Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OMP | ||
Entity Registrant Name | Oasis Midstream Partners LP | ||
Entity Central Index Key | 1,652,133 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 151,962,333 | ||
Common Units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 20,045,196 | ||
Subordinated Units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,750,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 0 |
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 |
Current liabilities | ||
Accounts payable | 2,180 | 0 |
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 |
Commitments and contingencies | ||
Partners' Equity | ||
General Partner | 112 | 0 |
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 |
Common Units | ||
Partners' Equity | ||
Limited Partners | 192,581 | 167,401 |
Subordinated Units | ||
Partners' Equity | ||
Limited Partners | $ 45,937 | $ 79,173 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - Common Units - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Public [Member] | ||
Units issued (shares) | 20,029 | 13,762 |
Units outstanding (shares) | 20,029 | 13,762 |
Limited Partners | ||
Units issued (shares) | 13,750 | 13,750 |
Units outstanding (shares) | 13,750 | 13,750 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||||
Total revenues | $ 271,623 | $ 182,216 | $ 120,852 | |
Operating expenses | ||||
Costs of product sales | 7,433 | 6,085 | 6,479 | |
Operating and maintenance | 63,123 | 39,441 | 22,796 | |
Depreciation and amortization | 28,404 | 15,730 | 8,525 | |
General and administrative | 23,897 | 18,597 | 12,112 | |
Total operating expenses | 122,857 | 79,853 | 49,912 | |
Operating Income | 148,766 | 102,363 | 70,940 | |
Interest expense, net of capitalized interest | (2,343) | (6,965) | (5,481) | |
Other income (expense) | (14) | 7 | (474) | |
Total other expense | (2,357) | (6,958) | (5,955) | |
Income before income taxes | 146,409 | 95,405 | 64,985 | |
Income tax expense | 0 | (22,858) | (24,857) | |
Net income | $ 34,970 | 146,409 | 72,547 | 40,128 |
Less: Net income attributable to non-controlling interests subsequent to initial public offering | 23,332 | 96,354 | ||
Net income attributable to Oasis Midstream Partners LP | 11,638 | $ 50,055 | $ 11,638 | |
Common Units | ||||
Weighted average number of limited partners units outstanding (Note 13) | ||||
Common units- Basic (shares) | 14,504 | 13,566 | ||
Common units - Diluted (shares) | 14,519 | 13,568 | ||
Midstream Services | ||||
Revenues | ||||
Total revenues | $ 250,820 | $ 170,178 | 108,366 | |
Midstream Services | Oasis Petroleum | ||||
Revenues | ||||
Total revenues | 248,216 | 168,205 | 107,772 | |
Midstream Services | Third parties | ||||
Revenues | ||||
Total revenues | 2,604 | 1,973 | 594 | |
Product Sales | ||||
Revenues | ||||
Total revenues | 20,803 | 12,038 | 12,486 | |
Product Sales | Oasis Petroleum | ||||
Revenues | ||||
Total revenues | 17,476 | 11,644 | 12,486 | |
Product Sales | Third parties | ||||
Revenues | ||||
Total revenues | 3,327 | 394 | $ 0 | |
General Partner | ||||
Operating expenses | ||||
Net income | 112 | |||
Net income attributable to Oasis Midstream Partners LP | 0 | 112 | 0 | |
General Partner | Common Units | ||||
Operating expenses | ||||
Net income | 5,819 | |||
Limited Partners | ||||
Operating expenses | ||||
Net income | 0 | |||
Net income attributable to Oasis Midstream Partners LP | $ 11,638 | 49,943 | ||
Limited Partners | Common Units | ||||
Operating expenses | ||||
Net income | 25,913 | |||
Net income attributable to Oasis Midstream Partners LP | $ 26,416 | $ 5,819 | ||
Earnings per limited partner unit | ||||
Basic and Diluted (in usd per share) | $ 0.43 | $ 1.82 | ||
Weighted average number of limited partners units outstanding (Note 13) | ||||
Common units- Basic (shares) | 13,566 | 14,504 | ||
Common units - Diluted (shares) | 13,568 | 14,519 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Noncontrolling Interests | IDRs | IDRsCommon Units | Oasis | OasisCommon Units | OasisSubordinated Units |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Beginning balance | Predecessor | $ 204,856 | ||||||
Beginning balance | 204,856 | ||||||
Equity-based compensation | Predecessor | 911 | ||||||
Equity-based compensation | 911 | ||||||
Capital contributions prior to initial public offering | Predecessor | 85,780 | ||||||
Capital contributions prior to initial public offering | 85,780 | ||||||
Net income | Predecessor | 40,128 | ||||||
Net income | 40,128 | ||||||
Beginning balance | Predecessor | 331,675 | ||||||
Beginning balance | 331,675 | ||||||
Cumulative effect adjustment for adoption of ASU 2016-09 | Predecessor | (59) | ||||||
Cumulative effect adjustment for adoption of ASU 2016-09 | (59) | ||||||
Equity-based compensation | Predecessor | 999 | ||||||
Equity-based compensation | 999 | ||||||
Capital contributions prior to initial public offering | Predecessor | 65,145 | ||||||
Capital contributions prior to initial public offering | 65,145 | ||||||
Net income | Predecessor | 37,577 | ||||||
Net income | 37,577 | ||||||
Ending balance (Predecessor) at Sep. 25, 2017 | 435,337 | ||||||
Ending balance at Sep. 25, 2017 | 435,337 | $ 0 | $ 0 | $ 0 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Net income | 72,547 | ||||||
Ending balance (Predecessor) at Dec. 31, 2017 | 0 | ||||||
Ending balance at Dec. 31, 2017 | 560,020 | 313,446 | 167,401 | 79,173 | |||
Beginning balance (Predecessor) at Sep. 25, 2017 | 435,337 | ||||||
Beginning balance at Sep. 25, 2017 | 435,337 | 0 | 0 | 0 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Elimination of current and deferred tax liabilities | Predecessor | 104,005 | ||||||
Elimination of current and deferred tax liabilities | 104,005 | ||||||
Net assets excluded from initial public offering | Predecessor | (50,726) | ||||||
Net assets excluded from initial public offering | (50,726) | ||||||
Allocation of net investment to unitholders | Predecessor | (488,616) | $ 53,704 | |||||
Allocation of net investment to unitholders | 0 | 290,835 | 144,077 | ||||
Net proceeds from initial public offering | Predecessor | 134,185 | ||||||
Net proceeds from initial public offering | 134,185 | ||||||
Proceeds from initial public offering distributed to Oasis Petroleum | Predecessor | (26,360) | ||||||
Proceeds from initial public offering distributed to Oasis Petroleum | (132,083) | (35,000) | (70,723) | ||||
Contributions from non-controlling interests | 34,279 | 34,279 | |||||
Equity-based compensation | 53 | 53 | |||||
Net income | 34,970 | 23,332 | 5,819 | $ 0 | 5,819 | ||
Ending balance (Predecessor) at Dec. 31, 2017 | 0 | ||||||
Ending balance at Dec. 31, 2017 | 560,020 | 313,446 | 167,401 | 79,173 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Elimination of current and deferred tax liabilities | Predecessor | 104,000 | ||||||
Proceeds from initial public offering distributed to Oasis Petroleum | (44,918) | (22,478) | (22,440) | ||||
Contributions from non-controlling interests | 147,453 | 147,453 | |||||
Distributions to non-controlling interests | (128,903) | (128,903) | |||||
Dropdown of contributed assets from Oasis Petroleum | (115,535) | 45,935 | 69,600 | ||||
Distribution to Oasis Petroleum for contributed assets | (172,429) | (68,556) | (103,873) | ||||
Issuance of common units | 44,503 | 44,503 | |||||
Equity-based compensation | 356 | 356 | |||||
Other | (1,046) | (493) | (553) | ||||
Net income | 146,409 | 96,354 | $ 112 | $ 25,913 | 24,030 | ||
Ending balance (Predecessor) at Dec. 31, 2018 | 0 | ||||||
Ending balance at Dec. 31, 2018 | $ 551,445 | $ 312,815 | $ 112 | $ 192,581 | $ 45,937 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net income | $ 146,409 | $ 72,547 | $ 40,128 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 28,404 | 15,730 | 8,525 |
Deferred income taxes | 0 | 5,240 | 788 |
Equity-based compensation expenses | 356 | 1,052 | 911 |
Deferred financing costs amortization and other | (519) | 127 | 0 |
Working capital changes: | |||
Change in accounts and insurance receivable | 3,411 | (56,473) | (2,908) |
Change in other current assets | (22) | (94) | 0 |
Change in prepaid expenses | (640) | (304) | (623) |
Change in accounts payable and accrued liabilities | 27,613 | 24,400 | 1,196 |
Change in current income taxes payable | 0 | 17,618 | 24,069 |
Net cash provided by operating activities | 205,012 | 79,843 | 72,086 |
Cash flows from investing activities: | |||
Capital expenditures | (276,810) | (181,424) | (157,866) |
Acquisitions | 0 | (74,520) | 0 |
Net cash used in investing activities | (276,810) | (255,944) | (157,866) |
Cash flows from financing activities: | |||
Capital contributions from parent prior to initial public offering | 0 | 65,145 | 85,780 |
Capital contributions from non-controlling interests | 140,277 | 33,875 | 0 |
Proceeds from initial public offering, net of offering costs | 0 | 134,200 | 0 |
Proceeds from sale of common units, net of offering costs | 44,503 | 0 | 0 |
Distribution to Oasis Petroleum subsequent to initial public offering | 0 | (132,100) | 0 |
Distributions to non-controlling interests | (128,903) | 0 | 0 |
Deferred financing costs | (966) | (2,138) | 0 |
Proceeds from revolving credit facility | 275,000 | 78,000 | 0 |
Principal payments on revolving credit facility | (35,000) | 0 | 0 |
Net cash provided by financing activities | 77,564 | 176,984 | 85,780 |
Increase in cash and cash equivalents | 5,766 | 883 | 0 |
Beginning of period | 883 | 0 | 0 |
End of period | 6,649 | 883 | 0 |
Supplemental cash flow information: | |||
Cash paid for interest, net of capitalized interest | 1,817 | 0 | 0 |
Supplemental non-cash transactions: | |||
Change in accrued capital expenditures | (4,890) | 63,199 | 16,434 |
Change in asset retirement obligations | 198 | 198 | 351 |
Installment notes from acquisition | 0 | 4,875 | 0 |
Contribution of capital expenditures from non-controlling interests | 7,176 | 0 | 0 |
Non-cash elimination of current and deferred tax liabilities | 0 | 104,005 | 0 |
Common Units | |||
Cash flows from financing activities: | |||
Distributions to unitholders | (172,429) | 0 | 0 |
Subordinated Units | |||
Cash flows from financing activities: | |||
Distributions to unitholders | $ (44,918) | $ 0 | $ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Organization. Oasis Midstream Partners LP (the “Partnership”) is a growth-oriented, fee-based master limited partnership formed by its sponsor, Oasis Petroleum Inc. (together with its subsidiaries, “Oasis Petroleum”) 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 and are strategically positioned to capture volumes from other producers. Initial public offering. On September 25, 2017 , the Partnership completed its 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. Additionally, on October 10, 2017, the Partnership issued an additional 1,125,000 common units representing limited partner interests in the Partnership, pursuant to the underwriters’ over-allotment option at the same price and on the same terms. The Partnership received net proceeds of $134.2 million , after deducting underwriting discounts, structuring fees and offering costs. The Partnership distributed net proceeds of $132.1 million to Oasis Petroleum. The initial public offering was pursuant to the Partnership’s registration statement on Form S-1, as amended, filed with the Securities and Exchange Commission (“SEC”) and declared effective on September 20, 2017. The Partnership’s common units are traded on the New York Stock Exchange under the symbol OMP. Contributed businesses. The Partnership conducts its business through its ownership of development companies Bighorn DevCo LLC (“Bighorn DevCo”), Bobcat DevCo LLC (“Bobcat DevCo”) and Beartooth DevCo LLC (“Beartooth DevCo,” and collectively with Bighorn DevCo and Bobcat DevCo, the “DevCos”), two of which are jointly-owned with Oasis Petroleum. In connection with the Partnership’s initial public offering, Oasis Petroleum contributed to the Partnership a 100% ownership interest in Bighorn DevCo, a 10% ownership interest in Bobcat DevCo and a 40% ownership interest in Beartooth DevCo. On November 19, 2018 , the Partnership acquired an additional 15% ownership interest in Bobcat DevCo and an additional 30% ownership interest in Beartooth DevCo (see Note 4 — Dropdown of DevCo Ownership Interests ). As of December 31, 2018 , the Partnership’s assets and ownership interests in the DevCos are as follows: DevCos Areas Served Service Lines OMP Ownership Bighorn DevCo Wild Basin – Natural gas processing – Crude oil stabilization – Crude oil blending – Crude oil and NGL storage – Crude oil transportation 100% Bobcat DevCo Wild Basin – Natural gas gathering – Natural gas compression – Gas lift – Crude oil gathering – Produced and flowback water gathering – Produced and flowback water disposal 25% Beartooth DevCo Alger – Produced and flowback water gathering – Produced and flowback water disposal – Freshwater supply and distribution 70% Nature of business. The Partnership divides its operations into two primary areas with developed midstream infrastructure, both of which are supported by significant acreage dedications from Oasis Petroleum. In Wild Basin, Oasis Petroleum has dedicated to the Partnership approximately 65,000 acres, of which approximately 29,000 acres are within Oasis Petroleum’s current gross operated acreage position, and in which the Partnership has the right to provide crude oil, gas and water services to support Oasis Petroleum’s existing and future production. In addition, Oasis Petroleum has dedicated to the Partnership approximately 581,000 acres and 364,000 acres for produced and flowback water services and freshwater services, respectively, of which approximately 299,000 acres and 203,000 acres, respectively, are within Oasis Petroleum’s current gross operated acreage. The Partnership has also received certain commitments from third parties in which the Partnership has the right to provide its full suite of midstream services to support existing and future third party volumes. The Partnership generates substantially all of its revenues through long-term, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of natural gas, crude oil and water that flows through the Partnership’s systems, and the Partnership does not take ownership to the crude oil or natural gas that it handles for Oasis Petroleum; however, the Partnership takes ownership of natural gas under certain purchase arrangements with third parties. Predecessor. Prior to the initial public offering on September 25, 2017 , Oasis Petroleum’s midstream services were performed by Oasis Midstream Services LLC (“OMS”), which constitutes the predecessor to the Partnership for accounting purposes (the “Predecessor”). The consolidated financial statements include the results of the Predecessor for the periods presented prior to the initial public offering on September 25, 2017 . Certain midstream infrastructure assets, liabilities, revenues and expenses included in the Predecessor’s historical financial statements have been excluded from the businesses of the DevCos upon formation. These excluded assets are not included in the consolidated financial statements for the periods presented subsequent to the initial public offering on September 25, 2017 . Substantially all of the services of the Predecessor were provided to Oasis Petroleum North America LLC (“OPNA”), a wholly owned subsidiary of Oasis Petroleum that conducts Oasis Petroleum’s crude oil and natural gas exploration and production activities. The Predecessor financial statements have been prepared from the separate records maintained by Oasis Petroleum and may not necessarily be indicative of the actual results of operations that might have occurred if the Predecessor had been operated separately during the periods reported. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Summary of Significant Accounting Policies and Basis of Presentation Basis of Presentation The accompanying consolidated financial statements of the Partnership include the accounts of Oasis Midstream Partners LP and its subsidiaries. All intercompany transactions have been eliminated in consolidation. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain reclassifications of prior year balances have been made to conform such amounts to current year classifications. These reclassifications have no impact on net income. Use of Estimates Preparation of the Partnership’s consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. Consolidation The Partnership’s consolidated financial statements include its accounts and the accounts of the DevCos, each of which is controlled by OMP GP LLC (the “General Partner”). All intercompany balances and transactions have been eliminated upon consolidation. Variable interest entities. In connection with the Partnership’s acquisition of additional ownership interest in both Bobcat DevCo and Beartooth DevCo on November 19, 2018 , the Partnership reassessed its prior conclusions of Bobcat DevCo and Beartooth DevCo as variable interest entities (“VIEs”). Based upon its reassessment, the Partnership determined Beartooth DevCo was no longer a VIE and consolidates into the Partnership’s financial statements under the voting interest consolidation model. With respect to Bobcat DevCo, management has determined that OMS’s equity at risk was established with non-substantive voting rights, making Bobcat DevCo a VIE under the rules of the Financial Accounting Standards Board (“FASB”). Through its 100% ownership interest in OMP Operating LLC (“OMP Operating”), which owns a controlling interest in Bobcat DevCo, the Partnership has the authority to direct the activities that most significantly affect the economic performance of this entity and the obligation to absorb losses or the right to receive benefits that could be potentially significant. Therefore, the Partnership is considered the primary beneficiary of Bobcat DevCo and is required to consolidate this entity in its financial statements under the VIE consolidation model. The Partnership has determined that Bighorn DevCo and Beartooth DevCo are not VIEs due to OMP Operating’s 100% and 70% ownership interest in Bighorn DevCo and Beartooth DevCo, respectively, which is proportional to its voting rights through its controlling interests. The Partnership has a controlling financial interest in Bighorn DevCo and Beartooth DevCo, through its 100% ownership interest in OMP Operating, and is required to consolidate Bighorn DevCo and Beartooth DevCo in its financial statements under the voting interest consolidation model. Non-controlling interests. The non-controlling interests represent Oasis Petroleum’s retained ownership interests, as of December 31, 2018 , in Bobcat DevCo and Beartooth DevCo of 75% and 30% , respectively. Significant Accounting Policies Revenue recognition. