Closing occurred on Monday, November 19, 2018. The acquisition increased OMP’s interest in the Bobcat DevCo to 25% from 10% and increased OMP’s interest in the Beartooth DevCo to 70% from 40%.
Additionally, on November 14, 2018, OMP successfully closed its public offering of 2,300,000 common units representing limited partnership interests in the company.
Total gross proceeds (before the underwriters’ discounts and commissions and estimated offering expenses) were $46,000,000. Both the 2,300,000 common units placed and $46,000,000 in gross proceeds reflect a complete exercise of the underwriter’s option to purchase 300,000 units.
Of the total $250 million purchase consideration, $125 million was financed under OMP’s revolver. The remaining $125 million was funded through the issuance of 6,250,000 common units, 2,300,000 of which were issued to the public with the remaining 3,950,000 units issued directly to Oasis.
Upon closing, Oasis retains 68.5% ownership interest in OMP, including common and subordinated units, with the public owning the remaining 31.5%.
OMP CEO Taylor Reid said: “The closing of Oasis Midstream Partners’ acquisition of additional interests in the Bobcat and Beartooth DevCos represents a strong end to an amazing year.
“This accretive purchase substantially increases OMP’s scale while enhancing the coverage outlook. It’s been a little over a year since OMP’s IPO, and the team has done a fabulous job executing our strategy, growing cash flow, and diversifying our customer base through third-party agreements.
“Since our IPO, we’ve increased the 2019 EBITDA outlook almost 70% organically, and the completion of our first drop increases the 2019 EBITDA estimate even further, now more than double our original projections. We’re excited about the future at OMP and look forward to delivering for our investors.”
Source: Company Press Release
