Oasis Petroleum's Bakken transformation is continuing with the closing Feb. 1 of the previously announced merger between Oasis Midstream Partners and Crestwood Equity.
The transaction has several advantages for both companies, CEO Danny Brown told investors when the deal was announced in October.
The sale de-consolidates financial statements, creating more transparency around the value of both companies, while at the same time accelerating value to Oasis shareholders.
"Our announcement marks the latest and one of the most important actions in a series of strategic actions the board management has taken over the past year," he said. "The strategic merits of the transaction are compelling."
Concurrent with the closing, Oasis directors N. John Lancaster Jr. and John Jacobi were appointed to Crestwood's Board of Directors. Both will also continue serving on Oasis' Board of Directors.
Now that the sale is complete, Oasis is completely unleveraged, Brown said, which positions the company well for attractive mergers and acquisition opportunities. Scale is an important factor in economic feasibility of oil and gas companies in the current capital investment environment.