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers and a series of related accounting standards updates incorporated into GAAP as Accounting Standards Codification Topic 606 (“ASC 606”) using the modified retrospective method. The adoption of ASC 606 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. The Partnership has also modified current processes and controls to apply the requirements of the new standard and does not believe such modifications are material to its internal controls over financial reporting. Enhanced disclosures in accordance with the requirements of ASC 606 have been provided in Note 3 — Revenue Recognition . The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. The Partnership generates revenues primarily by charging fees for (i) crude oil gathering, stabilization, blending, storage and transportation, (ii) natural gas gathering, gas lift, compression and processing, (iii) produced and flowback water gathering and disposal and (iv) freshwater supply and distribution. The Partnership categorizes revenues as service revenues or product sales in its Consolidated Statements of Operations. For revenues generated under fee-based arrangements, the Partnership records the fees attributable to such arrangements as service revenues in its Consolidated Statements of Operations. Under fee-based arrangements, the Partnership does not take ownership of the volumes it handles for its customers and receives fees for midstream services it provides. Revenues are recognized based upon the transaction price at month-end under the right to invoice practical expedient. For revenues generated under purchase arrangements, the Partnership takes ownership of the product prior to sale and is the principal in the transaction. Revenues and expenses are recognized on a gross basis under Product sales and Costs of product sales, respectively, in the Consolidated Statements of Operations. Cash and cash equivalents. The Partnership classifies all unrestricted cash on hand and investments with original maturity dates less than 90 days as cash equivalents. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 was applied on a retrospective basis. The adoption of ASU 2016-15 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures. Transactions with affiliates. Transactions between Oasis Petroleum, its affiliates and the Partnership have been identified in the consolidated financial statements as transactions with affiliates. See Note 5 — Transactions with Affiliates . Property, plant and equipment. Property, plant and equipment consists primarily of pipelines, natural gas processing plants, produced and flowback water facilities and compressor stations. Property, plant and equipment is stated at the lower of historical cost less accumulated depreciation, or fair value, if impaired. The Partnership capitalizes a portion of its interest expense incurred on its outstanding debt. The amount capitalized is determined by multiplying the capitalization rate by the average amount of eligible accumulated capital expenditures and is limited to actual interest costs incurred during the period. The accumulated capital expenditures included in the capitalized interest calculation begin when the first costs are incurred and end when the asset is either placed into production or written off. The Partnership capitalized $4.9 million , $1.2 million and $4.4 million of interest costs for the years ended December 31, 2018 , 2017 and 2016 , respectively. These amounts are amortized over the useful life of the related assets once the assets are placed in-service. When assets are placed into service, management makes estimates with respect to useful lives and salvage values that management believes are reasonable. However, subsequent events could cause a change in estimates, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, among others, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions and supply and demand in the area. Depreciation is computed over the asset’s estimated useful life using the straight line method based on estimated useful lives and asset salvage values. The weighted average life of each of the Partnership’s pipelines, natural gas processing plants, produced and flowback water facilities, compressor stations, and other long-lived assets is 30 years. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is recognized as gain or loss. Impairment of long-lived assets. The Partnership evaluates the ability to recover the carrying amount of long-lived assets and determine whether such long-lived assets have been impaired. Impairment exists when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment analysis requires management to apply judgment in identifying impairment indicators and estimating future cash flows. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Fair value represents the estimated price between market participants to sell an asset in the principal or most advantageous market for the asset, based on assumptions a market participant would make. When warranted, management assesses the fair value of long-lived assets using commonly accepted techniques and may use more than one source in making such assessments. The factors used to determine fair value are subject to management’s judgment and expertise and include, but are not limited to, recent third-party comparable sales, internally developed discounted cash flow analysis and analysis from outside advisors. Significant changes, such as changes in contract rates or terms, the condition of an asset or management’s intent to utilize the asset, generally require management to reassess the cash flows related to long-lived assets. A reduction of the carrying value of fixed assets would represent a Level 3 fair value measurement. If actual results are not consistent with assumptions and estimates, or assumptions and estimates change due to new information, the Partnership may be exposed to additional impairment charges. Ultimately, a prolonged period of lower commodity prices may adversely affect the estimate of future operating results through lower throughput volumes on the Partnership’s assets, which could result in future impairment charges due to the potential impact on operations and cash flows. Asset retirement obligations (“ARO”). The Partnership records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred, with the corresponding cost capitalized by increasing the carrying amount of the related long-lived asset. For produced and flowback water disposal wells, this is the period in which the well is drilled or acquired. The ARO represents the estimated amount the Partnership will incur to plug, abandon and remediate the produced and flowback water properties at the end of their useful lives, in accordance with applicable state laws. The liability is accreted to its present value each period and the capitalized costs are depreciated using the straight-line method. The accretion expense is recorded as a component of depreciation and amortization in the Consolidated Statements of Operations. Some assets, including certain pipelines and the Partnership’s natural gas processing plants, have contractual or regulatory obligations to perform remediation and, in some instances, dismantlement and removal activities when the assets are abandoned. The Partnership is not able to reasonably estimate the fair value of the ARO for these assets because the settlement dates are indeterminable given the expected continued use of the assets with proper maintenance. The Partnership will record an ARO for these assets in the periods in which the settlement dates become reasonably determinable. The Partnership determines the ARO, which represents a non-financial liability which is measured at fair value on a non-recurring basis, by calculating the present value of estimated cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding timing and existence of a liability, as well as what constitutes adequate restoration. Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. These assumptions represent Level 3 inputs. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the related asset. Deferred financing costs. The Partnership capitalizes directly attributable costs incurred in connection with obtaining debt financing. These costs are amortized over the term of the related financing using the straight-line method, which approximates the interest method. The amortization expense is recorded as a component of interest expense in the Partnership’s Consolidated Statements of Operations. The deferred financing costs related to the Partnership’s revolving credit facility are included in other assets on the Consolidated Balance Sheets. Equity-based compensation. The Partnership has granted phantom unit awards and restricted unit awards under the Oasis Midstream Partners LP 2017 Long Term Incentive Plan (“LTIP”). The Partnership accounts for phantom unit awards as liability-classified awards in accordance with GAAP, since the Partnership intends to settle these awards in cash. The Partnership will be reimbursed by Oasis Petroleum for the cash settlement amount of these awards. The Partnership accounts for restricted units granted to certain independent directors of the General Partner as equity-classified awards in accordance with GAAP, as the Partnership intends to settle these awards in common units. Forfeitures associated with awards granted under the LTIP are accounted for when they occur. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 was adopted on a prospective basis. The adoption of ASU 2017-09 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures. Income taxes. For the period subsequent to the initial public offering, the consolidated financial statements do not include a provision for income taxes as the Partnership is generally not subject to federal or state income tax. Generally, each partner is separately taxed on its share of taxable income. For periods prior to the initial public offering, the consolidated financial statements include a provision for income tax expense. Deferred federal and state income taxes were provided on temporary differences between the financial statement carrying amounts of recognized assets and liabilities and their respective tax bases as if the Partnership filed tax returns as a stand-alone entity. Business combinations. The Partnership accounts for business combinations under the acquisition method of accounting. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and non-controlling interest, if any, in a business combination. Fair value is determined on the acquisition date. Acquisition-related costs are expensed as incurred in connection with each business combination. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition, and not later than one year from the acquisition date, the Partnership will record any material adjustments to the initial estimate based on new information obtained about facts and circumstances that existed as of the acquisition date. The Partnership makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. As fair value is a market-based measurement, it is determined based on the assumptions that market participants would use. The income valuation method represents the present value of future cash flows over the life of the asset using discrete financial forecasts. Such discrete financial forecasts rely on estimates and assumptions made by management. The most significant assumptions relate to management’s estimates of throughput volumes, future operating and development costs, long-term growth rates and a market-based weighted average cost of capital. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. Any excess of the acquisition price over the estimated fair value of net assets acquired is recorded as goodwill. Any excess of the estimated fair value of net assets acquired over the acquisition price is recorded in current earnings as a gain on bargain purchase. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was adopted on a prospective basis. The adoption of ASU 2017-01 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures. Concentrations of Market and Credit Risk The Partnership has limited direct exposure to risks associated with fluctuating commodity prices due to the nature of its business and its long-term, fixed-fee arrangements with customers. However, to the extent that the future contractual arrangements with customers, including Oasis Petroleum or third parties, do not provide for fixed-fee structures, the Partnership may become subject to commodity price risk. Additionally, as substantially all of the Partnership’s revenues are derived from Oasis Petroleum, the Partnership is indirectly subject to risks associated with fluctuating commodity prices to the extent that lower commodity prices adversely affect Oasis Petroleum’s production, drilling schedule, financial condition, leverage, market reputation, liquidity, results of operations or cash flows. Recent Accounting Pronouncements Leases. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”), which established a right-of-use (“ROU”) model that requires a lessee to recognize an operating lease asset and lease liability on the balance sheet, with the exception of short-term leases. Accounting Standards Codification 842, Leases (“ASC 842”), was subsequently amended by ASU No. 2018-01, Land easement practical expedient for transition to Topic 842 (“ASU 2018-01”); ASU No. 2018-10, Codification Improvements to Topic 842; and ASU No. 2018-11, Targeted Improvements . The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The effective date and transition requirements for the amendments are the same as the effective date for ASU 2016-02. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Partnership will adopt the new standard as of January 1, 2019 using the required modified retrospective approach and plans to elect the option to recognize a cumulative effect adjustment of initially applying the guidance to the opening balance of retained earnings in the period of adoption, rather than recognizing in the earliest period presented. Prior period amounts will not be adjusted. ASU 2018-01 provides a number of optional practical expedients in transition. The Partnership expects to elect the ‘package of practical expedients’, which permits the Partnership not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs; the use-of hindsight practical expedient; the practical expedient pertaining to land easements, which provides an option to not evaluate under ASC 842 existing or expired land easements that were previously accounted for as leases under ASC 840, Leases ; and the practical expedient pertaining to combining lease and non-lease components. In addition, under the new standard, an entity may elect not to apply the recognition requirements of ASC 842 to short-term leases, which are leases with terms of one year or less. The Partnership expects to make this election, and as such, recognition of lease payments for short-term leases will be recognized in net income on a straight line basis. The Partnership expects the new standard will not have a material effect on its consolidated financial statements but will impact certain disclosures about the Partnership’s leasing activities. The Partnership plans to modify its business processes and controls to support the adoption of the new standard, including implementing a new lease accounting software to assess the portfolio of leases, assist in the quantification of the expected impact on the consolidated financial statements and facilitate the calculations of the related accounting entries and disclosures. The changes to controls will not materially affect the Partnership’s internal control over financial reporting, and the Partnership does not expect a significant change in its leasing activities as a result of this adoption. