HOUSTON, Feb. 24, 2021 /PRNewswire/ -- Oasis Midstream
Partners LP (Nasdaq: OMP) (the "Partnership" or "OMP") today
announced financial results for the quarter and year ended
December 31, 2020 and updated its
2021 outlook.
2020 Highlights:
- Net income was $69.3MM and net
cash from operating activities was $47.2MM in 4Q20.
- Exceeded high-end of 4Q20 Adjusted EBITDA guidance. 4Q20
Adjusted EBITDA(1) was $52.1MM and net Adjusted EBITDA(1) to
the Partnership was $34.9MM.
- Distributable Cash Flow ("DCF") was $30.8MM in 4Q20(1), resulting in
distribution coverage of 1.6x.
- Free Cash Flow ("FCF") was $9.9MM
in 4Q20(1).
- CapEx net to OMP totaled $19.3MM
in 2020, lower than CapEx guidance.
- Default interest charges previously incurred permanently waived
(see "Waiver and Forbearance Agreement" below).
- Declared quarterly cash distribution of $0.54 per unit.
- Gas capture from Oasis Petroleum volumes in Wild Basin was
approximately 98% in 2020.
(1) Non-GAAP financial measure. See
"Non-GAAP Financial Measures" below for definitions of all non-GAAP
financial measures included herein and reconciliations to the most
directly comparable measures under United
States generally accepted accounting principles
("GAAP").
Chief Executive Officer, Taylor
Reid, commented, "Oasis Midstream Partners had a solid
fourth quarter as an increase in third party volumes and continued
cost control drove strong financial performance. Additionally,
capital spending fell below the low-end of our forecast as the OMP
team continues to manage costs and spending exceptionally well to
maximize margins and free cash generation. In addition, OMP
declared a quarterly cash distribution of $0.54 per unit and will continue to monitor
market conditions and adjust its operational and financial strategy
as appropriate. As we look to 2021, OMP is taking a prudent
approach to capital spending designed to accommodate activity
levels of our sponsor."
South Nesson Project Dedication
Oasis Petroleum has approved an expansion of its dedication to
OMP in South Nesson to now include crude oil and produced water
services. OMP received the dedication for natural gas gathering and
processing, as well as gas lift supply in 2019, and OMP expects
volumes under each service offering to flow in 2022. South
Nesson is located between Johnson's Corner and OMP's gas plant
complex and is one of Oasis Petroleum's top operating areas. As
part of the arrangement, Oasis Petroleum agreed to assign to
Bighorn DevCo, which is 100% owned by OMP, certain assets in Bobcat
DevCo specifically built to support both existing third party
customers in South Nesson and future development for Oasis
Petroleum. Bighorn DevCo expects 2021 capital expenditures
("CapEx") for South Nesson to range between $40 million and $44
million, including the reimbursement to Oasis Petroleum of
its investment in certain assets already constructed by Bobcat
DevCo. All future assets for the South Nesson project will be built
at Bighorn DevCo and all future revenue from Oasis Petroleum and
third parties in South Nesson will accrue to Bighorn DevCo. OMP
expects to achieve a 2x build multiple on these assets and
anticipates solid year-over-year EBITDA growth in Bighorn DevCo in
2022.
2021 Capital Spending and EBITDA Outlook
The following table depicts our full-year 2021 guidance for
CapEx and EBITDA:
|
|
|
|
EBITDA
|
2021
CapEx
|
DevCo
|
|
OMP
Ownership
|
|
1Q21
Gross
|
|
2021
Gross
|
Gross
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
Bighorn
DevCo
|
|
100%
|
|
$16 - 20
|
|
$68 - 72
|
$47 - 49
|
|
$47 - 49
|
Bobcat
DevCo
|
|
35.3%
|
|
$24 - 28
|
|
$106 - 110
|
$9 - 10
|
|
$3 - 4
|
Beartooth
DevCo
|
|
70%
|
|
$8 - 10
|
|
$40 - 42
|
$3 - 4
|
|
$2 - 3
|
Total
Williston
|
|
|
|
$48 -
58
|
|
$214 -
224
|
$59 -
63
|
|
$52 -
56
|
Panther
DevCo
|
|
100%
|
|
$1 - 2
|
|
$7 - 9
|
$4 - 5
|
|
$4 - 5
|
Total
|
|
|
|
$49 -
60
|
|
$221 -
233
|
$63 -
68
|
|
$56 -
60
|
|
Note: Table totals
may be slightly off due to rounding; 2021 EBITDA before public
company expenses
|
2021 Highlights
- Oasis Petroleum continues to complete wells in OMP dedicated
areas including Wild Basin, Indian Hills, and the Delaware in 2021.
