HOUSTON, Feb. 26, 2019 /PRNewswire/ -- Oasis
Midstream Partners LP (NYSE: OMP) (the "Partnership" or "OMP")
today announced financial results for the quarter and year ended
December 31, 2018 and updated its
2019 outlook.
Recent Highlights:
- Declared the quarterly cash distribution for the fourth quarter
of 2018 of $0.45 per unit, an
approximate 5% increase from the cash distribution declared for the
third quarter of 2018 and in line with the Partnership's 20%
annualized distribution growth target.
- Net income was $146.4 million and
net cash provided by operating activities was $205.0 million for the year ended December 31, 2018. Net income was $38.6 million and net cash provided by operating
activities was $48.1 million for the
quarter ended December 31, 2018.
- Adjusted EBITDA was $48.6 million
and net Adjusted EBITDA attributable to the Partnership was
$22.1 million for the quarter ended
December 31, 2018. Adjusted EBITDA is
a non-GAAP financial measure. See "Non-GAAP Financial Measures"
below.
- Distributable Cash Flow ("DCF") was $18.5 million for the quarter ended December 31, 2018, resulting in fourth quarter
DCF coverage of 1.21x. Pro forma for OMP's acquisition of
additional ownership interests in Bobcat DevCo LLC ("Bobcat DevCo")
and Beartooth DevCo LLC ("Beartooth DevCo"), including a full
quarter of cash interest on new debt associated with the dropdown
acquisition, DCF coverage approximated 1.43x for the fourth
quarter. DCF is a non-GAAP financial measure. See "Non-GAAP
Financial Measures" below.
- Successfully commenced operations at OMP's new 200 MMscfpd
natural gas processing plant in Wild Basin ("Gas Plant II") in
early December, and began servicing third party natural gas volumes
during the fourth quarter of 2018.
- Completed the acquisition from Oasis Petroleum of an additional
15% ownership interest in Bobcat DevCo and an additional 30%
ownership interest in Beartooth DevCo for total consideration of
approximately $251.4 million,
consisting of $172.4 million in cash
and $79.0 million in common
units.
- During the year ended 2018, OMP successfully signed multiple
third party agreements across all three development companies and
has commenced services pursuant to these arrangements to provide
its full suite of midstream services for third party
volumes.
- Increased water volumes in Beartooth DevCo to 151.1 thousand
barrels of water per day ("Mbwpd"), a 53% increase compared to the
fourth quarter of 2017. Approximately two-thirds of the increase
was related to Oasis Petroleum's produced water growth and
approximately one-third was associated with increased freshwater
volumes, which was largely driven by third party sales.
"Fourth quarter results mark a strong end to an impressive year
at Oasis Midstream Partners," said Taylor
Reid, Chief Executive Officer of OMP. "During the quarter,
we successfully started our new 200 MMscfpd gas plant and executed
additional third-party deals in Wild Basin. Fourth quarter pro
forma coverage of 1.43x exceeded our expectations. Additionally,
OMP successfully completed its first drop as a public company,
improving our scale, liquidity, and financial outlook. As we look
to 2019, our sponsor's Wild Basin centered program insulates OMP's
financial profile, and we are in a position to deliver our EBITDA,
growth, and coverage outlook despite the decline in commodity
prices. OMP exceeded expectations in 2018, and we look forward to
executing our business and continuing to increase the value of our
partners' investment in 2019 and beyond."
Gas Plant II Update:
OMP finished construction on Gas
Plant II and began processing volumes in early December. With 320
MMscfpd of natural gas processing capacity, OMP is the second
largest natural gas processor in the Williston
Basin. Utilization of Gas Plant II approximated 60% through
the first three weeks of February. OMP expects to run at 60%
utilization in the beginning of 2019, and with additional third
party deals, utilization is now expected to increase to above 90%
by year end 2019 (vs. over 80% at the November 2018 update). Third party volumes are
expected to account for approximately 30% to 40% of Gas Plant
II's throughput by the fourth quarter of 2019.
