | 1,098 | 2,747 | 1,183 | |||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP | $ | 18,487 | $ | 11,508 | $ | 59,323 | $ | 12,074 | |||||||
Distributions Declared | |||||||||||||||
Limited partners | $ | 15,208 | $ | 10,317 | $ | 49,135 | $ | 10,991 | |||||||
Incentive distribution rights | 112 | — | 112 | — | |||||||||||
Total distributions | $ | 15,320 | $ | 10,317 | $ | 49,247 | $ | 10,991 | |||||||
DCF coverage ratio | 1.21x | 1.12x | 1.20x | 1.10x |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-year-ended-december-31-2018-earnings-300802737.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today declared a quarterly cash distribution of $0.45 per unit for the fourth quarter of 2018. The distribution will be paid on February 28, 2019, to all OMP unitholders of record at the close of business February 15, 2019. The quarterly cash distribution is 5% higher than the cash distribution declared for the third quarter of 2018, and is in line with the Partnership's 20% annualized distribution growth target.
Additionally, OMP plans to announce its Fourth Quarter and Year End 2018 financial and operational results on Tuesday, February 26, 2019 after the close of trading on the NYSE. The Partnership will host a live webcast and conference call on Wednesday, February 27, 2019 at 11:30 a.m. Central Time to discuss Fourth Quarter and Year End 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call: | |
Date: | Wednesday, February 27, 2019 |
Time: | 11:30 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial-in: | |
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 5081699 |
Website: |
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 6, 2019 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Replay access: | 10128591 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
February 28: | Simmons' 19th Annual Energy Conference – Las Vegas, NV |
March 5: | Raymond James' 40th Annual Institutional Investors Conference – Orlando, FL |
March 6: | Morgan Stanley's Global Energy & Power Conference – New York, NY |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-quarterly-distribution-and-schedules-fourth-quarter-2018-conference-call-300790118.html
SOURCE Oasis Midstream Partners LP
DALLAS, Dec. 14, 2018 /PRNewswire/ -- Alerian announced the results of the December quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, December 21, 2018.
AmeriGas Partners (NYSE: APU), Alliance Resource Partners (NASDAQ: ARLP), GasLog Partners (NYSE: GLOP), Golar LNG Partners (NASDAQ: GMLP), Hi-Crush Partners (NYSE: HCLP), Suburban Propane Partners (NYSE: SPH), Sunoco (NYSE: SUN), Teekay LNG Partners (NYSE: TGP), USA Compression Partners (NYSE: USAC), and Viper Energy Partners (NASDAQ: VNOM) will be removed.
There are no constituent changes to the Alerian MLP Infrastructure Index (AMZI) or the Alerian Natural Gas MLP Index (ANGI).
In addition, each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of November 30, 2018, over $13 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-index-series-december-2018-index-review-300765593.html
SOURCE Alerian
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
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-completes-acquisition-of-additional-interests-in-williston-basin-development-companies-300753851.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Oct. 19, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2018 financial and operational results on Monday, November 5, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Tuesday, November 6, 2018 at 11:30 a.m. Central Time to discuss Third Quarter 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: | Tuesday, November 6, 2018 |
Time: | 11:30 a.m. Central Time |
Live Webcast: |
Sell-side analysts wishing to ask a question may use the following dial in:
Dial-in: | 888-317-6003 |
Intl. Dial-in: | 412-317-6061 |
Conference ID: | 6637480 |
Website: |
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 Tuesday, November 13, 2018 by dialing:
Replay dial-in: | 877-344-7529 |
Intl. replay: | 412-317-0088 |
Conference ID: | 10124920 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
November 28: | Jefferies 8th Annual Energy Conference – Houston, TX |
December 5: | Capital One Securities 13th Annual Energy Conference – New Orleans, LA |
December 5: | Wells Fargo's 17th Annual Midstream & Utility Symposium – New York, NY |
January 8: | Goldman Sachs Annual Energy Conference – Miami, FL |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners
Bob Bakanauskas, (281) 404-9600
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-third-quarter-2018-conference-call-for-november-6-2018-300734371.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Aug. 6, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results and cash distribution for the quarter ended June 30, 2018 and provided an operational update.
Highlights:
Other Key Developments:
"Oasis Midstream Partners delivered a strong second quarter, putting us in an excellent position to deliver our targeted 20% annual growth in distributions per unit while further increasing distribution coverage," said Taylor Reid, Chief Executive Officer of OMP. "We believe our organic forecast supports our targeted distributions per unit growth of 20% annually past year-end 2021, which is an extended runway from prior guidance. We continue to make progress on our new 200 MMscfpd gas plant in Wild Basin, which remains on time and on budget, and we were able to execute multiple third-party deals with compelling economics. These opportunities in conjunction with robust activity levels in the Williston Basin have led to growth above and beyond our initial projections. Since our IPO less than a year ago, we've established an enviable financial position and continue to see significant growth opportunities ahead through both our symbiotic relationship with Oasis Petroleum and strategic relationship with third parties."
Operational and Financial Update
Select operational and financial statistics are in the following table:
June 30, 2018 | |||||||||||
OMP |
Gross |
Net | |||||||||
Bighorn DevCo |
(In millions) | ||||||||||
Operating income |
100 |
% |
$ |
5.8 |
$ |
5.8 |
|||||
Depreciation and amortization |
100 |
% |
2.7 |
2.7 |
|||||||
Total CapEx |
100 |
% |
8.8 |
8.8 |
|||||||
Bobcat DevCo |
|||||||||||
Operating income |
10 |
% |
$ |
18.5 |
$ |
1.9 |
|||||
Depreciation and amortization |
10 |
% |
2.0 |
0.2 |
|||||||
Total CapEx |
10 |
% |
47.8 |
4.8 |
|||||||
Beartooth DevCo |
|||||||||||
Operating income |
40 |
% |
$ |
14.0 |
$ |
5.6 |
|||||
Depreciation and amortization |
40 |
% |
2.0 |
0.8 |
|||||||
Total CapEx |
40 |
% |
13.7 |
5.5 |
|||||||
Total OMP |
|||||||||||
DevCo operating income |
$ |
38.3 |
$ |
13.3 |
|||||||
Public company expenses |
0.6 |
0.6 |
|||||||||
OMP operating income |
37.7 |
12.6 |
|||||||||
Depreciation and amortization |
6.7 |
3.7 |
|||||||||
Equity-based compensation expense |
0.1 |
0.1 |
|||||||||
Total CapEx |
70.3 |
19.1 |
|||||||||
Maintenance CapEx |
2.2 |
0.5 |
|||||||||
Growth CapEx |
68.1 |
18.6 |
The following table provides an update of actual volumes compared to guidance and updates quarterly volumes for the remainder of the year:
Metric |
2Q18 Actual |
2Q18 Guidance |
3Q18 Guidance |
4Q18 Guidance | |||||||
Bighorn DevCo |
|||||||||||
Crude oil service volumes |
Mbopd |
45.1 |
40 - 42 |
43 - 46 |
43 - 46 | ||||||
Natural gas service volumes |
MMscfpd |
104.2 |
98 - 103 |
102 - 106 |
135 - 140 | ||||||
Bobcat DevCo |
|||||||||||
Crude oil service volumes |
Mbopd |
35.1 |
33 - 36 |
37 - 40 |
37 - 40 | ||||||
Natural gas service volumes |
MMscfpd |
142.1 |
135 - 140 |
150 - 155 |
185 - 190 | ||||||
Water service volumes |
Mbwpd |
46.5 |
43 - 47 |
46 - 50 |
46 - 50 | ||||||
Beartooth DevCo |
|||||||||||
Water service volumes |
Mbwpd |
139.2 |
107 - 112 |
120 - 135 |
105 - 125 |
Liquidity and CapEx
As of June 30, 2018, OMP had cash and cash equivalents of $2.7 million and $165.0 million of borrowings outstanding under its revolving credit facility with an unused borrowing capacity of $35.0 million. The borrowing capacity under the revolving credit facility may be increased up to $400.0 million at OMP's request. Current borrowing levels are in-line with the Partnership's expectations based on cumulative growth CapEx attributable to OMP since the IPO and the assignment of the second gas plant totaling $171.7 million. Growth CapEx attributable to OMP during the second quarter of 2018 of $18.6 million was also in-line with expectations, and full-year 2018 CapEx attributable to OMP expectations continue to range between $100.5 million and $108 million.
Quarterly Distribution
On May 29, 2018, the Partnership paid the quarterly cash distribution of $0.3925 per unit for the first quarter of 2018.
On August 6, 2018, the Board of Directors of OMP GP LLC, the general partner of the Partnership, declared the quarterly cash distribution of $0.4100 per unit for the second quarter of 2018. The distribution will be payable on August 29, 2018 to unitholders of record as of August 16, 2018.
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: |
Tuesday, August 7, 2018 | |
Time: |
11:30 a.m. Central Time | |
Live Webcast: |
||
Website: |
Sell-side analysts wishing to ask a question may use the following dial-in:
Dial-in: |
888-317-6003 | |
Intl. Dial in: |
412-317-6061 | |
Conference ID: |
2098632 |
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 Tuesday, August 14, 2018 by dialing:
Replay dial-in: |
877-344-7529 | |
Intl. replay: |
412-317-0088 | |
Replay code: |
10122704 |
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) 404-9638
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 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 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.
