10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to 

Commission file number: 001-38212

Oasis Midstream Partners LP

(Exact name of registrant as specified in its charter)

Delaware	47-1208855
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1001 Fannin Street, Suite 1500 Houston, Texas	77002
(Address of principal executive offices)	(Zip Code)

(281) 404-9500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ý  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

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Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	ý	Smaller reporting company	o
		Emerging growth company	ý

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨ No ý

At November 1, 2018, there were 27,529,026 units representing limited partner interests (consisting of 13,779,026 common units and 13,750,000 subordinated units) outstanding.

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	Page
PART I — FINANCIAL INFORMATION	4
Item 1. — Financial Statements (Unaudited)	4
Condensed Consolidated Balance Sheets at September 30, 2018 and December 31, 2017	4
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017	5
Condensed Consolidated Statement of Changes in Equity for the Nine Months Ended September 30, 2018	6
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017	7
Notes to Condensed Consolidated Financial Statements	8
1. Organization and Nature of Operations	8
2. Basis of Presentation	9
3. Revenue Recognition	10
4. Transactions with Affiliates	11
5. Accrued Liabilities	12
6. Property, Plant and Equipment	12
7. Long-Term Debt	13
8. Income Taxes	14
9. Commitments and Contingencies	14
10. Equity-Based Compensation	15
11. Partnership Equity and Distributions	17
12. Earnings Per Limited Partner Unit	18
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. — Quantitative and Qualitative Disclosures About Market Risk	33
Item 4. — Controls and Procedures	33
PART II — OTHER INFORMATION	35
Item 1. — Legal Proceedings	35
Item 1A. — Risk Factors	36
Item 6. — Exhibits	37
SIGNATURES	38

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PART I — FINANCIAL INFORMATION

Item 1. — Financial Statements (Unaudited)

OASIS MIDSTREAM PARTNERS LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30, 2018			December 31, 2017
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	4,990		$	883
Accounts receivable	5,054			834
Accounts receivable from Oasis Petroleum	72,896			85,818
Prepaid expenses	96			778
Total current assets	83,036			88,313
Property, plant and equipment	876,534			653,928
Less: accumulated depreciation and amortization	(54,555		)	(34,348		)
Total property, plant and equipment, net	821,979			619,580
Other assets	1,981			2,013
Total assets	$	906,996		$	709,906
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	460		$	—
Accounts payable to Oasis Petroleum	24,940			11,638
Accrued liabilities	59,373			58,818
Accrued interest payable	172			114
Total current liabilities	84,945			70,570
Long-term debt	166,000			78,000
Asset retirement obligations	1,497			1,316
Total liabilities	252,442			149,886
Commitments and contingencies (Note 9)
Partners’ Equity
Limited Partners
Common units (13,779 and 13,762 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively)	168,387			167,401
Subordinated units (13,750 units issued and outstanding at September 30, 2018 and December 31, 2017)	80,033			79,173
General Partner	—			—
Total partners’ equity	248,420			246,574
Non-controlling interests	406,134			313,446
Total equity	654,554			560,020
Total liabilities and equity	$	906,996		$	709,906

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OASIS MIDSTREAM PARTNERS LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands, except per unit data)
Revenues
Midstream services for Oasis Petroleum	$	68,863		$	47,002		$	194,694		$	123,777
Midstream services for third parties	2,604			379			4,752			1,556
Total revenues	71,467			47,381			199,446			125,333
Operating expenses
Direct operating	19,816			13,015			53,266			31,108
Depreciation and amortization	7,189			4,147			20,212			11,359
General and administrative	5,449			5,084			17,496			13,868
Total operating expenses	32,454			22,246			90,974			56,335
Operating income	39,013			25,135			108,472			68,998
Other income (expense)
Interest expense, net of capitalized interest	(163		)	(2,733		)	(608		)	(6,965		)
Other income (expense)	(15		)	5			(15		)	7
Total other income (expense)	(178		)	(2,728		)	(623		)	(6,958		)
Income before income taxes	38,835			22,407			107,849			62,040
Income tax expense	—			7,898			—			22,858
Net income	38,835			14,509			107,849			39,182
Less: Net income prior to the initial public offering	—			12,904			—			37,577
Net income subsequent to the initial public offering	38,835			1,605			107,849			1,605
Less: Net income attributable to non-controlling interests subsequent to the initial public offering	26,459			1,079			73,075			1,079
Net income attributable to Oasis Midstream Partners LP	$	12,376		$	526		$	34,774		$	526
Earnings per limited partner unit (Note 12)
Common units — Basic	$	0.45		$	0.02		$	1.27		$	0.02
Common units — Diluted	0.45			0.02			1.26			0.02
Weighted average number of limited partner units outstanding (Note 12)
Common units — Basic	13,751			12,625			13,750			12,625
Common units — Diluted	13,769			12,625			13,764			12,625

