- Oasis Midstream Partners is boasting an eye-watering 34% distribution yield, which is a clear sign that the market is concerned about it.
- The company's parent and general partner just entered into bankruptcy protection so there may be some uncertainties about the impact that this will have.
- Oasis Petroleum accounts for a sizable percentage of the firm's cash flow, which only adds to the risks.
- The distribution is fully covered by Q2 cash flow but the coverage may be a bit light to be sustainable given the problems facing the parents.
- The risks appear to be too great here for most conservative investors to take a chance.
For further details see:
Oasis Midstream: The Troubles Continue For This Pipeline Company