OASIS MIDSTREAM PARTNERS LP | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
June 30, 2018 |
December 31, 2017 | ||||||
(In thousands) | |||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
2,749 |
$ |
883 |
|||
Accounts receivable |
2,757 |
834 |
|||||
Accounts receivable from Oasis Petroleum |
54,533 |
85,818 |
|||||
Prepaid expenses |
358 |
778 |
|||||
Other current assets |
92 |
— |
|||||
Total current assets |
60,489 |
88,313 |
|||||
Property, plant and equipment |
813,881 |
653,928 |
|||||
Less: accumulated depreciation and amortization |
(47,384) |
(34,348) |
|||||
Total property, plant and equipment, net |
766,497 |
619,580 |
|||||
Other assets |
1,781 |
2,013 |
|||||
Total assets |
$ |
828,767 |
$ |
709,906 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
3,418 |
$ |
— |
|||
Accounts payable to Oasis Petroleum |
9,741 |
11,638 |
|||||
Accrued liabilities |
57,887 |
58,818 |
|||||
Accrued interest payable |
105 |
114 |
|||||
Total current liabilities |
71,151 |
70,570 |
|||||
Long-term debt |
165,000 |
78,000 |
|||||
Asset retirement obligations |
1,433 |
1,316 |
|||||
Total liabilities |
237,584 |
149,886 |
|||||
Partners' Equity |
|||||||
Limited Partner |
|||||||
Common units (13,774 units issued and outstanding at June 30, 2018 and 13,762 units issued and outstanding at December 31, 2017) |
167,734 |
167,401 |
|||||
Subordinated units (13,750 units issued and outstanding at June 30, 2018 and December 31, 2017) |
79,482 |
79,173 |
|||||
General Partner |
— |
— |
|||||
Total partners' equity |
247,216 |
246,574 |
|||||
Non-controlling interests |
343,967 |
313,446 |
|||||
Total equity |
591,183 |
560,020 |
|||||
Total liabilities and equity |
$ |
828,767 |
$ |
709,906 |
OASIS MIDSTREAM PARTNERS LP | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(UNAUDITED) | |||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(In thousands, except per unit data) | |||||||||||||||
Revenues |
|||||||||||||||
Midstream services for Oasis Petroleum |
$ |
64,624 |
$ |
39,409 |
$ |
125,737 |
$ |
76,776 |
|||||||
Midstream services for third parties |
1,934 |
904 |
2,242 |
1,177 |
|||||||||||
Total revenues |
66,558 |
40,313 |
127,979 |
77,953 |
|||||||||||
Operating expenses |
|||||||||||||||
Direct operating |
16,334 |
9,070 |
33,450 |
18,093 |
|||||||||||
Depreciation and amortization |
6,659 |
3,753 |
13,023 |
7,211 |
|||||||||||
General and administrative |
5,897 |
4,388 |
12,047 |
8,784 |
|||||||||||
Total operating expenses |
28,890 |
17,211 |
58,520 |
34,088 |
|||||||||||
Operating income |
37,668 |
23,102 |
69,459 |
43,865 |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(183) |
(3,014) |
(445) |
(4,231) |
|||||||||||
Other income (expense) |
— |
4 |
— |
2 |
|||||||||||
Total other income (expense) |
(183) |
(3,010) |
(445) |
(4,229) |
|||||||||||
Income before income taxes |
37,485 |
20,092 |
69,014 |
39,636 |
|||||||||||
Income tax expense |
— |
(7,665) |
— |
(14,960) |
|||||||||||
Net income |
37,485 |
$ |
12,427 |
69,014 |
$ |
24,676 |
|||||||||
Less: Net income attributable to non-controlling interests |
25,041 |
46,616 |
|||||||||||||
Net income attributable to Oasis Midstream Partners LP |
$ |
12,444 |
$ |
22,398 |
|||||||||||
Earnings per limited partner unit — Basic and Diluted |
|||||||||||||||
Common units |
$ |
0.45 |
$ |
0.81 |
|||||||||||
Subordinated units |
0.45 |
0.81 |
|||||||||||||
Weighted average number of limited partner units outstanding — Basic |
|||||||||||||||
Common units |
13,750 |
13,750 |
|||||||||||||
Subordinated units |
13,750 |
13,750 |
|||||||||||||
Weighted average number of limited partner units outstanding — Diluted |
|||||||||||||||
Common units |
13,761 |
13,761 |
|||||||||||||
Subordinated units |
13,750 |
13,750 |
|||||||||||||
Cash distributions declared per limited partner unit |
|||||||||||||||
Common units |
$ |
0.4100 |
$ |
0.8025 |
|||||||||||
Subordinated units |
0.4100 |
0.8025 |
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define Cash Interest as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on our debt, excluding non-cash amortization, and our ability to maintain compliance with our debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended |
Six Months Ended | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense, net of capitalized interest |
$ |
183 |
$ |
3,014 |
$ |
445 |
$ |
4,231 |
|||||||
Capitalized interest |
1,362 |
113 |
2,197 |
222 |
|||||||||||
Amortization of deferred financing costs |
(117) |
— |
(233) |
— |
|||||||||||
Cash Interest |
$ |
1,428 |
$ |
3,127 |
$ |
2,409 |
$ |
4,453 |
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDA as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and its ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnership's ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities, respectively.
Distributable Cash Flow ("DCF")
DCF is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define DCF as Adjusted EBITDA attributable to the Partnership less Cash Interest and maintenance capital expenditures attributable to the Partnership. Maintenance capital expenditures are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, system operating capacity, operating income or revenue. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing the Partnership's results of operations, financial performance and ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnerships ability to make distributions to its unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities, respectively.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended |
Six Months Ended | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income |
$ |
37,485 |
$ |
12,427 |
$ |
69,014 |
$ |
24,676 |
|||||||
Income tax expense |
— |
7,665 |
— |
14,960 |
|||||||||||
Depreciation and amortization |
6,659 |
3,753 |
13,023 |
7,211 |
|||||||||||
Equity-based compensation expense |
103 |
365 |
166 |
713 |
|||||||||||
Interest expense, net of capitalized interest |
183 |
3,014 |
445 |
4,231 |
|||||||||||
Adjusted EBITDA |
44,430 |
$ |
27,224 |
82,648 |
$ |
51,791 |
|||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
28,015 |
52,511 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
16,415 |
30,137 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
1,428 |
2,409 |
|||||||||||||
Maintenance capital expenditures |
497 |
1,293 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
14,490 |
$ |
26,435 |
|||||||||||
Net cash provided by operating activities |
$ |
41,396 |
$ |
22,098 |
$ |
116,147 |
$ |
42,477 |
|||||||
Current tax expense |
— |
6,218 |
— |
11,576 |
|||||||||||
Interest expense, net of capitalized interest |
183 |
3,014 |
445 |
4,231 |
|||||||||||
Changes in working capital |
2,841 |
(4,106) |
(33,840) |
(6,493) |
|||||||||||
Other non-cash adjustments |
10 |
— |
(104) |
— |
|||||||||||
Adjusted EBITDA |
44,430 |
$ |
27,224 |
82,648 |
$ |
51,791 |
|||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
28,015 |
52,511 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
16,415 |
30,137 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
1,428 |
2,409 |
|||||||||||||
Maintenance capital expenditures |
497 |
1,293 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
14,490 |
$ |
26,435 |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-june-30-2018-earnings-and-distribution-300692622.html
SOURCE Oasis Midstream Partners LP
HOUSTON, June 18, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") has signed multiple third party agreements in the Williston Basin. These agreements span across all three of OMP's development companies ("DevCos"). OMP now has enhanced visibility on revenue and EBITDA growth across all product lines, including oil gathering and transportation, natural gas gathering and processing, produced water gathering and disposal and freshwater distribution. Substantially all of the EBITDA growth is underpinned by long term, fixed fee contracts. These third party projects in combination with robust growth at Oasis Petroleum position OMP to extend its runway of peer leading 20% annualized distribution growth.
"OMP has a large and strategically located asset in one of the premier oil basins in North America," said Taylor Reid, Chief Executive Officer of OMP. "Due to OMP's symbiotic relationship with Oasis Petroleum, the Partnership has been able to invest in the future growth trends of the Williston Basin for the benefit of both Oasis and third parties. A great example of our ability to capitalize on opportunities is our investment in the 200 MMscfpd gas processing plant in Wild Basin. This investment was facilitated by our intimate understanding of both the subsurface and infrastructure environment within the Williston Basin. We identified a need for incremental processing capacity in the basin due to growing gas production and limited Williston Basin infrastructure to handle additional volumes. Additionally, OMP has leveraged its other assets to capture third party growth across our platform."
