OMP - Oasis Midstream Partners: Pay For Their Current Distributions And Get Any Growth For Free

• Oasis Midstream Partners not only survived the turmoil of 2020 but their solid financial performance and strong fundamentals allowed them to sustain their very high yielding distributions.
• When entering 2021, they have restarted their distribution growth with quarterly increases but the market is assigning no value despite them having the ability to keep it going.
• This means that investors can pay for their current distributions and get any growth for free.
• Based upon my discounted cash flow valuations, it appears that their intrinsic value is around 70% higher than their current unit price if they continue growing their distributions as expected.
• Since this is very desirable, it should be no surprise that my bullish rating is being maintained.

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