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASC 606 - Revenue from Contracts with Customers (“ASC 606”). This standard was effective in the first quarter of 2018 and the Partnership adopted the new standard using the modified retrospective method. The Partnership applied ASC 606 to all new contracts entered into after January 1, 2018 and all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of December 31, 2017. ASC 606 supersedes previous revenue recognition requirements in ASC 605 and includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services. In accordance with the adoption of ASC 606, management evaluated its contracts with customers to apply the five-step revenue recognition model. The adoption of ASC 606 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. Revenue from contracts with customers The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. The Partnership categorizes revenues as service revenues or product sales under the following types of arrangements: Fee-based arrangements. Revenues generated under fee-based arrangements are reported as service revenues on the Consolidated Statements of Operations. Under fee-based arrangements, the Partnership receives a fee for midstream services it provides to its customers, and revenues are recognized using the output method for measuring the satisfaction of performance obligations. Revenues earned under fee-based arrangements are generally directly related to the volume of crude oil, natural gas and produced and flowback water that flows through the Partnership’s systems, and the Partnership does not take ownership to the volumes it handles for its customers. Payments under fee-based arrangements are generally due 30 days after receipt of invoice. The Partnership generates revenues under fee-based arrangements as follows: • Crude oil and natural gas. The Partnership is party to certain contracts with customers for crude oil gathering, stabilization, blending, storage and transportation, as well as natural gas gathering, compression, processing and gas lift services. Under these customer contracts, the Partnership provides daily integrated midstream services on a stand ready basis over a period of time, which represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. • Produced and flowback water. The Partnership is party to certain contracts with customers for produced and flowback water gathering and disposal services, under which it provides daily integrated midstream services on a stand ready basis over a period of time, which represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Purchase arrangements. Revenues generated under purchase arrangements are reported as product sales on the Consolidated Statements of Operations. Under purchase arrangements, revenues and expenses are recognized on a gross basis since the Partnership takes control of the product prior to sale and is the principal in the transaction. Revenues are recognized using the output method for measuring the satisfaction of performance obligations based upon the volume of natural gas, NGLs or freshwater delivered to customers. Revenues associated with purchase arrangements are recognized at a point in time based upon the transaction price when title, control and risk of loss transfers to the customer, which occurs at the delivery point. Payments under purchase arrangements are generally due 30 days after receipt of invoice. The Partnership generates revenues under purchase arrangements as follows: • Natural gas. The Partnership is party to certain purchase arrangements with third parties pursuant to which the Partnership purchases natural gas from third parties at a connection point and obtains control prior to performing services and is the principal in the transaction. The Partnership gathers, compresses and/or processes the gas and then redelivers the residue gas and NGLs to a different counterparty at market-based prices. • Freshwater. The Partnership is party to certain contracts with customers for freshwater services, which includes freshwater supply and distribution. Under its customer contracts for freshwater supply and distribution services, the Partnership supplies and distributes freshwater to its customers for hydraulic fracturing and production optimization. These contracts contain multiple distinct performance obligations since each freshwater barrel can be sold separately and is not dependent or highly interrelated with other barrels. Disaggregation of revenues The following table summarizes revenues associated with contracts with customers for crude oil, natural gas and water services for the periods presented: Year Ended December 31, 2018 2017 2016 (In thousands) Service revenues Crude oil and natural gas revenues $ 134,562 $ 85,828 $ 16,660 Produced and flowback water revenues 116,258 84,350 91,706 Total service revenues 250,820 170,178 108,366 Product revenues Natural gas and NGL revenues 1,445 — — Freshwater revenues 19,358 12,038 12,486 Total product revenues 20,803 12,038 12,486 Total revenues $ 271,623 $ 182,216 $ 120,852 Contract balances Contract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract liabilities are recorded for consideration received from customers related to temporary deficiency quantities under minimum volume commitments, which are expected to be made up in a future period. This consideration is subsequently recognized as revenue when the customer makes up the volumes or the deficiency makeup period expires. The Partnership does not recognize contract assets or contract liabilities under its customer contracts for which invoicing occurs once the Partnership’s performance obligations have been satisfied and payment is unconditional. No contract balances were recorded in the Consolidated Balance Sheets as of December 31, 2018 . Remaining performance obligations ASC 606 requires presentation of information about partially and wholly unsatisfied performance obligations under contracts that exist as of the end of the period. The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are unsatisfied (or partially satisfied) as of December 31, 2018 : (In thousands) 2019 $ 24,877 2020 26,890 2021 25,638 2022 19,244 2023 12,624 Thereafter 14,642 Total $ 123,915 The partially and wholly unsatisfied performance obligations presented in the table above are generally limited to customer contracts which have fixed pricing and fixed volume terms and conditions, which generally include customer contracts with minimum volume commitment payment obligations. The Partnership has elected practical expedients, pursuant to ASC 606, to exclude from the presentation of remaining performance obligations: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a series of distinct services; (ii) contracts with an original expected duration of one year or less; and (iii) contracts for which the Partnership recognizes revenue under the right to invoice practical expedient. |
Dropdown of DevCo Ownership Int
Dropdown of DevCo Ownership Interests | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Dropdown of DevCo Ownership Interests | Dropdown of DevCo Ownership Interests On November 19, 2018 , the Partnership completed transactions contemplated by a contribution agreement (the “Contribution Agreement”) dated as of November 7, 2018 , with OMS Holdings LLC, OMS, OMP GP LLC, OMP Operating, and for certain limited purposes set forth therein, Oasis Petroleum. Pursuant to the Contribution Agreement, Oasis Petroleum caused OMS to contribute to OMP Operating, as the Partnership’s designee, (a) an additional 15% limited liability company interest in Bobcat DevCo, and (b) an additional 30% limited liability company interest in Beartooth DevCo (collectively, the “Contributed Assets”) for consideration of approximately $251.4 million (the “Purchase Price”), consisting of approximately $172.4 million in cash and 3,950,000 common units, representing limited partner interests in the Partnership (the “Dropdown Acquisition”). The Purchase Price includes post-effective date adjustments of approximately $1.4 million. The Partnership funded the cash portion of the Purchase Price with a combination of borrowings under the Revolving Credit Facility and proceeds from its public offering of common units. Following the Dropdown Acquisition, the Partnership owns 25% of the limited liability company interests of Bobcat DevCo and 70% of the limited liability company interests of Beartooth DevCo. The effective date of the Dropdown Acquisition was July 1, 2018 , and the Dropdown Acquisition closed on November 19, 2018 . Prior to the Dropdown Acquisition, the Contributed Assets were reflected as non-controlling interests in the consolidated financial statements. In accordance with FASB authoritative guidance under ASC 810-10 for non-controlling interests in a common control transaction, the Partnership accounted for the Dropdown Acquisition as an equity transaction and adjusted the carrying amount of non-controlling interests in the consolidated financial statements to reflect the change in ownership interests. Furthermore, as the Partnership acquired additional interests in previously consolidated subsidiaries, the Dropdown Acquisition did not result in a change in reporting entity, as defined under the FASB Accounting Standards Codification Topic 805, Business Combinations , and was accounted for on a prospective basis. |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates Revenues. The Partnership generates substantially all of its revenues through 15 -year, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of crude oil, natural gas, and produced and flowback water and freshwater that flows through the Partnership’s systems, and the Partnership does not take ownership of the crude oil or natural gas that it handles for Oasis Petroleum. Expenses. Oasis Petroleum provides substantial labor and overhead support for the Partnership. The Partnership is party to a 15 -year services and secondment agreement with Oasis Petroleum pursuant to which Oasis Petroleum provides all personnel, equipment, electricity, chemicals and services (including third-party services) required for the Partnership to operate such assets, and the Partnership reimburses Oasis Petroleum for its share of the actual costs of operating such assets (the “Services and Secondment Agreement”). In addition, pursuant to the Services and Secondment Agreement, Oasis Petroleum performs centralized corporate, general and administrative services for the Partnership, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. Oasis Petroleum has also seconded to the Partnership certain of its employees to operate, construct, manage and maintain its assets, and the Partnership reimburses Oasis Petroleum for direct general and administrative expenses incurred by Oasis Petroleum for the provision of these services. The expenses of executive officers and non-executive employees of Oasis Petroleum are allocated to the Partnership based on the amount of time spent managing its business and operations. For the periods prior to the initial public offering, shared services and direct labor were allocated to the Predecessor primarily based on headcount and direct usage during the respective years. Management believes that these allocations are reasonable and reflect the utilization of services provided and benefits received, but may differ from the cost that would have been incurred had the Predecessor operated as a stand-alone company for the periods presented prior to the initial public offering. Additionally, for the period prior to the initial public offering, interest expense was recognized by the Predecessor related to its funding activity with Oasis Petroleum based on capital expenditures for the period using the weighted average effective interest rate for Oasis Petroleum’s long-term indebtedness. General and administrative expenses and interest expense incurred from affiliate transactions with Oasis Petroleum include the following for the periods presented: Year Ended December 31, 2018 2017 2016 (In thousands) Operating expenses General and administrative $ 21,089 $ 12,828 $ 7,821 Interest expense, net of capitalized interest — 6,945 5,481 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: December 31, 2018 December 31, 2017 (In thousands) Accrued capital costs $ 42,953 $ 47,843 Accrued operating expenses 13,539 10,860 Other accrued liabilities 1,165 115 Total accrued liabilities $ 57,657 $ 58,818 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following: December 31, 2018 December 31, 2017 (In thousands) Pipelines $ 395,087 $ 255,231 Natural gas processing plant 278,680 102,371 Produced and flowback water facilities 95,119 80,050 Compressor stations 126,019 59,293 Other property and equipment 33,829 32,340 Construction in progress 4,422 124,643 Total 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 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On September 25, 2017 , the Partnership entered into a credit agreement (the “Credit Agreement”) for a $200.0 million revolving credit facility with OMP Operating as borrower (the “ Revolving Credit Facility ”), which has a maturity date of September 25, 2022 . The Revolving Credit Facility is available to fund working capital and to finance acquisitions and other capital expenditures of the Partnership. On August 27, 2018 , the Partnership entered into an amendment to the Credit Agreement (the “First Amended Credit Agreement”) to (i) increase the aggregate amount of commitments; (ii) provide for the ability to further increase the aggregate amount of commitments, subject to certain conditions; and (iii) add six new lenders to the bank group. Subject to the terms of the First Amended Credit Agreement, the aggregate amount of commitments increased from $200.0 million to $250.0 million , and the Partnership was provided the ability to further increase the aggregate amount of commitments to $400.0 million . On November 19, 2018 , in connection with the Partnership’s acquisition of additional ownership interests in Bobcat DevCo and Beartooth DevCo, and pursuant to the terms of the First Amended Credit Agreement, the aggregate amount of commitments increased from $250.0 million to $400.0 million , and the Partnership was provided the ability to further increase the aggregate amount of commitments to $600.0 million subject to certain conditions. The Revolving Credit Facility includes a letter of credit sublimit of $10.0 million and a swingline loans sublimit of $10.0 million . All obligations of OMP Operating, as the borrower under the Revolving Credit Facility, are unconditionally guaranteed on a joint and several basis by the Partnership, OMP Operating and Bighorn DevCo. The Revolving Credit Facility is collateralized by mortgages and other security interests on substantially all of the Partnership’s and its subsidiaries’ properties and assets, including the equity interests in all present and future subsidiaries (subject to certain exceptions). Some or all of the collateral owned by Bobcat DevCo and Beartooth DevCo is subject to an intercreditor agreement between Wells Fargo, National Association (“Wells Fargo”), as administrative agent for the Revolving Credit Facility, and Wells Fargo as the administrative agent for the revolving credit facility of Oasis Petroleum, and acknowledged by OMS, Bobcat DevCo and Beartooth DevCo. The Revolving Credit Facility provides for customary representations, warranties and covenants, including, among other things, covenants relating to financial and collateral reporting, notices of material events, maintenance of the existence of the business and its properties, payment of obligations, the Partnership’s ability to enter into certain hedging agreements, limitations on the Partnership’s ability to sell or acquire properties and limitations on indebtedness and liens, dividends and distributions, transactions with affiliates and certain fundamental transactions. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable margin (as described below) plus (i) with respect to Eurodollar Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) or (ii) with respect to ABR Loans, the greatest of (A) the Prime Rate in effect on such day, (B) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00% or (C) the Adjusted LIBO Rate for a one-month interest period on such day plus 1.00% (each as defined in the Credit Agreement). The applicable margin for borrowings under the Revolving Credit Facility is determined in accordance with the Credit Agreement as follows: Consolidated Total Leverage Ratio Applicable Margin for Eurodollar Loans Applicable Margin for ABR Loans Commitment Fee Rate Less than or equal to 3.00 to 1.00 1.75 % 0.75 % 0.375 % Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 2.00 % 1.00 % 0.375 % Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 2.25 % 1.25 % 0.500 % Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 2.50 % 1.50 % 0.500 % Greater than 4.50 to 1.00 2.75 % 1.75 % 0.500 % The Revolving Credit Facility also requires the Partnership to maintain the following financial covenants as of the end of each fiscal quarter: • Consolidated Total Leverage Ratio: Prior to the date on which one or more of the credit parties have issued an aggregate principal amount of at least $150.0 million of senior notes (as permitted under the Revolving Credit Facility) (such date the “Covenant Changeover Date”) and commencing with the fiscal quarter ended December 31, 2017 , the Partnership and OMP Operating’s ratio of Total Debt to EBITDA (each as defined in the Credit Agreement) on a quarterly basis may not exceed 4.50 to 1.00 (or during an Acquisition Period (as defined in the Credit Agreement), 5.00 to 1.00). On a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of Total Debt to EBITDA may not exceed 5.25 to 1.00. • Consolidated Senior Secured Leverage Ratio: On a quarterly basis, commencing with the date the Covenant Changeover Date occurs, the Partnership and OMP Operating’s ratio of Consolidated Senior Secured Funded Debt to EBITDA (each as defined in the Credit Agreement) may not exceed 3.75 to 1.00. • Consolidated Interest Coverage Ratio: On a quarterly basis prior to the Covenant Changeover Date and commencing with the fiscal quarter ended December 31, 2017 , the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense (each as defined in the Credit Agreement) may not be less than 3.00 to 1.00 and on a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense may not be less than 2.50 to 1.00 As of December 31, 2018 , the Partnership had $318.0 million of borrowings outstanding under the Revolving Credit Facility, resulting in an unused borrowing capacity of $82.0 million . As of December 31, 2018 and 2017 , the weighted average interest rate on borrowings under the Revolving Credit Facility was 4.2% and 3.2% , respectively. The Partnership was in compliance with the financial covenants of the Revolving Credit Facility as of December 31, 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Partnership is not a taxable entity for U.S. federal income tax purposes, and taxes are generally borne by unitholders through the allocation of taxable income. In connection with the initial public offering, Predecessor current and deferred tax liabilities of $104.0 million were eliminated upon consummation of the Partnership. As of December 31, 2018 , the reported amounts of the Partnership’s assets and liabilities exceeded the tax basis by $58.7 million . The provision for income taxes included in the Consolidated Statements of Operations for the periods presented relates to the Predecessor. The Predecessor is not a separate taxable entity for U.S. federal and certain states purposes, and its results are included in the consolidated income tax returns of Oasis Petroleum. The provision for income taxes recorded by the Predecessor was determined as if the Predecessor was a stand-alone taxpayer for the period prior to the initial public offering on September 25, 2017 . The Predecessor’s income tax expense consists of the following: Year Ended December 31, 2017 2016 (In thousands) Current: Federal $ 15,571 $ 21,272 State 2,047 2,797 17,618 24,069 Deferred: Federal 4,631 772 State 609 16 5,240 788 Total income tax expense $ 22,858 $ 24,857 The