OMP - Why Oasis Midstream Units Plunged 15% at the Open Today
Shares of Oasis Midstream (NASDAQ: OMP) sold off sharply at the open on June 25, losing 15% of their value in the first few minutes of Wall Street trading. The big event driving that drop was an after-the-market news release on June 24. Here's a quick look at what the company said that has investors so upset.
Put simply, Oasis Midstream is going to sell just over 3.6 million common units with the underwriter having the option to add another 500,000 or so units to the total. So, effectively, there are more than 4.1 million units being sold. But, here's an important fact: According to the news release, "The Partnership will not receive any proceeds from the sale of the common units in this offering." And "the number of common units outstanding immediately following the offering will remain unchanged."
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Why Oasis Midstream Units Plunged 15% at the Open Today