Guidance Update
OMP is updating its expectations for capital expenditures ("CapEx") in 2018 based on investment required to fulfill third party agreements and current views on CapEx to support Oasis volume growth. The third party agreements and the associated incremental CapEx are spread across all three DevCos, including CapEx in Bobcat to gather third party volumes to Gas Plant II, which continues to stay on time and on budget. OMP has already commenced investment of capital for third party projects during the second quarter of 2018. The following table provides OMP's updated CapEx expectations for 2018:
2018E CapEx | ||||||
($MM) |
OMP |
February Guidance |
Updated Guidance | |||
DevCo |
Ownership |
Gross |
Net |
Gross |
Net | |
Bighorn |
100% |
$40 - 50 |
$40 - 50 |
$60 - 65 |
$60 – 65 | |
Bobcat |
10% |
$145 - 160 |
$14 - 16 |
$165 - 170 |
$16.5 - 17.0 | |
Beartooth |
40% |
$45 - 60 |
$18 - 24 |
$60 - 65 |
$24 – 26 | |
Total CapEx |
$230 - 270 |
$72 - 90 |
$285 - 300 |
$100.5 - 108.0 |
The following table provides 2019 estimates including and excluding the impact of today's announcements. The estimates reflect current ownership that OMP has in each DevCo and do not include any impact from any future OAS drop-downs. The identified opportunities lead to a 14% increase in expected 2019 EBITDA and LP coverage of 1.5x vs. 1.3x excluding the new agreements. 2018 EBITDA guidance remains unchanged at $61-$65 million.
2019E |
|||||
($MM) |
|||||
Net to OMP |
Excluding Growth |
Including Growth |
|||
EBITDA |
$82 - 85 |
$94 - 97 |
|||
Maintenance CapEx % of EBITDA |
7-10% |
7-10% |
|||
Distribution ($/unit) |
$2.02 |
$2.02 |
|||
LP Coverage Ratio |
1.3x |
1.5x |
|||
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 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 is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas, (281) 404-9638
Director, Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-operations-and-guidance-update-300668000.html
SOURCE Oasis Midstream Partners LP
HOUSTON, May 7, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results and cash distribution for the quarter ended March 31, 2018 and provided an operational update.
Recent Highlights:
"Oasis Midstream Partners started the year off strong, continuing to grow volumes in our respective DevCos, which allows for our continued support of strong coverage and keeps us on track to meet our targeted 20% annual distribution per unit growth," said Taylor Reid, Chief Executive Officer of OMP. "OMP continues to grow volumes above and beyond our initial forecast, which will allow for higher distributable cash flow and higher distribution coverage over time. We have made significant progress on our new 200 MMscfpd gas plant in Wild Basin, which remains on time and on budget, and are looking at growing throughput volumes via higher Oasis Petroleum volumes and volumes from third parties. As wells get bigger and more rigs are returning to work, there is a lot of activity in the core of the Williston Basin, and OMP is uniquely positioned to capitalize on that opportunity. We are beginning to see incremental third party opportunities across all three of our DevCos, giving us further comfort in our projected distribution growth. We continue to expect fourth quarter 2018 coverage to exceed 1.2x and now expect the first quarter of 2019 coverage to exceed 1.3x."
Other Key Developments:
Operational and Financial Update
Select operational and financial statistics are in the following table:
March 31, 2018 | |||||||||||
OMP Ownership |
Gross |
Net | |||||||||
Bighorn DevCo |
(In millions) | ||||||||||
Operating income |
100 |
% |
$ |
5.0 |
$ |
5.0 |
|||||
Depreciation and amortization |
100 |
% |
2.5 |
2.5 |
|||||||
Total CapEx |
100 |
% |
42.2 |
42.2 |
|||||||
Bobcat DevCo |
|||||||||||
Operating income |
10 |
% |
$ |
16.9 |
$ |
1.7 |
|||||
Depreciation and amortization |
10 |
% |
2.1 |
0.2 |
|||||||
Total CapEx |
10 |
% |
27.8 |
2.8 |
|||||||
Beartooth DevCo |
|||||||||||
Operating income |
40 |
% |
$ |
10.6 |
$ |
4.2 |
|||||
Depreciation and amortization |
40 |
% |
1.7 |
0.7 |
|||||||
Total CapEx |
40 |
% |
11.2 |
4.5 |
|||||||
Total OMP |
|||||||||||
DevCo operating income |
$ |
32.5 |
$ |
10.9 |
|||||||
Public company expenses |
0.7 |
0.7 |
|||||||||
OMP operating income |
31.8 |
10.2 |
|||||||||
Depreciation and amortization |
6.3 |
3.4 |
|||||||||
Equity-based compensation expense |
0.1 |
0.1 |
|||||||||
Total CapEx |
81.2 |
49.5 |
|||||||||
Maintenance CapEx |
2.3 |
0.8 |
|||||||||
Growth CapEx |
78.9 |
48.7 |
Metric |
1Q18 Actual |
2Q18 Guidance |
FY18 Guidance | ||||||
Bighorn DevCo |
|||||||||
Crude oil service volumes |
Mbopd |
41.5 |
40 - 42 |
40 - 42 | |||||
Natural gas service volumes |
MMscfpd |
98.0 |
98 - 103 |
100 - 107 | |||||
Bobcat DevCo |
|||||||||
Crude oil service volumes |
Mbopd |
36.3 |
33 - 36 |
34 - 36 | |||||
Natural gas service volumes |
MMscfpd |
140.4 |
135 - 140 |
137 - 142 | |||||
Water service volumes |
Mbowpd |
43.0 |
43 - 47 |
46 - 50 | |||||
Beartooth DevCo |
|||||||||
Water service volumes |
Mbowpd |
108.4 |
107 - 112 |
107 - 112 |
Liquidity
As of March 31, 2018, OMP had cash and cash equivalents of $4.0 million and $117.0 million of borrowings outstanding under its revolving credit facility with an unused borrowing capacity of $83.0 million.
Quarterly Distribution
On February 26, 2018, the Partnership paid the initial quarterly cash distribution to its unitholders of $0.0245 per unit related to the six days ended September 30, 2017 and $0.3750 per unit related to the three months ended December 31, 2017. The third quarter distribution was prorated from the closing of the Partnership's initial public offering on September 25, 2017. Both distributions equate to the minimum quarterly distribution of $0.3750 per unit on a full-quarter basis.
On May 7, 2018, the Board of Directors of OMP GP LLC, the general partner of the Partnership, declared the quarterly cash distribution of $0.3925 per unit for the first quarter of 2018. The first quarter distribution reflects a 4.7% increase over the fourth quarter of 2017, or 20% annualized. The distribution will be payable on May 29, 2018 to unitholders of record as of May 17, 2018.
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: |
Tuesday, May 8, 2018 | |
Time: |
11:30 a.m. Central Time | |
Live Webcast: |
||
OR: |
||
Dial-in: |
888-317-6003 | |
Intl. Dial in: |
412-317-6061 | |
Conference ID: |
6444678 | |
Website: |
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 Tuesday, May 15, 2018 by dialing:
Replay dial-in: |
877-344-7529 | |
Intl. replay: |
412-317-0088 | |
Replay code: |
10119292 |
The conference call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Richard Robuck, (281) 404-9602
CFO & SVP Finance
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 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 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.
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
March 31, 2018 |
December 31, 2017 | ||||||
(In thousands) | |||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
4,048 |
$ |
883 |
|||
Accounts receivable |
920 |
834 |
|||||
Accounts receivable from Oasis Petroleum |
57,144 |
85,818 |
|||||
Prepaid expenses |
747 |
778 |
|||||
Total current assets |
62,859 |
88,313 |
|||||
Property, plant and equipment |
743,578 |
653,928 |
|||||
Less: accumulated depreciation and amortization |
(40,696) |
(34,348) |
|||||
Total property, plant and equipment, net |
702,882 |
619,580 |
|||||
Other assets |
1,899 |
2,013 |
|||||
Total assets |
$ |
767,640 |
$ |
709,906 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
593 |
$ |
— |
|||
Accounts payable to Oasis Petroleum |
15,533 |
11,638 |
|||||
Accrued liabilities |
67,239 |
58,818 |
|||||
Accrued interest payable |
73 |
114 |
|||||
Total current liabilities |
83,438 |
70,570 |
|||||
Long-term debt |
117,000 |
78,000 |
|||||
Asset retirement obligations |
1,332 |
1,316 |
|||||
Total liabilities |
201,770 |
149,886 |
|||||
Commitments and contingencies |
|||||||
Partners' Equity |
|||||||
Limited Partner |
|||||||
Common units (13,774 units outstanding at March 31, 2018) |
166,943 |
167,401 |
|||||
Subordinated units (13,750 units outstanding at March 31, 2018) |
78,657 |
79,173 |
|||||
General Partner |
— |
— |
|||||
Total partners' equity |
245,600 |
246,574 |
|||||
Non-controlling interests |
320,270 |
313,446 |
|||||
Total equity |
565,870 |
560,020 |
|||||
Total liabilities and equity |
$ |
767,640 |
$ |
709,906 |
OASIS MIDSTREAM PARTNERS LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
(In thousands, except per unit data) | |||||||
Revenues |
|||||||
Midstream services for Oasis Petroleum |
$ |
60,853 |
$ |
37,367 |
|||
Midstream services for third parties |
568 |
273 |
|||||
Total revenues |
61,421 |
37,640 |
|||||
Operating expenses |
|||||||
Direct operating |
17,116 |
9,023 |
|||||
Depreciation and amortization |
6,364 |
3,458 |
|||||
General and administrative |
6,150 |
4,396 |
|||||
Total operating expenses |
29,630 |
16,877 |
|||||
Operating income |
31,791 |
20,763 |
|||||
Other income (expense) |
|||||||
Interest expense, net of capitalized interest |
(262) |
(1,217) |
|||||
Other income (expense) |
— |
(2) |
|||||
Total other income (expense) |
(262) |
(1,219) |
|||||
Income before income taxes |
31,529 |
19,544 |
|||||
Income tax expense |
— |
(7,295) |
|||||
Net income |
31,529 |
$ |
12,249 |
||||
Less: Net income attributable to non-controlling interests |
21,575 |
||||||
Net income attributable to Oasis Midstream Partners LP |
$ |
9,954 |
|||||
Earnings per limited partner unit — Basic and Diluted |
|||||||
Common units |
$ |
0.36 |
|||||
Subordinated units |
0.36 |
||||||
Weighted average number of limited partner units outstanding — Basic |
|||||||
Common units |
13,750 |
||||||
Subordinated units |
13,750 |
||||||
Weighted average number of limited partner units outstanding — Diluted |
|||||||
Common units |
13,754 |
||||||
Subordinated units |
13,750 |
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define Cash Interest as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on our debt, excluding non-cash amortization, and our ability to maintain compliance with our debt covenants.