2019 Capital Spending and Outlook:
On February 22, 2019, OMP entered into a capital
expenditures arrangement (the "Capital Expenditures Arrangement")
with Oasis Petroleum. Pursuant to this arrangement, in exchange for
increasing its percentage ownership interest in Bobcat DevCo, OMP
will cover up to $80 million of the
capital contributions that Oasis Petroleum would otherwise be
required to contribute to Bobcat DevCo during the 2019 calendar
year. The arrangement provides an opportunity for OMP to increase
its scale in an accretive manner while lowering the capital
requirements of its sponsor. Based on current market values, OMP's
ownership interest in Bobcat DevCo is expected to increase from 25%
as of December 31, 2018 to between
approximately 34% and 36% by year end 2019. Increasing ownership in
Bobcat DevCo is expected to drive EBITDA and coverage higher
throughout 2019. Capital expenditures guidance and highlights for
2019 provided below includes the Capital Expenditures Arrangement
for all of 2019.
The terms of the Capital Expenditures Arrangement were approved
by the Board of Directors of OMP GP LLC (the "General Partner")
following a unanimous recommendation for approval from the
conflicts committee of the Board of Directors of the General
Partner, which consists entirely of independent directors. The
conflicts committee was advised by Baird on financial matters and Richards, Layton & Finger, P.A. on legal
matters. Oasis Petroleum was advised by Vinson and Elkins L.L.P. on
legal matters.
The following table depicts our full year 2019 guidance for
capital expenditures ("CapEx"):
|
|
|
|
2019
CapEx
|
DevCo
|
|
OMP
Ownership(1)
|
|
Gross
|
|
Net(2)
|
|
|
|
|
(In
millions)
|
Bighorn
DevCo
|
|
100%
|
|
$25 - 30
|
|
$25 - 30
|
Bobcat
DevCo
|
|
30% - 31%
|
|
100 - 110
|
|
94 - 104
|
Beartooth
DevCo
|
|
70%
|
|
17 - 22
|
|
12 - 15
|
Total
CapEx
|
|
|
|
$142 -
162
|
|
$131 -
149
|
___________________
|
(1) OMP ownership
reflects average estimated ownership during 2019.
|
(2) Net CapEx range
reflects 100% of estimated expansion CapEx for Bobcat DevCo
pursuant to the Capital Expenditures Arrangement. Maintenance CapEx
remains split by ownership.
|
Highlights for 2019 include:
- Growing distributions per unit approximately 5% each quarter —
20% annualized rate;
- Expecting first quarter 2019 limited partner distribution
coverage of approximately 1.5x and anticipate limited partner
distribution coverage increasing to 1.8x - 2.0x as the year
progresses;
- Maintenance CapEx of approximately 6% to 8% of Adjusted EBITDA,
which is included in total CapEx estimate;
- Cash Interest of approximately $15
million in 2019; and
- Adjusted EBITDA attributable to OMP of approximately
$148 million to $157 million in 2019 (an increase from the
November 2018 update primarily due to
the Capital Expenditures Arrangement).
Operational and Financial Update
Select operational and financial statistics are in the following
table:
|
|
|
Three Months
Ended
December 31, 2018
|
|
Year Ended
December 31,
2018
|
|
OMP
Ownership(1)
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
|
|
(In
millions)
|
Bighorn
DevCo
|
|
|
|
|
|
|
|
|
|
Operating
income
|
100%
|
|
$
|
6.0
|
|
|
$
|
6.0
|
|
|
$
|
22.1
|
|
|
$
|
22.1
|
|
Depreciation and
amortization
|
100%
|
|
3.3
|
|
|
3.3
|
|
|
11.4
|
|
|
11.4
|
|
Total
CapEx
|
100%
|
|
19.2
|
|
|
19.2
|
|
|
78.2
|
|
|
78.2
|
|
Bobcat
DevCo
|
|
|
|
|
