OMP - Earnings call transcript Q4 2019 | Oasis Midstream Partners LP

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Operator

Good morning, my name is Branden, and I will be your conference operator today.

At this time, I'd like to welcome everyone to the fourth quarter 2019 earnings release and operations update for Oasis Midstream Partners. [Operator Instructions]

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

begin. may You

Richard Robuck

our Good other today Branden. financial This Richard Lou, you is operating Taylor today Thank and of Reid are morning, the reporting and Michael on have to we We're well XXXX I'm our Robuck, joined results. by as you, as delighted everyone. call. members fourth and quarter team.

These of uncertainties to the Private remarks forward-looking results answers from be Securities statements and Oasis that cause earnings could including in subject Litigation the to to Please and meaning call. questions Reform the Petroleum we statements release risks -- disclosed materially be Midstream meaning conference different forward-looking Oasis believe Act. advised with those to the on both actual that be are statements your our that our include within and Partners,

that report others, to filings in described Those Form annual our update Security matters our include, disclaim statements. the our and these XX-Q. as with we risks well We release, obligation our reports any quarterly earnings on XX-K have on Form including as Commission, forward-looking among in Exchange

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

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

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

Taylor Reid

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

year look as our high-end stride streams. XXXX. again delivering guidance for commodity great throughput was across to it we once our exceeded exited and has the guidance and hit quarter another forward Operationally, of coverage EBITDA and in First, company really was strong above OMP. the its most

This from parties of OMP win of in finalized both dedication huge for oil the Oasis our and water. a and in acreage support OMP demonstrates dedication Second, DevCo unitholders. to a Panther OMP Petroleum is for Delaware fourth certain quarter, our

and of lofty this financial our to opportunities, we've the now are talking public. revenue front. off fabulous number expectations Hats done and additional customers currently our We the stream. job has Delaware exceeding team improve diversify on have team a success opportunities the a over on and continued since to Third, across third-party XX secured our going parties on for help scale, different outlook their leverage opportunities. Numerous the Williston

in EBITDA As parties. came OMP's half a approximately of reminder, the XXXX, from XX% third back of

going forward OMP to compelling a remains and investment a of Finally to The attractive represent double-digit greatly growth, combination uniquely customers. our peer-leading strong value of continuing track look opportunity. public yield and expectations since record We've distribution exceeded coverage success.

is significantly Our approximated gas In XXXX. and total volumes XX% increased operating Bighorn third-party the volumes. complex of smoothly fourth quarter, volumes over

in plant basin captured tight. While area. fourth only in start-up Wild the months, the for the to Basin infrastructure place, in overall XX% you've seen in recent the we in Williston our Gas remains were of volumes Basin the gas Oasis but quarter, capture XX% with in processing Basin other able was Wild

total the Bcf production in online. X.XX likely at tight Gas ended continues with fourth basin capacity day. projects basin, to Dakota the gas X.XX North averaged to is hit day continues this in and North in production XX% of scheduled mandates to Dakota over November which year. to per capture, records new while quarter, per the processing grow new increase remain XX% so year even Bcf will

Delaware, a do OMP's opportunities parties we flaring as infrastructure continue is overall to and remain in more. on the opportunity investment. our with proximity reduce is deal while the an Williston, active regarding strong We strategic competitive Separately, additional seek positioning to multiple in in capitalizing and to a third-party several oil year think our hubs. regional to We signed first close lot already there this

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

Michael Lou

remains Thanks, Taylor. adding executing focused its plan our on to OMP value unitholders. and

a and programs ramp sponsor of Wild include begin as the XXXX. sponsored both up Hills. and Williston the OMP-dedicated Delaware, Williston, production In to areas OMP-dedicated the Indian Delaware in will Our including in In areas activity two Basin is our amount significant plans rig expected in in well.

business be third-party our significant a contributor flow. cash Additionally, to continues volumes to and

