Oasis Midstream (OMP) Update - Oct 18

[dan_s]

Oasis Midstream (OMP) is in our High Yield Income Portfolio. It is an MLP, so better suited for taxable accounts.
OMP trades for $24.48 at the time of this post. Current cash distributions are $0.56/Quarter for annualized yield of 9.2%, partially tax deferred.

I spent several hours reviewing and updating our profile on OMP today, which will be posted to the EPG website late today. My current valuation is $30/unit, but I think it could have a lot more upside for us because its processing facilities are located in the Bakken and Permian Basin that will do quite well if oil prices stay over $70/bbl. OMP's distributable cash flow is already way above their current distribution and should go a lot higher in 2022.

Oasis Petroleum (OAS) holds 100% of OMP's general partner and 69.6% of the limited partnership units. OAS is now doing very well and they will be ramping up production this quarter and even more in 2022. This means OMP revenues will be going way up in 2022.

My current valuation for OMP is $30.00.