|
|
|
|
|
Operating
income
|
25%
|
|
$
|
19.9
|
|
|
$
|
3.4
|
|
|
$
|
74.3
|
|
|
$
|
8.9
|
|
Depreciation and
amortization
|
25%
|
|
2.7
|
|
|
0.5
|
|
|
9.0
|
|
|
1.1
|
|
Total
CapEx
|
25%
|
|
23.7
|
|
|
3.5
|
|
|
142.6
|
|
|
15.4
|
|
Beartooth
DevCo
|
|
|
|
|
|
|
|
|
|
Operating
income
|
70%
|
|
$
|
15.1
|
|
|
$
|
8.2
|
|
|
$
|
55.3
|
|
|
$
|
24.3
|
|
Depreciation and
amortization
|
70%
|
|
2.2
|
|
|
1.2
|
|
|
8.0
|
|
|
3.5
|
|
Total
CapEx
|
70%
|
|
15.2
|
|
|
8.6
|
|
|
51.3
|
|
|
23.0
|
|
Total
OMP
|
|
|
|
|
|
|
|
|
|
DevCo operating
income
|
|
|
$
|
40.9
|
|
|
$
|
17.6
|
|
|
$
|
151.7
|
|
|
$
|
55.4
|
|
Public company
expenses
|
|
|
0.6
|
|
|
0.6
|
|
|
3.0
|
|
|
3.0
|
|
OMP operating
income
|
|
|
40.3
|
|
|
17.0
|
|
|
148.8
|
|
|
52.4
|
|
Depreciation and
amortization
|
|
|
8.2
|
|
|
5.0
|
|
|
28.4
|
|
|
16.0
|
|
Equity-based
compensation expense
|
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|
0.4
|
|
Total
CapEx(2)
|
|
|
58.1
|
|
|
31.3
|
|
|
272.1
|
|
|
116.6
|
|
Maintenance
CapEx
|
|
|
1.6
|
|
|
1.0
|
|
|
6.9
|
|
|
2.7
|
|
Expansion
CapEx
|
|
|
56.5
|
|
|
30.3
|
|
|
265.1
|
|
|
113.8
|
|
___________________
|
(1) OMP ownership
interest as of December 31, 2018. On November 19, 2018, OMP
acquired an additional 15% ownership interest in Bobcat DevCo and
an additional 30% ownership interest in Beartooth DevCo. Net
amounts attributable to OMP were recorded prospectively from the
closing date of the dropdown acquisition on November 19,
2018.
|
(2) Excludes
expansion capital expenditures of approximately $172.4 million for
the acquisition of additional ownership interests in Bobcat DevCo
and Beartooth DevCo on November 19, 2018.
|
The following table shows gross volumes for the full year 2018,
fourth quarter 2018 actuals compared to fourth quarter 2018
guidance, and depicts OMP's gross volumes guidance for the first
quarter 2019 and full year 2019.
|
Metric
|
|
FY18
Actual
|
|
4Q18
Actual
|
|
4Q18
Guidance
|
|
1Q19
Guidance
|
|
FY19
Guidance
|
Bighorn
DevCo
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil service
volumes
|
Mbopd
|
|
43.6
|
|
45.1
|
|
40 - 46
|
|
41 - 46
|
|
44 - 48
|
Natural gas service
volumes
|
MMscfpd
|
|
102.8
|
|
113.0
|
|
125 - 140
|
|
160 - 190
|
|
200 - 240
|
Bobcat
DevCo
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil service
volumes
|
Mbopd
|
|
36.1
|
|
36.9
|
|
35 - 40
|
|
37 - 40
|
|
38 - 42
|
Natural gas service
volumes
|
MMscfpd
|
|
147.7
|
|
166.8
|
|
175 - 195
|
|
220 - 240
|
|
270 - 290
|
Water service
volumes
|
Mbwpd
|
|
49.4
|
|
53.9
|
|
48 - 53
|
|
47 - 50
|
|
50 - 55
|
Beartooth
DevCo
|
|
|
|
|
|
|
|
|
|
|
|
Water service
volumes
|
Mbwpd
|
|
137.7
|
|
151.1
|
|
105 - 120
|
|
95 - 115
|
|
95 - 115
|
Liquidity and CapEx
As of December 31, 2018, OMP had
cash and cash equivalents of $6.6
million and $318.0 million of
borrowings outstanding under its revolving credit facility with an
unused borrowing capacity of $82.0
million. OMP has the flexibility to expand the aggregate
commitment amount under its revolving credit facility from
$400 million to $600 million, subject to certain conditions.
Expansion capital expenditures attributable to OMP during the
fourth quarter of 2018 of $30.3
million, which excludes expansion capital expenditures of
approximately $172.4 million for
OMP's acquisition of additional ownership interests in Bobcat DevCo
and Beartooth DevCo, were also in-line with expectations.
