Oasis Midstream Partners LP

Good morning and welcome to OASIS Midstream second quarter conference call. All participants will be in listen-only mode. For any assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. Now I'd like to turn the conference over to Mr. Richard Roebuck, CFO. Please go ahead.

Thanks, Nick. Good morning, everyone. This is Richard, as Nick mentioned. Today we're reporting our second quarter 2021 financial and operational results. We're delighted to have you on our call. I'm joined today by Taylor Reed and Michael Liu, as well as 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 the filings with 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'll also make reference to certain non-GAAP financial measures, and reconciliations to the applicable GAAP measures can be found in our earnings release and on our website. We'll also reference our current investor presentation, which you can find on our website. With that, I'll turn the call over to Taylor.

Good morning, everyone, and thanks for joining our call. O&P delivered another great quarter, as the team has done an amazing job controlling costs and maximizing operational reliability, which supports strong financial performance. Additionally, the business development team continues with new third-party contracts, which support our long-term outlook. Importantly, OMP's safety record has been great year-to-date, and we applaud the team for all their hard work and progress here. I'd like to start today's call by highlighting a handful of key things. First, OMP's second quarter performance exceeded expectation on volumes and cost control, leading to EBITDA and coverage outperformance. Second, the team has secured multiple third-party contracts across the Bakken and Delaware. In the Delaware, OMP recently expanded its third-party business, which includes building a new pipeline connection to Wink. This is a major milestone for OMP as it connects our infrastructure to a key hub in the Delaware Basin, which greatly expands our third-party opportunity set. As you've likely noticed, rig and permitting activity have increased in both the Bakken and Delaware. Much of this expected activity is around OMP's key infrastructure, and we continue to work a robust pipeline of new opportunities in both basins. Third party business accounted for about 17% of our revenue in the second quarter, treating 100% of the Delaware revenue as third party to account for OASIS divestiture. Third, we declared cash distribution of 56 cents per unit in the second quarter, representing a one cent increase from first quarter levels. We continue to have confidence in our new opportunities and business as we move ahead. We'll discuss those opportunities a bit more on this call. Fourth, our sponsor Oasis Petroleum expects its Williston Basin acquisition to close late in the third quarter. As we highlighted last call, this strategic move provides additional value to OMP. Oasis has indicated that post integration it expects similar or higher volumes in OMP dedicated areas. We have already seen the pivot, as evidenced by our Capturing the City of Williston Acreage dedication from OASIS. The dedication includes crude oil, natural gas, and produced water services. We added a case study in the OASIS and O&P investor presentations that highlight the strength of the City of Williston asset. The upstream economics are fantastic, allowing O&P to invest incremental capital at attractive build multiples. Volumes under each services offering will flow as soon as late 2022. OASIS is becoming an even stronger anchor tenant with more size and scale and a deeper inventory, along with its peer leading financial position, allowing for a steady, resilient development program. We also have a right of first refusal in the Painted Woods project area, which is expected to be developed right after City of Williston and is one of OASIS' core operating areas. Painted Woods is also part of the case study in the investor presentations. Finally, both OASIS' recent strategic moves and OMP's success in capturing new business translate into differential value creation for our unit holders. Our outlook coupled with our strong balance sheet have us excited about the future of OMP. I'll now turn the call over to Michael to get into a little more operational detail.