Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On October 25, 2021, we entered into a merger agreement to acquire Oasis Midstream in an equity and cash transaction (the Merger). Oasis Midstream is a master limited partnership which operates a diversified portfolio of midstream assets in located in the Williston and Delaware Basins and its operations include natural gas services (gathering, compression, processing and gas lift supply) crude oil services (gathering, terminalling and transportation) and water services (gathering and disposal of produced and flowback water and freshwater distribution).

On February 1, 2022, we completed the merger with Oasis Midstream, which was valued at approximately $1.8 billion. Pursuant to the merger agreement, Oasis Petroleum Inc. (Oasis Petroleum) received $150 million in cash plus approximately 21.0 million newly issued CEQP common units in exchange for its 33.8 million common units held in Oasis Midstream. In addition, Oasis Midstream’s public unitholders received approximately 12.9 million newly issued CEQP common units in exchange for the approximately 14.8 million Oasis Midstream common units held by them. Additionally, under the merger agreement Oasis Petroleum received a $10 million cash payment for its ownership of the general partner of Oasis Midstream. .

We will account for the Merger as a business combination using the acquisition method of accounting. We are completing our analysis of the purchase price consideration and estimating the fair value of assets acquired and liabilities assumed in connection with the Merger, which is primarily comprised of property, plant and equipment, intangible assets, goodwill and other long-term debt, however, due to the timing of the Merger, we are unable to provide amounts recognized as of the acquisition date for these major classes of assets and liabilities acquired. During the year ended December 31, 2021, we recognized approximately $2.9 million of transaction costs related to the Merger, which are included in general and administrative expenses in our consolidated statements of operations.