The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
(In thousands) | |||||||
Interest expense, net of capitalized interest |
$ |
262 |
$ |
1,531 |
|||
Capitalized interest |
835 |
289 |
|||||
Amortization of deferred financing costs |
(116) |
— |
|||||
Cash Interest |
$ |
981 |
$ |
1,820 |
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDA as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing our results of operations, financial performance and our ability to generate cash from our business operations without regard to our financing methods or capital structure, coupled with our ability to maintain compliance with our debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities, respectively.
Distributable Cash Flow ("DCF")
DCF is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. We define DCF as Adjusted EBITDA attributable to the Partnership less Cash Interest and maintenance capital expenditures attributable to the Partnership. Maintenance capital expenditures are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, system operating capacity, operating income or revenue. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of DCF provides information useful to investors and analysts for assessing our results of operations, financial performance and our ability to generate cash from our business operations without regard to our financing methods or capital structure, coupled with our ability to make distributions to our unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities, respectively.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
(In thousands) | |||||||
Net income |
$ |
31,529 |
$ |
12,249 |
|||
Income tax expense |
— |
7,295 |
|||||
Depreciation and amortization |
6,364 |
3,458 |
|||||
Equity-based compensation expense |
63 |
348 |
|||||
Interest expense, net of capitalized interest |
262 |
1,217 |
|||||
Adjusted EBITDA |
38,218 |
$ |
24,567 |
||||
Less: Adjusted EBITDA attributable to non-controlling interests |
24,496 |
||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
13,722 |
||||||
Cash Interest attributable to Oasis Midstream Partners LP |
981 |
||||||
Maintenance capital expenditures |
796 |
||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
11,945 |
|||||
Net cash provided by operating activities |
$ |
74,751 |
$ |
20,379 |
|||
Current tax expense |
— |
5,358 |
|||||
Interest expense, net of capitalized interest |
262 |
1,217 |
|||||
Changes in working capital |
(36,681) |
(2,387) |
|||||
Other non-cash adjustments |
(114) |
— |
|||||
Adjusted EBITDA |
38,218 |
$ |
24,567 |
||||
Less: Adjusted EBITDA attributable to non-controlling interests |
24,496 |
||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
13,722 |
||||||
Cash Interest attributable to Oasis Midstream Partners LP |
981 |
||||||
Maintenance capital expenditures |
796 |
||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
11,945 |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-march-31-2018-earnings-and-distribution-300644040.html
SOURCE Oasis Midstream Partners LP
HOUSTON, April 13, 2018 /PRNewswire/ -- Oasis Midstream Partners, LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its First Quarter 2018 financial and operational results on Monday, May 7, 2018 after the close of trading on the NYSE. Additionally, the Company will host a live webcast and conference call on Tuesday, May 8, 2018 at 11:30 a.m. Central Time to discuss First Quarter 2018 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: Tuesday, May 8, 2018
Time: 11:30 a.m. Central Time
Live Webcast: https://www.webcaster4.com/Webcast/Page/1777/25388
OR:
Dial-in: 888-317-6003
Intl. Dial-in: 412-317-6061
Conference ID: 6444678
Website: www.oasismidstream.com
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 Tuesday, May 15, 2018 by dialing:
Replay dial-in: 877-344-7529
Intl. replay: 412-317-0088
Conference ID: 10119292
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream Partners and Oasis Petroleum plan to participate in the following energy conferences and investor events:
May 8: Morgan Stanley's 2018 E&P Conference – Houston, TX
May 15: TPH's 2018 Hotter 'N Hell Conference – Houston, TX
May 15-16: Citi's 2018 Global Energy & Utilities Conference – Boston, MA
June 5-6: RBC's 2018 Global Energy & Power Conference – New York, NY
June 12-13: Wells Fargo's 2018 West Coast Energy Conference – San Francisco, CA
June 18-20: J.P. Morgan's 2018 Energy Equity Investor Conference – New York, NY
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners
Richard Robuck, (281) 404-9602
CFO & SVP Finance
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-first-quarter-2018-conference-call-for-may-8-2018-300629666.html
SOURCE Oasis Midstream Partners LP
HOUSTON, March 9, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that 2017 unitholder tax information is now available online. The mailing of 2017 tax information is expected to begin on March 12, 2018.
OMP investors can access their tax information and Schedule K-1 at www.taxpackagesupport.com/oasis or by visiting the investor relations section of the OMP website at www.oasismidstream.investorroom.com. For additional information, unitholders may call Tax Support toll-free at (833) 608-3510.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Director, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-2017-k-1-availability-300611643.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Feb. 27, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results for the quarter and year ended December 31, 2017 and provided its 2018 outlook.
Recent Highlights:
(1) Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. For definitions of Adjusted EBITDA and Distributable Cash Flow and reconciliations of Adjusted EBITDA and Distributable Cash Flow to net income and net cash provided by operating activities, see "Non-GAAP Financial Measures" below. |
"We delivered a successful first full quarter as a public company, positioning ourselves to grow distributions per unit annually at 20%, while also increasing coverage over time," said Taylor Reid, Chief Executive Officer of OMP. "We continue to make progress on our 200 MMscfpd gas plant and expect it to start on time in late 2018 and on budget. Our business development team has identified new opportunities to bring in third party volumes into our Bighorn DevCo and has further identified opportunities to grow volumes in our Bobcat and Beartooth DevCos, as we are forecasting higher throughput volumes than originally anticipated. Our new guidance reflects the incremental capital and volumes that we expect to capture. We continue to invest capital at attractive build multiples, resulting in capital efficient growth opportunities for OMP."
Other Key Developments:
Operational and Financial Update
Select operational and financial statistics are included in the following table for the period presented:
Quarter Ended: | ||||
12/31/2017 | ||||
(In millions, except throughput volumes) |
||||
Bighorn DevCo - 100% owned by OMP |
||||
Crude oil services volumes (Mbopd) |
43.8 |
|||
Natural gas services volumes (MMscfpd) |
70.0 |
|||
Operating income |
$ |
5.3 |
||
Depreciation and amortization |
1.1 |
|||
Bobcat DevCo - 10% owned by OMP |
||||
Crude oil services volumes (Mbopd) |
34.2 |
|||
Natural gas services volumes (MMscfpd) |
108.4 |
|||
Water services volumes (Mbowpd) |
32.2 |
|||
Operating income |
$ |
16.7 |
||
Depreciation and amortization |
1.7 |
|||
Beartooth DevCo - 40% owned by OMP |
||||
Water services volumes (Mbowpd) |
98.5 |
|||
Operating income |
$ |
12.0 |
||
Depreciation and amortization |
1.6 |
Capital Expenditures
Capital Expenditures ("CapEx") were $227.2 million for the year ended December 31, 2017 and totaled $129.2 million gross and $105.1 million net for the quarter ended December 31, 2017. Maintenance CapEx for the quarter ended December 31, 2017 was $2.5 million, of which $1.1 million was attributable to the Partnership. The following table depicts CapEx by each of OMP's development companies for the quarter ended December 31, 2017.
4Q 2017 CapEx ($ in millions) | ||||||||||
DevCo |
OMP Ownership |
Gross |
Net | |||||||
Bighorn(1) |
100% |
$ |
97.9 |
$ |
97.9 |
|||||
Bobcat |
10% |
17.8 |
1.8 |
|||||||
Beartooth |
40% |
13.5 |
5.4 |
|||||||
Total CapEx |
$ |
129.2 |
$ |
105.1 |
(1) Includes $66.7 million related to the assignment of Gas Plant II from Oasis Petroleum in the fourth quarter of 2017. |
Financial Position and Liquidity
As of December 31, 2017, OMP had cash and cash equivalents of $0.9 million and $78.0 million of borrowings outstanding under its revolving credit facility with an unused borrowing capacity of $122.0 million.