reconciliation of income taxes calculated at the U.S. federal statutory rate to the Predecessor’s effective tax rate for the years presented is as follows: Year Ended December 31, 2017 2016 (%) (In thousands) (%) (In thousands) U.S. federal statutory rate 35.00 % $ 33,392 35.00 % $ 22,745 Earnings not subject to tax subsequent to the initial public offering (12.83 )% (12,239 ) — % — State income taxes, net of federal income tax benefit 1.81 % 1,727 2.90 % 1,882 Other (0.02 )% (22 ) 0.35 % 230 Annual effective tax rate 23.96 % $ 22,858 38.25 % $ 24,857 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Included below is a discussion of various future commitments of the Partnership as of December 31, 2018 . The commitments under these arrangements are not recorded in the accompanying Consolidated Balance Sheets. The amounts disclosed represent undiscounted cash flows on a gross basis and no inflation elements have been applied. Operating lease. The Partnership has leases for certain machinery and equipment used in its operations, which it accounts for as operating leases in accordance with GAAP. For the years ended December 31, 2018 and 2017 , the Partnership incurred rental expenses related to its operating lease agreements of $5.9 million and $1.8 million , respectively. No rental expenses were incurred related to operating lease agreements for the year ended December 31, 2016 . Future minimum rental payments at December 31, 2018 are as follows: (In thousands) 2019 $ 736 2020 — 2021 — 2022 — 2023 — Thereafter — Total $ 736 Volume commitment agreements. As of December 31, 2018 , the Partnership had certain agreements with an aggregate requirement to either deliver or purchase a minimum quantity of approximately 15.1 million barrels of water, prior to any applicable volume credits, within specified timeframes, all of which are ten years or less. For the years ended December 31, 2018 , 2017 and 2016 , purchase costs incurred related to these agreements were $4.7 million , $2.1 million and $6.7 million , respectively. The estimable future commitments under these volume commitment agreements at December 31, 2018 are as follows: (In thousands) 2019 $ 2,948 2020 2,481 2021 2,663 2022 402 2023 — Thereafter 1,654 Total $ 10,148 Subsequent to December 31, 2018 , the Partnership entered into new agreements to deliver, transport, or purchase additional volumes of 9.0 million barrels of produced water within specified timeframes, all of which are ten years or less. The estimable future commitments under these volume commitment agreements were approximately $5.2 million . Litigation. The Partnership is party to various legal and/or regulatory proceedings from time to time arising in the ordinary course of business. When the Partnership determines that a loss is probable of occurring and is reasonably estimable, the Partnership accrues an undiscounted liability for such contingencies based on its best estimate using information available at the time. The Partnership discloses contingencies where an adverse outcome may be material, or where in the judgment of management, the matter should otherwise be disclosed. Mirada litigation. On March 23, 2017, Mirada filed a lawsuit against Oasis Petroleum, OPNA, and OMS, seeking monetary damages in excess of $100.0 million , declaratory relief, attorneys’ fees and costs (Mirada Energy, LLC, et al. v. Oasis Petroleum North America LLC, et al.; in the 334th Judicial District Court of Harris County, Texas; Case Number 2017-19911). In its original lawsuit, Mirada asserts that it is a working interest owner in certain acreage owned and operated by Oasis Petroleum in Wild Basin. Specifically, Mirada asserts that Oasis Petroleum has breached certain agreements by: (1) failing to allow Mirada to participate in Oasis Petroleum’s midstream operations in Wild Basin; (2) refusing to provide Mirada with information that Mirada contends is required under certain agreements and failing to provide information in a timely fashion; (3) failing to consult with Mirada and failing to obtain Mirada’s consent prior to drilling more than one well at a time in Wild Basin; and (4) overstating the estimated costs of proposed well operations in Wild Basin. Mirada seeks a declaratory judgment that OPNA be removed as operator in Wild Basin at Mirada’s election and that Mirada be allowed to elect a new operator; that certain agreements apply to Oasis Petroleum and Mirada and Wild Basin with respect to this dispute; that Oasis Petroleum be required to provide all information within its possession regarding proposed or ongoing operations in Wild Basin; and that OPNA not be permitted to drill, or propose to drill, more than one well at a time in Wild Basin without obtaining Mirada’s consent. Mirada also seeks a declaratory judgment with respect to Oasis Petroleum’s current midstream operations in Wild Basin. Specifically, Mirada seeks a declaratory judgment that Mirada has a right to participate in Oasis Petroleum’s Wild Basin midstream operations, consisting of produced and flowback water disposal, crude oil gathering and gas gathering and processing; that, upon Mirada’s election to participate, Mirada is obligated to pay its proportionate costs of Oasis Petroleum’s midstream operations in Wild Basin; and that Mirada would then be entitled to receive a share of revenues from the midstream operations and would not be charged any amount for its use of these facilities for production from the “Contract Area.” On June 30, 2017, Mirada amended its original petition to add a claim that Oasis Petroleum has breached certain agreements by charging Mirada for midstream services provided by its affiliates and to seek a declaratory judgment that Mirada is entitled to be paid its share of total proceeds from the sale of hydrocarbons received by OPNA or any affiliate of OPNA without deductions for midstream services provided by OPNA or its affiliates. On February 2, 2018 and February 16, 2018, Mirada filed a second and third amended petition, respectively. In these filings, Mirada alleged new legal theories for being entitled to enforce the underlying contracts, and added Bighorn DevCo LLC, Bobcat DevCo LLC and Beartooth DevCo LLC as defendants, asserting that these entities were created in bad faith in an effort to avoid contractual obligations owed to Mirada. Mirada may further amend its petition from time to time to assert additional claims as well as defendants. On March 2, 2018, Mirada filed a fourth amended petition that described Mirada’s alleged ownership and assignment of interests in assets purportedly governed by agreements at issue in the lawsuit. On August 31, 2018, Mirada filed a fifth amended petition that added the Partnership as a defendant, asserting that it was created in bad faith in an effort to avoid contractual obligations owed to Mirada. Oasis Petroleum believes that Mirada’s claims are without merit, that Oasis Petroleum has complied with its obligations under the applicable agreements and that some of Mirada’s claims are grounded in agreements which do not apply to Oasis Petroleum. Oasis Petroleum filed answers denying all of Mirada’s claims and intends to continue to vigorously defend against Mirada’s claims. The Partnership has not yet filed an answer because it has not yet been served with process. Discovery is ongoing, and each of the parties has made a number of procedural filings and motions, and additional filings and motions can be expected over the course of the claim. Trial was previously scheduled for May 2019, but, in connection with a request by the parties to continue the trial until a later date, the trial is now scheduled for February 2020. Neither we nor Oasis Petroleum can predict or guarantee the ultimate outcome or resolution of such matter. If such matter were to be determined adversely to our or Oasis Petroleum’s interests, or if we or Oasis Petroleum were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on our business, results of operations, financial condition and cash flows. Such an adverse determination could materially impact Oasis Petroleum’s ability to operate its properties in Wild Basin or develop its identified drilling locations in Wild Basin on its current development schedule. A determination that Mirada has a right to participate in Oasis Petroleum’s midstream operations could materially reduce the interests of Oasis Petroleum and us in our current assets and future midstream opportunities and related revenues in Wild Basin. Under the Omnibus Agreement the Partnership entered into with Oasis Petroleum in connection with the closing of the initial public offering, Oasis Petroleum agreed to indemnify the Partnership for any losses resulting from this litigation. However, the Partnership cannot guarantee that such indemnity will fully protect the Partnership from the adverse consequences of any adverse ruling. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation The LTIP provides for the grant, at the discretion of the Board of Directors of the General Partner, of options, unit appreciation rights, restricted units, phantom units, and other unit or cash-based awards. The purpose of awards under the LTIP is to provide additional incentive compensation to individuals providing services to the Partnership, and to align the economic interests of such individuals with the interests of the Partnership’s unitholders. As of December 31, 2018 , the aggregate number of common units that may be issued pursuant to any and all awards under the LTIP is equal to 2,117,618 common units, subject to adjustment due to recapitalization or reorganization, or related to forfeitures or expiration of awards, as provided under the LTIP. On January 1 of each calendar year following the adoption and prior to the expiration of the LTIP, the total number of common units that may be issued pursuant to the LTIP automatically increases by a number of common units equal to one percent of the number of common units outstanding on a fully diluted basis as of the close of business on the immediately preceding December 31 (calculated by adding to the number of common units outstanding, all outstanding securities convertible into common units on such date on an as converted basis). As a result of this adjustment, an additional 337,790 common units were reserved for issuance pursuant to awards under the LTIP on January 1, 2019 . Phantom unit awards. On October 19, 2017, the Partnership granted under its LTIP 101,500 phantom unit awards to certain employees of Oasis Petroleum who are non-employees of the Partnership. Each phantom unit represents the right to receive a cash payment equal to the fair market value of one common unit on the day prior to the date it vests. Award recipients are also entitled to distribution equivalent rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one common unit between the grant date and the vesting date. The phantom units vest in equal amounts each year over a three -year period. The phantom units are accounted for as liability-classified awards since the awards will settle in cash. Under the fair value method for liability-classified awards, compensation expense is remeasured each reporting period at fair value based upon the closing price of a publicly traded common unit. Oasis Petroleum reimburses the Partnership for the cash settlement amount of these awards. The following table summarizes information related to phantom units issued under the LTIP and held by certain employees of Oasis Petroleum for the periods presented: Phantom Units Weighted Average Grant Date Fair Value per Unit Non-vested units outstanding at December 31, 2017 99,100 $ 16.40 Granted — — Vested (29,254 ) 16.40 Forfeited (11,467 ) 16.40 Non-vested units outstanding at December 31, 2018 58,379 $ 16.40 Equity-based compensation recorded for phantom unit awards was $0.1 million and $0.2 million as of December 31, 2018 and 2017 , respectively, and is included on the Consolidated Balance Sheets in Accounts Receivable from Oasis Petroleum, for the portion reimbursed from Oasis Petroleum, and Accrued Liabilities, for the portion owed to award holders. The Partnership did not record any equity-based compensation expense related to these awards for the year ended December 31, 2016 because these awards were first granted during the fourth quarter of 2017 . The fair value of awards vested was $0.6 million for the year ended December 31, 2018 . No awards vested during the year ended December 31, 2017 . The weighted average grant date fair value of phantom units granted was $16.40 per unit for the year ended December 31, 2017 . No phantom units were granted under the LTIP for the year ended December 31, 2018 . Unrecognized equity-based compensation as of December 31, 2018 for all outstanding phantom unit awards was $0.9 million and will be recognized over a weighted average period of 1.9 years. Restricted unit awards. The Partnership has granted to independent directors of the General Partner restricted unit awards under the LTIP, which vest over a one -year period. These awards are accounted for as equity-classified awards since the awards will settle in common units upon vesting. Under the fair value method for equity-classified awards, equity-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the service period. The following table summarizes information related to restricted units issued under the LTIP and held by certain directors of the General Partner for the periods presented: Restricted Units Weighted Average Grant Date Fair Value per Unit Non-vested units outstanding at December 31, 2017 11,766 $ 17.00 Granted 17,260 17.55 Vested (11,766 ) 17.00 Forfeited — — Non-vested units outstanding at December 31, 2018 17,260 $ 17.55 Equity-based compensation expense recorded for restricted unit awards was $0.4 million and $0.1 million for the years ended December 31, 2018 and 2017 , respectively, and is included in general and administrative expenses on the Consolidated Statements of Operations. The fair value of awards vested was $0.3 million for the year ended December 31, 2018 . No awards vested during the year ended December 31, 2017 . The weighted average grant date fair value of restricted unit awards granted was $17.55 per unit and $17.00 per unit for the years ended December 31, 2018 and 2017 , respectively. Unrecognized equity-based compensation as of December 31, 2018 for all outstanding restricted unit awards was $0.1 million and will be recognized over a weighted average period of 0.4 years. Restricted stock awards (Predecessor). Prior to the initial public offering on September 25, 2017, certain employees of Oasis Petroleum were granted restricted stock awards under its Amended and Restated 2010 Long Term Incentive Plan, the majority of which vest over a three -year period. Oasis Petroleum accounts for these awards as equity-classified awards, in accordance with GAAP. The value of restricted stock grants is based on the closing sales price of Oasis Petroleum’s common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. In accordance with its indirect shared service expense allocation from Oasis Petroleum, the Predecessor recorded equity-based compensation expense associated with these awards of approximately $1.0 million and $0.9 million for the year ended December 31, 2017 and 2016 , respectively, and is included in general and administrative expenses on the Consolidated Statements of Operations. The fair value of awards vested was $0.8 million and $0.2 million for the years ended December 31, 2017 and 2016 , respectively. The weighted average grant date fair value of restricted stock awards granted was $14.95 per share and $6.63 per share for the years ended December 31, 2017 and 2016 , respectively. At December 31, 2018 , there was no unrecognized expense associated with these awards attributable to the Partnership. |
Partnership Equity and Distribu
