OMP - Earnings call transcript Q3 2019 | Oasis Midstream Partners LP

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Operator

Good morning. My name is Allison, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Third Quarter 2019 Earnings Release and Operations Update for Oasis Midstream Partners [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Richard Robuck, Oasis Midstream's CFO to begin the conference. you. Thank

your begin conference. may You

Richard Robuck

you Allison. this members Reid today results. and Richard I'm from have and Michael Lou, as team. everyone, reporting Thanks, We're today our other Taylor to operational the is we're and third Robuck financial call. well Welcome, quarter by the on as delighted joined XXXX

we conference forward-looking to matters release Please the could among XX-K call. be Those XX-Q. obligation those materially Midstream to to Partners, Oasis quarterly within be Petroleum different annual disclosed your filings include update of Securities Oasis in Commission, questions, and currently the risks advised be disclaim uncertainties are results that including These reports that any Litigation on both our our on earnings to have report believe statements meaning forward-looking and the others, described Reform that as in than statements. well that the and Exchange these with our risks actual and statements Form in our forward-looking Securities remarks answers release to We subject our on Private cause we include, and Form earnings including statements Act.

on this and financial our During to our website. can measures we to make these GAAP release certain also measures references call, conference will non-GAAP applicable reconciliations in and be earnings found

site. our reference We Web on also our will find which current presentation, can investor you

turn I'll over With that, Taylor. the call to

Taylor Reid

highlighting Good handful points. call. thought of morning, We we'd start everyone and a today by for thanks our joining key

our Water accounted of well XXXX. and deliver levels sponsor's was we and on during across our to as as fueled by as operational exceeded guidance our at remain guidance guidance our volumes. above strength third-party, was operational demonstrated strong, financial was throughput OMP's quarter, Coverage water for XX% which particularly First most track Beartooth for commodity streams. activity or the

and Williston both securing gathering leverage deal has recently milestone a in signing disposal success the hit the crude third-party third in signed agreements in The our approximately team EBITDA as improving the the job and gathering water the continues in quarter, Williston. stream. have to quarter huge XX% a the see footprint, party. level outstanding deal a attractive team to to financial coming Delaware. an diversifying the our fourth Second, in We in We of and done really And with revenue third customers our a we expect from well. similar OMP outlook Delaware

the and unitholders. from of Third, OMP Oasis win OMP dedication a parties for huge support our acreage both Panther in of to OMP DevCo for dedication executed certain November is Delaware final for Petroleum demonstrates in oil agreements water. and This our

and compelling finally, growth, leading coverage investors. public, since a OMP and going remains look attractive to investment of peer improving And double-digit opportunity. represent greatly to distribution We've value yield continued combination execution. a The uniquely a expectations forward exceeded

prior the growth two second versus times In quarter, consistent improvement grew coverage in XX% the the distribution X.X our rate. sequential we annualized the from with targeted We distribution quarter, our of times, OMP distribution quarter. third a reported generated X%

Our ramped reflecting business. combination has party over strong of and Oasis nicely gas XXXX, complex a third up

quarter, of total approximated third-party Bighorn's volume. third the volumes Over XX%

increase to We expect throughput to fourth continue in the quarter.

record per in day about North in to Dakota day. a various gas X you've a X.X natural Bcf August, processing while gas basin at production that gas grew through remains the year As Bcf Basin Williston time heard this processing operators totaled tight.

with active regarding remain additional to opportunities. continue multiple parties We

and the third of Delaware, have situated our oil signed believe We to to As on first close this several a in we investment. overall in to seek capitalizing heart activity, more. is regional in lot quarter, the flaring great do our our strategic the proximity reduce hubs. Williston, a we industry while position opportunity party In deal

expectation distribution to our look times quarter are of we times. fourth we XXXX, maintaining of As the to X.X X coverage

With detail on operations. that, to I'll now our turn more a go little over to the call Michael, over