I'll the Beartooth, DevCo, gas well and guidance bit utilization exceeded give across reflecting complex quarter, around range. into high Utilization complex. volumes were fourth the gas projections. from more At of a volumes top-end the And At crude exceeded during our both XX% at the was the volumes guidance diving Bobcat our third-parties, volumes sponsor XXXX for at water gas as the on quarter. as the our color quarter board. before guidance strong for Bighorn, fourth and within

Looking forward provided suggesting we a to preliminary double-digit growth range year-over-year. XXXX, EBITDA

While typically and on our guidance the to a we've exceeded front expectations this our challenge multiple to years, for approach conservative we deliver above beyond take and plan. team

the significantly, and would decline versus of volumes We've guidance in our DevCo EBITDA typical in quarter, XXXX Page the beyond, how consistent we by the basis, timing quarter bit with presentation Williston XX investor ramp quarter EBITDA report. well to quarter gross should with fourth first provided EBITDA and we on On seasonality highest. being expect the Permian. In a second fourth and reflecting the a the quarterly

we and third-party the completion in majority range with of the the On the $XX in the being and of includes reflects The of end The capital, hand. versus DevCos. expecting expenditures of with spending agreement $XX Bobcat several major a in million XXXX projects XX% million Panther capital capital budget net-to-OMP, we're have Bobcat. spending projects to for decline some

As in the result increased potential as flow higher spending, would the cash more to in the projects well we but This moves bring once agreements. obviously have third-party commence. along, year

resulted of OMP the Lastly, with in arrangement Bobcat XXXX, XX% capital concluded OMP the Oasis, which DevCo. approximately owning in

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

Richard Robuck

$XXX for quarter per million continued position as well distribution X% fourth quarter. combination our from business. $XX growth. growing supports in the a sponsor, our remained double-digit to EBITDA million outlook XXXX, strong. a calls above outlook X.X support Thanks our The when grown $X.XX driven in We OMP's financial third-party well unit, coverage back by strong Michael. IPO'ed as and distribution and guidance XXXX fourth declared XXXX again has we forward of the growth quarter. growing coverage times versus our of prior at Distribution XX% yet distribution which in was from annualized

We Net X.X exit as fourth to drawn was ratio on a annualized debt XXXX. leverage our million to EBITDA with we quarter plan times similar maintain $XXX revolver.

and Basin. our future. effective enhances quarter OMP incurred financial liabilities $XX OMP OMP's to our Delaware closing, and November, In in began and we're million million assumed further strong Oasis transaction to prior servicing very the and pleased of diversifies in Finally, approximately revenue third-parties Oasis $XX forward Oasis approximately the reimbursed outlook. performance This with the look stream delivering in date. results this by

I will questions. now hand for call Brandon over to the

Operator

Please Our question J.P. Tonet Jeremy ahead. Morgan. go Instructions] first [Operator from with comes you. Thank

James Kirby

Hey, guys. for on This is James Jeremy.

start Do to a in guys that wanted of expect off have third-party you it's meet have XX% to you for a you Just on -- target? with timeline contribution. the target that slide guys terms when

Taylor Reid

revenues focus third-party now what that kind is grow we two to ago gone Yeah. on really about side. -- on And of into the We've side. no of the this in from XX% building see IPO'ed business. been we've started third-party Obviously, years third-party Really thing XXXX. James, you're us when to that where really able, you

progress. don't really base. like that, timeline very continue made have continuing toward Obviously, exact we'd we've but customer to good working an that diversify So on to progress. we're We hard our

doing two one pretty the We've across It's base customer customers or across that as new of commodities. number just significant. basins significantly. really We're well guys, is not the double-digit type grown it's and which

new really and got we'll and those to that on hopefully continue momentum really to our customers. customers, well well as share we've We've just great been with to of do So able customers continue grow a ton those market service front. so as

James Kirby

Panther, it. XXXX to would you Thanks. just on do What is think capital event transfer? you the the of And opportunity that requirements Got is And water recycling. a be mentioned the produced there? kind that pursue in then

Taylor Reid

out looking Permian, the that. is all a on other we basins. We're still of from costs. event. particular. don't a comes not That's water there into further water an think a it that. a We exact little that have It's than likely XXXX Obviously, lot produced That's produced is the little a in number recycling, But in bit actually easier big water the than Delaware in to out. of opportunity with produced work

need so And do quite get ready there much won't reuse. to to that as it be you to

but it. into looking big little further still we're a it's for us. probably opportunity, out It's So a

James Kirby

Thanks. for All me. right. That's it

Taylor Reid

Perfect, thanks.