- 2021 Gross DevCo EBITDA is expected to slightly decline
compared to 2020 as OMP's sponsor curtailed activity through 2020,
into early 2021 and will gradually ramp volumes through 2021.
- Adjusted EBITDA attributable to OMP of approximately $137MM –
$146MM in 2021 (net of public company expenses).
- 1Q21 Adjusted EBITDA attributable to OMP is expected to
approximate $34MM – $36MM.
- 2021 cash public company expenses of approximately $3MM –
$3.5MM.
- Maintenance CapEx of approximately 7% – 8% of Adjusted EBITDA,
which is included in the total CapEx estimate above.
Throughput Volumes
The following table shows gross volumes for 4Q20, as well as
volumes guidance for 1Q21 and full-year 2021.
|
|
Metric
|
|
4Q20
Actual
|
|
|
1Q21
Guidance
|
|
FY21
Guidance
|
Bighorn
DevCo
|
|
|
|
|
|
|
|
|
|
Crude oil service
volumes
|
|
Mbopd
|
|
26.6
|
|
|
21 – 23
|
|
22 – 24
|
Natural gas service
volumes
|
|
MMscfpd
|
|
220.8
|
|
|
180 – 190
|
|
170 – 180
|
Bobcat
DevCo
|
|
|
|
|
|
|
|
|
|
Crude oil service
volumes
|
|
Mbopd
|
|
19.8
|
|
|
18 – 20
|
|
19 – 21
|
Natural gas service
volumes
|
|
MMscfpd
|
|
250.8
|
|
|
220 – 230
|
|
215 – 225
|
Water service
volumes
|
|
Mbwpd
|
|
44.1
|
|
|
37 – 39
|
|
35 – 37
|
Beartooth
DevCo
|
|
|
|
|
|
|
|
|
|
Water service
volumes
|
|
Mbwpd
|
|
83.0
|
|
|
62 – 67
|
|
73 – 78
|
Panther
DevCo
|
|
|
|
|
|
|
|
|
|
Crude oil service
volumes
|
|
Mbopd
|
|
8.9
|
|
|
7 – 9
|
|
10 – 12
|
Water service
volumes
|
|
Mbwpd
|
|
31.3
|
|
|
25 – 27
|
|
29 – 31
|
Operational and Financial Update
Select financial statistics are presented in the following table
for the periods presented:
|
|
|
4Q20
|
|
FY20
|
|
OMP
Ownership(1)
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
Bighorn
DevCo
|
|
|
|
|
|
|
|
|
|
Operating
income
|
100%
|
|
$
|
16.0
|
|
|
$
|
16.0
|
|
|
$
|
43.0
|
|
|
$
|
43.0
|
|
Depreciation,
amortization and impairment
|
100%
|
|
2.5
|
|
|
2.5
|
|
|
33.1
|
|
|
33.1
|
|
Bobcat
DevCo
|
|
|
|
|
|
|
|
|
|
Operating
income
|
35.3%
|
|
$
|
17.9
|
|
|
$
|
6.3
|
|
|
$
|
68.6
|
|
|
$
|
24.3
|
|
Depreciation,
amortization and impairment
|
35.3%
|
|
4.1
|
|
|
1.4
|
|
|
33.8
|
|
|
11.9
|
|
Beartooth
DevCo
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
70%
|
|
$
|
8.4
|
|
|
$
|
5.9
|
|
|
$
|
(2.9)
|
|
|
$
|
(2.1)
|
|
Depreciation,
amortization and impairment
|
70%
|
|
2.3
|
|
|
1.6
|
|
|
42.4
|
|
|
29.7
|
|
Panther
DevCo
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
100%
|
|
$
|
1.4
|
|
|
$
|
1.4
|
|
|
$
|
(26.7)
|
|
|
$
|
(26.7)
|
|
Depreciation,
amortization and impairment
|
100%
|
|
0.2
|
|
|
0.2
|
|
|
34.4
|
|
|
34.4
|
|
Total
OMP
|
|
|
|
|
|
|
|
|
|
DevCo operating
income
|
|
|
$
|
43.7
|
|
|
$
|
29.6
|
|
|
$
|
82.0
|
|
|
$