Initial Quarterly Distribution
On February 2, 2018, the Board of Directors of OMP GP LLC, the general partner of the Partnership, declared the initial quarterly cash distribution of $0.3750 per unit for the quarter ended December 31, 2017. The Board of Directors also declared the third quarter distribution of $0.0245 per unit for the six days ended September 30, 2017. The third quarter distribution was prorated from the closing of the Partnership's initial public offering on September 25, 2017. Both distributions equate to the minimum quarterly distribution of $0.3750 per unit on a full-quarter basis, and was paid on February 26, 2018 to unitholders of record as of February 16, 2018.
2018 Outlook
Highlights for 2018 include:
The following table depicts the Partnership's first quarter 2018 and full year 2018 guidance for gross throughput volumes.
FY2017 |
1Q18 |
FY2018 |
Year over | ||||
Bighorn DevCo - 100% owned by OMP |
|||||||
Crude oil service volumes (Mbopd) |
34.9 |
39 - 41 |
40 - 42 |
~18% | |||
Natural gas service volumes (MMscfpd) |
61.2 |
90 - 95 |
98 - 105 |
~66% | |||
Bobcat DevCo - 10% owned by OMP |
|||||||
Crude oil service volumes (Mbopd) |
26.3 |
34 - 36 |
34 - 36 |
~33% | |||
Natural gas service volumes (MMscfpd) |
88.0 |
122 - 128 |
132 - 140 |
~55% | |||
Water service volumes (Mbowpd) |
29.5 |
40 - 45 |
46 - 50 |
~63% | |||
Beartooth DevCo - 40% owned by OMP |
|||||||
Water service volumes (Mbowpd) |
84.3 |
93 - 98 |
100 - 105 |
~22% | |||
The following table depicts the Partnership's full year 2018 guidance for capital expenditures.
2018 CapEx ($ in millions) | ||||||
DevCo |
OMP |
Gross |
Net | |||
Bighorn |
100% |
$40 - 50 |
$40 - 50 | |||
Bobcat |
10% |
145 - 160 |
14 - 16 | |||
Beartooth |
40% |
45 - 60 |
18 - 24 | |||
Total CapEx |
$230 - 270 |
$72 - 90 | ||||
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: |
Wednesday, February 28, 2018 | |
Time: |
11:30 a.m. Central Time | |
Live Webcast: |
||
OR: |
||
Dial-in: |
888-317-6003 | |
Intl. Dial in: |
412-317-6061 | |
Conference ID: |
6026365 | |
Website: |
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 7, 2018 by dialing:
Replay dial-in: |
877-344-7529 | |
Intl. replay: |
412-317-0088 | |
Replay code: |
10117253 |
The conference call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Director, Corporate Finance & 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 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 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.
OASIS MIDSTREAM PARTNERS LP | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
December 31, |
December 31, | ||||||
(In thousands, except unit data) | |||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
883 |
$ |
— |
|||
Accounts receivable |
834 |
667 |
|||||
Accounts receivable from Oasis Petroleum |
85,818 |
11,721 |
|||||
Insurance receivable |
— |
5,096 |
|||||
Prepaid expenses |
778 |
1,006 |
|||||
Total current assets |
88,313 |
18,490 |
|||||
Property, plant and equipment |
653,928 |
453,695 |
|||||
Less: accumulated depreciation, depletion and amortization |
(34,348) |
(22,160) |
|||||
Total property, plant and equipment, net |
619,580 |
431,535 |
|||||
Other assets |
2,013 |
3 |
|||||
Total assets |
$ |
709,906 |
$ |
450,028 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
— |
$ |
3,314 |
|||
Accounts payable due Oasis Petroleum |
11,638 |
— |
|||||
Accrued liabilities |
58,818 |
32,179 |
|||||
Accrued interest payable |
114 |
— |
|||||
Current income taxes payable |
— |
41,063 |
|||||
Total current liabilities |
70,570 |
76,556 |
|||||
Long-term debt |
78,000 |
— |
|||||
Deferred income taxes |
— |
40,084 |
|||||
Asset retirement obligation |
1,316 |
1,713 |
|||||
Total liabilities |
149,886 |
118,353 |
|||||
Commitments and contingencies |
|||||||
Net parent investment / partners' capital |
|||||||
Net parent investment |
— |
331,675 |
|||||
Common units - public (8,636,766 units outstanding as of December 31, 2017) |
137,888 |
— |
|||||
Common units - Oasis Petroleum (5,125,000 units outstanding as of December 31, 2017) |
29,513 |
— |
|||||
Subordinated units - Oasis Petroleum (13,750,000 units outstanding as of December 31, 2017) |
79,173 |
— |
|||||
Non-controlling interests |
313,446 |
— |
|||||
Total net parent investment / partners' capital |
560,020 |
331,675 |
|||||
Total liabilities and net parent investment / partners' capital |
$ |
709,906 |
$ |
450,028 |
(1) Represents balances of the Partnership's predecessor, Oasis Midstream Services LLC, at December 31, 2016. |
OASIS MIDSTREAM PARTNERS LP | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(In thousands, except per unit data) | |||||||||||||||
Revenues |
|||||||||||||||
Midstream services for Oasis Petroleum |
$ |
56,073 |
$ |
32,567 |
$ |
179,849 |
$ |
120,258 |
|||||||
Midstream services for third parties |
810 |
255 |
2,367 |
594 |
|||||||||||
Total revenues |
56,883 |
32,822 |
182,216 |
120,852 |
|||||||||||
Operating expenses |
|||||||||||||||
Direct operating |
14,418 |
7,377 |
45,526 |
29,275 |
|||||||||||
Depreciation and amortization |
4,371 |
3,200 |
15,730 |
8,525 |
|||||||||||
General and administrative |
4,729 |
3,103 |
18,597 |
12,112 |
|||||||||||
Total operating expenses |
23,518 |
13,680 |
79,853 |
49,912 |
|||||||||||
Operating income |
33,365 |
19,142 |
102,363 |
70,940 |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
— |
(1,531) |
(6,965) |
(5,481) |
|||||||||||
Other income (expense) |
— |
(12) |
7 |
(474) |
|||||||||||
Total other income (expense) |
— |
(1,543) |
(6,958) |
(5,955) |
|||||||||||
Income before income taxes |
33,365 |
17,599 |
95,405 |
64,985 |
|||||||||||
Income tax expense |
— |
(6,631) |
(22,858) |
(24,857) |
|||||||||||
Net income |
33,365 |
$ |
10,968 |
72,547 |
$ |
40,128 |
|||||||||
Less: Net Income Prior to the Offering |
— |
37,577 |
|||||||||||||
Net Income Subsequent to the Offering |
33,365 |
34,970 |
|||||||||||||
Less: Net Income Attributable to Non-controlling Interests Subsequent to the Offering |
22,253 |
23,332 |
|||||||||||||
Net Income Attributable to Oasis Midstream Partners LP |
$ |
11,112 |
$ |
11,638 |
|||||||||||
Earnings per limited partner unit - Basic and Diluted |
|||||||||||||||
Common units |
$ |
0.41 |
$ |
0.43 |
|||||||||||
Subordinated units |
0.40 |
0.42 |
|||||||||||||
Weighted average number of limited partner units outstanding - Basic |
|||||||||||||||
Common units |
13,628 |
13,566 |
|||||||||||||
Subordinated units |
13,750 |
13,750 |
|||||||||||||
Weighted average number of limited partner units outstanding - Diluted |
|||||||||||||||
Common units |
13,630 |
13,568 |
|||||||||||||
Subordinated units |
13,750 |
13,750 |
|||||||||||||
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense |
$ |
— |
$ |
1,531 |
$ |
6,965 |
$ |
5,481 |
|||||||
Capitalized interest |
562 |
289 |
1,220 |
4,419 |
|||||||||||
Amortization of deferred financing costs |
(119) |
— |
(126) |
— |
|||||||||||
Cash Interest |
443 |
$ |
1,820 |
8,059 |
$ |
9,900 |
|||||||||
Less: Cash Interest prior to the initial public offering |
— |
7,603 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
$ |
443 |
$ |
456 |
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, amortization and other non-cash adjustments. Adjusted EBITDA is not a measure of net income (loss) or cash flows as determined by GAAP.
