Story by Reuters
Oasis Petroleum Inc may take on joint venture partners or create a master limited partnership (MLP) for a $200 million North Dakota gas processing plant, President Taylor Reid said on Wednesday.
The plant, which would process gas from the Wild Basin portion of North Dakota’s Bakken shale formation, could be finished as soon as 2017.
“We have potential JV partners for that, or we could go down the path of an MLP,” Reid said at the DUG conference in Denver.
MLPs are not taxed at the U.S. federal level, lowering their cost of capital for parent companies, and typically have higher quarterly payouts than dividend-paying companies, making them appealing to stockholders.
Taylor added that Oasis, which operates only in the Bakken shale formation, is “well positioned” to weather the low oil price environment.