|
38.5
|
|
Public company
expenses
|
|
|
0.6
|
|
|
0.6
|
|
|
3.4
|
|
|
3.4
|
|
OMP operating
income
|
|
|
43.1
|
|
|
29.0
|
|
|
78.6
|
|
|
35.1
|
|
Depreciation,
amortization and impairment
|
|
|
9.1
|
|
|
5.8
|
|
|
143.7
|
|
|
109.1
|
|
Equity-based
compensation expense
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
Capitalized
interest
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Maintenance
CapEx
|
|
|
3.6
|
|
|
1.7
|
|
|
6.5
|
|
|
4.4
|
|
Expansion
CapEx
|
|
|
0.6
|
|
|
1.6
|
|
|
19.8
|
|
|
14.6
|
|
Total CapEx
|
|
|
4.2
|
|
|
3.3
|
|
|
26.6
|
|
|
19.3
|
|
___________________
|
(1) OMP ownership
interest as of December 31, 2020.
|
Liquidity and Capital Expenditures
As of December 31, 2020, OMP had
cash and cash equivalents of $5.1
million and $450.0 million of
borrowings outstanding under its revolving credit facility (the
"Revolving Credit Facility" or "RCF") with an unused borrowing
capacity of $125.0 million. OMP has
flexibility to expand the aggregate commitment amount under the RCF
from $575.0 million to $775.0 million, subject to certain
conditions.
The following tables depict the Partnership's CapEx for the
periods presented:
|
1Q 2020 - 3Q
2020
|
|
4Q
2020
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
Capital
expenditures
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
Maintenance
CapEx
|
$
|
2.9
|
|
|
$
|
2.7
|
|
|
$
|
3.6
|
|
|
$
|
1.7
|
|
|
$
|
6.5
|
|
|
$
|
4.4
|
|
Expansion
CapEx
|
19.2
|
|
|
13.0
|
|
|
0.6
|
|
|
1.6
|
|
|
19.8
|
|
|
14.6
|
|
Capitalized
interest
|
0.3
|
|
|
0.3
|
|
|
0.0
|
|
|
0.0
|
|
|
0.3
|
|
|
0.3
|
|
Total
|
$
|
22.4
|
|
|
$
|
16.0
|
|
|
$
|
4.2
|
|
|
$
|
3.3
|
|
|
$
|
26.6
|
|
|
$
|
19.3
|
|
|
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
Capital
Expenditures
|
|
(In
millions)
|
DevCo
|
OMP
Ownership
|
|
Gross
|
|
Net
|
Bighorn
DevCo
|
100%
|
|
$
|
6.6
|
|
|
$
|
6.6
|
|
Bobcat
DevCo
|
35.3%
|
|
12.6
|
|
|
5.3
|
|
Beartooth
DevCo(1)
|
70%
|
|
(0.2)
|
|
|
(0.2)
|
|
Panther
DevCo
|
100%
|
|
7.3
|
|
|
7.3
|
|
OMP
Operating(2)
|
100%
|
|
0.3
|
|
|
0.3
|
|
Total
|
|
|
$
|
26.6
|
|
|
$
|
19.3
|
|
___________________
|
(1) Negative amount
reflects differences between the estimated capital expenditures
accrued in a reporting period and actual capital expenditures
recognized in a subsequent reporting period.
|
(2) Amounts represent
capitalized interest related to borrowings under the
RCF.
|
Waiver and Forbearance Agreement
In the second quarter of 2020, the Partnership identified that a
Control Agreement (as defined in the Revolving Credit Facility) had
not been executed for a certain bank account before the account was
initially funded with cash, which represented an event of default.