Distributable Cash Flow ("DCF")
The Partnership defines DCF as Adjusted EBITDA attributable to OMP less cash paid for interest and maintenance capital expenditures. Maintenance capital expenditures are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, system operating capacity, operating income or revenue. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA and DCF provides information useful to investors and analysts for assessing results of operations, financial performance and OMP's ability to generate cash from business operations without regard to financing methods or capital structure, coupled with OMP's ability to make distributions to OMP unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(In thousands) | |||||||||||||||
Net income |
$ |
33,365 |
$ |
10,968 |
$ |
72,547 |
$ |
40,128 |
|||||||
Income tax expense |
— |
6,631 |
22,858 |
24,857 |
|||||||||||
Depreciation and amortization |
4,371 |
3,200 |
15,730 |
8,525 |
|||||||||||
Equity-based compensation expenses |
53 |
249 |
1,052 |
911 |
|||||||||||
Impairment |
— |
— |
— |
— |
|||||||||||
Interest expense, net of capitalized interest |
— |
1,531 |
6,965 |
5,481 |
|||||||||||
Other non-cash adjustments |
— |
— |
— |
10 |
|||||||||||
Adjusted EBITDA |
37,789 |
$ |
22,579 |
119,152 |
$ |
79,912 |
|||||||||
Less: Adjusted EBITDA prior to the initial public offering |
— |
79,484 |
|||||||||||||
Adjusted EBITDA subsequent to the initial public offering |
37,789 |
39,668 |
|||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
24,740 |
25,955 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
13,049 |
13,713 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
443 |
456 |
|||||||||||||
Maintenance capital expenditures |
1,098 |
1,183 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
11,508 |
$ |
12,074 |
|||||||||||
Net cash provided by operating activities |
$ |
8,274 |
$ |
15,765 |
$ |
79,843 |
$ |
72,086 |
|||||||
Current tax expense |
— |
8,328 |
17,618 |
24,069 |
|||||||||||
Interest expense, net of capitalized interest |
— |
1,531 |
6,965 |
5,481 |
|||||||||||
Changes in working capital |
29,635 |
(3,045) |
14,853 |
(21,734) |
|||||||||||
Other non-cash adjustments |
(120) |
— |
(127) |
10 |
|||||||||||
Adjusted EBITDA |
37,789 |
$ |
22,579 |
119,152 |
$ |
79,912 |
|||||||||
Less: Adjusted EBITDA prior to the initial public offering |
— |
79,484 |
|||||||||||||
Adjusted EBITDA subsequent to the initial public offering |
37,789 |
39,668 |
|||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
24,740 |
25,955 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
13,049 |
13,713 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
443 |
456 |
|||||||||||||
Maintenance capital expenditures |
1,098 |
1,183 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
11,508 |
$ |
12,074 |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-and-year-ending-december-31-2017-earnings-and-provides-an-operational-update-and-2018-outlook-300605369.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Feb. 15, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Fourth Quarter 2017 financial and operational results on Tuesday, February 27, 2018 after the close of trading on the NYSE. Additionally, the Partnership will host a webcast and conference call on Wednesday, February 28, 2018 at 11:30 a.m. Central Time to discuss Fourth Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: |
Wednesday, February 28, 2018 |
Time: |
11:30 a.m. Central Time |
Live Webcast: |
OR:
Dial-in: |
888-317-6003 |
Intl. Dial-in: |
412-317-6061 |
Conference ID: |
6026365 |
Website: |
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 7, 2018 by dialing:
Replay dial-in: |
877-344-7529 |
Intl. replay: |
412-317-0088 |
Conference ID: |
10117253 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream and Oasis Petroleum plan to participate in the following conferences and investor events:
March 5-6: |
Raymond James' 2018 Institutional Investors Conference – Orlando, FL |
March 13: |
Evercore ISI's 2018 Energy Summit – Houston, TX |
April 9: |
Mizuho's 2018 Energy Summit – Napa, CA |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Director, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-schedules-fourth-quarter-2017-conference-call-for-february-28-2018-300599892.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Feb. 2, 2018 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") today announced that the Board of Directors of OMP GP LLC, the general partner of the Partnership, declared the initial quarterly cash distribution of $0.3750 per unit for the quarter ending December 31, 2017. The Board of Directors also declared the third quarter distribution of $0.0245 per unit for the six days ending September 30, 2017. The third quarter distribution has been prorated from the closing of the Partnership's initial public offering on September 25, 2017. Both distributions equate to the minimum quarterly distribution of $0.3750 per unit on a full-quarter basis. Both distributions will be payable on February 26, 2018 to unitholders of record as of February 16, 2018.
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 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.
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.
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Petroleum Inc.
Taylor Mason, (281) 404-9600
Manager, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-announces-third-quarter-2017-and-fourth-quarter-2017-distributions-300592785.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Nov. 7, 2017 /PRNewswire/ -- Oasis Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP") today announced financial results for the quarter ended September 30, 2017 and provided an operational update.
Recent Highlights:
"We are excited for this new chapter in the Oasis story, as we successfully completed the OMP IPO," said Taylor Reid, Chief Executive Officer of OMP. "Volumes were solid in all areas and in line with our expectations for the third quarter. Continued growth in volumes are expected to generate growing EBITDA and DCF. The strength of our relationship with Oasis creates a foundation for peer leading future growth, as we plan to deliver 20% long-term annual distribution growth."
Mr. Reid added, "The new gas plant project offers OMP unitholders an attractive return and path to additional upside. The project enhances near-term EBITDA above the base forecast we provided in our IPO materials and is accretive to long-term EBITDA, distribution coverage, and distribution growth once the project is operational. Gas Plant II fits nicely with our strategy of funding opportunistic projects that are accretive to our unitholders, and we're excited to be a part of the project."
Gas Plant II Update
Oil and gas production from Oasis' Wild Basin wells continues to exceed expectations, primarily due to higher frac intensity in the core areas of the Williston Basin. The initial gas to oil ratio ("GOR") is generally higher in the core of the Williston Basin, including parts of McKenzie County, compared to the entire basin. The combined effect of these factors has resulted in record gas production levels in the Williston Basin and particularly in McKenzie County where much of the drilling since 2015 has occurred and which now produces approximately half of the gas production in North Dakota. Due to the increased production of gas in the Williston Basin, there is a need for incremental processing capacity in the basin.
Gas production in Wild Basin has already surpassed original design expectations for the Partnership's 80 MMscfpd gas plant, which is held by OMP's wholly-owned development company ("DevCo"), Bighorn DevCo LLC ("Bighorn DevCo"), and recently has averaged gross gas production in Wild Basin of approximately 100 MMscfpd. Oasis initially evaluated options to process the incremental gas that is being produced in and around Wild Basin and subsequently began the front end engineering and design process for a second gas plant and began ordering long lead time items. Oasis recently made the decision to proceed with the construction of Gas Plant II, and on November 6, 2017, Oasis agreed to assign the project to the Partnership. In exchange for the assignment of Gas Plant II into Bighorn DevCo, OMP agreed to reimburse Oasis for 100% of its capital spent-to-date and will fund 100% of the remaining project capital. OMP funded the reimbursement under its revolving credit facility (the "Revolving Credit Facility") and will have full rights to all cash flows generated from both gas plants held by Bighorn DevCo. For the nine months ended September 30, 2017, Oasis invested $57.0 million in Gas Plant II, and, on November 6, 2017, assigned $66.7 million of asset value to OMP, which included capital spent in October 2017. OMP expects to invest approximately $140.0 million for the entire Gas Plant II project and anticipates operations will begin in late 2018.
Additionally, temporary gas processing units with total capacity of 40 MMscfpd are being deployed in the coming weeks at the gas plant location to process gas volumes in excess of current processing capacity. Cash flows from these units will be attributed to Bighorn DevCo. The increase in EBITDA from these units will more than cover increased interest expense during construction of Gas Plant II. Once Gas Plant II is operational, distribution coverage is expected to further improve, and the runway for 20% annual distribution per unit growth is expected to be extended. Lastly, Oasis continues to expect to run two rigs in Wild Basin to develop this acreage position.
Quarterly Distribution
The Board of Directors of OMP's general partner will declare the first quarterly cash distribution for the Partnership after the end of the fourth quarter 2017. As stated in the prospectus for the OMP IPO, the Partnership will not make a distribution for the period prior to the closing of the Offering. The amount of the distribution declared with respect to the fourth quarter 2017 will be adjusted to reflect the additional six-day period from the closing of the Offering on September 25, 2017 to September 30, 2017.
Operational and Financial Update
Select operational and financial statistics are in the following table:
Quarter Ended: | ||||||||
9/30/2017 |
6/30/2017 | |||||||
Bighorn DevCo |
(In millions, except throughput volumes) | |||||||
Crude oil services volumes (Bopd) |
35,930 |
27,909 |
||||||
Natural gas services volumes (Mscfpd) |
60,034 |
58,544 |
||||||
Operating income |
$ |
4.8 |
$ |
3.8 |
||||
Depreciation and amortization |
1.1 |
1.1 |
||||||
Bobcat DevCo |
||||||||
Crude oil services volumes (Bopd) |
28,253 |
22,659 |
||||||
Natural gas services volumes (Mscfpd) |
92,579 |
80,146 |
||||||
Water services volumes (Bowpd) |
30,693 |
27,239 |
||||||
Operating income |
$ |
13.5 |
$ |
11.0 |
||||
Depreciation and amortization |
1.3 |
1.0 |
||||||
Beartooth DevCo |
||||||||
Water services volumes (Bowpd) |
98,361 |
72,623 |
||||||
Operating income |
$ |
7.8 |
$ |
7.7 |
||||
Depreciation and amortization |
1.5 |
1.4 |
||||||
Net assets excluded from the Offering |
||||||||
Operating income (loss) |
$ |
(1.0) |
$ |
0.6 |
||||
Depreciation and amortization |
0.2 |
0.3 |
Capital Expenditures
Capital Expenditures ("CapEx") for the entire third quarter totaled $34.8 million gross and $7.9 million net. Net CapEx attributable to the Partnership from September 25, 2017 to September 30, 2017 totaled $0.5 million. Net maintenance CapEx for the entire third quarter was $1.3 million, of which $0.1 million was attributable to the Partnership from September 25, 2017 to September 30, 2017. The following table depicts total CapEx by each of OMP's development companies for the entire third quarter:
3Q 2017 CapEx ($ in millions) | |||||||
DevCo |
OMP Ownership |
Gross |
Net | ||||
Bighorn |
100% |
$ |
0.7 |
$ |
0.7 |
||
Bobcat |
10% |
21.7 |
2.2 |
||||
Beartooth |
40% |
12.4 |
5.0 |
||||
Total CapEx |
$ |
34.8 |
$ |
7.9 |
Financial Position and Liquidity
As of September 30, 2017, OMP had no cash on hand, and an undrawn $200.0 million Revolving Credit Facility. Pro forma for the Gas Plant II assignment, OMP has $66.7 million drawn on its Revolving Credit Facility.
