Oasis Midstream Partners LP

Good morning. My name is Jason and I'll be your conference operator today. At this time, I'd like to welcome everyone to the fourth quarter 2020 earnings release and operations update for OASIS midstream partners. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, You may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I'd now like to turn the conference over to Richard Grobuck, OASIS Midstream's CFO, to begin the conference. Thank you. You may begin your conference.

Great. Thanks a lot, Jason. Good morning, everyone. This is Richard Grobuck. As noted, today we are reporting our year-end and fourth quarter 2020 financial and operational results. We are delighted to have you on our call today. I'm joined by Taylor Reed and Michael Liu, as well as some other members of the team. Please be advised that our remarks on both OASIS Petroleum and OASIS Midstream partners, including the answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those currently disclosed in our earnings release and conference call. Those risks include, among others, matters that we describe in our earnings release as well as our filings to the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. We disclaim any obligation to update these forward-looking statements. During this conference call, we also make references to certain non-GAAP financial measures and reconciliations to applicable GAAP measures can be found on our earnings release and on our website. We'll also reference our current investor presentation which you will be able to find on our website. With that, I'll turn the call over to Taylor.

Good morning, everyone, and thanks for joining our call. Fourth quarter results reflect another quarter of solid operating and financial performance. Oasis Midstream Partners continues to adjust to the new normal and remains focused on the health and safety of our employees, contractors, and our communities. The team did an exceptional job in 2020, pivoting to a slimmed-down capital program and delivered strong cost control, which kept our margins healthy despite the headwind from lower upstream activity. In January 2021, OASIS, our sponsor, outlined a new strategy sharply focused on enhanced returns and return of capital to shareholders. Naturally, OMP investors have questions on what the implications are for OMP. So I think it's worth spending some time here. The new OASIS is a great anchor tenant with an amazing outlook, which we feel is positive for OMP as well. First, OASIS is in a much stronger financial position with peer-leading leverage and a leader cost structure. This gives OASIS the ability to run a steady, resilient development program, which is less likely to shift with market prices. Second, because OASIS' improved position adds stability to OMP's financial outlook, we now have a better hand in negotiating and capturing third-party opportunities. The team has done a great job building an extensive, diverse portfolio of third-party business, and we're currently negotiating multiple projects which could further expand that. And finally, OASIS' deep development inventory in two premier basins remains intact. OASIS has a strong track record of involving OMP through mutually beneficial arrangements, and we expect to continue that in the future. Additionally, OASIS' strong operating team, clean balance sheet, and lean cost structure make it a natural consolidator of assets which could ultimately benefit OMP. Having a strong balance sheet is an important part of our strategy as well. O&P was deliberately structured at its IPO to stand on its own and be resilient to customer and market fluctuations. O&P's financial leverage was maintained at relatively modest levels compared to many GMP peers during 2020, as O&P judiciously elected to hold the distribution flat in 2020 while prioritizing the long-term strength of the balance sheet. Moving on to the quarter, Fourth quarter performance benefited from strong third party volumes, which all set expected natural declines from our sponsor. Additionally, good cost control drove substantial cash generation and strong coverage of 1.6 times on our distribution of 54 cents per share. We will continue to monitor the environment in OMP's operational and financial outlook to inform decisions on future distributions. which will be largely directed by the targeted long-term leverage target of 2.75 to 3.25 times. Capital spending remained light in the fourth quarter as our sponsor deferred some activity to 2021. Overall, 2020 capital was down about 70% from our original budget. Our capital-efficient infrastructure allowed us to reduce spending to very low levels while maintaining strong margins. While spending was curtailed significantly in 2020, reflecting the environment, as we'll discuss in a bit, spending will pick up again this year as we prepare for OISE's next series of projects. Before I hand it over to Michael, I just want to recognize the OMP team for their strong contributions in 2020. It was certainly a difficult year on a lot of fronts, but the team was able to remain focused and was successful in aggressively lowering both capital and operating costs which helps the whole organization. I'll now turn the call over to Michael to get into a little more operational detail.