In May 2020, the Partnership executed
a Control Agreement with respect to the bank account, thereby
completing the documentation required under the Revolving Credit
Facility. On September 29, 2020, the
Partnership executed a Waiver, Discharge and Forgiveness Agreement
and Forbearance Extension (the "Waiver and Forbearance Agreement")
to permanently waive payment of additional interest of $28.0 million owed arising from this event
of default ("Specified Default Interest"). Such conditions were
satisfied on November 19, 2020 and
payment of Specified Default Interest was permanently waived. There
were no impacts to the Partnership's compliance with the financial
covenants contained in its credit agreement during this time.
Quarterly Distribution
On February 24, 2021, the board of directors of
the General Partner declared the quarterly distribution for the
fourth quarter of 2020 of $0.54 per unit. In addition,
the General Partner will receive a cash distribution of
$1.0 million attributable to the
incentive distribution rights related to earnings for the fourth
quarter of 2020. These distributions will be payable
on March 18, 2021 to unitholders of record as
of March 8, 2021. Upon payment of the fourth quarter cash
distribution, the subordination period will expire and the
requirements under the partnership agreement for the conversion of
all outstanding subordinated units is expected to be satisfied. As
a result, on March 19, 2021, all 13,750,000 subordinated
units, which are currently owned entirely by Oasis Petroleum, will
be converted into common units on a one-for-one basis and
thereafter will participate on terms equal with all other common
units in distributions from available cash.
The board of directors of our General Partner may change our
cash distribution policy at any time, and we do not have a legal or
contractual obligation to pay cash distributions quarterly or on
any other basis or at our minimum quarterly distribution rate.
Qualified Notice
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of the Partnership's distributions to
non-U.S. investors as being attributable to income that is
effectively connected with a United
States trade or business. Accordingly, the
Partnership's distributions to non-U.S. investors are subject to
federal income tax withholding at the highest applicable effective
tax rate.
Conference Call Information
Investors, analysts and other interested parties are invited to
listen to the webcast and call:
Date:
|
|
Thursday, February
25, 2021
|
Time:
|
|
11:30 a.m. Central
Time
|
Live
Webcast:
|
|
https://www.webcaster4.com/Webcast/Page/1777/39883
|
Website:
|
|
www.oasismidstream.com
|
Sell-side analysts with a question may use the following
dial-in:
Dial-in:
|
|
888-317-6003
|
Intl. Dial
in:
|
|
412-317-6061
|
Conference ID:
|
|
6806223
|
A recording of the conference call will be available beginning
at 1:30 p.m. Central Time on the day
of the call and will be available until Thursday, March 4, 2021 by dialing:
Replay
dial-in:
|
|
877-344-7529
|
Intl.
replay:
|
|
412-317-0088
|
Replay
code:
|
|
10152155
|
The conference call will also be available for replay for
approximately 30 days at www.oasismidstream.com.
Contact:
Oasis Midstream Partners LP
Bob Bakanauskas,
(281) 404-9600
Director, Investor Relations
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that the Partnership expects, believes or anticipates will or may
occur in the future are forward-looking statements. Without
limiting the generality of the foregoing, forward-looking
statements contained in this press release specifically include the
expectations of plans, strategies, objectives and anticipated
financial and operating results of the Partnership, including the
Partnership's capital expenditure levels and other guidance
included in this press release. These statements are based on
certain assumptions made by the Partnership based on management's
experience and perception of historical trends, current conditions,
anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Partnership, which may cause actual results to
differ materially from those implied or expressed by the
forward-looking statements. These include, but are not limited to,
the Partnership's ability to integrate acquisitions into its
existing business, changes in crude oil and natural gas prices,
weather and environmental conditions, the timing of planned capital
expenditures, availability of acquisitions, uncertainties in the
estimates of proved reserves and forecasted production results of
the Partnership's customers, operational factors affecting the
commencement or maintenance of producing wells, the condition of
the capital markets generally, as well as the Partnership's ability
to access them, the proximity to and capacity of transportation
facilities, and uncertainties regarding environmental regulations
or litigation and other legal or regulatory developments affecting
the Partnership's business and other important factors. Should one
or more of these risks or uncertainties occur, or should underlying
assumptions prove incorrect, the Partnership's actual results and
plans could differ materially from those expressed in any
forward-looking statements.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Partnership undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
About Oasis Midstream Partners LP
Oasis Midstream Partners LP is a premier gathering and
processing master limited partnership formed by its sponsor, Oasis
Petroleum Inc. to own, develop, operate and acquire a diversified
portfolio of midstream assets in North
America that are integral to the crude oil and natural gas
operations of Oasis Petroleum Inc. and are strategically positioned
to capture volumes from other producers. For more information,
please visit the Partnership's website at
www.oasismidstream.com.
