Oasis Midstream Partners LP (NYSE:OMP) Q4 2018 Earnings Conference Call Transcript

Feb 27, 2019 • 12:30 pm ET

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Oasis Midstream Partners LP (NYSE:OMP) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
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 fourth quarter 2018 earnings release and operations update for Oasis Midstream Partners. All participant will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (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. Thank you. You may begin your conference.

Executive
Richard N. Robuck

Thank you, Allison. Good morning, everyone. This is Richard Robuck. Today, we're reporting our fourth quarter and full year 2018 financial and operational results. We're delighted to have you on our call today. I'm joined by Taylor Reid and Michael Lou, as well as other members of the team.

Please be advised that our remarks on both Oasis Petroleum and Oasis Midstream Partners, including the answers to your questions, includes statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently disclosed in our earnings release and conference call. Those risks include, among others, matters that we have described in our earnings release as well as in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward-looking statements.

During this conference call, we may also make reference to certain non-GAAP financial measures and reconciliations to applicable GAAP measures, which can be found in our earnings release on our website. We may reference our current investor presentation, which you can find on our website.

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

Executive
Taylor L. Reid

Good morning, everyone, and thanks for joining our call. We thought we would start today by highlighting a handful of key points. First, Oasis Midstream Partners' financial outlook remains quite strong and is proving resilient. Our sponsor's Wild Basin program in combination with additional third party deals provides a strong backdrop and gives us confidence we can hit our financial targets.

Second, OMP's new 200 million cubic foot per day plant came online in early December, making us the second largest natural gas processor in the Williston Basin. As we will discuss in greater detail, the new plant provides a strong financial tailwind and helps diversify our customer base. Congratulations to the team for their significant accomplishments here.

Third, our business development team has continued signing additional third-party contracts. We estimate, by the end of 2019, 30% to 40% of our new gas plant capacity will be filled by third parties.

Fourth, during the fourth quarter, we successfully closed the acquisition of additional interest in the Bobcat and Beartooth DevCos. This accretive deal puts OMP in a position to increase its scale, while simultaneously enhancing its coverage outlook. As we