Partnership Equity and Distributions | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Partnership Equity and Distributions | Partnership Equity and Distributions On September 25, 2017 , the Partnership completed its 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. Additionally, on October 10, 2017, the Partnership issued an additional 1,125,000 common units representing limited partner interests in the Partnership, pursuant to the underwriters’ over-allotment option at the same price and on the same terms. The Partnership received net proceeds of $134.2 million , after deducting underwriting discounts, structuring fees and offering costs. The initial public offering was pursuant to the Partnership’s registration statement on Form S-1, as amended, filed with the SEC and declared effective on September 20, 2017. On November 14, 2018 , the Partnership completed a public offering of 2,300,000 common units (including 300,000 common units issued pursuant to the underwriters’ option to purchase additional common units), representing limited partnership interests, at a purchase price to the public of $20.00 per common unit. Net proceeds from the offering were $44.5 million , after deducting underwriting discounts, commissions and offering costs. The Partnership used the net proceeds to fund a portion of its acquisition of additional ownership interests in Bobcat DevCo and Beartooth DevCo (see Note 4 — Dropdown of DevCo Ownership Interests ). This public offering was made pursuant to an effective shelf registration statement on Form S-3 filed with the SEC on October 1, 2018 . Cash distributions. On February 5, 2019 , the Board of Directors of the General Partner declared the quarterly distribution for the fourth quarter of $0.4500 per unit. In addition, the General Partner will receive a cash distribution of $0.1 million attributable to its incentive distribution rights (“IDRs”) related to earnings for the fourth quarter . These distributions were be paid on February 28, 2019 to unitholders of record as of February 15, 2019 . The following table details the distributions paid in respect of each period in which the distributions were earned: Distributions Limited Partners General Partner Period Record Date Distribution Date Distribution per limited partner unit Common units Subordinated units IDRs (In thousands) Q3 2017 (1) February 16, 2018 February 26, 2018 $ 0.0245 $ 337 $ 337 $ — Q4 2017 February 16, 2018 February 26, 2018 0.3750 5,161 5,156 — Q1 2018 May 17, 2018 May 29, 2018 0.3925 5,406 5,397 — Q2 2018 August 16, 2018 August 28, 2018 0.4100 5,649 5,638 — Q3 2018 November 9, 2018 November 27, 2018 0.4300 5,925 5,913 — Q4 2018 February 15, 2019 February 28, 2019 0.4500 9,020 6,188 112 __________________ (1) Distribution prorated from the closing of the Partnership’s initial public offering on September 25, 2017 . Minimum quarterly distribution. The partnership agreement requires that all of the Partnership’s available cash be distributed quarterly. Under the current cash distribution policy, the Partnership intends to distribute to the holders of common units and subordinated units on a quarterly basis at least the minimum quarterly distribution of $0.3750 per unit, or $1.50 on an annualized basis, to the extent the Partnership has sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments to the general partner and its affiliates. Subordinated units. Oasis Petroleum owns all of the Partnership’s subordinated units. The partnership agreement provides that, during the subordination period, the common units have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to the minimum quarterly distribution, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. No arrearages will accrue or be payable on the subordinated units. When the subordination period ends, each outstanding subordinated unit will convert into one common unit and will thereafter participate pro rata with the other common units in distributions of available cash. The subordination period will end on December 31, 2020 if each of the following tests are met: • for each of the three consecutive, non-overlapping four-quarter periods immediately preceding that date, aggregate distributions from operating surplus equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in each period; • for the same three consecutive, non-overlapping four-quarter periods, the “adjusted operating surplus” (as defined in the partnership agreement) equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding during each quarter on a fully diluted weighted average basis; and • there are no arrearages in payment of the minimum quarterly distribution on the common units. Notwithstanding the foregoing, the subordination period will automatically terminate, and all of the subordinated units will convert into common units on a one-for-one basis, on the first business day after the distribution to unitholders in respect of any quarter, beginning with the quarter ended December 31, 2018, if each of the following has occurred: • for one four-quarter period immediately preceding that date, aggregate distributions from operating surplus exceeded 150.0% of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in the period; • for the same four-quarter period, the “adjusted operating surplus” (as defined in the Partnership’s Amended and Restated Agreement of Limited Partnership) equaled or exceeded 150.0% of the sum of the minimum quarterly distribution multiplied by the total number of common and subordinated units outstanding during each quarter on a fully diluted weighted average basis, plus the related distribution on the incentive distribution rights; and • there are no arrearages in payment of the minimum quarterly distributions on the common units. Incentive distribution rights. The General Partner owns all of the Partnership’s IDRs, which entitle it to receive increasing percentages, up to a maximum of 50.0% of the cash the Partnership distributes in excess of $0.4313 per unit per quarter. The maximum distribution of 50.0% does not include any distributions that Oasis Petroleum may receive on common units or subordinated units that it owns. Percentage allocations of available cash from operating surplus. For any quarter in which the Partnership has distributed cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum distribution, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the incentive distribution rights holders in the following manner: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Minimum Quarterly Distribution up to $0.3750 100 % — % First Target Distribution above $0.3750 up to $0.4313 100 % — % Second Target Distribution above $0.4313 up to $0.4688 85 % 15 % Third Target Distribution above $0.4688 up to $0.5625 75 % 25 % Thereafter above $0.5625 50 % 50 % |
Earnings Per Limited Partner Un
Earnings Per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Limited Partner Unit | Earnings Per Limited Partner Unit Earnings per limited partner unit is computed by dividing the respective limited partners’ interest in earnings attributable to the Partnership by the weighted average number of common and subordinated units outstanding. Because there is more than one class of participating securities, the Partnership uses the two-class method when calculating earnings per limited partner unit. The classes of participating securities include common units, subordinated units, and IDRs. Diluted earnings per limited partner unit reflects the potential dilution that could occur if securities or agreements to issue common units, such as awards under the LTIP, were exercised, settled or converted into common units. When it is determined that potential common units should be included in diluted net income per limited partner unit calculation, the impact is reflected by applying the treasury stock method. The Partnership completed the Dropdown Acquisition on November 19, 2018 and acquired an additional 15% limited liability company interest in Bobcat DevCo and an additional 30% limited liability company interest in Beartooth DevCo. As a result, the Partnership recorded its share of net income in the Contributed Assets prospectively from the closing date on November 19, 2018 . See Note 4 — Dropdown of DevCo Ownership Interests for further information on the Dropdown Acquisition. The following table presents the calculation of earnings per limited partner unit under the two-class method: Year ended December 31, 2018 General Partner Limited Partners IDRs Common units Subordinated units Total (In thousands, except per unit data) Net income attributable to Oasis Midstream Partners LP: Distribution declared $ 112 $ 26,001 $ 23,134 $ 49,247 Undistributed earnings attributable to Oasis Midstream Partners LP — 415 393 808 Net income attributable to Oasis Midstream Partners LP $ 112 $ 26,416 $ 23,527 $ 50,055 Weighted average limited partner units outstanding Basic 14,504 Diluted 14,519 Net income attributable to Oasis Midstream Partners LP per limited partner unit Basic $ 1.82 Diluted 1.82 Anti-dilutive restricted units 6 Year ended December 31, 2017 General Partner Limited Partners IDRs Common units Subordinated units Total (In thousands, except per unit data) Net income attributable to Oasis Midstream Partners LP: Distribution declared $ — $ 5,498 $ 5,493 $ 10,991 Undistributed earnings attributable to Oasis Midstream Partners LP — 321 326 647 Net income attributable to Oasis Midstream Partners LP $ — $ 5,819 $ 5,819 $ 11,638 Weighted average limited partner units outstanding Basic 13,566 Diluted 13,568 Net income attributable to Oasis Midstream Partners LP per limited partner unit Basic $ 0.43 Diluted 0.43 Anti-dilutive restricted units 10 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 22, 2019 , the Partnership entered into a memorandum of understanding (the “MOU”) with Oasis Petroleum regarding the funding of Bobcat DevCo’s expansion capital expenditures for the 2019 calendar year (the “ 2019 Capital Expenditures Arrangement”). As of December 31, 2018 , the Partnership indirectly owned a 25% interest in Bobcat DevCo and Oasis Petroleum owned the remaining 75% interest. Pursuant to the Amended and Restated Limited Liability Company Agreement of Bobcat DevCo LLC, as amended (the “First A&R Bobcat LLCA”), the Partnership and Oasis Petroleum are each required to make pro-rata capital contributions to Bobcat DevCo in accordance with their respective percentage ownership interests in Bobcat DevCo. Pursuant to the MOU, the Partnership has agreed to make up to $80 million of capital contributions to Bobcat DevCo that Oasis Petroleum would otherwise be required to contribute under the First A&R Bobcat LLCA. In connection with execution of the MOU, the Partnership and Oasis Petroleum have amended the First A&R Bobcat LLCA and entered into the Second Amended and Restated Limited Liability Company Agreement of Bobcat DevCo (the “Second A&R Bobcat LLCA”). The Second A&R Bobcat LLCA includes provisions applicable to the disproportionate capital contributions that the Partnership will make to Bobcat DevCo in connection with the 2019 Capital Expenditures Arrangement. Pursuant to the Second A&R Bobcat LLCA, upon the occurrence of a disproportionate capital contribution, the Partnership’s percentage interest and Oasis Petroleum’s percentage interest in Bobcat DevCo will be adjusted to take into account the amount of the disproportionate capital contribution and the fair market value of Bobcat DevCo’s assets. Under the MOU, the Partnership has also agreed to a fair market value of Bobcat DevCo’s assets that will be used for the purposes of redetermining percentage interests in connection with the 2019 Capital Expenditures Arrangement. While the Second A&R Bobcat LLCA also contains provisions allowing a member to convert a disproportionate capital contribution to a pro-rata contribution in certain circumstances, Oasis Petroleum has agreed to waive its right to make such an election during the 2019 calendar year in the MOU. As a result of the 2019 Capital Expenditures Arrangement, the Partnership expects its percentage interest ownership in Bobcat DevCo to increase from 25% as of December 31, 2018 to between approximately 34% to 36% during the 2019 calendar year. Separate from the 2019 Capital Expenditures Arrangement and the agreements contained in the MOU, the Partnership and Oasis Petroleum may from time to time agree to fund certain special projects of Bobcat DevCo (“Bobcat Special Projects”) at ratios other than that reflected by their respective percentage interest ownership in Bobcat DevCo and without readjustments to their respective percentage interests. In general, the Partnership might agree to fund a Bobcat Special Project in excess of its pro-rata share of the relevant capital expenditures to the extent it expects to receive a disproportionate benefit from such capital expenditures. The Second A&R Bobcat LLCA also amends the First A&R Bobcat LLCA to include provisions related to the funding of any Bobcat Special Projects. The terms of the 2019 Capital Expenditures Arrangement were approved by the Board of Directors of 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. |
Quarterly Financial Data - Unau
Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data - Unaudited | Quarterly Financial Data - Unaudited The Partnership’s results of operations by quarter for the years ended December 31, 2018 and 2017 are as follows: Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per unit data) Revenues $ 61,421 $ 66,558 $ 71,467 $ 72,177 Operating income 31,791 37,668 39,013 40,294 Income before income taxes 31,529 37,485 38,835 38,560 Net income 31,529 37,485 38,835 38,560 Net income attributable to Oasis Midstream Partners LP 9,954 12,444 12,376 15,281 Earnings per limited partner unit - Basic and Diluted Common units 0.36 0.45 0.45 0.54 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per unit data) Revenues $ 37,640 $ 40,312 $ 47,381 $ 56,883 Operating income 20,763 23,102 25,135 33,363 Income before income taxes 19,544 20,089 22,407 33,365 Net income 12,249 12,424 14,509 33,365 Net income attributable to Oasis Midstream Partners LP (1) 526 11,112 Earnings per limited partner unit - Basic and Diluted Common units (1) 0.02 0.41 __________________ (1) N ot applicable for the periods prior to the initial public offering on September 25, 2017 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Partnership include the accounts of Oasis Midstream Partners LP and its subsidiaries. All intercompany transactions have been eliminated in consolidation. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Certain reclassifications of prior year balances have been made to conform such amounts to current year classifications. These reclassifications have no impact on net income. |
Use of Estimates | Use of Estimates Preparation of the Partnership’s consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. |
Consolidation | Consolidation The Partnership’s consolidated financial statements include its accounts and the accounts of the DevCos, each of which is controlled by OMP GP LLC (the “General Partner”). All intercompany balances and transactions have been eliminated upon consolidation. Variable interest entities. In connection with the Partnership’s acquisition of additional ownership interest in both Bobcat DevCo and Beartooth DevCo on November 19, 2018 , the Partnership reassessed its prior conclusions of Bobcat DevCo and Beartooth DevCo as variable interest entities (“VIEs”). Based upon its reassessment, the Partnership determined Beartooth DevCo was no longer a VIE and consolidates into the Partnership’s financial statements under the voting interest consolidation model. With respect to Bobcat DevCo, management has determined that OMS’s equity at risk was established with non-substantive voting rights, making Bobcat DevCo a VIE under the rules of the Financial Accounting Standards Board (“FASB”). Through its 100% ownership interest in OMP Operating LLC (“OMP Operating”), which owns a controlling interest in Bobcat DevCo, the Partnership has the authority to direct the activities that most significantly affect the economic performance of this entity and the obligation to absorb losses or the right to receive benefits that could be potentially significant. Therefore, the Partnership is considered the primary beneficiary of Bobcat DevCo and is required to consolidate this entity in its financial statements under the VIE consolidation model. The Partnership has determined that Bighorn DevCo and Beartooth DevCo are not VIEs due to OMP Operating’s 100% and 70% ownership interest in Bighorn DevCo and Beartooth DevCo, respectively, which is proportional to its voting rights through its controlling interests. The Partnership has a controlling financial interest in Bighorn DevCo and Beartooth DevCo, through its 100% ownership interest in OMP Operating, and is required to consolidate Bighorn DevCo and Beartooth DevCo in its financial statements under the voting interest consolidation model. |
Non-controlling Interests | Non-controlling interests. The non-controlling interests represent Oasis Petroleum’s retained ownership interests, as of December 31, 2018 , in Bobcat DevCo and Beartooth DevCo of 75% and 30% , respectively. |
Revenue Recognition | Revenue recognition. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers and a series of related accounting standards updates incorporated into GAAP as Accounting Standards Codification Topic 606 (“ASC 606”) using the modified retrospective method. The adoption of ASC 606 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. The Partnership has also modified current processes and controls to apply the requirements of the new standard and does not believe such modifications are material to its internal controls over financial reporting. Enhanced disclosures in accordance with the requirements of ASC 606 have been provided in Note 3 — Revenue Recognition . The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. The Partnership generates revenues primarily by charging fees for (i) crude oil gathering, stabilization, blending, storage and transportation, (ii) natural gas gathering, gas lift, compression and processing, (iii) produced and flowback water gathering and disposal and (iv) freshwater supply and distribution. The Partnership categorizes revenues as service revenues or product sales in its Consolidated Statements of Operations. For revenues generated under fee-based arrangements, the Partnership records the fees attributable to such arrangements as service revenues in its Consolidated Statements of Operations. Under fee-based arrangements, the Partnership does not take ownership of the volumes it handles for its customers and receives fees for midstream services it provides. Revenues are recognized based upon the transaction price at month-end under the right to invoice practical expedient. For revenues generated under purchase arrangements, the Partnership takes ownership of the product prior to sale and is the principal in the transaction. Revenues and expenses are recognized on a gross basis under Product sales and Costs of product sales, respectively, in the Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash and cash equivalents. The Partnership classifies all unrestricted cash on hand and investments with original maturity dates less than 90 days as cash equivalents. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 was applied on a retrospective basis. The adoption of ASU 2016-15 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures. |
Transactions with Affiliates | Transactions with affiliates. Transactions between Oasis Petroleum, its affiliates and the Partnership have been identified in the consolidated financial statements as transactions with affiliates. See Note 5 — Transactions with Affiliates . |
