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4 Reasons to Add Oasis Midstream (OMP) to Your Portfolio Now


Estimates for Oasis Midstream Partners LP OMP have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 4.6% and 8.9% north to $1.82 and $2.91, respectively.

Units of Oasis Midstream have rallied nearly 28.9% over a year compared with its industry’s growth of 1.3%. Oasis Midstream, a growth-oriented, fee-based master limited partnership formed by Oasis Petroleum Inc. OAS, operates a diversified portfolio of midstream infrastructure assets with a focus on the Williston Basin.

Let’s delve deeper into the factors that make Oasis Midstream a good investment option.

Growth Projections: The Zacks Consensus Estimate for 2018 and 2019 earnings per unit is pegged at $1.82 and $2.91, reflecting a year-over-year improvement of 323.3% and 60.3%, respectively.

The company’s expected long-term earnings growth rate is pegged at 11%, much higher than the industry average of 6.7%.

The Zacks Consensus Estimate for 2018 and 2019 total revenues is pegged at $281.1 million and $359.2 million, reflecting a year-over-year improvement of 54.3% and 27.8%, respectively.

Presence in Williston Basin: The partnership has gathering and processing infrastructure in the heart of the Williston Basin, one of the prolific resource-rich basins in North America. The partnership already has long-term, fixed fee contracts with Oasis Petroleum and is also working with a third party to forge long-term contracts for providing midstream services.

Distribution Growth: The ongoing organic growth of the partnership will support management’s target to increase cash distribution annually by 20% through 2020. The partnership is bringing online Wild Basin gas plant, which has a capacity to process 200 million cubic feet per day by the end of this year. This project is also going to contribute to its top-line growth.

VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with an impressive VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.

Zacks Rank & Other Key Picks

Oasis Midstream currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.. Other top-ranked stocks from the sector are TC PipeLines, LP TCP and Solaris Oilfield Infrastructure, Inc. SOI, each sporting a Zacks Rank #1.

TC PipeLines and Solaris Oilfield Infrastructure’s Zacks Consensus Estimate for 2018 has moved up 10.4% and 4.1%, respectively, in the past 60 days.

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