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
Opportunities
|
|
Including
Growth
Opportunities
|
|
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
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SOURCE Oasis Midstream Partners LP