Oasis Midstream Partners LP (NYSE:OMP) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 12:30 pm ET


Oasis Midstream Partners LP (NYSE:OMP) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, my name is Brandon, 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. You may begin.

Richard N. Robuck

Thank you, Brandon. Good morning, everyone. This is Richard Robuck, and today we are reporting our fourth quarter 2019 financial and operating results. We're delighted to have you on our call. I'm joined today 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 include statements that we believe to be forward-looking statements with the meaning -- 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 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 Security 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 the conference call, we will also make references to certain non-GAAP financial measures and reconciliations to the applicable 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.

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, it was another great quarter for OMP. Operationally, our company has really hit its stride and throughput was above the high-end of guidance across most commodity streams. EBITDA and coverage exceeded our guidance once again as we exited the year strong and look forward to delivering in 2020.

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

Third, the team has done a fabulous job on third-party opportunities, exceeding our lofty expectations since going public. We now have over 10 customers across the Williston and Delaware and are currently talking to a number of additional parties on different opportunities. Hats off to the team for their continued success on this front. Numerous opportunities we've secured help leverage our scale, improve the financial outlook and diversify our revenue stream. As a reminder, in the back half of 2019, approximately 20% of OMP's EBITDA came from third parties.

Finally OMP remains uniquely attractive investment opportunity. The combination of peer-leading distribution growth, strong coverage and a double-digit