HOUSTON, Oct. 26, 2021 /PRNewswire/ -- Oasis Midstream
Partners LP (NASDAQ: OMP) ("OMP" or the "Partnership") today
announced that, on October 24, 2021, the Board of
Directors of OMP GP LLC (the "General Partner") declared the
quarterly cash distribution for the third quarter of 2021
of $0.56 per unit, payable on November 29,
2021 to unitholders of record as of November 15,
2021.
Crestwood Transaction
In a separate press release issued today, OMP announced it has
entered into a definitive merger agreement under which Crestwood
Equity Partners LP (NYSE: CEQP) ("Crestwood") will acquire OMP in
an equity and cash transaction valued at approximately $1.8 billion, including the assumption of debt.
The transaction is expected to close in the first quarter of 2022,
subject to customary closing conditions, including regulatory
approvals and approval by the common unitholders of the
Partnership. OMP expects to continue to pay distributions to
unitholders until the completion of the transaction.
As of September 30, 2021, the
Partnership had cash and cash equivalents of $29.7MM and $210.0MM of borrowings outstanding and
$5.5MM of outstanding letters of
credit under its revolving credit facility (the "Revolving Credit
Facility). As of September 30, 2021,
the aggregate commitments under the Revolving Credit Facility were
$450.0MM, and the Partnership had an
unused borrowing capacity of $234.5MM.
OMP expects to file its third quarter 2021 Form 10-Q by
November 9, 2021. As a result of the
pending transaction, OMP has cancelled its third quarter results
conference call originally scheduled for 11:30 am Central Time on November 4, 2021.
Contact:
Bob
Bakanauskas, Director, Investor Relations
(281) 404-9600
ir@oasispetroleum.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Company 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
Company, including the Company's drilling program, production,
derivative instruments, capital expenditure levels and other
guidance included in this press release, as well as the impact of
the novel coronavirus 2019 ("COVID-19") pandemic on the Company's
operations. These statements are based on certain assumptions made
by the Company 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 Company,
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, risks that the proposed
transaction may not be consummated or the benefits contemplated
therefrom may not be realized, the ability to obtain requisite
regulatory and unitholder approval and the satisfaction of the
other conditions to the consummation of the proposed transaction,
the ability of Crestwood to successfully integrate OMP's operations
and employees and realize anticipated synergies and cost savings,
the potential impact of the announcement or consummation of the
proposed transaction on relationships, including with employees,
suppliers, customers, competitors and credit rating agencies,
changes in crude oil and natural gas prices, developments in the
global economy, particularly the public health crisis related to
the COVID-19 pandemic and the adverse impact thereof on demand for
crude oil and natural gas, the outcome of government policies and
actions, including actions taken to address the COVID-19 pandemic
and to maintain the functioning of national and global economies
and markets, the impact of Company actions to protect the health
and safety of employees, vendors, customers, and communities,
weather and environmental conditions, the timing of planned capital
expenditures, availability of acquisitions, the ability to realize
the anticipated benefits from the Williston Basin acquisition and
Permian Basin divestitures, uncertainties in estimating proved
reserves and forecasting production results, operational factors
affecting the commencement or maintenance of producing wells, the
condition of the capital markets generally, as well as the
Company'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 Company's business and other
important factors that could cause actual results to differ
materially from those projected as described in the Company's
reports filed with the U.S. Securities and Exchange Commission.
Additionally, the unprecedented nature of the COVID-19 pandemic and
the related decline of the oil and gas exploration and production
industry may make it particularly difficult to identify risks or
predict the degree to which identified risks will impact the
Company's business and financial condition. Because considerable
uncertainty exists with respect to the future pace and extent of a
global economic recovery from the effects of the COVID-19 pandemic,
the Company cannot predict whether or when crude oil production and
economic activities will return to normalized levels.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company 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.
No Offer or Solicitation
This communication relates to the proposed transaction between
OMP and Crestwood. This communication is for informational purposes
only and does not constitute an offer to sell or the solicitation
of an offer to buy any securities or a solicitation of any vote or
approval, in any jurisdiction, pursuant to the proposed transaction
or otherwise, nor shall there be any sale, issuance, exchange or
transfer of the securities referred to in this document in any
jurisdiction in contravention of applicable law. No offer of
securities shall be made except by means of a prospectus meeting
the requirements of Section 10 of the Securities Act of 1933, as
amended.
Additional Information and Where You Can Find It
In connection with the proposed transaction, Crestwood will file
a registration statement on Form S-4, including a preliminary
consent statement/prospectus for the unitholders of OMP with the
U.S. Securities and Exchange Commission ("SEC"). INVESTORS AND
UNITHOLDERS OF CRESTWOOD AND OMP ARE ADVISED TO CAREFULLY READ THE
REGISTRATION STATEMENT AND THE PRELIMINARY CONSENT
STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS
THERETO) WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE TRANSACTION, THE PARTIES TO THE
TRANSACTION AND THE RISKS ASSOCIATED WITH THE TRANSACTION. The
definitive consent statement/prospectus, when available, will be
sent to unitholders of OMP in connection with the solicitation of
consents of OMP unitholders relating to the proposed transactions.
Investors and unitholders may obtain a free copy of the preliminary
or definitive consent statement/prospectus (each when available)
filed by Crestwood or OMP with the SEC from the SEC's website at
www.sec.gov. Unitholders and other interested parties will also be
able to obtain, without charge, a copy of the preliminary or
definitive consent statement/prospectus and other relevant
documents (when available) from Crestwood's website at
https://www.crestwoodlp.com/investors/ or from OMP's website at
http://oasismidstream.investorroom.com.
Participants in the Solicitation
Crestwood, OMP and their respective directors, executive
officers and general partners, and Oasis Petroleum and its
directors and executive officers, may be deemed to be participants
in the solicitation of consents from the unitholders of OMP in
respect of the transactions. Information about these persons is set
forth in the Crestwood's Annual Report on Form 10-K for the year
ended December 31, 2020, which was
filed with the SEC on February 26,
2021, OMP's Annual Report on Form 10-K for the year ended
December 31, 2020, which was filed
with the SEC on March 8, 2021, and
subsequent statements of changes in beneficial ownership on file
for each of Crestwood and OMP with the SEC. Unitholders and
investors may obtain additional information regarding the interests
of such persons, which may be different than those of the
respective companies' unitholders generally, by reading the
preliminary or definitive consent statement/prospectus, or other
relevant documents regarding the transaction (if and when
available), which may be filed with the SEC.
About OMP
OMP is a leading 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.
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SOURCE Oasis Midstream Partners LP