OMP - Crestwood Acquires Oasis Midstream: Great For The Preferreds And Good For The Common

• Crestwood announced solid earnings on Tuesday, and a $1.8BB acquisition of Oasis Midstream.
• The deal looks accretive, and we highlight their plan to increase the distribution by 5% next year.
• At a 9% forward yield, CEQP units look solid and the distribution 2.0x covered proforma for the merger.
• The preferreds trade at an 8.3% yield, which also looks quite attractive given that leverage drops by 0.4 EBITDA turns proforma for the merger.
• While not dirt cheap, CEQP units are worth buying on dips.

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