OASIS MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
|
(In thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
5,147
|
|
|
$
|
4,168
|
|
Accounts
receivable
|
4,295
|
|
|
5,969
|
|
Accounts receivable –
Oasis Petroleum
|
66,283
|
|
|
77,571
|
|
Inventory
|
6,986
|
|
|
—
|
|
Prepaid
expenses
|
3,695
|
|
|
1,923
|
|
Other current
assets
|
649
|
|
|
138
|
|
Total current
assets
|
87,055
|
|
|
89,769
|
|
Property, plant and
equipment
|
1,180,819
|
|
|
1,155,503
|
|
Less: accumulated
depreciation, amortization and impairment
|
(240,877)
|
|
|
(98,982)
|
|
Total property, plant
and equipment, net
|
939,942
|
|
|
1,056,521
|
|
Operating lease
right-of-use assets
|
1,643
|
|
|
5,207
|
|
Other
assets
|
2,053
|
|
|
3,172
|
|
Total
assets
|
$
|
1,030,693
|
|
|
$
|
1,154,669
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
2,226
|
|
|
$
|
2,478
|
|
Accounts payable –
Oasis Petroleum
|
28,074
|
|
|
27,139
|
|
Accrued
liabilities
|
17,931
|
|
|
50,210
|
|
Accrued interest
payable
|
360
|
|
|
508
|
|
Current operating
lease liabilities
|
945
|
|
|
3,005
|
|
Other current
liabilities
|
471
|
|
|
594
|
|
Total current
liabilities
|
50,007
|
|
|
83,934
|
|
Long-term
debt
|
450,000
|
|
|
458,500
|
|
Asset retirement
obligations
|
774
|
|
|
1,747
|
|
Operating lease
liabilities
|
733
|
|
|
2,216
|
|
Other
liabilities
|
5,521
|
|
|
3,644
|
|
Total
liabilities
|
507,035
|
|
|
550,041
|
|
Equity
|
|
|
|
Limited
partners
|
|
|
|
Common units
(20,061,366 and 20,045,196 issued and outstanding at December 31,
2020
and December 31, 2019, respectively)
|
193,536
|
|
|
225,339
|
|
Subordinated units
(13,750,000 units issued and outstanding at December 31, 2020
and
December 31, 2019)
|
44,030
|
|
|
66,005
|
|
General
Partner
|
1,027
|
|
|
1,026
|
|
Total partners'
equity
|
238,593
|
|
|
292,370
|
|
Non-controlling
interests
|
285,065
|
|
|
312,258
|
|
Total
equity
|
523,658
|
|
|
604,628
|
|
Total liabilities and
equity
|
$
|
1,030,693
|
|
|
$
|
1,154,669
|
|
OASIS MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019(1)
|
|
2020
|
|
2019(1)
|
|
|
|
|
|
|
|
|
|
(In thousands, except per unit
data)
|
Revenues
|
|
|
|
|
|
|
|
Midstream services –
Oasis Petroleum
|
$
|
61,997
|
|
|
$
|
84,615
|
|
|
$
|
268,337
|
|
|
$
|
317,072
|
|
Midstream services –
third parties
|
326
|
|
|
1,739
|
|
|
11,367
|
|
|
6,531
|
|
Product sales – Oasis
Petroleum
|
28,274
|
|
|
26,025
|
|
|
68,115
|
|
|
86,543
|
|
Product sales – third
parties
|
17
|
|
|
7
|
|
|
40
|
|
|
45
|
|
Total
revenues
|
90,614
|
|
|
112,386
|
|
|
347,859
|
|
|
410,191
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Costs of product
sales
|
15,780
|
|
|
8,738
|
|
|
32,385
|
|
|
35,826
|
|
Operating and
maintenance
|
13,888
|
|
|
19,251
|
|
|
57,917
|
|
|
74,226
|
|
Depreciation and
amortization
|
9,076
|
|
|
9,533
|
|
|
40,237
|
|
|
36,358
|
|
Impairment
|
—
|
|
|
—
|
|
|
103,441
|
|
|
—
|
|
General and
administrative
|
8,722
|
|
|
6,787
|
|
|
35,329
|
|
|
31,009
|
|
Total operating
expenses
|
47,466
|
|
|
44,309
|
|
|
269,309
|
|
|
177,419
|
|
Operating
income
|
43,148
|
|
|
68,077
|
|
|
78,550
|
|
|
232,772
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(2,602)
|
|
|
(4,627)
|
|
|
(12,783)
|
|
|
(17,538)
|
|
Other income
(expense) (2)
|
28,710
|
|
|
1
|
|
|
546
|
|
|
(3)
|
|