Property, Plant and Equipment | Property, plant and equipment. Property, plant and equipment consists primarily of pipelines, natural gas processing plants, produced and flowback water facilities and compressor stations. Property, plant and equipment is stated at the lower of historical cost less accumulated depreciation, or fair value, if impaired. The Partnership capitalizes a portion of its interest expense incurred on its outstanding debt. The amount capitalized is determined by multiplying the capitalization rate by the average amount of eligible accumulated capital expenditures and is limited to actual interest costs incurred during the period. The accumulated capital expenditures included in the capitalized interest calculation begin when the first costs are incurred and end when the asset is either placed into production or written off. The Partnership capitalized $4.9 million , $1.2 million and $4.4 million of interest costs for the years ended December 31, 2018 , 2017 and 2016 , respectively. These amounts are amortized over the useful life of the related assets once the assets are placed in-service. When assets are placed into service, management makes estimates with respect to useful lives and salvage values that management believes are reasonable. However, subsequent events could cause a change in estimates, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, among others, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions and supply and demand in the area. Depreciation is computed over the asset’s estimated useful life using the straight line method based on estimated useful lives and asset salvage values. The weighted average life of each of the Partnership’s pipelines, natural gas processing plants, produced and flowback water facilities, compressor stations, and other long-lived assets is 30 years. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is recognized as gain or loss. |
Impairment of Long-Lived Assets | Impairment of long-lived assets. The Partnership evaluates the ability to recover the carrying amount of long-lived assets and determine whether such long-lived assets have been impaired. Impairment exists when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment analysis requires management to apply judgment in identifying impairment indicators and estimating future cash flows. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Fair value represents the estimated price between market participants to sell an asset in the principal or most advantageous market for the asset, based on assumptions a market participant would make. When warranted, management assesses the fair value of long-lived assets using commonly accepted techniques and may use more than one source in making such assessments. The factors used to determine fair value are subject to management’s judgment and expertise and include, but are not limited to, recent third-party comparable sales, internally developed discounted cash flow analysis and analysis from outside advisors. Significant changes, such as changes in contract rates or terms, the condition of an asset or management’s intent to utilize the asset, generally require management to reassess the cash flows related to long-lived assets. A reduction of the carrying value of fixed assets would represent a Level 3 fair value measurement. If actual results are not consistent with assumptions and estimates, or assumptions and estimates change due to new information, the Partnership may be exposed to additional impairment charges. Ultimately, a prolonged period of lower commodity prices may adversely affect the estimate of future operating results through lower throughput volumes on the Partnership’s assets, which could result in future impairment charges due to the potential impact on operations and cash flows. |
Asset Retirement Obligations | Asset retirement obligations (“ARO”). The Partnership records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred, with the corresponding cost capitalized by increasing the carrying amount of the related long-lived asset. For produced and flowback water disposal wells, this is the period in which the well is drilled or acquired. The ARO represents the estimated amount the Partnership will incur to plug, abandon and remediate the produced and flowback water properties at the end of their useful lives, in accordance with applicable state laws. The liability is accreted to its present value each period and the capitalized costs are depreciated using the straight-line method. The accretion expense is recorded as a component of depreciation and amortization in the Consolidated Statements of Operations. Some assets, including certain pipelines and the Partnership’s natural gas processing plants, have contractual or regulatory obligations to perform remediation and, in some instances, dismantlement and removal activities when the assets are abandoned. The Partnership is not able to reasonably estimate the fair value of the ARO for these assets because the settlement dates are indeterminable given the expected continued use of the assets with proper maintenance. The Partnership will record an ARO for these assets in the periods in which the settlement dates become reasonably determinable. The Partnership determines the ARO, which represents a non-financial liability which is measured at fair value on a non-recurring basis, by calculating the present value of estimated cash flows related to the liability. Estimating the future ARO requires management to make estimates and judgments regarding timing and existence of a liability, as well as what constitutes adequate restoration. Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate costs, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. These assumptions represent Level 3 inputs. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the related asset. |
Deferred Financing Costs | Deferred financing costs. The Partnership capitalizes directly attributable costs incurred in connection with obtaining debt financing. These costs are amortized over the term of the related financing using the straight-line method, which approximates the interest method. The amortization expense is recorded as a component of interest expense in the Partnership’s Consolidated Statements of Operations. The deferred financing costs related to the Partnership’s revolving credit facility are included in other assets on the Consolidated Balance Sheets. |
Equity-based Compensation | Equity-based compensation. The Partnership has granted phantom unit awards and restricted unit awards under the Oasis Midstream Partners LP 2017 Long Term Incentive Plan (“LTIP”). The Partnership accounts for phantom unit awards as liability-classified awards in accordance with GAAP, since the Partnership intends to settle these awards in cash. The Partnership will be reimbursed by Oasis Petroleum for the cash settlement amount of these awards. The Partnership accounts for restricted units granted to certain independent directors of the General Partner as equity-classified awards in accordance with GAAP, as the Partnership intends to settle these awards in common units. |
Income Taxes | Income taxes. For the period subsequent to the initial public offering, the consolidated financial statements do not include a provision for income taxes as the Partnership is generally not subject to federal or state income tax. Generally, each partner is separately taxed on its share of taxable income. For periods prior to the initial public offering, the consolidated financial statements include a provision for income tax expense. Deferred federal and state income taxes were provided on temporary differences between the financial statement carrying amounts of recognized assets and liabilities and their respective tax bases as if the Partnership filed tax returns as a stand-alone entity. |
Business Combinations | Business combinations. The Partnership accounts for business combinations under the acquisition method of accounting. An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired, liabilities assumed, and non-controlling interest, if any, in a business combination. Fair value is determined on the acquisition date. Acquisition-related costs are expensed as incurred in connection with each business combination. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded. Subsequent to the acquisition, and not later than one year from the acquisition date, the Partnership will record any material adjustments to the initial estimate based on new information obtained about facts and circumstances that existed as of the acquisition date. The Partnership makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. As fair value is a market-based measurement, it is determined based on the assumptions that market participants would use. The income valuation method represents the present value of future cash flows over the life of the asset using discrete financial forecasts. Such discrete financial forecasts rely on estimates and assumptions made by management. The most significant assumptions relate to management’s estimates of throughput volumes, future operating and development costs, long-term growth rates and a market-based weighted average cost of capital. The market valuation method uses prices paid for a reasonably similar asset by other purchasers in the market, with adjustments relating to any differences between the assets. The cost valuation method is based on the replacement cost of a comparable asset at prices at the time of the acquisition reduced for depreciation of the asset. Any excess of the acquisition price over the estimated fair value of net assets acquired is recorded as goodwill. Any excess of the estimated fair value of net assets acquired over the acquisition price is recorded in current earnings as a gain on bargain purchase. In the first quarter of 2018 , the Partnership adopted Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was adopted on a prospective basis. The adoption of ASU 2017-01 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures. |
Concentrations of Credit Risk | Concentrations of Market and Credit Risk The Partnership has limited direct exposure to risks associated with fluctuating commodity prices due to the nature of its business and its long-term, fixed-fee arrangements with customers. However, to the extent that the future contractual arrangements with customers, including Oasis Petroleum or third parties, do not provide for fixed-fee structures, the Partnership may become subject to commodity price risk. |
Concentrations of Market | Additionally, as substantially all of the Partnership’s revenues are derived from Oasis Petroleum, the Partnership is indirectly subject to risks associated with fluctuating commodity prices to the extent that lower commodity prices adversely affect Oasis Petroleum’s production, drilling schedule, financial condition, leverage, market reputation, liquidity, results of operations or cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Leases. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”), which established a right-of-use (“ROU”) model that requires a lessee to recognize an operating lease asset and lease liability on the balance sheet, with the exception of short-term leases. Accounting Standards Codification 842, Leases (“ASC 842”), was subsequently amended by ASU No. 2018-01, Land easement practical expedient for transition to Topic 842 (“ASU 2018-01”); ASU No. 2018-10, Codification Improvements to Topic 842; and ASU No. 2018-11, Targeted Improvements . The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The effective date and transition requirements for the amendments are the same as the effective date for ASU 2016-02. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Partnership will adopt the new standard as of January 1, 2019 using the required modified retrospective approach and plans to elect the option to recognize a cumulative effect adjustment of initially applying the guidance to the opening balance of retained earnings in the period of adoption, rather than recognizing in the earliest period presented. Prior period amounts will not be adjusted. ASU 2018-01 provides a number of optional practical expedients in transition. The Partnership expects to elect the ‘package of practical expedients’, which permits the Partnership not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs; the use-of hindsight practical expedient; the practical expedient pertaining to land easements, which provides an option to not evaluate under ASC 842 existing or expired land easements that were previously accounted for as leases under ASC 840, Leases ; and the practical expedient pertaining to combining lease and non-lease components. In addition, under the new standard, an entity may elect not to apply the recognition requirements of ASC 842 to short-term leases, which are leases with terms of one year or less. The Partnership expects to make this election, and as such, recognition of lease payments for short-term leases will be recognized in net income on a straight line basis. The Partnership expects the new standard will not have a material effect on its consolidated financial statements but will impact certain disclosures about the Partnership’s leasing activities. The Partnership plans to modify its business processes and controls to support the adoption of the new standard, including implementing a new lease accounting software to assess the portfolio of leases, assist in the quantification of the expected impact on the consolidated financial statements and facilitate the calculations of the related accounting entries and disclosures. The changes to controls will not materially affect the Partnership’s internal control over financial reporting, and the Partnership does not expect a significant change in its leasing activities as a result of this adoption. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Ownership Interests in DevCos | As of December 31, 2018 , the Partnership’s assets and ownership interests in the DevCos are as follows: DevCos Areas Served Service Lines OMP Ownership Bighorn DevCo Wild Basin – Natural gas processing – Crude oil stabilization – Crude oil blending – Crude oil and NGL storage – Crude oil transportation 100% Bobcat DevCo Wild Basin – Natural gas gathering – Natural gas compression – Gas lift – Crude oil gathering – Produced and flowback water gathering – Produced and flowback water disposal 25% Beartooth DevCo Alger – Produced and flowback water gathering – Produced and flowback water disposal – Freshwater supply and distribution 70% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenues associated with contracts with customers for crude oil, natural gas and water services for the periods presented: Year Ended December 31, 2018 2017 2016 (In thousands) Service revenues Crude oil and natural gas revenues $ 134,562 $ 85,828 $ 16,660 Produced and flowback water revenues 116,258 84,350 91,706 Total service revenues 250,820 170,178 108,366 Product revenues Natural gas and NGL revenues 1,445 — — Freshwater revenues 19,358 12,038 12,486 Total product revenues 20,803 12,038 12,486 Total revenues $ 271,623 $ 182,216 $ 120,852 |
Expected Satisfaction Period for Remaining Performance Obligation | The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are unsatisfied (or partially satisfied) as of December 31, 2018 : (In thousands) 2019 $ 24,877 2020 26,890 2021 25,638 2022 19,244 2023 12,624 Thereafter 14,642 Total $ 123,915 |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Operating Expenses | General and administrative expenses and interest expense incurred from affiliate transactions with Oasis Petroleum include the following for the periods presented: Year Ended December 31, 2018 2017 2016 (In thousands) Operating expenses General and administrative $ 21,089 $ 12,828 $ 7,821 Interest expense, net of capitalized interest — 6,945 5,481 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: December 31, 2018 December 31, 2017 (In thousands) Accrued capital costs $ 42,953 $ 47,843 Accrued operating expenses 13,539 10,860 Other accrued liabilities 1,165 115 Total accrued liabilities $ 57,657 $ 58,818 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following: December 31, 2018 December 31, 2017 (In thousands) Pipelines $ 395,087 $ 255,231 Natural gas processing plant 278,680 102,371 Produced and flowback water facilities 95,119 80,050 Compressor stations 126,019 59,293 Other property and equipment 33,829 32,340 Construction in progress 4,422 124,643 Total 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 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Applicable Debt Margins | The applicable margin for borrowings under the Revolving Credit Facility is determined in accordance with the Credit Agreement as follows: Consolidated Total Leverage Ratio Applicable Margin for Eurodollar Loans Applicable Margin for ABR Loans Commitment Fee Rate Less than or equal to 3.00 to 1.00 1.75 % 0.75 % 0.375 % Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 2.00 % 1.00 % 0.375 % Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 2.25 % 1.25 % 0.500 % Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 2.50 % 1.50 % 0.500 % Greater than 4.50 to 1.00 2.75 % 1.75 % 0.500 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Predecessor’s income tax expense consists of the following: Year Ended December 31, 2017 2016 (In thousands) Current: Federal $ 15,571 $ 21,272 State 2,047 2,797 17,618 24,069 Deferred: Federal 4,631 772 State 609 16 5,240 788 Total income tax expense $ 22,858 $ 24,857 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income taxes calculated at the U.S. federal statutory rate to the Predecessor’s effective tax rate for the years presented is as follows: Year Ended December 31, 2017 2016 (%) (In thousands) (%) (In thousands) U.S. federal statutory rate 35.00 % $ 33,392 35.00 % $ 22,745 Earnings not subject to tax subsequent to the initial public offering (12.83 )% (12,239 ) — % — State income taxes, net of federal income tax benefit 1.81 % 1,727 2.90 % 1,882 Other (0.02 )% (22 ) 0.35 % 230 Annual effective tax rate 23.96 % $ 22,858 38.25 % $ 24,857 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | Future minimum rental payments at December 31, 2018 are as follows: (In thousands) 2019 $ 736 2020 — 2021 — 2022 — 2023 — Thereafter — Total $ 736 |
Schedule of Future Minimum Commitments | The estimable future commitments under these volume commitment agreements at December 31, 2018 are as follows: (In thousands) 2019 $ 2,948 2020 2,481 2021 2,663 2022 402 2023 — Thereafter 1,654 Total $ 10,148 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Phantom Units Held by Certain Non-employees of the Partnership | The following table summarizes information related to phantom units issued under the LTIP and held by certain employees of Oasis Petroleum for the periods presented: Phantom Units Weighted Average Grant Date Fair Value per Unit Non-vested units outstanding at December 31, 2017 99,100 $ 16.40 Granted — — Vested (29,254 ) 16.40 Forfeited (11,467 ) 16.40 Non-vested units outstanding at December 31, 2018 58,379 $ 16.40 |
