Oasis Petroleum is selling its interests in key gathering line infrastructure to its midstream company, a move that company executives say both simplifies the structure of Oasis Petroleum, while boosting the competitiveness and scale of its affiliate, Oasis Midstream Partners.
The $510 million sale of Bobcat DevCo and Beartooth DevCo breaks down to $229 million in cash and 14.8 million in common units from OMP, based on March 19 weighted average prices. The sale is to close by the end of March.
The transaction reduces Oasis Petroleum’s net debt at year-end 2020 to about $16 million, and also gives it 37.5 million OMP common units, or a 77.1 percent share.
OMP will have right of first refusal for midstream opportunities for Oasis operating areas in the Painted Woods and city of Williston.
“The Oasis team is excited to announce the Simplification of OMP and a share-repurchase program,” said Douglas E. Brooks, Oasis’ Board Chair and Chief Executive Officer. “Today’s announcements are the latest of a series of value-focused initiatives that management and the board of directors have delivered this year. Through this Simplification, we were able to enhance the financial profiles of both Oasis and OMP, while strengthening our competitive position. Oasis’ share-repurchase program announced today further demonstrates the strength of our assets and our commitment to find ways to return cash and value to our shareholders.”
Oasis also announced a $100 million share repurchase program, which expires Dec. 31, 2022. This follows on the recently announced annual dividend of $1.50 per share.
The change had to be approved by the company’s lenders, and included amendments to its revolving credit facility. The borrowing base of that was reduced from $575 million to $500 million, and its elected commitment amount was decreased to $450 million.
Shares of Oasis Petroleum were trending 9 percent higher, according to a NASDAQ report, after the announcements and Oasis Midstream units were 3.8 percent higher.
Continental redeeming senior notes
Continental Resources will redeem the balance of $230.8 million in senior notes, due 2022, by April 22, 2021.
The early recall continues the company’s efforts to prepay near-term debts and bolster the company’s balance sheet.
The redemption price for the notes will be 100 percent of the principal amount, plus any accrued and unpaid interest up to but not including the redemption date. The notes cease to accrue interest thereafter.
Virtual public input meeting on improvements to Highway 22 March 29
A virtual public hearing is planned for improvements to North Dakota Highway 22 in Killdeer on March 29 at www.dot.nd.gov. Click on Public Meetings under Quick Links to get to it.
Written statements and comments for the project must be postmarked or emailed by Tuesday, April 13, 2021 to Ryan Schuehle, 2370 Vermont Avenue, Bismarck, ND 58504 or email@example.com with “Virtual Public Input Meeting” in the subject heading.
For any questions, help submitting comments, or to request hard copy materials please contact Ryan Schuehle at 701-354-2406 or firstname.lastname@example.org.
Reasonable accommodation is available for those with disabilities, or who need language interpretation. Contact Atiana Beck, Civil Rights Division, NDDOT, at 701-328-2978 or email@example.com. TTY users may use Relay North Dakota at 711 or 1-800-366-6888.Know before you dig
The Bureau of Land Management reminds surface owners to properly verify their ownership of mineral rights before excavating sand, gravel, stone, scoria, etc., on their property.
Millions of acres of land in the Montana/Dakotas region are split estates, where surface ownership pis private, but mineral rights have been retained by the federal government or other entities.
Misunderstandings regarding mineral rights ownership have led to several trespass cases in which landowners were selling gravel, scoria or landscape rock without first conducting the required reviews and obtaining the necessary permits from the BLM.
Trespassers can be held liable for damages to the United States and subject to restitution or fines. The BLM urges landowners planning to lease or sell these minerals to contact their local BLM office for assistance in determining mineral ownership.
For additional information contact BLM Geologist Carissa Shilling at 406-233-2800.
Public hearings and comment periods open for:
• Hazardous Waste rules through March 31. Online access at https://www.deq.nd.gov/wm/PublicNotices/default.aspx#responsetocomments
• Chimney Butte Permit — solid waste management facility in Billings County. Open through April 16. Online access at https://deq.nd.gov/wm/PublicNotices/default.aspx
• Spiritwood air pollution control permit to construct Great River Energy — Spiritwood Station in Stutsman County. Open through April 23. Online access at https://deq.nd.gov/AQ/PublicCom.aspx#GREPTC
• Blue Buttes in McKenzie County draft permit for a solid waste management facility. Open through April 26. Online access at https://deq.nd.gov/wm/PublicNotices/default.aspx
Never miss an energy update again. Sign up for the new Energy Chaser newsletter, which begins in April, at https://www.willistonherald.com/site/signup/.