Oasis Midstream Partners LP Announces $450 Million Inaugural Senior Notes Offering

Rhea-AI Summary

Oasis Midstream Partners LP (Nasdaq: OMP) announced plans to offer $450 million in senior unsecured notes due 2029, subject to market conditions. The proceeds will primarily be used for a $229 million distribution to its parent, Oasis Petroleum Inc., related to a simplification transaction, and to repay $208 million of outstanding borrowings. These notes will be privately placed to qualified institutional buyers and have not been registered under the Securities Act. The offering is contingent upon market conditions and involves forward-looking statements subject to various risks.

Positive

• Offering of $450 million in senior unsecured notes could strengthen financial positioning.
• Proceeds will partially reduce outstanding debt by repaying $208 million of the revolving credit facility.

Negative

• Heavy reliance on capital markets for funding may pose risks if market conditions worsen.
• Forward-looking statements indicate potential uncertainties affecting actual outcomes.

HOUSTON, March 22, 2021 /PRNewswire/ -- Oasis Midstream Partners LP (Nasdaq: OMP) (the "Partnership" or "OMP") announced today that, subject to market conditions, it and its wholly-owned subsidiary, OMP Finance Corp., intend to offer $450 million in aggregate principal amount of senior unsecured notes due 2029 in a private placement to eligible purchasers.

The Partnership intends to use the net proceeds from this offering to make a distribution to Oasis Midstream Services LLC, a wholly-owned subsidiary of Oasis Petroleum Inc., in connection with the previously announced simplification transaction with Oasis Petroleum Inc., in the amount of approximately $229 million and to repay approximately $208 million of outstanding borrowings under OMP's revolving credit facility.

The notes to be offered have not been registered under the Securities Act of 1933, as amended, (the "Securities Act"), or any state securities laws; and unless so registered, the securities may not be offered or sold in the United States absent an applicable exemption from, or a transaction not subject to, registration requirements of the Securities Act and applicable state securities laws. The notes are being offered and sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and outside the United States in compliance with Regulation S under the Securities Act.

This press release is being issued pursuant to Rule 135c under the Securities Act and is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

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 statements regarding the intended use of offering proceeds and other aspects of the notes offering. 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, closing of the Acquisition and related transactions, closing of the proposed offering and the intended use of proceeds, 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.

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SOURCE Oasis Petroleum Inc.; Oasis Midstream Partners LP

FAQ

What is the purpose of Oasis Midstream Partners' $450 million notes offering?

The proceeds will be used for a $229 million distribution related to a simplification transaction with Oasis Petroleum Inc. and to repay $208 million of outstanding debt.

When will the notes from Oasis Midstream Partners mature?

The senior unsecured notes are due in 2029.

Who can purchase the senior unsecured notes offered by Oasis Midstream Partners?

The notes will be offered only to qualified institutional buyers under Rule 144A.

What risks are associated with the senior notes offering by Oasis Midstream Partners?

Risks include market conditions affecting the ability to complete the offering and uncertainties in financial projections.

What impact does the notes offering have on Oasis Midstream Partners' debt?

The offering aims to reduce debt by repaying $208 million of its revolving credit facility, enhancing financial flexibility.