- OMP's EBITDA is expected to decline in future years as Oasis Petroleum devotes a significant minority of its capex to the Delaware Basin.
- At mid-to-high $40s WTI oil, OMP should be able to cover its current distribution for a couple years, but may not be able to in 2023.
- A distribution of $1.30 per unit looks more appropriate for that oil price.
- There may be additional drop-down transactions to stabilize and/or boost OMP's EBITDA, plus generate more proceeds for Oasis Petroleum.
For further details see:
Oasis Midstream Partners: A Review Of Its Prospects At Mid-To-High $40s Oil