Oasis Petroleum Inc. (NYSE:OAS) Update On Oasis Midstream Partners LP IPO


Oasis Petroleum Inc. (NYSE:OAS) reported the launch of the Oasis Midstream Partners LP initial public offering of 7.5 million common units showcasing limited partner interests, at an expected IPO price between $19 and $21 per common unit, following a registration statement on Form S-1 earlier filed with the “SEC”.

The company also expects to allow the underwriters an option of 30-day to buy up to an additional 1.125 million common units. It has been allowed to list its common units on the NYSE under the ticker “OMP,” depending on official notice of issuance.

The details

Oasis Petroleum reported that the common units being offered exhibit an around 27.3% limited partner stake in Oasis Midstream, or around 31.4% if the underwriters use in full their option to buy additional common units.

The company and its affiliates will keep the remaining around 72.7% limited partner stake in Oasis Midstream or around 68.6% if the underwriters use in full their option to buy additional common units. It will indirectly possess the GP of Oasis Midstream Partners and the incentive distribution privileges. Citigroup, Wells Fargo Securities and Morgan Stanley are announced as joint book-running managers for the reported offering.

Earlier the company reported that the production in Q2 2017 was adversely impacted by additional workover plan and a completion schedule weighted around the close of the quarter. Oasis Petroleum invested incremental dollars on the addition workovers during the latter part of the second quarter, which together with late quarter completions, led July production to more than 66,000 Boepd.

In Q2 2017, G&A came at $23.5 million compared to G&A of $21.9 million in Q2 2016. Amortization of stock-based payment, which is counted in in G&A, came at $7.1 million, in Q2 2017 as against $6.2 million, in the Q2 2016. G&A for the firm’s E&P division came at $19.8 million in the Q2 2017.

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