Quarterly Distribution
On February 5, 2019, the Board of Directors of the General
Partner declared the quarterly distribution for the fourth quarter
of 2018 of $0.45 per unit, a 20%
increase from the fourth quarter of 2017 and 20% above the minimum
quarterly distribution. In addition, the General Partner will
receive a cash distribution of $0.1
million attributable to its incentive distribution rights
related to earnings for the fourth quarter of 2018. These
distributions will be paid on February 28, 2019 to unitholders
of record as of February 15, 2019.
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:
|
|
Wednesday, February
27, 2019
|
Time:
|
|
11:30 a.m. Central
Time
|
Live
Webcast:
|
|
https://www.webcaster4.com/Webcast/Page/1777/29263
|
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:
|
|
5081699
|
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 Wednesday, March 6, 2019 by dialing:
Replay
dial-in:
|
|
877-344-7529
|
Intl.
replay:
|
|
412-317-0088
|
Replay
code:
|
|
10128591
|
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 growth-oriented, fee-based
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,
2018
|
|
December 31,
2017
|
|
(In thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
6,649
|
|
|
$
|
883
|
|
Accounts
receivable
|
2,481
|
|
|
834
|
|
Accounts receivable -
Oasis Petroleum
|
80,805
|
|
|
85,818
|
|
Prepaid
expenses
|
1,418
|
|
|
778
|
|
Other current
assets
|
22
|
|
|
—
|
|
Total current
assets
|
91,375
|
|
|
88,313
|
|
Property, plant and
equipment
|
933,155
|
|
|
653,928
|
|
Less: accumulated
depreciation and amortization
|
(62,730)
|
|
|
(34,348)
|
|
Total property, plant
and equipment, net
|
870,425
|
|
|
619,580
|
|
Other
assets
|
2,452
|
|
|
2,013
|
|
Total
assets
|
$
|
964,252
|
|
|
$
|
709,906
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
2,180
|
|
|
$
|
—
|
|
Accounts payable -
Oasis Petroleum
|
33,014
|
|
|
11,638
|
|
Accrued
liabilities
|
57,657
|
|
|
58,818
|
|
Accrued interest
payable
|
442
|
|
|
114
|
|
Total current
liabilities
|
93,293
|
|
|
70,570
|
|
Long-term
debt
|
318,000
|
|
|
78,000
|
|
Asset retirement
obligations
|
1,514
|
|
|
1,316
|
|
Total
liabilities
|
412,807
|
|
|
149,886
|
|
Partners'
Equity
|
|
|
|
Limited
Partners
|
|
|
|
Common units (20,029
and 13,762 units issued and outstanding at December 31, 2018 and
2017, respectively)
|
192,581
|
|
|
167,401
|
|
Subordinated units
(13,750 units issued and outstanding at December 31, 2018 and
2017)
|
45,937
|
|
|
79,173
|
|
General
Partner
|
112
|
|
|
—
|
|
Total partners'
equity
|
238,630
|
|
|
246,574
|
|
Non-controlling
interests
|
312,815
|
|
|
313,446
|
|
Total
equity
|
551,445
|
|
|
560,020
|
|
Total liabilities and
equity
|
$
|
964,252
|
|
|
$
|
709,906
|
|
OASIS MIDSTREAM
PARTNERS LP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In thousands, except per unit
data)
|
Revenues
|
|
|
|
|
|
|
|
Midstream services –
Oasis Petroleum
|
$
|
64,115
|
|
|
$
|
52,453
|
|
|
$
|
248,216
|
|
|
$
|
168,205
|
|
Midstream services –
third parties
|
1,164
|
|
|
458
|
|
|
2,604
|
|
|
1,973
|
|
Product sales – Oasis
Petroleum
|
6,884
|
|
|
3,620
|
|
|
17,476
|
|
|
11,644
|
|
Product sales – third
parties
|
14
|
|
|
352
|
|
|
3,327
|
|
|
394
|
|
Total
revenues
|
72,177
|
|
|
56,883
|
|
|
271,623
|
|
|
182,216
