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EX - 99.1 2 d228920dex991.htm EX - 99.1 Oasis Petroleum Inc. Announces Oasis Midstream Partners to Merge with Crestwood Equity Partners Provides Financial and Operational Update and Increases Dividend by 33 % Exhibit 99.1 HOUSTON , Oct. 26 , 2021 / PRNewswire / - Oasis Petroleum Inc. ( NASDAQ : OAS ) ( “ Oasis ” or the " Company " ) announced today that Oasis Midstream Partners ( NASDAQ : OMP ) ( “ OMP ” ) has entered into a definitive agreement under which it will merge with Crestwood Equity Partners LP ( NYSE : CEQP ) ( “ Crestwood ” ) . Under the terms of the agreement , Oasis , as a unitholder of OMP , will receive $ 160MM in cash in addition to approximately 21.0MM common units of CEQP in aggregate in exchange for its 33.85MM OMP common units and non - economic general partner stake . Public OMP unitholders will receive 0.87 units of Crestwood common units for each unit of OMP owned . In the aggregate , the total consideration represents an at - the - market transaction based on the closing prices for OMP and Crestwood on October 25 , 2021 , and implies an enterprise value for the combined companies of approximately $ 6.9B . Upon completion of the transaction , Oasis will own approximately 21.7 % of Crestwood common units . " We are pleased to reach this agreement , which represents an outstanding outcome for Oasis shareholders and OMP unitholders . This transaction creates a combined midstream company well positioned to drive future value with enhanced scale and customer and basin diversification , ” said Danny Brown , Oasis ' Chief Executive Officer . " Crestwood is a highly regarded , diversified midstream operator with a large footprint in the Williston Basin , making it the ideal midstream partner with the expertise and team to handle a large portion of Oasis ' hydrocarbons and produced water . The combination of OMP and Crestwood immediately enhances value for Oasis shareholders while increasing transparency with deconsolidated financial reporting , highlighting the Company's E & P operations . Oasis is now well positioned to further participate in industry consolidation opportunities . Additionally , Oasis expects to benefit from its remaining ownership in the new Crestwood which , following this accretive merger , will be a larger , more diversified midstream entity with a strong balance sheet and an attractive outlook . For OMP unitholders , the transaction delivers compelling value , and the opportunity to participate in the upside potential and attractive distributions of the new Crestwood . " Strategic and Financial Benefits for Oasis Accelerates Value for Oasis Shareholders : In exchange for Oasis ' approximately 33.85MM OMP common units and non - economic GP interest , Oasis will receive $ 160MM in cash and 21.0MM common units in Crestwood , representing an attractive valuation of ~ 8x 2021E OMP EBITDA . The transaction is expected to address the sum of the parts disconnect imbedded in Oasis ' current valuation ; Aligns Oasis Financial Reporting with E & P Operations : After the transaction close , Oasis will no longer report financial results consolidated with OMP post close . Reporting will be more aligned with Oasis ' underlying E & P operations ; Maintains Ownership Position in Leading Midstream Company : At closing , Oasis will hold a significant ownership position with upside in the new Crestwood , which will be a leading midstream operator positioned for future success . Enhanced trading liquidity is expected due to the larger size and scale of the combined companies ; Advances Commitment to ESG and Sustainability : The transaction is aligned with Oasis ' ESG objectives , creating an entity with an extensive infrastructure network that will help limit methane flaring as well as the trucking of oil and water . Crestwood is expected to continue to progress its three - year sustainability strategy focused on diversity and inclusion , emissions reductions , biodiversity , supply chain and ESG disclosure ; Strengthens Balance Sheet : Further strengthens Oasis ' balance sheet , resulting in no leverage pro forma for the transaction with pro forma liquidity of $ 918MM ; 1