Oasis Midstream Partners LP (NYSE:OMP) Q4 2019 Earnings Conference Call - Final Transcript
Feb 26, 2020 • 12:30 pm ET
Michael H. Lou
with the fourth quarter 2020 being the highest. We've provided gross EBITDA guidance by DevCo in our investor presentation on Page 11 consistent with how we report.
On capital, net-to-OMP, we're expecting a range of $68 million to $75 million with the majority of spending being in the Bobcat and Panther DevCos. The 64% decline in spending versus 2019 reflects the completion of several major projects and the end of the capital expenditures agreement with Bobcat. The budget includes some capital for third-party projects we have in hand.
As the year moves along, we have the potential to bring in more third-party agreements. This would result in higher spending, but obviously increased cash flow as well once the projects commence. Lastly, in 2019, OMP concluded the capital arrangement with Oasis, which resulted in OMP owning approximately 35% of the Bobcat DevCo.
With that, I'll turn the call over to Richard.
Richard N. Robuck
Thanks Michael. OMP's financial position and forward outlook remained strong. EBITDA has grown from $43 million when we IPO'ed back in 2017 to a $159 million in 2019, driven by a combination of support from our sponsor, as well as growing third-party business. The 2020 outlook calls for double-digit growth yet again and continued strong coverage which supports our 20% annualized distribution growth. We declared fourth quarter distribution of $0.54 per unit, growing our distribution 5% versus the prior quarter. Distribution coverage was well above our guidance at 2.2 times in the fourth quarter.
Net debt to fourth quarter annualized EBITDA was 2.3 times with $459 million drawn on our revolver. We plan to maintain a similar leverage ratio as we exit 2020. Finally, in November, OMP began servicing Oasis and third-parties in the Delaware Basin. OMP reimbursed Oasis approximately $25 million and assumed approximately $10 million of liabilities incurred by Oasis prior to the effective date. This transaction further diversifies our revenue stream and enhances our financial outlook. In closing, we're very pleased with OMP's results this quarter and look forward to delivering strong performance in the future.
I will now hand the call over to Brandon for questions.