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Costs of product
sales
|
1,968
|
|
|
1,874
|
|
|
7,433
|
|
|
6,085
|
|
Operating and
maintenance
|
15,322
|
|
|
12,544
|
|
|
63,123
|
|
|
39,441
|
|
Depreciation and
amortization
|
8,192
|
|
|
4,371
|
|
|
28,404
|
|
|
15,730
|
|
General and
administrative
|
6,401
|
|
|
4,729
|
|
|
23,897
|
|
|
18,597
|
|
Total operating
expenses
|
31,883
|
|
|
23,518
|
|
|
122,857
|
|
|
79,853
|
|
Operating
Income
|
40,294
|
|
|
33,365
|
|
|
148,766
|
|
|
102,363
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(1,735)
|
|
|
—
|
|
|
(2,343)
|
|
|
(6,965)
|
|
Other income
(expense)
|
1
|
|
|
—
|
|
|
(14)
|
|
|
7
|
|
Total other
expense
|
(1,734)
|
|
|
—
|
|
|
(2,357)
|
|
|
(6,958)
|
|
Income before income
taxes
|
38,560
|
|
|
33,365
|
|
|
146,409
|
|
|
95,405
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,858)
|
|
Net
income
|
38,560
|
|
|
33,365
|
|
|
146,409
|
|
|
72,547
|
|
Less: Net income
prior to initial public offering
|
—
|
|
|
—
|
|
|
—
|
|
|
37,577
|
|
Net income subsequent
to initial public offering
|
38,560
|
|
|
33,365
|
|
|
146,409
|
|
|
34,970
|
|
Less: Net income
attributable to non-controlling interests subsequent to initial
public offering
|
23,279
|
|
|
22,253
|
|
|
96,354
|
|
|
23,332
|
|
Net income
attributable to Oasis Midstream Partners LP
|
15,281
|
|
|
11,112
|
|
|
50,055
|
|
|
11,638
|
|
Less: Net income
attributable to General Partner
|
112
|
|
|
—
|
|
|
112
|
|
|
—
|
|
Net income
attributable to limited partners
|
$
|
15,169
|
|
|
$
|
11,112
|
|
|
$
|
49,943
|
|
|
$
|
11,638
|
|
Earnings per limited
partner unit
|
|
|
|
|
|
|
|
Common units - Basic
and diluted
|
$
|
0.54
|
|
|
$
|
0.41
|
|
|
$
|
1.82
|
|
|
$
|
0.43
|
|
Weighted average
number of limited partners units outstanding
|
|
|
|
|
|
|
|
Common units -
Basic
|
16,740
|
|
|
13,628
|
|
|
14,504
|
|
|
13,566
|
|
Common units -
Diluted
|
16,751
|
|
|
13,630
|
|
|
14,519
|
|
|
13,568
|
|
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
United States generally accepted
accounting principles, or 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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In
thousands)
|
Interest expense,
net of capitalized interest
|
$
|
1,735
|
|
|
$
|
—
|
|
|
$
|
2,343
|
|
|
$
|
6,965
|
|
Capitalized
interest
|
965
|
|
|
562
|
|
|
4,870
|
|
|
1,220
|
|
Amortization of
deferred financing costs
|
(164)
|
|
|
(119)
|
|
|
(525)
|
|
|
(126)
|
|
Cash
Interest
|
$
|
2,536
|
|
|
$
|
443
|
|
|
$
|
6,688
|
|
|
$
|
8,059
|
|
Less: Cash Interest
prior to the initial public offering
|
—
|
|
|
—
|
|
|
—
|
|
|
7,603
|
|
Cash Interest
attributable to Oasis Midstream Partners LP
|
$
|
2,536
|
|
|
$
|
443
|
|
|
$
|
6,688
|
|
|
$
|
456
|
|
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")
DCF 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 DCF as Adjusted EBITDA
attributable to the Partnership less Cash Interest and maintenance
capital expenditures attributable to the Partnership. Maintenance
capital expenditures are cash expenditures (including expenditures
for the construction or development of new capital assets or the
replacement, improvement or expansion of existing capital assets)
made to maintain, over the long term, system operating capacity,