Conference Call Information
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: |
Wednesday, November 8, 2017 | |
Time: |
11:30 a.m. Central Time | |
Live Webcast: |
https://www.webcaster4.com/Webcast/Page/1052/23144 | |
OR: |
||
Dial-in: |
888-317-6003 | |
Intl. Dial in: |
412-317-6061 | |
Conference ID: |
1036919 | |
Website: |
www.oasismidstream.com |
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, November 15, 2017 by dialing:
Replay dial-in: |
877-344-7529 | |
Intl. replay: |
412-317-0088 | |
Replay code: |
10113599 |
The conference call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Taylor Mason, (281) 404-9600
Manager, Corporate Finance & 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 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 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.
OASIS MIDSTREAM PARTNERS LP | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
September 30, 2017 |
December 31, 2016 | ||||||
(In thousands, except unit data) | |||||||
ASSETS |
|||||||
Current assets |
|||||||
Accounts receivable |
$ |
19 |
$ |
667 |
|||
Accounts receivable from Oasis Petroleum |
5,611 |
11,721 |
|||||
Insurance receivable |
— |
5,096 |
|||||
Prepaid expenses |
29 |
1,006 |
|||||
Total current assets |
5,659 |
18,490 |
|||||
Property, plant and equipment |
522,098 |
453,695 |
|||||
Less: accumulated depreciation and amortization |
(29,861) |
(22,160) |
|||||
Total property, plant and equipment, net |
492,237 |
431,535 |
|||||
Other assets |
1,948 |
3 |
|||||
Total assets |
$ |
499,844 |
$ |
450,028 |
|||
LIABILITIES AND EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable due to Oasis Petroleum |
$ |
341 |
$ |
3,314 |
|||
Accrued liabilities |
5,790 |
32,179 |
|||||
Accrued interest payable |
4 |
— |
|||||
Current income taxes payable |
— |
41,063 |
|||||
Total current liabilities |
6,135 |
76,556 |
|||||
Asset retirement obligation |
1,257 |
1,713 |
|||||
Deferred income taxes |
— |
40,084 |
|||||
Total liabilities |
7,392 |
118,353 |
|||||
Commitments and contingencies |
|||||||
Net parent investment / partners' capital |
|||||||
Net parent investment |
— |
331,675 |
|||||
Common units - public (7,511,766 units outstanding as of September 30, 2017) |
115,963 |
— |
|||||
Common units - Oasis Petroleum (5,125,000 units outstanding as of September 30, 2017) |
39,455 |
— |
|||||
Subordinated units - Oasis Petroleum (13,750,000 units outstanding as of September 30, 2017) |
105,855 |
— |
|||||
Non-controlling interests |
231,179 |
— |
|||||
Total net parent investment / partners' capital |
492,452 |
331,675 |
|||||
Total liabilities and net parent investment / partners' capital |
$ |
499,844 |
$ |
450,028 |
OASIS MIDSTREAM PARTNERS LP | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(UNAUDITED) | |||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||
Revenues |
|||||||||||||||||
Midstream services for Oasis Petroleum |
$ |
47,002 |
$ |
29,062 |
$ |
123,777 |
$ |
87,691 |
|||||||||
Midstream services for third parties |
379 |
215 |
1,556 |
339 |
|||||||||||||
Total revenues |
47,381 |
29,277 |
125,333 |
88,030 |
|||||||||||||
Operating expenses |
|||||||||||||||||
Direct operating |
13,015 |
7,806 |
31,108 |
21,898 |
|||||||||||||
Depreciation and amortization |
4,147 |
1,909 |
11,359 |
5,325 |
|||||||||||||
General and administrative |
5,084 |
3,037 |
13,868 |
9,009 |
|||||||||||||
Total operating expenses |
22,246 |
12,752 |
56,335 |
36,232 |
|||||||||||||
Operating income |
25,135 |
16,525 |
68,998 |
51,798 |
|||||||||||||
Interest expense, net of capitalized interest |
(2,733) |
(2,128) |
(6,965) |
(3,950) |
|||||||||||||
Other income (expense) |
5 |
(460) |
7 |
(462) |
|||||||||||||
Total other income (expense) |
(2,728) |
(2,588) |
(6,958) |
(4,412) |
|||||||||||||
Income before income taxes |
22,407 |
13,937 |
62,040 |
47,386 |
|||||||||||||
Income tax expense |
7,898 |
5,444 |
22,858 |
18,226 |
|||||||||||||
Net income |
14,509 |
$ |
8,493 |
39,182 |
$ |
29,160 |
|||||||||||
Less: Net Income Prior to the Offering |
12,904 |
37,577 |
|||||||||||||||
Net Income Subsequent to the Offering |
1,605 |
1,605 |
|||||||||||||||
Less: Net Income Attributable to Non-controlling Interests Subsequent to the Offering |
1,079 |
1,079 |
|||||||||||||||
Net Income Attributable to Oasis Midstream Partners LP |
$ |
526 |
$ |
526 |
|||||||||||||
Net income subsequent to the offering September 25, 2017 per limited partner unit (basic and diluted) |
|||||||||||||||||
Common units |
$ |
0.02 |
$ |
0.02 |
|||||||||||||
Subordinated units |
0.02 |
0.02 |
|||||||||||||||
Weighted average number of limited partner units outstanding - Basic |
|||||||||||||||||
Common units |
12,625,000 |
12,625,000 |
|||||||||||||||
Subordinated units |
13,750,000 |
13,750,000 |
|||||||||||||||
Weighted average number of limited partner units outstanding - Diluted |
|||||||||||||||||
Common units |
12,625,055 |
12,625,055 |
|||||||||||||||
Subordinated units |
13,750,000 |
13,750,000 |
Non-GAAP Financial Measures
Cash Interest is a supplemental non-GAAP financial measure that is used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Cash Interest as interest expense plus capitalized interest less amortization and write-offs of deferred financing costs and debt discounts included in interest expense. Cash Interest is not a measure of interest expense as determined by United States generally accepted accounting principles, or GAAP.
The following table presents a reconciliation of the GAAP financial measure of interest expense to the non-GAAP financial measure of Cash Interest for the periods presented:
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(In thousands) | |||||||||||||||
Interest expense |
$ |
2,733 |
$ |
2,128 |
$ |
6,965 |
$ |
3,950 |
|||||||
Capitalized interest(1) |
436 |
1,181 |
658 |
4,130 |
|||||||||||
Amortization of deferred financing costs(2) |
(7) |
— |
(7) |
— |
|||||||||||
Cash Interest |
3,162 |
$ |
3,309 |
7,616 |
$ |
8,080 |
|||||||||
Less: Cash Interest prior to the Offering |
3,149 |
7,603 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
$ |
13 |
$ |
13 |
___________________ |
(1) Represents capitalized interest allocated to the predecessor prior to the Offering. No capitalized interest was recorded by the Partnership subsequent to the Offering, as no amounts were drawn under its Revolving Credit Facility. |
(2) Represents the amortization of deferred financing costs on the Partnership's Revolving Credit Facility subsequent to the Offering. No amounts of deferred financing costs were recorded and amortized by the predecessor prior to the Offering. |
Adjusted EBITDA is supplemental non-GAAP financial measures that are used by management and external users of the Partnership's financial statements, such as industry analysts, investors, lenders and rating agencies. The Partnership defines Adjusted EBITDA as earnings before interest expense, income taxes, depreciation, amortization and other non-cash adjustments. Adjusted EBITDA is not measures of net income (loss) or cash flows as determined by GAAP.
The Partnership defines Distributable Cash Flow ("DCF") as Adjusted EBITDA attributable to OMP less cash paid for interest and maintenance capital expenditures. DCF should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA and DCF provides information useful to investors and analysts for assessing results of operations, financial performance and OMP's ability to generate cash from business operations without regard to financing methods or capital structure, coupled with OMP's ability to make distributions to OMP unitholders. The GAAP measures most directly comparable to DCF are net income and net cash provided by operating activities, respectively.
