Attention Seeking Stock: Oasis Midstream Partners LP (NYSE: OMP)

On 12 Dec 2019, Oasis Midstream Partners LP (NYSE: OMP) spotted trading -25.83% off 52-week high price. On the other end, the stock has been noted 16.27% away from the low price over the last 52-weeks. The stock changed -0.48% to recent value of $16.58. The stock transacted 107214 shares during most recent day however it has an average volume of 158.41K shares. The company has 33.82M of outstanding shares and 10.81M shares were floated in the market.

Oasis Midstream Partners LP (OMP) recently reported financial and operating results for the third quarter of 2019.

Highlights

Reported the quarterly cash distribution of $0.515 per unit for 3Q 2019, an approximate 5% increase from 2Q 2019.

Net income was $55.3M and net cash from operating activities was $58.1M in 3Q 2019.

Delivered $68.9M of Adjusted EBITDA(1) and $42.0M of net Adjusted EBITDA to the Joint Venture(1) in 3Q 2019.

Generated $35.7M of DCF(1) in 3Q 2019, resulting in distribution coverage of 2.0x. Distribution coverage exceeded the top-end of 3Q 2019 guidance of 1.8x to 1.9x.

Continued to sign additional third-party contracts in the Delaware and Williston basins.

Oasis Petroleum and OMP executed commercial contracts for Panther DevCo, with the assets assigned to OMP in November 2019.

Water service volumes remain strong. Combined Bobcat and Beartooth water volumes of 198.4 MBowpd in 3Q 2019 increased 1% from 2Q 2019 and exceeded the top-end of 3Q 2019 guidance.

Exceeded 3Q 2019 guidance related to natural gas processing volumes in Bighorn DevCo. Gas processing volumes increased 17% from 2Q 2019 to 236.0 MMscfpd in 3Q 2019. Third-party gas volumes were about 32% of total gas processing volumes and increased 28% from 2Q 2019 to 75.7 MMscfpd in 3Q 2019.

2019 Capital Expenditures Arrangement

On February 22, 2019, the Joint Venture 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 Joint Venture will cover up to $80.0M 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 prospects for the Joint Venture 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 Joint Venture made capital contributions to Bobcat DevCo pursuant to the 2019 Capital Expenditures Arrangement of $66.2M, and the Joint Venture’s ownership interest in Bobcat DevCo increased from 25% as of December 31, 2018 to 34.4% as of September 30, 2019. The Joint Venture’s average ownership interest in Bobcat DevCo during the third quarter of 2019 was about 33%.

Liquidity and CapEx

As of September 30, 2019, the Joint Venture had cash and cash equivalents of $4.7M, $431.0M of borrowings outstanding under its revolving credit facility and an $8.2M outstanding letter of credit. On August 16, 2019, the Joint Venture entered an amendment to the credit contract governing its revolving credit facility to (i) increase the aggregate amount of commitments from $475.0M to $575.0M and (ii) provide for the ability to further increase commitments to $775.0M. The Joint Venture’s unused borrowing capacity as of September 30, 2019 was $135.8M.

Its earnings per share (EPS) expected to touch remained 91.40% for this year while earning per share for the next 5-years is expected to reach at 22.08%. OMP has a gross margin of 90.50% and an operating margin of 55.40% while its profit margin remained 25.70% for the last 12 months. According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.90% from the mean of 20 days, -1.06% from mean of 50 days SMA and performed -11.04% from mean of 200 days price. Company’s performance for the week was 4.87%, -10.76% for month and YTD performance remained 3.69%.

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