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OASIS MIDSTREAM PARTNERS LP

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(UNAUDITED)

	Partnership
	Common Units			Subordinated Units			Non-controlling Interests			Total
	(In thousands)
Balance at December 31, 2017	$	167,401		$	79,173		$	313,446		$	560,020
Contributions from non-controlling interests	—			—			122,678			122,678
Distributions to non-controlling interests	—			—			(103,065		)	(103,065		)
Distributions to unitholders	(16,554		)	(16,526		)	—			(33,080		)
Equity-based compensation	280			—			—			280
Other	(128		)	—			—			(128		)
Net income	17,388			17,386			73,075			107,849
Balance at September 30, 2018	$	168,387		$	80,033		$	406,134		$	654,554

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OASIS MIDSTREAM PARTNERS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
	2018			2017
	(In thousands)
Cash flows from operating activities:
Net income	$	107,849		$	39,182
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,212			11,359
Deferred income taxes	—			5,240
Equity-based compensation expenses	280			999
Deferred financing costs amortization and other	235			7
Working capital changes:
Change in accounts and insurance receivable	8,747			(8,479		)
Change in other current assets	—			(94		)
Change in prepaid expenses	682			445
Change in accounts payable and accrued liabilities	18,895			5,292
Change in current income taxes payable	—			17,618
Net cash provided by operating activities	156,900			71,569
Cash flows from investing activities:
Capital expenditures	(219,819		)	(129,020		)
Acquisitions	—			(7,841		)
Net cash used in investing activities	(219,819		)	(136,861		)
Cash flows from financing activities:
Capital contributions from parent	—			65,145
Proceeds from the initial public offering, net of offering costs	—			115,813
Distribution to Oasis Petroleum subsequent to the initial public offering	—			(113,712		)
Capital contributions from non-controlling interests	115,502			—
Distributions to non-controlling interests	(103,065		)	—
Distributions to unitholders	(33,080		)	—
Deferred financing costs	(331		)	(1,954		)
Proceeds from revolving credit facility	123,000			—
Principal payments on revolving credit facility	(35,000		)	—
Net cash provided by financing activities	67,026			65,292
Increase in cash and cash equivalents	4,107			—
Cash:
Beginning of period	883			—
End of period	$	4,990		$	—
Supplemental non-cash transactions:
Change in accrued capital expenditures	$	(4,520	)	$	17,872
Change in asset retirement obligations	180			138
Installment notes from acquisition	—			4,875
Contribution of capital expenditures from non-controlling interests	7,176			—

The accompanying notes are an integral part of these condensed consolidated financial statements.

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OASIS MIDSTREAM PARTNERS LP

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Organization and Nature of Operations

Organization.Oasis Midstream Partners LP (the “Partnership” or “Oasis Midstream”) is a growth-oriented, fee-based master limited partnership formed by its sponsor, Oasis Petroleum Inc. (together with its subsidiaries, “Oasis Petroleum”) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the crude oil and natural gas operations of Oasis Petroleum and are strategically positioned to capture volumes from other producers.

Contributed businesses.The Partnership conducts its business through its ownership of development companies: Bighorn DevCo LLC (“Bighorn DevCo”), Bobcat DevCo LLC (“Bobcat DevCo”) and Beartooth DevCo LLC (“Beartooth DevCo,” and collectively with Bighorn DevCo and Bobcat DevCo, the “DevCos”). In connection with the Partnership’s initial public offering on September 25, 2017, Oasis Petroleum contributed to the Partnership ownership interests in the following DevCos:

DevCos	Areas Served	Service Lines	Oasis Midstream Ownership
Bighorn DevCo	Wild Basin	– Gas processing – Crude stabilization – Crude blending – Crude and NGL storage – Crude transportation	100%
Bobcat DevCo	Wild Basin	– Gas gathering – Gas compression – Gas lift – Crude gathering – Produced and flowback water gathering – Produced and flowback water disposal	10%
Beartooth DevCo	Alger Cottonwood Hebron Indian Hills Red Bank Wild Basin	– Produced and flowback water gathering – Produced and flowback water disposal – Freshwater supply and distribution	40%

In exchange for the contribution of ownership interests in the DevCos, Oasis Petroleum received 5,125,000 common units and 13,750,000 subordinated units, representing a limited partner interest in the Partnership and the right to receive cash distributions from the Partnership. In addition to and concurrent with the closing of the initial public offering, the Partnership’s general partner, OMP GP LLC (the “General Partner”), retained a non-economic general partnership interest and was issued incentive distribution rights in the Partnership (the “IDRs”).

