OMP - Earnings call transcript Q3 2020 | Oasis Midstream Partners LP

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Operator

Good morning. My name is Kate and I will be your conference operator today. At this time, I'd like to welcome everyone to the Third Quarter 2020 Earnings Release and Operations Update for Oasis Midstream Partners. Today, Oasis management will discuss third quarter 2020 results and the current environment. Please note that this event is being recorded. to CFO call to like Robuck, to now Midstream's Oasis begin would turn over the Richard I the conference. you. Thank

Richard Robuck

reporting to as our forward-looking currently Kate, have to subject Securities you, call. Robuck. Form that financial Act. good everyone. on including statements our be Midstream disclaim operational the Securities our well our matters in Reid we're release uncertainties and This Please XXXX third by be earnings filing We're update earnings in you of to joined on different statements are Thank remarks that have any and and members we from Partners obligation our results. Oasis and quarter Michael today of is as meaning morning, I'm Today other conference team. our the delighted Richard believe include Taylor disclosed forward-looking both XX-K, other among and Annual release, our our risks those Form call. actual that Litigation quarterly statements. Those be reports in These Petroleum risks to as materially with that XX-Q. Oasis the to statements we include described advised forward-looking and Reform within Private the on Commission results We could well cause Report Exchange these and on Lou,

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

of - highly process, us morning. to Q&A our we call, our sessions posted but the petroleum of calls. Oasis at session out wrap practice this We We our up. at we updated hosting resume feel of directly a After will website an reach not Q&A hosting to our restructuring presentation permits end be free end efficient expect after to to the emerges

the in about look I'll at call With take that the please meantime it turn OMP. more to So a Taylor. learn to over

Taylor Reid

everyone, joining and morning Thanks thanks Richard. call. our for Good

in While of oil We communities. and relatively COVID-XX the employees, the pandemic safety and contractors heavily stable industry. conditions quarter, remain were and the continues focused health on our weigh to on the gas third

quarter with resilient was affected structured to XXXX, have in kept uses us XXXX our check around and in peers. we to flow. levels, normal distribution XXXX, to fourth we three distribution relatively stand This materially quarter in and point, financial team leverage of last announcement was want be gave customer own its costs. times. many of the Through successful discussing capital an well have noted Operations I'll in but the been modest largest remain and previously from Oasis what improved maintained XX recognize reduce financial the operating debt. for on in that Third of September we On entity has Oasis with as subsidiaries to market performance difficult a dedications saw second not volumes, cost to OMP OMPs IPO'd immediate as included no continuous petroleum. terms team year, customer filing. been When quarter contracts I we remains at the the by not strong the are aggressively levels and curtailed both and Chapter contributions. its reduce control. cash focused remained increase their OMP continued as This lowering There and GMP fluctuations. has XX and or Midstream in Partners reiterate and in in all Oasis need compared our place. leverage flexibility begin restructuring was flat of deliberately announcement. and our at our I Oasis

default and cross OMP. debt. current with Oasis OMP no Bank That is strong has $XXX place. did Group default a are relationships provisions at its default its there remains the not on OMP’s million trigger that Additionally, facility in credit

Looking restructuring decidedly the positive set to support consummated out terms outcome forward, in is the the assuming according agreement, for is Oasis restructuring OMP.

is expected This to significantly lower First, give a development less to in a ability Oasis the position Oasis emerge leaner a financial steady, cost resilient prices. stronger lower with program in shift leverage run structure. with will likely to

in of projects, position third done a further. Oasis third opportunities. capturing benefits The expand we party has multiple team job a currently have OMP's We're business. hand improved great could party building extensive financial which evaluating diverse because Second, outlook even portfolio negotiating now stronger has and an it

Third, Oasis has Oasis the of we arrangements, inventory, to of two record development its that premier mutually inventory in remains a years to basins beneficial developing and in OMP Through deep future. track expect involving continue strong intact.