Total other income
(expense)
|
26,108
|
|
|
(4,626)
|
|
|
(12,237)
|
|
|
(17,541)
|
|
Net
income
|
69,256
|
|
|
63,451
|
|
|
66,313
|
|
|
215,231
|
|
Less: Net income
attributable to Delaware Predecessor
|
—
|
|
|
360
|
|
|
—
|
|
|
4,464
|
|
Less: Net income
attributable to non-controlling interests
|
13,920
|
|
|
24,612
|
|
|
43,238
|
|
|
93,111
|
|
Net income
attributable to Oasis Midstream Partners LP
|
55,336
|
|
|
38,479
|
|
|
23,075
|
|
|
117,656
|
|
Less: Net income
attributable to General Partner
|
1,027
|
|
|
998
|
|
|
4,088
|
|
|
2,472
|
|
Net income
attributable to limited partners
|
$
|
54,309
|
|
|
$
|
37,481
|
|
|
$
|
18,987
|
|
|
$
|
115,184
|
|
Earnings per limited
partner unit
|
|
|
|
|
|
|
|
Common units – basic
and diluted
|
$
|
1.61
|
|
|
$
|
1.11
|
|
|
$
|
0.56
|
|
|
$
|
3.41
|
|
Weighted average
number of limited partners units outstanding
|
|
|
|
|
|
|
|
Common units –
basic
|
20,045
|
|
|
20,029
|
|
|
20,044
|
|
|
20,024
|
|
Common units –
diluted
|
20,055
|
|
|
20,040
|
|
|
20,058
|
|
|
20,032
|
|
____________________
|
(1) Retrospectively
adjusted for transfer of net assets between entities under common
control.
|
(2) Three months
ended December 31, 2020 includes permanent waiver of additional
interest expense of $28.0 million previously incurred in the
first quarter of 2020. See "Waiver and Forbearance Agreement" above
for additional information.
|
Non-GAAP Financial Measures
Cash Interest
Cash Interest is a supplemental non-GAAP financial measure that
is used by management and external users of the Partnership's
financial statements, such as industry analysts, investors, lenders
and rating agencies. The Partnership defines Cash Interest as
interest expense plus capitalized interest less amortization of
deferred financing costs included in interest expense. Cash
Interest is not a measure of interest expense as determined by
GAAP. Management believes that the presentation of Cash Interest
provides useful additional information to investors and analysts
for assessing the interest charges incurred on our debt, excluding
non-cash amortization, and our ability to maintain compliance with
our debt covenants.
The following table presents a reconciliation of the GAAP
financial measure of interest expense, net of capitalized interest,
to the non-GAAP financial measure of Cash Interest for the periods
presented:
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019(1)
|
|
2020
|
|
2019(1)
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Interest expense,
net of capitalized interest
|
$
|
2,602
|
|
|
$
|
4,627
|
|
|
$
|
12,783
|
|
|
$
|
17,538
|
|
Capitalized
interest
|
2
|
|
|
272
|
|
|
324
|
|
|
905
|
|
Amortization of
deferred financing costs
|
(274)
|
|
|
(287)
|
|
|
(1,089)
|
|
|
(946)
|
|
Cash
Interest
|
$
|
2,329
|
|
|
$
|
4,612
|
|
|
$
|
12,018
|
|
|
$
|
17,497
|
|
Less: Cash Interest
attributable to Delaware Predecessor
|
—
|
|
|
(160)
|
|
|
—
|
|
|
(813)
|
|
Less: Cash Interest
attributable to non-controlling interests
|
(3)
|
|
|
(3)
|
|
|
(12)
|
|
|
(11)
|
|
Cash interest
attributable to Oasis Midstream Partners LP
|
$
|
2,326
|
|
|
$
|
4,449
|
|
|
$
|
12,006
|
|
|
$
|
16,673
|
|
__________________
|
(1) Retrospectively
adjusted for transfer of net assets between entities under common
control.