Nature of business.The Partnership operates in two primary areas with developed midstream infrastructure, both of which are supported by significant acreage dedications from Oasis Petroleum. In Wild Basin, Oasis Petroleum has dedicated to the Partnership approximately 65,000 acres, of which approximately 29,000 acres are within Oasis Petroleum’s current gross operated acreage position, and in which the Partnership has the right to provide crude oil, natural gas and produced and flowback water services to support Oasis Petroleum’s existing and future production. Outside of Wild Basin, Oasis Petroleum has dedicated to the Partnership approximately 581,000 acres for produced and flowback water services, of which approximately 299,000 acres are within Oasis Petroleum’s current gross operated acreage, and approximately 364,000 acres for freshwater services, of which approximately 203,000 acres are within Oasis Petroleum’s current gross operated acreage.

The Partnership generates a substantial portion of its revenues through long-term, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of crude oil, natural gas, produced and flowback water and freshwater that flows through Oasis Midstream’s systems, and Oasis Midstream generally does not take ownership of the crude oil or natural gas that it handles for its customers, including Oasis Petroleum.

Predecessor. Prior to the initial public offering on September 25, 2017, Oasis Petroleum’s midstream services were performed by Oasis Midstream Services LLC (“OMS”), which constitutes the predecessor to the Partnership for accounting purposes (the “Predecessor”). The condensed consolidated financial statements include the results of the Predecessor for the periods presented prior to the initial public offering on September 25, 2017. Certain midstream infrastructure assets, liabilities, revenues and expenses included in the Predecessor’s historical financial statements have been excluded from the businesses of

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the DevCos upon formation. These excluded assets are not included in the condensed consolidated financial statements for the periods presented subsequent to the initial public offering on September 25, 2017. Substantially all of the services of the Predecessor were provided to Oasis Petroleum North America LLC (“OPNA”), a wholly owned subsidiary of Oasis Petroleum that conducts Oasis Petroleum’s crude oil and natural gas exploration and production activities in the Williston Basin. The Predecessor financial statements have been prepared from the separate records maintained by Oasis Petroleum and may not necessarily be indicative of the actual results of operations that might have occurred if the Predecessor had been operated separately during the periods reported.

2. Basis of Presentation

Presentation

The accompanying condensed consolidated financial statements of the Partnership have not been audited by the Partnership’s independent registered public accounting firm, except that the Condensed Consolidated Balance Sheet at December 31, 2017 is derived from audited financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for fair statement of the Partnership’s financial position have been included. Management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

These interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”).

Consolidation

The Partnership’s condensed consolidated financial statements include its accounts and the accounts of the DevCos. With respect to Bobcat DevCo and Beartooth DevCo, management has determined that OMS’s equity at risk was established with non-substantive voting rights, making Bobcat DevCo and Beartooth DevCo variable interest entities (“VIEs”) under the rules of the Financial Accounting Standards Board (“FASB”). Through its 100% ownership interest in OMP Operating LLC (“OMP Operating”), which owns controlling interests in Bobcat DevCo and Beartooth DevCo, the Partnership has the authority to direct the activities that most significantly affect the economic performance of these entities and the obligation to absorb losses or the right to receive benefits that could be potentially significant to them. Therefore, the Partnership is considered the primary beneficiary of Bobcat DevCo and Beartooth DevCo and is required to consolidate these entities in its financial statements under the VIE consolidation model. With respect to Bighorn DevCo, the Partnership is required to consolidate Bighorn DevCo under the voting interest consolidation model because Bighorn DevCo is an indirect wholly owned subsidiary of the Partnership.

Non-Controlling Interests

The non-controlling interests represent Oasis Petroleum’s retained ownership interest in Bobcat DevCo and Beartooth DevCo of 90% and 60%, respectively.

Significant Accounting Policies

There have been no material changes to the Partnership’s critical accounting policies and estimates from those disclosed in the 2017 Annual Report, other than as noted below.

Revenue recognition. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which uses a five-step model to recognize revenue from customer contracts. ASU 2014-09 was applied on a modified retrospective basis. The adoption of ASU 2014-09 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. Disclosures in accordance with the requirements of ASU 2014-09 have been provided in Note 3.

Statement of cash flows. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 was applied on a retrospective basis. The adoption of ASU 2016-15 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Business combinations. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides guidance to assist entities with evaluating

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whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was adopted on a prospective basis. The adoption of ASU 2017-01 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Equity-based compensation. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 was adopted on a prospective basis. The adoption of ASU 2017-09 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Recent Accounting Pronouncements

Leases. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”), which requires a lessee to recognize lease payment obligations and a corresponding right-of-use asset to be measured at fair value on the balance sheet. ASU 2016-02 also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years.

In January 2018, the FASB issued Accounting Standards Update No. 2018-01, Land easement practical expedient for transition to Topic 842, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840, Leases. The Partnership plans to elect this practical expedient.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, Targeted Improvements - Lease Topic 842, which allows entities another option for transition and also provides lessors with a practical expedient to combine lease and non-lease components. The Partnership will adopt the new leases standard using the required modified retrospective approach and plans to elect the option to recognize a cumulative effect adjustment of initially applying the guidance to the opening balance of retained earnings in the period of adoption, rather than recognizing in the earliest period presented. Prior period amounts will not be adjusted.