The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA and DCF for the periods presented:
Three Months Ended September 30, | |||||||
2017 |
2016 | ||||||
(In thousands) | |||||||
Net income |
$ |
14,509 |
$ |
8,493 |
|||
Income tax expense |
7,898 |
5,444 |
|||||
Depreciation and amortization |
4,147 |
1,909 |
|||||
Interest expense, net of capitalized interest |
2,733 |
2,128 |
|||||
Other non-cash adjustments |
286 |
218 |
|||||
Adjusted EBITDA |
29,573 |
$ |
18,192 |
||||
Less: Adjusted EBITDA attributable to non-controlling interests(1) |
19,074 |
||||||
Less: Adjusted EBITDA attributable to net assets excluded from the Offering(1) |
(682) |
||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP(1) |
11,181 |
||||||
Maintenance capital expenditures(1) |
1,293 |
||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP(1) |
$ |
9,888 |
|||||
Net cash provided by operating activities |
$ |
29,093 |
$ |
18,547 |
|||
Current tax expense |
6,042 |
4,761 |
|||||
Interest expense, net of capitalized interest |
2,733 |
2,128 |
|||||
Changes in working capital |
(8,288) |
(7,244) |
|||||
Other non-cash adjustments |
(7) |
— |
|||||
Adjusted EBITDA |
29,573 |
$ |
18,192 |
||||
Less: Adjusted EBITDA attributable to non-controlling interests(1) |
19,074 |
||||||
Less: Adjusted EBITDA attributable to net assets excluded from the Offering(1) |
(682) |
||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP(1) |
11,181 |
||||||
Maintenance capital expenditures(1) |
1,293 |
||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP(1) |
$ |
9,888 |
___________________ |
(1) Amounts above calculated as if the Partnership's IPO occurred prior to the third quarter of 2017. |
(2) Cash Interest attributable to the Partnership has been excluded from the above calculation of Distributable Cash Flow attributable to Oasis Midstream Partners LP. The Partnership entered into its Revolving Credit Facility on September 25, 2017 and no amounts were drawn under the Revolving Credit Facility during the period subsequent to the Offering. The unused portion of the Revolving Credit Facility is subject to a commitment fee ranging from 0.375% to 0.500%. |
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(In thousands) | |||||||||||||||
Net income |
$ |
14,509 |
$ |
8,493 |
$ |
39,182 |
$ |
29,160 |
|||||||
Income tax expense |
7,898 |
5,444 |
22,858 |
18,226 |
|||||||||||
Depreciation and amortization |
4,147 |
1,909 |
11,359 |
5,325 |
|||||||||||
Interest expense, net of capitalized interest |
2,733 |
2,128 |
6,965 |
3,950 |
|||||||||||
Other non-cash adjustments |
286 |
218 |
999 |
661 |
|||||||||||
Adjusted EBITDA |
29,573 |
$ |
18,192 |
81,363 |
$ |
57,322 |
|||||||||
Less: Adjusted EBITDA prior to the Offering |
27,694 |
79,484 |
|||||||||||||
Adjusted EBITDA subsequent to the Offering |
1,879 |
1,879 |
|||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
1,214 |
1,214 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
665 |
665 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
13 |
13 |
|||||||||||||
Maintenance capital expenditures |
84 |
84 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
568 |
$ |
568 |
|||||||||||
Net cash provided by operating activities |
$ |
29,093 |
$ |
18,547 |
$ |
71,569 |
$ |
56,321 |
|||||||
Current tax expense |
6,042 |
4,761 |
17,618 |
15,741 |
|||||||||||
Interest expense, net of capitalized interest |
2,733 |
2,128 |
6,965 |
3,950 |
|||||||||||
Changes in working capital |
(8,288) |
(7,244) |
(14,782) |
(18,690) |
|||||||||||
Other non-cash adjustments |
(7) |
— |
(7) |
— |
|||||||||||
Adjusted EBITDA |
29,573 |
$ |
18,192 |
81,363 |
$ |
57,322 |
|||||||||
Less: Adjusted EBITDA prior to the Offering |
27,694 |
79,484 |
|||||||||||||
Adjusted EBITDA subsequent to the Offering |
1,879 |
1,879 |
|||||||||||||
Less: Adjusted EBITDA attributable to non-controlling interests |
1,214 |
1,214 |
|||||||||||||
Adjusted EBITDA attributable to Oasis Midstream Partners LP |
665 |
665 |
|||||||||||||
Cash Interest attributable to Oasis Midstream Partners LP |
13 |
13 |
|||||||||||||
Maintenance capital expenditures |
84 |
84 |
|||||||||||||
Distributable Cash Flow attributable to Oasis Midstream Partners LP |
$ |
568 |
$ |
568 |
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-quarter-ended-september-30-2017-earnings-300551468.html
SOURCE Oasis Midstream Partners LP
HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Oasis Midstream Partners, LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") plans to announce its Third Quarter 2017 financial and operational results on Tuesday, November 7, 2017 after the close of trading on the NYSE. Additionally, the Partnership will host a webcast and conference call on Wednesday, November 8, 2017 at 11:30 a.m. Central Time to discuss Third Quarter 2017 financial and operational results.
Investors, analysts and other interested parties are invited to listen to the webcast and call:
Date: |
Wednesday, November 8, 2017 |
Time: |
11:30 a.m. Central Time |
Live Webcast: |
|
OR: |
|
Dial-in: |
888-317-6003 |
Intl. Dial-in: |
412-317-6061 |
Conference ID: |
1036919 |
Website: |
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, November 15, 2017 by dialing:
Replay dial-in: |
877-344-7529 |
Intl. replay: |
412-317-0088 |
Conference ID: |
10113599 |
The call will also be available for replay for approximately 30 days at www.oasismidstream.com.
Additionally, Oasis Midstream and Oasis Petroleum plan to participate in the following conferences and investor events:
November 16: |
BAML's 2017 Global Energy Conference – Miami, FL |
November 28: |
Capital One's Bakken Deep Dive – New York, NY |
November 29: |
Jefferies' 2017 Energy Conference – Houston, TX |
December 6: |
2017 Wells Fargo Pipeline, MLP and Utility Symposium – New York, NY |
About Oasis Midstream Partners LP
Oasis Midstream is a growth-oriented, fee-based master limited partnership initially formed by Oasis Petroleum (NYSE: OAS) 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 more information, please visit Oasis Midstream's website at www.oasismidstream.com.
Contact:
Oasis Petroleum Inc.
Taylor Mason, (281) 404-9600
Manager, Corporate Finance & Investor Relations
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-to-announce-third-quarter-2017-results-and-upcoming-conferences-300544569.html
SOURCE Oasis Midstream Partners, LP
HOUSTON, Sept. 20, 2017 /PRNewswire/ -- Oasis Petroleum Inc. (NYSE: OAS) ("Oasis Petroleum") today announced the pricing of the Oasis Midstream Partners LP (NYSE: OMP) ("Oasis Midstream" or the "Partnership") initial public offering of 7,500,000 common units representing limited partner interests in the Partnership at a price to the public of $17.00 per common unit, pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission ("SEC"). The Partnership has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 common units. The common units are expected to begin trading on the New York Stock Exchange on September 21, 2017 under the symbol "OMP." The offering is expected to close on September 25, 2017, subject to the satisfaction of customary closing conditions.
Upon conclusion of the offering, the public will own an approximate 27.3% limited partner interest in Oasis Midstream (or approximately 31.4% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum and its affiliates will own the remaining approximately 72.7% limited partner interest in Oasis Midstream (or approximately 68.6% if the underwriters exercise in full their option to purchase additional common units). Oasis Petroleum will indirectly own the general partner of Oasis Midstream and its incentive distribution rights and will retain a majority of Oasis Midstream's common and subordinated units representing limited partner interests.
Oasis Midstream intends to use the proceeds of approximately $119.9 million (i) to make a $113.9 million distribution to Oasis Petroleum, in whole or in part as reimbursement of pre-formation capital expenditures incurred by Oasis Petroleum, (ii) to pay approximately $4.1 million of offering expenses and structuring fees and (iii) to pay $1.9 million of origination fees and expenses related to its new revolving credit facility. If and to the extent the underwriters exercise their option to purchase additional common units in full, Oasis Midstream intends to use the additional net proceeds of approximately $17.9 million upon such exercise to pay a distribution to Oasis Petroleum.
Morgan Stanley, Citigroup and Wells Fargo Securities are acting as joint book-running managers for the offering.
A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission. This offering will be made only by means of a written prospectus forming part of the effective registration statement. A copy of the prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, may be obtained, when available, from:
Morgan Stanley & Co. LLC |
Citigroup Global Markets Inc. |
Wells Fargo Securities, LLC |
Attn: Prospectus Department |
c/o Broadridge Financial Solutions |
c/o Equity Syndicate Department |
180 Varick Street, 2nd Floor |
1155 Long Island Avenue |
375 Park Avenue |
New York, New York 10014 |
Edgewood, New York 11717 |
New York, New York 10152 |
These documents may also be obtained at no charge from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Oasis Midstream
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.
Forward-Looking Statements
This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Oasis Midstream's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although Oasis Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
This release contains certain forward-looking statements that are based on current plans and expectations and are subject to various risks and uncertainties. Oasis Midstream's business and any offering may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond Oasis Midstream's control. These factors include, but are not limited to, changes to business plans as circumstances warrant, and limited partner interests of Oasis Midstream may not ultimately be offered to the public because of, general market conditions or other factors. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the registration statement on Form S-1. Oasis Midstream refers you to that discussion for further information.
About Oasis Petroleum Inc.
Oasis Petroleum is an independent exploration and production company focused on the acquisition and development of unconventional oil and natural gas resources, primarily operating in the Williston Basin. For more information, please visit Oasis Petroleum's website at www.oasispetroleum.com.
View original content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-prices-initial-public-offering-300523309.html
SOURCE Oasis Petroleum Inc.
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