|
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure
that is used by management and external users of the Partnership's
financial statements, such as industry analysts, investors, lenders
and rating agencies. The Partnership defines Adjusted EBITDA as
earnings before interest expense (net of capitalized interest),
income taxes, depreciation, amortization, equity-based compensation
expenses and other similar non-cash adjustments. Adjusted EBITDA
should not be considered an alternative to net income, net cash
provided by operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP.
Management believes that the presentation of Adjusted EBITDA
provides information useful to investors and analysts for assessing
the Partnership's results of operations, financial performance and
its ability to generate cash from its business operations without
regard to its financing methods or capital structure, coupled with
the Partnership's ability to maintain compliance with its debt
covenants. The GAAP measures most directly comparable to Adjusted
EBITDA are net income and net cash provided by operating
activities.
Distributable Cash Flow ("DCF") and Free Cash Flow
("FCF")
DCF and FCF are supplemental non-GAAP financial measures that
are used by management and external users of the Partnership's
financial statements, such as industry analysts, investors, lenders
and rating agencies. The Partnership defines DCF as Adjusted EBITDA
attributable to the Partnership less Cash Interest attributable to
the Partnership and maintenance capital expenditures attributable
to the Partnership. The Partnership defines FCF as DCF less
expansion capital expenditures attributable to the Partnership and
unitholder distributions. DCF and FCF should not be considered
alternatives to net income, net cash provided by operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. Management believes
that the presentation of DCF and FCF provide information useful to
investors and analysts for assessing the Partnership's results of
operations, financial performance and ability to generate cash from
its business operations without regard to its financing methods or
capital structure, coupled with the Partnerships ability to make
distributions to its unitholders. The GAAP measures most directly
comparable to DCF and FCF are net income and net cash provided by
operating activities.
The following table presents reconciliations of the GAAP
financial measures of net income and net cash provided by operating
activities to the non-GAAP financial measures of Adjusted EBITDA,
DCF and FCF for the periods presented:
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019(1)
|
|
2020
|
|
2019(1)
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net
income
|
$
|
69,256
|
|
|
$
|
63,451
|
|
|
$
|
66,313
|
|
|
$
|
215,231
|
|
Depreciation and
amortization
|
9,076
|
|
|
9,533
|
|
|
40,237
|
|
|
36,358
|
|
Impairment
|
—
|
|
|
—
|
|
|
103,441
|
|
|
—
|
|
Equity-based
compensation expenses
|
68
|
|
|
75
|
|
|
268
|
|
|
378
|
|
Interest expense, net
of capitalized interest
|
2,602
|
|
|
4,627
|
|
|
12,783
|
|
|
17,538
|
|
Other non-cash
adjustments(2)
|
(28,900)
|
|
|
—
|
|
|
(885)
|
|
|
—
|
|
Adjusted
EBITDA
|
52,102
|
|
|
77,686
|
|
|
222,157
|
|
|
269,505
|
|
Less: Adjusted EBITDA
attributable to Delaware Predecessor
|
—
|
|
|
613
|
|
|
—
|
|
|
5,510
|
|
Less: Adjusted EBITDA