Michael Lou

Thanks unitholders. A its activity fourth directed performance our is and Taylor. our adding focused on the solid sponsors' plan drive executing value OMP to remains dedicated and OMP toward of to significant expected to areas, for amount quarter which continues be beyond. financial

becoming mentioned, bring Taylor to business, meaningful is cash we party flow. continue which of a as on third incremental our part Additionally,

more quarter, the of volumes. team at color as the end water from gas Bighorn, volumes the us crude running, our exceeded a gas into and did continued sponsor diving party for bit quarter The I'll job of high activity as sponsor back half Beartooth before give significantly of great and complex. a our third contribution well up for our guidance strong Bobcat top processing quarter above volumes and top and were or end At fourth complex guidance, both great and projections. third getting XXXX. at reflecting volumes the on DevCo, strong incremental At water, parties, a natural utilization a gas from during the gas of and were third at back the reflecting positioned and guidance at

related million. at the control. capital strong Turning financial The $XXX business. addition when X. impacts even new finalized some budget to capital. to trimmed around November now cost to beginning $XXX OMP Panther party $X OMP We've net the DevCo our midpoint, to with about CapEx, XXXX to million range between third is reflects expected including Total arrangement reduction of million

reimbursing our Our CapEx of reflects Panther range full OMP, year a at spending sponsor. including

of for XXXX CapEx party the from deals. we previous to million inclusion range. the be XX% guidance capital would $XX million, XXXX, $XXX means incremental to $XXX OMP, Looking expect implied this in gross approximately This CapEx down to of without third million. levels, drop gross could Net by moves about to approximately

second Bobcat our as versus DevCo with the the the increased arrangement in Lastly, quarter. XX.X% OMP capital XX.X% against to is interest in proceeding at Oasis as execution Bobcat end of expected, its

continue that Bobcat yet, not be months in discussions to and arrangement in will but to about coming in opportunity. XXXX the OMP We decided have Oasis extending

call hand to Richard. over the I'll With that,

Richard Robuck

position remains to a continues our sponsor's Thanks for adjusting financial behind timing Panther compelling We of activity to adjustment DevCo enhances to Closing of guidance made September Michael. OMP's our and outlook. cash our in and full-year November. the generation ramp largely Panther range, the third-party up agreement. minor financial Permian our EBITDA the from

distribution XX% per distribution track on target $X.XXX in third being remain deliver the unit. quarter We annualized to growth

to X.X Panther in CapEx times, the particularly, fourth end, OMP ratio September of EBITDA As net XXXX forecast at similar a XXX% of hits quarter. the maintaining year quarter XX, leverage third debt to we continue annualized and as

credit currently Our increase $XXX with committed, further revolving $XXX commitments facility to is million to the million. ability

to look and In about OMP's closing, the we're future. delivering this into performance results strong happy quarter forward

hand I'll call over that, With to back Allison the questions. for

Operator

of ahead. [Operator Jeremy Please Instructions] Our go come first question Tonet JPMorgan. from today will

Jeremy Tonet

growth to the distribution here. want with start off Just question

there it units debt unit benefits like price it it at point. a Given XX% it a that more wondering Bakken, in yielding I buyback see, lower going OMP Is forward doesn't from levels. has if situation and or the to can IDRs to for been the to just we here, be mean what time some makes growing still sense than help Oasis and sense ton LP where makes doesn't to these instead? seem seems the really that it this just grow

Richard Robuck

this is Richard. Jeremy,

that past has continue the growth back a that think revenue I been think diversifying the great the we've and company the on talked to about of that in doing job rate stream.

of the go as So party end no well. at EBITDA out third seeing that future XX% company you've basically the into seen from quarter, and the third the

the in do. tool set have growth the IDRs to do a compelling what for OMP so And out been it's to

necessarily lot we're does sense and we're you're of we I something out a yielding yielding as it look is and make the paying think growing. the future, where in growing when way that not

and other in I thing to really support we'll sheet We But the So see think XXXX the happy add don't needed. trying great change I where revisit start any pieces coverage I'd from balance But need to continue to perspective, ability our right I is see rate. growth, to growth that. it. de-lever is think that with if the the the we're growth see think an into other on through EBITDA we

Operator

Our next Tudor Pickering of Crawford come will go and ahead. Please Kob Holt. from question today

Crawford Kob

Basin. Basin processing non-Wild increasing Oasis outside leverage direct as the all out, parties? can third activity Wild OMP the Can provide existing of So still is processing or build