Schedule of Nonvested Share Activity | The following table summarizes information related to restricted units issued under the LTIP and held by certain directors of the General Partner for the periods presented: Restricted Units Weighted Average Grant Date Fair Value per Unit Non-vested units outstanding at December 31, 2017 11,766 $ 17.00 Granted 17,260 17.55 Vested (11,766 ) 17.00 Forfeited — — Non-vested units outstanding at December 31, 2018 17,260 $ 17.55 |
Partnership Equity and Distri_2
Partnership Equity and Distributions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Percentage Allocations of Available Cash from Operating Surplus | For any quarter in which the Partnership has distributed cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum distribution, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the incentive distribution rights holders in the following manner: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Minimum Quarterly Distribution up to $0.3750 100 % — % First Target Distribution above $0.3750 up to $0.4313 100 % — % Second Target Distribution above $0.4313 up to $0.4688 85 % 15 % Third Target Distribution above $0.4688 up to $0.5625 75 % 25 % Thereafter above $0.5625 50 % 50 % The following table details the distributions paid in respect of each period in which the distributions were earned: Distributions Limited Partners General Partner Period Record Date Distribution Date Distribution per limited partner unit Common units Subordinated units IDRs (In thousands) Q3 2017 (1) February 16, 2018 February 26, 2018 $ 0.0245 $ 337 $ 337 $ — Q4 2017 February 16, 2018 February 26, 2018 0.3750 5,161 5,156 — Q1 2018 May 17, 2018 May 29, 2018 0.3925 5,406 5,397 — Q2 2018 August 16, 2018 August 28, 2018 0.4100 5,649 5,638 — Q3 2018 November 9, 2018 November 27, 2018 0.4300 5,925 5,913 — Q4 2018 February 15, 2019 February 28, 2019 0.4500 9,020 6,188 112 __________________ (1) Distribution prorated from the closing of the Partnership’s initial public offering on September 25, 2017 . |
Earnings Per Limited Partner _2
Earnings Per Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Common and Subordinated Units | The following table presents the calculation of earnings per limited partner unit under the two-class method: Year ended December 31, 2018 General Partner Limited Partners IDRs Common units Subordinated units Total (In thousands, except per unit data) Net income attributable to Oasis Midstream Partners LP: Distribution declared $ 112 $ 26,001 $ 23,134 $ 49,247 Undistributed earnings attributable to Oasis Midstream Partners LP — 415 393 808 Net income attributable to Oasis Midstream Partners LP $ 112 $ 26,416 $ 23,527 $ 50,055 Weighted average limited partner units outstanding Basic 14,504 Diluted 14,519 Net income attributable to Oasis Midstream Partners LP per limited partner unit Basic $ 1.82 Diluted 1.82 Anti-dilutive restricted units 6 Year ended December 31, 2017 General Partner Limited Partners IDRs Common units Subordinated units Total (In thousands, except per unit data) Net income attributable to Oasis Midstream Partners LP: Distribution declared $ — $ 5,498 $ 5,493 $ 10,991 Undistributed earnings attributable to Oasis Midstream Partners LP — 321 326 647 Net income attributable to Oasis Midstream Partners LP $ — $ 5,819 $ 5,819 $ 11,638 Weighted average limited partner units outstanding Basic 13,566 Diluted 13,568 Net income attributable to Oasis Midstream Partners LP per limited partner unit Basic $ 0.43 Diluted 0.43 Anti-dilutive restricted units 10 |
Quarterly Financial Data - Un_2
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data - Unaudited | The Partnership’s results of operations by quarter for the years ended December 31, 2018 and 2017 are as follows: Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per unit data) Revenues $ 61,421 $ 66,558 $ 71,467 $ 72,177 Operating income 31,791 37,668 39,013 40,294 Income before income taxes 31,529 37,485 38,835 38,560 Net income 31,529 37,485 38,835 38,560 Net income attributable to Oasis Midstream Partners LP 9,954 12,444 12,376 15,281 Earnings per limited partner unit - Basic and Diluted Common units 0.36 0.45 0.45 0.54 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per unit data) Revenues $ 37,640 $ 40,312 $ 47,381 $ 56,883 Operating income 20,763 23,102 25,135 33,363 Income before income taxes 19,544 20,089 22,407 33,365 Net income 12,249 12,424 14,509 33,365 Net income attributable to Oasis Midstream Partners LP (1) 526 11,112 Earnings per limited partner unit - Basic and Diluted Common units (1) 0.02 0.41 __________________ (1) N ot applicable for the periods prior to the initial public offering on September 25, 2017 . |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) $ / shares in Units, shares in Thousands, a in Thousands, $ in Thousands | Sep. 25, 2017$ / sharesshares | Dec. 31, 2018a | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)aarea | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Limited Partners' Capital Account [Line Items] | ||||||
Net proceeds from initial public offering | $ | $ 134,185 | |||||
Proceeds from the Offering distributed to Oasis Petroleum | $ | $ 132,083 | $ 44,918 | ||||
Number of primary areas with developed infrastructure | area | 2 | |||||
Proceeds from initial public offering, net of offering costs | $ | $ 0 | $ 134,200 | $ 0 | |||
Payments of Distributions to Affiliates | $ | $ 0 | $ 132,100 | $ 0 | |||
Common Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Common units sold in public offering (shares) | shares | 7,500 | |||||
Price of common units sold (in usd per share) | $ / shares | $ 17 | |||||
Common Units | Over-Allotment Option | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Common units sold in public offering (shares) | shares | 1,125 | |||||
Wild Basin | Oil, Gas and Water Services [Member] | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Gross dedicated acreage received from Oasis (acres) | 65 | 65 | ||||
Wild Basin | Produced and flowback water revenues | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Gross dedicated acreage received from Oasis (acres) | 581 | 581 | ||||
Wild Basin | Freshwater revenues | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Gross dedicated acreage received from Oasis (acres) | 364 | 364 | ||||
Bighorn DevCo | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest (percent) | 100.00% | |||||
Oasis Midstream Partners, LP | Beartooth DevCo | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest (percent) | 70.00% | |||||
Oasis Midstream Partners, LP | Bobcat DevCo | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Ownership interest (percent) | 25.00% | |||||
Oasis Petroleum | Wild Basin | Oil, Gas and Water Services [Member] | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Dedicated acreage still within Oasis' gross operated acreage position (acres) | 29 | 29 | ||||
Oasis Petroleum | Wild Basin | Produced Water | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Dedicated acreage still within Oasis' gross operated acreage position (acres) | 299 | 299 | ||||
Oasis Petroleum | Wild Basin | Fresh Water | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Dedicated acreage still within Oasis' gross operated acreage position (acres) | 203 | 203 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Sep. 25, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | |||||
Interest costs capitalized | $ 4.9 | $ 1.2 | $ 4.4 | ||
Weighted average useful life of long-lived assets | 30 years | ||||
Bobcat DevCo | Bobcat DevCo | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 10.00% | ||||
Bobcat DevCo | Oasis Midstream Partners, LP | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 25.00% | ||||
Bobcat DevCo | Oasis Petroleum | |||||
Variable Interest Entity [Line Items] | |||||
Non-controlling interest (percent) | 75.00% | 75.00% | |||
Beartooth DevCo | Beartooth DevCo | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 40.00% | ||||
Beartooth DevCo | Oasis Midstream Partners, LP | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 70.00% | ||||
Beartooth DevCo | Oasis Petroleum | |||||
Variable Interest Entity [Line Items] | |||||
Non-controlling interest (percent) | 30.00% | 30.00% | |||
Bighorn DevCo | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 100.00% | ||||
Bighorn DevCo | OMP Operating, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 100.00% | ||||
OMP Operating, LLC | Bighorn DevCo | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest (percent) | 100.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Contract liability | $ 0 | $ 0 | |||||||||
Contract asset | 0 | 0 | |||||||||
Total revenues | $ 72,177,000 | $ 71,467,000 | $ 66,558,000 | $ 61,421,000 | $ 56,883,000 | $ 47,381,000 | $ 40,312,000 | $ 37,640,000 | 271,623,000 | $ 182,216,000 | $ 120,852,000 |
Midstream Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 250,820,000 | 170,178,000 | 108,366,000 | ||||||||
Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 20,803,000 | 12,038,000 | 12,486,000 | ||||||||
Crude oil and natural gas revenues | Midstream Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 134,562,000 | 85,828,000 | 16,660,000 | ||||||||
Produced and flowback water revenues | Midstream Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 116,258,000 | 84,350,000 | 91,706,000 | ||||||||
Natural gas and NGL revenues | Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,445,000 | 0 | 0 | ||||||||
Freshwater revenues | Product Sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 19,358,000 | $ 12,038,000 | $ 12,486,000 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Timing of satisfaction of performance obligation and payment | The partially and wholly unsatisfied performance obligations presented in the table above are generally limited to customer contracts which have fixed pricing and fixed volume terms and conditions, which generally include customer contracts with minimum volume commitment payment obligations. The Partnership has elected practical expedients, pursuant to ASC 606, to exclude from the presentation of remaining performance obligations: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a series of distinct services; (ii) contracts with an original expected duration of one year or less; and (iii) contracts for which the Partnership recognizes revenue under the right to invoice practical expedient. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24,877 |
Expected satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 26,890 |
Expected satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 25,638 |
Expected satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 19,244 |
Expected satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12,624 |
Expected satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 123,915 |
Expected satisfaction period | 1 year |
Dropdown of DevCo Ownership I_2
Dropdown of DevCo Ownership Interests (Details) - USD ($) shares in Thousands, $ in Millions | Nov. 19, 2018 | Sep. 25, 2017 | Dec. 31, 2018 |
Bobcat DevCo | Bobcat DevCo | |||
Business Acquisition [Line Items] | |||
Ownership interest (percent) | 10.00% | ||
Beartooth DevCo | Beartooth DevCo | |||
Business Acquisition [Line Items] | |||
Ownership interest (percent) | 40.00% | ||
Oasis Midstream Partners, LP | |||
Business Acquisition [Line Items] | |||
Consideration paid to acquire additional interest | $ 251.4 | ||
Cash consideration paid to acquire additional interest | $ 172.4 | ||
Oasis Midstream Partners, LP | Beartooth DevCo | |||
Business Acquisition [Line Items] | |||
Ownership interest (percent) | 70.00% | ||
Oasis Midstream Partners, LP | Bobcat DevCo | |||
Business Acquisition [Line Items] | |||
Ownership interest (percent) | 25.00% | ||
Oasis Midstream Partners, LP | Bobcat DevCo | Bobcat DevCo | |||
Business Acquisition [Line Items] | |||
Limited liability company interest (percent) | 15.00% | ||
Oasis Midstream Partners, LP | Beartooth DevCo | Beartooth DevCo | |||
Business Acquisition [Line Items] | |||
Limited liability company interest (percent) | 30.00% | ||
Oasis | Oasis Midstream Partners, LP | |||
Business Acquisition [Line Items] | |||
Common units paid as consideration to acquire additional interest (shares) | 3,950 | ||
Post-effective date purchase price adjustments | $ 1.4 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - Oasis - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
General and administrative | $ 21,089 | $ 12,828 | $ 7,821 |
Interest expense, net of capitalized interest | $ 0 | $ 6,945 | $ 5,481 |
Commercial Agreements with OPNA, Oasis Petroleum Marketing LLC (“OPM”) and OMS | |||
Related Party Transaction [Line Items] | |||
Term of contractual arrangements | 15 years | ||
Centralized Corporate, General and Administrative Services | Commercial Agreements with OPNA, Oasis Petroleum Marketing LLC (“OPM”) and OMS | |||
Related Party Transaction [Line Items] | |||
Term of contractual arrangements | 15 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued capital costs | $ 42,953 | $ 47,843 |
Accrued operating expenses | 13,539 | 10,860 |
Other accrued liabilities | 1,165 | 115 |
Total accrued liabilities | $ 57,657 | $ 58,818 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
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 |
Pipelines | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 395,087 | 255,231 |
Natural gas processing plant | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 278,680 | 102,371 |
Produced and flowback water facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 95,119 | 80,050 |
Compressor stations | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 126,019 | 59,293 |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 33,829 | 32,340 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 4,422 | $ 124,643 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Nov. 19, 2018USD ($) | Aug. 27, 2018USD ($) | Dec. 31, 2017 | Sep. 25, 2017USD ($) | |
Line of Credit Facility [Line Items] | |||||
Maximum consolidated senior secured leverage ratio | 3.75 | ||||
Covenant Period One | |||||
Line of Credit Facility [Line Items] | |||||
Maximum consolidated total leverage ratio | 4.50 | ||||
Minimum consolidated interest coverage ratio | 3 | ||||
Covenant Period Two | |||||
Line of Credit Facility [Line Items] | |||||
Maximum consolidated total leverage ratio | 5 | ||||
Minimum consolidated interest coverage ratio | 2.50 | ||||
Covenant Period Three | |||||
Line of Credit Facility [Line Items] | |||||
Maximum consolidated total leverage ratio | 5.25 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity increase limit | $ 600,000,000 | $ 400,000,000 | |||
Minimum aggregate principal amount threshold under covenant | $ 150,000,000 | ||||
ABR Loans | Revolving Credit Facility [Member] | Adjusted (LIBOR) Rate | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 1.00% | ||||
Eurodollar Loans | Revolving Credit Facility [Member] | Adjusted (LIBOR) Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 1.75% | ||||
Eurodollar Loans | Revolving Credit Facility [Member] | Adjusted (LIBOR) Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 2.75% | ||||
ABR Loans or Swingline Loans | Revolving Credit Facility [Member] | Federal Funds Effective Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 0.75% | ||||
ABR Loans or Swingline Loans | Revolving Credit Facility [Member] | Federal Funds Effective Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 1.75% | ||||
ABR Loans or Swingline Loans | Revolving Credit Facility [Member] | Adjusted (LIBOR) Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 0.75% | ||||
ABR Loans or Swingline Loans | Revolving Credit Facility [Member] | Adjusted (LIBOR) Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percent) | 1.75% | ||||
The Credit Agreement | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum aggregate commitment amount | 400,000,000 | $ 250,000,000 | $ 200,000,000 | ||
Amounts outstanding under credit facility | $ 318,000,000 | ||||
Unused borrowing capacity | $ 82,000,000 | ||||
Weighted average interest rate (percent) | 4.20% | 3.20% | |||
The Credit Agreement | Swingline Loans | |||||
Line of Credit Facility [Line Items] | |||||
Maximum aggregate commitment amount | $ 10,000,000 |
Long-Term Debt - Debt Marginal
Long-Term Debt - Debt Marginal Rates (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Less than or equal to 3.00 to 1.00 [Member] | Maximum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 3 |
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 [Member] | Minimum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 3 |
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 [Member] | Maximum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 3.50 |
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 [Member] | Minimum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 3.50 |
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 [Member] | Maximum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 4 |
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 [Member] | Minimum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 4 |
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 [Member] | Maximum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 4.50 |
Greater than 4.50 to 1.00 [Member] | Minimum | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 4.50 |
OMP Revolving Line of Credit [Member] | Less than or equal to 3.00 to 1.00 [Member] | |
Debt Instrument [Line Items] | |
Commitment fee rate (percent) | 0.375% |
OMP Revolving Line of Credit [Member] | Less than or equal to 3.00 to 1.00 [Member] | Eurodollar Loans [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 1.75% |
OMP Revolving Line of Credit [Member] | Less than or equal to 3.00 to 1.00 [Member] | Alternate Based Rate (ABR) [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 0.75% |
OMP Revolving Line of Credit [Member] | Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 [Member] | |
Debt Instrument [Line Items] | |
Commitment fee rate (percent) | 0.375% |
OMP Revolving Line of Credit [Member] | Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 [Member] | Eurodollar Loans [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 2.00% |
OMP Revolving Line of Credit [Member] | Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 [Member] | Alternate Based Rate (ABR) [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 1.00% |
