Oasis Midstream Partners LP (NYSE:OMP) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 12:30 pm ET

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Oasis Midstream Partners LP (NYSE:OMP) Q3 2019 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 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. Thank you. You may begin your conference.

Executive
Richard N. Robuck

Thanks, Allison. Welcome, everyone, this is Richard Robuck and today we're reporting our third quarter 2019 financial and operational results. We're delighted to have you on the call. I'm joined today by Taylor Reid and Michael Lou; as well as other members from the team.

Please be advised that our remarks on both Oasis Petroleum and Oasis Midstream Partners, including the answers to your questions, include 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 than 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 in our filings with the Securities and Exchange Commission, including 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 will also make references to certain non-GAAP financial measures and reconciliations to these applicable GAAP measures can be found in our earnings release and on our website. We will also 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'd start today by highlighting a handful of key points. First OMP's operational strength was demonstrated during the quarter, as throughput was at or above guidance levels across most commodity streams. Water was particularly strong, fueled by our sponsor's activity as well as third-party, which accounted for 15% of our Beartooth water volume. Coverage exceeded our guidance, we remain on track to deliver our operational and financial guidance for 2019.

Second, the team continues to have success in signing third-party agreements in both the Williston and the Delaware. We recently signed a crude gathering deal in the Delaware and a water gathering disposal deal in the Williston. The team has really done an outstanding job securing attractive customers to leverage our footprint, improving our financial outlook and diversifying our revenue stream. We hit a huge milestone in the third quarter, with approximately 20% of OMP EBITDA coming from third party. We expect to see a similar level in the fourth quarter as well.

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