Operator

comes question Energy. next go with Please Simmons Hammond ahead. Pearce Our from

Pearce Hammond

so you And exercising -- drawn call do what increase my questions. with Richard, accordion? right the meet are need and figure? you're sorry. And to accordion conditions by if thanks $XXX the that taking if for morning, on And about to anticipate the it the the you revolver. so, Good for feature, XX% the revolver million now

Richard Robuck

Pearce, question. a that's Yeah. great

capital the little bit the $XXX asset right drawn up Bobcat now on year. and perspective $XXX for that be doing the to last now feel really You -- drawn. good of we news Right good know DevCo, from going also spending year outspent grow Panther million arrangement, we're were to about at last -- we basically drew Bobcat then I we're the that of where is and business think the a peak we But million we as the our ramped acquisition revolver.

about you worked future projects do, lot extend on And group or just now -- capacity a The need thoughts so incremental back don't makes definitely think we feel we right profiles the along large like we leverage we has look have way think it. bank just it it like your in But to way, third-party past you profile more is you they go the for capital come we growth the have there the your is process willing -- group. I a to out you there's opportunity the they're it. and way leverage if show and we if we'll at is if sense bank if our there need and to is

Pearce Hammond

follow-up. you. my then Okay, And perfect. Thank

distribution and the for of distribution yield right now deleveraging? OMP that cut funds level of the distribution, the fact is it the that rewarded use and Given being for level sense make not to does the

Richard Robuck

into play. we is Pearce, There this analyze Yeah. that continue internally. factors come to are something many discuss that and

over we OMP done rate have so supported look has growth more years, the growing And accomplishments at our we've past few that in had. the as business than the what

when So customers. third-party barely ratio And coverage more went EBITDA that we're rate. closely as times the We've trouble fourth no from been quarter growth and has inventory than Oasis XXXX. to one had as X.X over X.X like distribution public the opportunities with from continue outpacing since to from our what times we we in Oasis, public. of linked at operations up going of decades see drilling times well

And Additionally, and we've slides we unitholders on track record our unitholders. have proven every believe two X been that been in benefit really the extremely to Slide X transaction of to our investor able being all what we've done has Slide And of of we unitholders. accretive we deck, going for do with a public. since focus the our have key that aligned

ways I going in find we'll as do through the to think that quarters. the rates around our forward we'll growth unitholders for right analyze this probably the we thing continue coming try options to and work to

the question was even that times, year feel exit year we and leading the like with really, with part and we really X.X of leverage. leverage leverage your as industry up sets good the second about The way about

Pearce Hammond

finally, the strategic on front? you a past anything And DevCo maybe JV guys had Great. selling talked any about just or in the updates, then or

Richard Robuck

Yeah.

Right of -- basins. asset a good now, looking obviously think basins. we're the in the those we've we're We diversification stuff right time. part we're at So all the among got

as So to business, -- grow third-party well our continued with looking sponsor, for Pearce. operation really that as opportunities build

right we're So that's here if focused and at basis. focus. that there We'll main the that, assets is pair Obviously and now. on of not take opportunities but opportunistic to off look there kind a

Operator

Reid like for conference question-and-answer This Taylor closing our over remarks. the session. I any turn back would concludes to to

Taylor Reid

quarter results Oasis strong fourth Partners. closing, for Midstream In marked Brandon. Thanks, quarter another

for on deliver expectations. questions exceed available to you. have. ourselves promises our follow-up continue always, might the any will call today. Thank We And you Thanks again for and that as joining we make

Operator

today’s you now conference for The concluded. attending presentation. Thank has

disconnect. now You may

Oasis Midstream Partners (OMP) 26 Feb 202019 Q4 Earnings call transcript