OMP Revolving Line of Credit [Member] | Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 [Member] | |
Debt Instrument [Line Items] | |
Commitment fee rate (percent) | 0.50% |
OMP Revolving Line of Credit [Member] | Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 [Member] | Eurodollar Loans [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 2.25% |
OMP Revolving Line of Credit [Member] | Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 [Member] | Alternate Based Rate (ABR) [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 1.25% |
OMP Revolving Line of Credit [Member] | Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 [Member] | |
Debt Instrument [Line Items] | |
Commitment fee rate (percent) | 0.50% |
OMP Revolving Line of Credit [Member] | Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 [Member] | Eurodollar Loans [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 2.50% |
OMP Revolving Line of Credit [Member] | Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 [Member] | Alternate Based Rate (ABR) [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 1.50% |
OMP Revolving Line of Credit [Member] | Greater than 4.50 to 1.00 [Member] | |
Debt Instrument [Line Items] | |
Commitment fee rate (percent) | 0.50% |
OMP Revolving Line of Credit [Member] | Greater than 4.50 to 1.00 [Member] | Eurodollar Loans [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 2.75% |
OMP Revolving Line of Credit [Member] | Greater than 4.50 to 1.00 [Member] | Alternate Based Rate (ABR) [Member] | |
Debt Instrument [Line Items] | |
Applicable margin (percent) | 1.75% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2018 | |
Income Tax Holiday [Line Items] | ||
Predecessor net tax liabilities eliminated | $ 104,005 | |
Difference between tax bases and reported amounts of Partnership's assets and liabilities | $ 58,700 | |
Predecessor | ||
Income Tax Holiday [Line Items] | ||
Predecessor net tax liabilities eliminated | $ 104,005 | $ 104,000 |
Income Taxes - Components of Pr
Income Taxes - Components of Predecessor's Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Deferred Income Tax Expense (Benefit) | $ 0 | $ 5,240 | $ 788 |
Total income tax expense | $ 0 | 22,858 | 24,857 |
Predecessor | |||
Current Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Federal | 15,571 | 21,272 | |
State | 2,047 | 2,797 | |
Current Income Tax Expense (Benefit) | 17,618 | 24,069 | |
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Federal | 4,631 | 772 | |
State | 609 | 16 | |
Deferred Income Tax Expense (Benefit) | 5,240 | 788 | |
Total income tax expense | $ 22,858 | $ 24,857 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
U.S. federal statutory rate (percent) | 35.00% | 35.00% | |
Earnings not subject to tax subsequent to the Offering (percent) | (12.83%) | (0.00%) | |
State income taxes, net of federal income tax benefit (percent) | 1.81% | 2.90% | |
Other (percent) | (0.02%) | 0.35% | |
Annual effective tax rate (percent) | 23.96% | 38.25% | |
U.S. federal statutory rate | $ 33,392 | $ 22,745 | |
Earnings not subject to tax subsequent to the initial public offering | (12,239) | 0 | |
State income taxes, net of federal income tax benefit | 1,727 | 1,882 | |
Other | (22) | 230 | |
Total income tax expense | $ 0 | 22,858 | 24,857 |
Predecessor | |||
Income Tax Contingency [Line Items] | |||
Total income tax expense | $ 22,858 | $ 24,857 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) bbl in Millions | Mar. 23, 2017USD ($) | Dec. 31, 2018USD ($)bbl | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 01, 2019USD ($)bbl |
Loss Contingencies [Line Items] | |||||
Rental expense | $ 5,900,000 | $ 1,800,000 | $ 0 | ||
Mirada Litigation | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 100,000,000 | ||||
Water Volume Commitment Agreements | |||||
Loss Contingencies [Line Items] | |||||
Additional volumes of produced water under agreement | bbl | 15.1 | ||||
Purchase costs incurred | $ 4,700,000 | $ 2,100,000 | $ 6,700,000 | ||
Term of contractual arrangements | 10 years | ||||
Water Volume Commitment Agreements | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Additional volumes of produced water under agreement | bbl | 9 | ||||
Unrecorded commitments | $ 5,200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 736 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Future minimum rental payments | $ 736 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 2,948 |
2,020 | 2,481 |
2,021 | 2,663 |
2,022 | 402 |
2,023 | 0 |
Thereafter | 1,654 |
Future commitments | $ 10,148 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - Long Term Incentive Plan (LTIP) - USD ($) | Jan. 01, 2019 | Oct. 19, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of common units that were reserved for issuance under LTIP (shares) | 2,117,618 | ||||
Phantom Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted unit awards granted (shares) | 0 | ||||
Vested awards (shares) | 29,254 | ||||
Weighted average grant date per share (in dollars per share) | $ 0 | ||||
Restricted Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted unit awards granted (shares) | 17,260 | ||||
Stock-based compensation expense | $ 400,000 | $ 100,000 | |||
Fair value of vested awards | $ 300,000 | ||||
Vested awards (shares) | 11,766 | 0 | |||
Unrecognized compensation cost | $ 100,000 | ||||
Expected recognition period | 5 months 5 days | ||||
Vesting period | 1 year | ||||
Weighted average grant date per share (in dollars per share) | $ 17.55 | $ 17 | |||
Predecessor | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,000,000 | $ 900,000 | |||
Fair value of vested awards | $ 800,000 | $ 200,000 | |||
Unrecognized compensation cost | $ 0 | ||||
Vesting period | 3 years | ||||
Weighted average grant date per share (in dollars per share) | $ 14.95 | $ 6.63 | |||
Oasis Midstream Partners, LP | Phantom Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted unit awards granted (shares) | 101,500 | 0 | |||
Vesting period of granted awards | 3 years | ||||
Stock-based compensation expense | $ 100,000 | $ 200,000 | |||
Fair value of vested awards | 600,000 | ||||
Vested awards (shares) | 0 | ||||
Unrecognized compensation cost | $ 900,000 | ||||
Expected recognition period | 1 year 10 months 28 days | ||||
Weighted average grant date per share (in dollars per share) | $ 16.40 | ||||
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional number of common units that were reserved for issuance under LTIP (shares) | 337,790 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Equity Units Activity (Details) - Long Term Incentive Plan (LTIP) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (shares) | 99,100 | |
Granted (shares) | 0 | |
Vested (shares) | (29,254) | |
Forfeited (shares) | (11,467) | |
Outstanding at end of period (shares) | 58,379 | 99,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date per share, outstanding (in dollars per share) | $ 16.40 | |
Weighted average grant date per share, granted (in dollars per share) | 0 | |
Weighted average grant date per share, vested (in dollars per share) | 16.40 | |
Weighted average grant date per share, forfeited (in dollars per share) | 16.40 | |
Weighted average grant date per share, outstanding (in dollars per share) | $ 16.40 | $ 16.40 |
Restricted Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (shares) | 11,766 | |
Granted (shares) | 17,260 | |
Vested (shares) | (11,766) | 0 |
Forfeited (shares) | 0 | |
Outstanding at end of period (shares) | 17,260 | 11,766 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date per share, granted (in dollars per share) | $ 17.55 | $ 17 |
Weighted average grant date per share, vested (in dollars per share) | 17 | |
Weighted average grant date per share, forfeited (in dollars per share) | 0 | |
Weighted average grant date per share, outstanding (in dollars per share) | $ 17.55 |
Partnership Equity and Distri_3
Partnership Equity and Distributions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 05, 2019 | Nov. 14, 2018 | Sep. 25, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Proceeds from initial public offering, net of offering costs | $ 0 | $ 134,200 | $ 0 | ||||||||||
Proceeds from sale of common units, net of offering costs | 44,503 | 0 | $ 0 | ||||||||||
Quarterly cash distribution declared (in usd per share | $ 0.45 | $ 0.43 | $ 0.41 | $ 0.3925 | $ 0.375 | $ 0.0245 | |||||||
Distribution declared | 49,247 | 10,991 | |||||||||||
General Partner | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Distribution declared | $ 100 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 112 | 0 | |||||
Cash Distribution | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | $ 0.375 | ||||||||||||
Target annualized distributions (in usd per unit) | $ 1.50 | ||||||||||||
Termination threshold as percentage of sum of minimum distribution multiplied by total number of units outstanding (percent) | 150.00% | 50.00% | |||||||||||
Basis for General Partners' interest in distributions (in dollars per share) | $ 0.43125 | ||||||||||||
Cash Distribution | Target Distribution up to $0.375 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.375 | ||||||||||||
Cash Distribution | Target Distribution above $0.375 up to $0.4313 | Minimum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.375 | ||||||||||||
Cash Distribution | Target Distribution above $0.375 up to $0.4313 | Maximum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.4313 | ||||||||||||
Cash Distribution | Target Distribution above $0.4313 up to $0.4688 | Minimum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.4313 | ||||||||||||
Cash Distribution | Target Distribution above $0.4313 up to $0.4688 | Maximum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.4688 | ||||||||||||
Cash Distribution | Target Distribution above $$0.4688 up to 0.5625 | Minimum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.4688 | ||||||||||||
Cash Distribution | Target Distribution above $$0.4688 up to 0.5625 | Maximum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | 0.5625 | ||||||||||||
Cash Distribution | Target Distribution above $0.5625 | Minimum | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Partners periodic distribution (in dollars per share) | $ 0.5625 | ||||||||||||
Cash Distribution | Oasis | Target Distribution up to $0.375 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 100.00% | 100.00% | |||||||||||
Cash Distribution | Oasis | Target Distribution above $0.375 up to $0.4313 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 100.00% | 100.00% | |||||||||||
Cash Distribution | Oasis | Target Distribution above $0.4313 up to $0.4688 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 85.00% | 85.00% | |||||||||||
Cash Distribution | Oasis | Target Distribution above $$0.4688 up to 0.5625 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 75.00% | 75.00% | |||||||||||
Cash Distribution | Oasis | Target Distribution above $0.5625 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 50.00% | 50.00% | |||||||||||
Cash Distribution | General Partner | Target Distribution up to $0.375 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 0.00% | 0.00% | |||||||||||
Cash Distribution | General Partner | Target Distribution above $0.375 up to $0.4313 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 0.00% | 0.00% | |||||||||||
Cash Distribution | General Partner | Target Distribution above $0.4313 up to $0.4688 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 15.00% | 15.00% | |||||||||||
Cash Distribution | General Partner | Target Distribution above $$0.4688 up to 0.5625 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 25.00% | 25.00% | |||||||||||
Cash Distribution | General Partner | Target Distribution above $0.5625 | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Marginal percentage interest in distributions (percent) | 50.00% | 50.00% | |||||||||||
Subsequent Event | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Quarterly cash distribution declared (in usd per share | $ 0.45 | ||||||||||||
Common Units | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Common units sold in public offering (shares) | 7,500 | ||||||||||||
Price of common units sold (in usd per share) | $ 17 | ||||||||||||
Common Units | Oasis | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Distribution declared | $ 9,020 | 5,925 | 5,649 | 5,406 | 5,161 | 337 | $ 26,001 | 5,498 | |||||
Subordinated Units | Oasis | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Distribution declared | $ 6,188 | $ 5,913 | $ 5,638 | $ 5,397 | $ 5,156 | $ 337 | $ 23,134 | $ 5,493 | |||||
Over-Allotment Option | Common Units | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Common units sold in public offering (shares) | 1,125 | ||||||||||||
Oasis Midstream Partners, LP | Partnership Interest | Common Units | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Common units sold in public offering (shares) | 2,300 | ||||||||||||
Price of common units sold, net of underwriting discounts and commission (in usd per share) | $ 20 | ||||||||||||
Oasis Midstream Partners, LP | Partnership Interest | Over-Allotment Option | Common Units | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Common units sold in public offering (shares) | 300 |
Earnings Per Limited Partner _3
Earnings Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Distribution declared | $ 49,247 | $ 10,991 | |||||||
Undistributed earnings attributable to Oasis Midstream Partners LP | 808 | 647 | |||||||
Net income attributable to Oasis Midstream Partners LP | $ 15,281 | $ 12,376 | $ 12,444 | $ 9,954 | $ 11,112 | $ 11,638 | $ 526 | $ 50,055 | $ 11,638 |
Common Units | |||||||||
Weighted average limited partner units outstanding — Basic | |||||||||
Common units- Basic (shares) | 14,504 | 13,566 | |||||||
Weighted average limited partner units outstanding — Diluted | |||||||||
Common units - Diluted (shares) | 14,519 | 13,568 | |||||||
Net Income (Loss), Per Outstanding Limited Partnership Unit, Diluted, Other Disclosures [Abstract] | |||||||||
Earnings per limited partner units - basic (in usd per share) | $ 1.82 | $ 0.43 | |||||||
Earnings per limited partner units - diluted (in usd per share) | $ 1.82 | $ 0.43 | |||||||
General Partner | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Distribution declared | 100 | 0 | 0 | 0 | 0 | 0 | $ 112 | $ 0 | |
Undistributed earnings attributable to Oasis Midstream Partners LP | 0 | 0 | |||||||
Net income attributable to Oasis Midstream Partners LP | 0 | 112 | 0 | ||||||
Limited Partners | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Net income attributable to Oasis Midstream Partners LP | $ 11,638 | 49,943 | |||||||
Limited Partners | Common Units | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Distribution declared | 9,020 | 5,925 | 5,649 | 5,406 | 5,161 | 337 | 26,001 | 5,498 | |
Undistributed earnings attributable to Oasis Midstream Partners LP | 415 | 321 | |||||||
Net income attributable to Oasis Midstream Partners LP | $ 26,416 | $ 5,819 | |||||||
Weighted average limited partner units outstanding — Basic | |||||||||
Common units- Basic (shares) | 13,566 | 14,504 | |||||||
Weighted average limited partner units outstanding — Diluted | |||||||||
Common units - Diluted (shares) | 13,568 | 14,519 | |||||||
Net Income (Loss), Per Outstanding Limited Partnership Unit, Diluted, Other Disclosures [Abstract] | |||||||||
Antidilutive restricted units (in shares) | 6 | 10 | |||||||
Limited Partners | Subordinated Units | |||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||
Distribution declared | $ 6,188 | $ 5,913 | $ 5,638 | $ 5,397 | $ 5,156 | $ 337 | $ 23,134 | $ 5,493 | |
Undistributed earnings attributable to Oasis Midstream Partners LP | 393 | 326 | |||||||
Net income attributable to Oasis Midstream Partners LP | $ 23,527 | $ 5,819 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Millions | Feb. 22, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Oasis Midstream Partners, LP | Beartooth DevCo | |||
Subsequent Event [Line Items] | |||
Ownership interest (percent) | 70.00% | ||
Oasis Midstream Partners, LP | Bobcat DevCo | |||
Subsequent Event [Line Items] | |||
Ownership interest (percent) | 25.00% | ||
Minimum | Expects | Oasis Midstream Partners, LP | Bobcat DevCo | |||
Subsequent Event [Line Items] | |||
Ownership interest (percent) | 34.00% | ||
Maximum | Expects | Oasis Midstream Partners, LP | Bobcat DevCo | |||
Subsequent Event [Line Items] | |||
Ownership interest (percent) | 36.00% | ||
Subsequent Event | 2019 Capital Expenditures Arrangement | Oasis | |||
Subsequent Event [Line Items] | |||
Amount under capital contributions agreement | $ 80 |
Quarterly Financial Data - Un_3
Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 25, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenues | $ 72,177 | $ 71,467 | $ 66,558 | $ 61,421 | $ 56,883 | $ 47,381 | $ 40,312 | $ 37,640 | $ 271,623 | $ 182,216 | $ 120,852 | ||
Operating income | 40,294 | 39,013 | 37,668 | 31,791 | 33,363 | 25,135 | 23,102 | 20,763 | 148,766 | 102,363 | 70,940 | ||
Income before income taxes | 38,560 | 38,835 | 37,485 | 31,529 | 33,365 | 22,407 | 20,089 | 19,544 | 146,409 | 95,405 | 64,985 | ||
Net income | 38,560 | 38,835 | 37,485 | 31,529 | 33,365 | $ 34,970 | 14,509 | $ 12,424 | $ 12,249 | $ 37,577 | 146,409 | 72,547 | $ 40,128 |
Net income attributable to Oasis Midstream Partners LP | $ 15,281 | $ 12,376 | $ 12,444 | $ 9,954 | $ 11,112 | 11,638 | $ 526 | 50,055 | 11,638 | ||||
Common Units | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Basic and Diluted (in usd per share) | $ 0.54 | $ 0.45 | $ 0.45 | $ 0.36 | $ 0.41 | $ 0.02 | |||||||
Limited Partners | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net income | 0 | ||||||||||||
Net income attributable to Oasis Midstream Partners LP | $ 11,638 | 49,943 | |||||||||||
Limited Partners | Common Units | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net income | 25,913 | ||||||||||||
Net income attributable to Oasis Midstream Partners LP | $ 26,416 | 5,819 | |||||||||||
Basic and Diluted (in usd per share) | $ 0.43 | $ 1.82 | |||||||||||
Limited Partners | Subordinated Units | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Net income | $ 5,819 | $ 24,030 | |||||||||||
Net income attributable to Oasis Midstream Partners LP | $ 23,527 | $ 5,819 |