Taylor Reid

which the south is into we think business. continued obviously the we that way we've to footprint, as into we future, of Basin remaining years of and it as on position capture the you're we've piece But the of asset inventory position east gas I think the an got Basin. helpful, about bring actually outperform in that's forward do Beartooth kind of the plant. We have completions that ability, on to continue the happening moved as look seeing of some ability and the in Wild we've the -- as captured Wild

like And there to believe activity nameplate we where to acreage add is capacity, an And in out the gas processing we feel the to to there at we an continue processing then a actually there back ability like a basis look is, feel we complex. the future now from and with are is further on plant. XXX the to west, as bring incremental opportunity of day into

continues as ability incremental third to well there volumes, as with party, team attract And actually to try the to is so supplement customers. new volumes the as Oasis

Crawford Kob

going of volume to how growth CapEx last think a CapEx of be toward kind production flat trend me. growth about the Oasis moderates one closer profile should And it we more outside the from may Delaware, OMP Would forward? If maintenance level?

Richard Robuck

you see like will I year-over-year. couple the now, as you'll down remarks, dramatically our the of get coming capital into you prepared think on that from Michael a -- I see articulated years -- think

where down I think Oasis XXXX, Wild of bit. growth. Basin time that into as a capital in step to the you a a have Delaware move come areas, a then see And off Beartooth see understand, you volume we up program through tick might capital march as the type in similar capital well. other you'll capture some starts bit, you'll steady if obviously, like And pretty as would the you

Operator

And question Hammond come Pearce of today ahead. Please will from Energy. next our Simmons go

Pearce Hammond

success front. it having you're third good party the a question, First on like seems

out beyond EBITDA. XX% meaningful more And faster over about happening as at XXXX, than think could do you that furthermore pace of look announced you'd even that become what you expected? time? You've this then a Is

Taylor Reid

much in what we think about that our what we've that since I focused 'XX, was we seen IPO hadn't side. on third-party the talked

we the has year. in XX% line job team with number. the in in and signing us Williston, the It's at commercial continuing across customers what We're Our getting commodities all done beginning up an expected to incredible this now of to momentum to DevCo good on to are just grow the traction up over we're as we that really starting as Delaware, some there the have with opportunities And well. to continue gain time. starting Panther

to we about both we're across volumes really party feel the good side commercial how grow So third basins. continuing and

Pearce Hammond

be a about then OAS follow-up as Taylor, it as harder And one strategic that not But been my to talked its so might is maybe had formation. to OMP of last kind quite answer. quarter, at more

have EnCAP And maybe you all so a looking or might sell active been JV, more then obviously opportunities accordingly, or a it OAS. some bit for has pertains DevCo to become as And at whatnot?

does JVs for So and like year the options all that And mean? table on that what does for is mean the ahead? that there things

Taylor Reid

talked of obviously the that's made And the all processing were place know, about more we focused North the strategic that asset with strategic say gas in the other I nature, on importance getting the the third move a the that comments Just strategic it's party out. and plus this with laws part it Wild huge it's we front around would this, really as parts Dakota. you that fulfilled, has basin gas Richard base some in at the capture but of of huge to all in was point. also you part place, Basin, imprint the flaring know about

form the considering could we've sale. a the during basis. we're a operate business it it to of a last be be And could talked this all about the on being outright Now, options call, to an said, that go-forward on of could range way JV, all be and grow the continuing But business. in as this

a of we So a on that for year. that's of $XXX gross a to now business opportunities. that this the news basis one fledgling it But is range XXXX there's in from range great generate million going to us grew really EBITDA

of So turned our as it's part outright huge in supporting into but business, for both a the also OMP well. parent

Operator

to like session. will Reid, and Taylor the conference Ladies time, to gentlemen, turn at back I'd this this remarks. over our for conclude question-and-answer closing And any

Taylor Reid

remains We've third IPO financial the outlook again across solid. and Thanks board exceeded since Allison. call results our Thanks strong and the remains quarter outlook today. In closing, expectations were joining our the for attractive.

ourselves questions As follow-up for always, any have. available will make we you may

Operator

conference we attending for presentation. has The concluded. And you today's thank now

You may now lines. disconnect your

Oasis Midstream Partners (OMP) 6 Nov 192019 Q3 Earnings call transcript