$17/unit is below expected range
Oasis Petroleum (ticker: OAS) announced the pricing of the IPO of Oasis Midstream Partners (ticker: OMP) today in the next step toward selling its initial units.
Each share of Oasis Midstream will be issued at a price of $17/unit, with 7.5 million units on offer. The number of units may increase, as Oasis has granted the underwriters a 30-day option to purchase up to 1.125 million additional units. These units represent about 27.3% interest in Oasis Midstream, with the possibility of increasing this stake to 31.4% if the underwriters exercise their option to purchase additional units.
The purchase price is below the expected range of $19 to $21. Oasis Midstream intends to use the proceeds of the IPO, expected to be about $120 million, to
- Make a $113.9 million distribution to Oasis Petroleum,
- Pay $4.1 million in offering expenses,
- Pay $1.9 million in fees relating to the new revolving credit facility
If the underwriters purchase additional units, Oasis Midstream will use the net proceeds of $17.9 million to pay an additional distribution to Oasis Petroleum.
