Oasis Midstream (Ticker: OMP) announced the initiation of a public offering of 7,500,000 common units with an expected price tag of $19 to $21 per unit. Oasis said it will grant the underwriters a 30-day option to purchase up to an additional 1,125,000 units.
The public offering represents 27.3% limited partner interest in Oasis Midstream with the option to increase to 31.4% if the additional units are purchased. Oasis Midstream will own the remaining equity in the limited partner interest.
Morgan Stanley, Wells Fargo, and Citigroup are acting as a joint book-running managing team for the offering.
Oasis operates primarily in the Williston Basin, targeting the Bakken and Three Forks. According to the company’s S-1 Registration Statement filed in May, 2017, Oasis Midstream operates its midstream infrastructure business through three DevCos: Bighorn Devco, Bobcat Devco, and Beartooth Devco.
Map Source: Oasis Petroleum August 2017 Investor Presentation
Each of the Devcos possess infrastructure assets and related facilities. By the end of the twelve-month period ending June 30, 2018, the three Devcos are projected to have an operating income of $117.8 million. Of the forecasted income 40% will be generated through natural gas assets, 10% by crude oil assets and 50% by water-related midstream assets according to the Oasis Midstream S-1 filing.