operating income or revenue. DCF 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 DCF provides 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 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
and DCF for the periods presented:
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In
thousands)
|
Net
income
|
$
|
38,560
|
|
|
$
|
33,365
|
|
|
$
|
146,409
|
|
|
$
|
72,547
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
22,858
|
|
Depreciation and
amortization
|
8,192
|
|
|
4,371
|
|
|
28,404
|
|
|
15,730
|
|
Equity-based
compensation expenses
|
76
|
|
|
53
|
|
|
356
|
|
|
1,052
|
|
Interest expense, net
of capitalized interest
|
1,735
|
|
|
—
|
|
|
2,343
|
|
|
6,965
|
|
Adjusted
EBITDA
|
48,563
|
|
|
37,789
|
|
|
177,512
|
|
|
119,152
|
|
Less: Adjusted EBITDA
prior to the initial public offering
|
—
|
|
|
—
|
|
|
—
|
|
|
79,484
|
|
Adjusted EBITDA
subsequent to the initial public offering
|
48,563
|
|
|
37,789
|
|
|
177,512
|
|
|
39,668
|
|
Less: Adjusted EBITDA
attributable to non-controlling interests
|
26,504
|
|
|
24,740
|
|
|
108,754
|
|
|
25,955
|
|
Adjusted EBITDA
attributable to Oasis Midstream Partners LP
|
22,059
|
|
|
13,049
|
|
|
68,758
|
|
|
13,713
|
|
Cash Interest
attributable to Oasis Midstream Partners LP
|
2,536
|
|
|
443
|
|
|
6,688
|
|
|
456
|
|
Maintenance capital
expenditures
|
1,036
|
|
|
1,098
|
|
|
2,747
|
|
|
1,183
|
|
Distributable Cash
Flow attributable to Oasis Midstream Partners LP
|
$
|
18,487
|
|
|
$
|
11,508
|
|
|
$
|
59,323
|
|
|
$
|
12,074
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
48,112
|
|
|
$
|
8,274
|
|
|
$
|
205,012
|
|
|
$
|
79,843
|
|
Current tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
17,618
|
|
Interest expense, net
of capitalized interest
|
1,735
|
|
|
—
|
|
|
2,343
|
|
|
6,965
|
|
Changes in working
capital
|
(2,038)
|
|
|
29,635
|
|
|
(30,362)
|
|
|
14,853
|
|
Other non-cash
adjustments
|
754
|
|
|
(120)
|
|
|
519
|
|
|
(127)
|
|
Adjusted
EBITDA
|
48,563
|
|
|
37,789
|
|
|
177,512
|
|
|
119,152
|
|
Less: Adjusted EBITDA
prior to the initial public offering
|
—
|
|
|
—
|
|
|
—
|
|
|
79,484
|
|
Adjusted EBITDA
subsequent to the initial public offering
|
48,563
|
|
|
37,789
|
|
|
177,512
|
|
|
39,668
|
|
Less: Adjusted EBITDA
attributable to non-controlling interests
|
26,504
|
|
|
24,740
|
|
|
108,754
|
|
|
25,955
|
|
Adjusted EBITDA
attributable to Oasis Midstream Partners LP
|
22,059
|
|
|
13,049
|
|
|
68,758
|
|
|
13,713
|
|
Cash Interest
attributable to Oasis Midstream Partners LP
|
2,536
|
|
|
443
|
|
|
6,688
|
|
|
456
|
|
Maintenance capital
expenditures
|
1,036
|
|
|
1,098
|
|
|
2,747
|
|
|
1,183
|
|
Distributable Cash
Flow attributable to Oasis Midstream Partners LP
|
$
|
18,487
|
|
|
$
|
11,508
|
|
|
$
|
59,323
|
|
|
$
|
12,074
|
|
|
|
|
|
|
|
|
|
Distributions
Declared
|
|
|
|
|
|
|
|
Limited
partners
|
$
|
15,208
|
|
|
$
|
10,317
|
|
|
$
|
49,135
|
|
|
$
|
10,991
|
|
Incentive
distribution rights
|
112
|
|
|
—
|
|
|
112
|
|
|
—
|
|
Total
distributions
|
$
|
15,320
|
|
|
$
|
10,317
|
|
|
$
|
49,247
|
|
|
$
|
10,991
|
|
|
|
|
|
|
|
|
|
DCF coverage
ratio
|
1.21x
|
|
|
1.12x
|
|
|
1.20x
|
|
|
1.10x
|
|
View original
content:http://www.prnewswire.com/news-releases/oasis-midstream-partners-lp-announces-year-ended-december-31-2018-earnings-300802737.html
SOURCE Oasis Midstream Partners LP