an Fourth, reached sheet, as RSA, Additionally, make the ultimately part with cost of assets, balance natural agreement Oasis strong Oasis of idling structure clean operating could which team, settlement Mirada. it consolidator OMP. benefit a

is is between OMP the waived. in to under as and IPO. expected be part was $XX million with restructuring, be of funded the expected our second the fully agreement place Oasis by put and in this Oasis expected Importantly, that of technical permanently default indemnity as interest to finally, associated the And quarter

recovered per weak shut-ins coverage quarter benefited this production OMP's as shut-in vast unit differentials. quarter to of control. and back is declared summer, cost exceptionally volumes on. were last approximately as year, strong benchmark these As performance with of third of juncture times. well third higher and the the through OMP X.X from the pervasive majority distribution earlier quarter, across $X.XX as the operators spring Williston Volumes steadily at pricing responded and this we noted

to the environment XXXX inform monitor OMP's operational and future We will decisions our outlook the financial We in guidance. to capital on continue lowered on distributions. range

the year to net this to to levels OMP. budget Now to about fall million below spending XX XX expecting XX% original

to balance into a sheet We and maintain Michael the to over preserve prudent in operational approach continue details. turn to now get take more I'll to current an OMP's to environment a little flexibility. the call the effort

Michael Lou

to downtime Thanks OMP. Taylor. performance our as pipeline. rates captured strong and allowed gas at on performance and Operating little as remain system leading levels remains Capture sponsor water maintain and as high its capture, well very pure experienced at oil OMP

basin to which third strong XX% both costs in on While challenge to capture, approximately XX% third on capture was quarter. quarter, I low in performance for the was in OMP focused that keep compares remains control and North to product the and gas good them team front keeping up about successful Dakota. work. across and I XX% commend operating the cost

increased we were quarter, third able and across significantly EBITDA all control as costs. the to improved margins During revenues commodity streams, substantially

accelerated the fourth to third modestly second limited, expected and the is of EBITDA volumes from from remains basin to Looking activity quarter, shut-in resumption the decline quarter was quarter. as the

volumes steady or to party from are Third slightly the increased expected third hold quarter.

of million We expect to range. $XXX prior end OMP's $XXX full-year top million EBITDA the our to exceed XXXX

a XXXX new to million for is range million. calls anchored Our by assets of quarter implying OMP leveraging And accretive oil view U.S. from investments two party of track customers. the of in by best million, scale $XX situated to the $XXX million $XXX fourth strong third $XX basins EBITDA range a in in record portfolio of diverse securing a it our the making had

preserve manage the transitory, Richard. the With continue conserve of this the environment capital such prudently and balance over is hand to that, and the to we recovery a timing business uncertain, I'll however, is call continue sheet. believe to We will to

Richard Robuck

of Thanks strong trailing debt net EBITDA position to financial Michael. OMP's remains with times. XX-month X.X

capture $XXX the Oasis on service now restructuring We and end off team back margins the we expect quarter our team's team both cash Taylor the $XXX in providing of second as similar the of down levels to costs year. position remain performance improved to customers. petroleum ability and volume great In quarter. hats We across I'll uninterrupted process. our our EBITDA We during had reflected petroleum Again, over the water million impressed delivered to this quarter. our pivot leverage great the at impressive $XX and Oasis the hand through and in million from order remarks. quarter closing the both an and the drawn to considerably. million in did of make end the drive our party transitioning the for during for revolver gas, to from been oil, conditions job third I've and closing, with see so the third to sure quarter call at

Taylor Reid

closing, managing through quarter can cost Thanks what Richard. and volumes remain In is third it in controlling focused results solid cycle. team increased were as control this The strong. on control

again make will ourselves call. days. coming follow-up we Thanks for joining always, available the questions in As the for

Operator

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

You may disconnect. now

Oasis Midstream Partners (OMP) 4 Nov 202020 Q3 Earnings call transcript