OMP - Oasis Midstream Partners: Smart Acquisition Helps This 9%+ Yield Start Growing With More To Come

• Oasis Midstream Partners has started 2021 on a strong note by acquiring the remaining ownership stake in their operations.
• This helps boost their free cash flow and increases their ability to cover their high distribution yield of almost 10%.
• They also announced a distribution increase that puts them back in growth mode and even without any actual earnings growth, their excess coverage could allow for a 20%+ increase.
• Even after this acquisition, their financial position remains healthy with only moderate leverage and strong liquidity.
• Since this very smart decision by management will help deliver tangible benefits to their unitholders, I believe that maintaining my bullish rating is appropriate.

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