attributable to non-controlling interests
|
17,247
|
|
|
27,657
|
|
|
77,802
|
|
|
105,053
|
|
Adjusted EBITDA
attributable to Oasis Midstream Partners LP
|
34,855
|
|
|
49,416
|
|
|
144,355
|
|
|
158,942
|
|
Cash interest
attributable to Oasis Midstream Partners LP
|
2,326
|
|
|
4,449
|
|
|
12,006
|
|
|
16,673
|
|
Maintenance capital
expenditures attributable to Oasis Midstream
Partners LP
|
1,715
|
|
|
1,752
|
|
|
4,376
|
|
|
8,346
|
|
Distributable cash
flow
|
30,814
|
|
|
43,215
|
|
|
127,973
|
|
|
133,923
|
|
Expansion capital
expenditures attributable to Oasis Midstream
Partners LP
|
1,649
|
|
|
32,430
|
|
|
14,611
|
|
|
189,321
|
|
Unitholder
distributions
|
19,285
|
|
|
18,149
|
|
|
77,140
|
|
|
66,613
|
|
Free cash
flow
|
$
|
9,880
|
|
|
$
|
(7,364)
|
|
|
$
|
36,222
|
|
|
$
|
(122,011)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
47,164
|
|
|
$
|
76,961
|
|
|
$
|
213,569
|
|
|
$
|
252,539
|
|
Interest expense, net
of capitalized interest
|
2,602
|
|
|
4,627
|
|
|
12,783
|
|
|
17,538
|
|
Changes in working
capital
|
31,512
|
|
|
(3,615)
|
|
|
(2,219)
|
|
|
374
|
|
Other non-cash
adjustments(2)
|
(29,176)
|
|
|
(287)
|
|
|
(1,976)
|
|
|
(946)
|
|
Adjusted
EBITDA
|
52,102
|
|
|
77,686
|
|
|
222,157
|
|
|
269,505
|
|
Less: Adjusted EBITDA
attributable to Delaware Predecessor
|
—
|
|
|
613
|
|
|
—
|
|
|
5,510
|
|
Less: Adjusted EBITDA
attributable to non-controlling interests
|
17,247
|
|
|
27,657
|
|
|
77,802
|
|
|
105,053
|
|
Adjusted EBITDA
attributable to Oasis Midstream Partners LP
|
34,855
|
|
|
49,416
|
|
|
144,355
|
|
|
158,942
|
|
Cash interest
attributable to Oasis Midstream Partners LP
|
2,326
|
|
|
4,449
|
|
|
12,006
|
|
|
16,673
|
|
Maintenance capital
expenditures attributable to Oasis Midstream
Partners LP
|
1,715
|
|
|
1,752
|
|
|
4,376
|
|
|
8,346
|
|
Distributable cash
flow
|
30,814
|
|
|
43,215
|
|
|
127,973
|
|
|
133,923
|
|
Expansion capital
expenditures attributable to Oasis Midstream
Partners LP
|
1,649
|
|
|
32,430
|
|
|
14,611
|
|
|
189,321
|
|
Unitholder
distributions
|
19,285
|
|
|
18,149
|
|
|
77,140
|
|
|
66,613
|
|
Free cash
flow
|
$
|
9,880
|
|
|
$
|
(7,364)
|
|
|
$
|
36,222
|
|
|
$
|
(122,011)
|
|
|
|
|
|
|
|
|
|
Distributions
Declared
|
|
|
|
|
|
|
|
Limited
partners
|
$
|
18,258
|
|
|
$
|
18,258
|
|
|
$
|
73,033
|
|
|
$
|
68,106
|
|
General
partner
|
1,027
|
|
|
1,027
|
|
|
4,107
|
|
|
2,472
|
|
Total
distributions(3)
|
$
|
19,285
|
|
|
$
|
19,285
|
|
|
$
|
77,140
|
|
|
$
|
70,578
|
|
|
|
|
|
|
|
|
|
DCF coverage
ratio
|
1.6
|
x
|
|
2.2
|
x
|
|
1.7
|
x
|
|
1.9
|
x
|
____________________
|
(1) Retrospectively
adjusted for transfer of net assets between entities under common
control.
|
(2) Three months
ended December 31, 2020 includes non-cash gain associated with the
permanent waiver of additional interest expense of
$28.0 million previously incurred in the first quarter of
2020. See "Waiver and Forbearance Agreement" above for additional
information.
|
(3) Represents
distributions declared associated with earnings of the reporting
period presented. Unitholder distributions are generally paid in
the reporting period after the period of associated
earnings.
|
View original
content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-year-ended-december-31--2020-earnings-and-declares-fourth-quarter-distribution-of-0-54unit-301235063.html
SOURCE Oasis Midstream Partners LP