In Bobcat DevCo, Oasis Petroleum will be selling a stake of 15% and in Beartooth DevCo, it will be offloading a 30% stake under the transaction.
For OMP, the deal will increase its stake in Bobcat DevCo to 25% and 70% in Beartooth DevCo.
OMP CEO Taylor Reid said: “The Williston Basin continues to provide attractive investment returns for both upstream and midstream companies, and we are in an enviable position to capitalize on future growth in the core of the play.
“Our team has done an incredible job increasing contribution from third-party customers across our asset base. Volumes from both Oasis and third parties provide a solid foundation for peer leading growth well beyond 2021.”
Bobcat DevCo is engaged in the Wild Basin operating area. Its assets include gas gathering, compression and gas lift in addition to crude oil gathering and produced water gathering and disposal.
According to OMP, Bobcat DevCo is strategic midstream asset which has contributed in connecting third party volumes to the company’s gas plants.
Beartooth DevCo, on the other hand, owns water infrastructure assets in most of the core operating areas of OMP. The assets gather and dispose of produced water, supply freshwater for well completions and also for production optimization services. They are mainly located in the Alger, Cottonwood, Hebron, Red Bank and Indian Hills operating areas of Oasis Petroleum.
Oasis Petroleum chairman and CEO Thomas Nusz said: “Through this transaction, we were able to enhance the financial profiles of both Oasis and OMP, while strengthening our competitive position.
“The drop is accretive to Oasis and further improves Oasis’ leverage position. The Williston Basin remains one of the premier oil basins in the U.S. and both companies are well positioned to grow and generate strong returns through the commodity cycle.”
In June 2018, Oasis Petroleum signed two purchase and sale agreements with undisclosed buyers to sell some of its upstream assets in the Williston Basin for $283m.