The Partnership is in the process of analyzing its lease arrangements and is continuing to identify and put in place necessary changes to its business processes and controls to support the adoption of the new standard, including implementing a new lease accounting software to assess the portfolio of leases, assist in the quantification of the expected impact on the consolidated financial statements and facilitate the calculations of the related accounting entries and disclosures. The Partnership is currently evaluating the effect that adopting the new lease guidance will have on its financial position, cash flows and results of operations.

3. Revenue Recognition

In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASC 606 - Revenue from Contracts with Customers (“ASC 606”). This standard was effective in the first quarter of 2018 and the Partnership adopted the new standard using the modified retrospective method. The Partnership applied ASC 606 to all new contracts entered into after January 1, 2018 and all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of December 31, 2017. ASC 606 supersedes previous revenue recognition requirements in ASC 605 and includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services.

In accordance with the adoption of ASC 606, management evaluated its contracts with customers to apply the five-step revenue recognition model. The adoption of ASC 606 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations.

Revenue from contracts with customers

The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Crude oil and natural gas revenues.The Partnership is party to certain contracts for crude oil gathering, stabilization, blending, storage and transportation, as well as natural gas gathering, compression, processing and gas lift services. Under these customer contracts, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives

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and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Water revenues.The Partnership is also party to certain contracts with customers for water services, which includes produced and flowback water gathering and disposal services and freshwater supply and distribution services. Under its customer contracts for produced and flowback water services, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Under its customer contracts for freshwater supply and distribution services, the Partnership supplies and distributes freshwater to its customers for hydraulic fracturing and production optimization. These contracts contain multiple distinct performance obligations since each freshwater barrel can be sold separately and is not dependent or highly interrelated with other barrels. Revenue associated with freshwater supply and distribution services is recognized at a point in time based upon the transaction price when title, control and risk of loss transfers to the customer, which occurs at the delivery point. Payments are due from customers 30 days after receipt of invoice.

Disaggregation of revenues

The following table summarizes revenues associated with contracts with customers for crude oil, natural gas and water services for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Crude oil and natural gas services revenue	$	34,347	$	22,419	$	98,489	$	59,798
Water services revenue	37,120		24,962		100,957		65,535
Total revenues	$	71,467	$	47,381	$	199,446	$	125,333

Contract balances

Under the Partnership’s customer contracts, invoicing occurs once the Partnership’s performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Partnership’s contracts do not give rise to contract assets or liabilities under ASC 606.

Performance obligations

The majority of the Partnership’s customer contracts have a term greater than one year. The Partnership recognizes revenue under the right to invoice practical expedient for its contracts for crude oil, natural gas and produced and flowback water services and is not required to disclose the transaction price allocated to remaining performance obligations. Under the Partnership’s customer contracts for freshwater supply and distribution services, each barrel of freshwater delivered represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

4. Transactions with Affiliates

Revenues.ThePartnership generates a substantial portion of its revenues through 15-year, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of crude oil, natural gas, produced and flowback water and freshwater that flows through the Partnership’s systems, and the Partnership generally does not take ownership of the crude oil or natural gas that it handles for its customers, including Oasis Petroleum.

Expenses.Oasis Petroleum provides substantial labor and overhead support for the Partnership. The Partnership is party to a 15-year services and secondment agreement with Oasis Petroleum pursuant to which Oasis Petroleum provides all personnel, equipment, electricity, chemicals and services (including third-party services) required for the Partnership to operate such

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assets, and the Partnership reimburses Oasis Petroleum for its share of the actual costs of operating such assets (the “Services and Secondment Agreement”). In addition, pursuant to the Services and Secondment Agreement, Oasis Petroleum performs centralized corporate, general and administrative services for the Partnership, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. Oasis Petroleum has also seconded to the Partnership certain of its employees to operate, construct, manage and maintain its assets, and the Partnership reimburses Oasis Petroleum for direct general and administrative expenses incurred by Oasis Petroleum for the provision of these services. The expenses of executive officers and non-executive employees are allocated to the Partnership based on the amount of time spent managing its business and operations. For the periods prior to the initial public offering, shared services and direct labor were allocated to the Predecessor primarily based on headcount and direct usage during the respective years. Management believes that these allocations are reasonable and reflect the utilization of services provided and benefits received, but may differ from the cost that would have been incurred had the Predecessor operated as a stand-alone company for the periods presented prior to the initial public offering.

Additionally, for the period prior to the initial public offering, interest expense was recognized by the Predecessor related to its funding activity with Oasis Petroleum based on capital expenditures for the period using the weighted average effective interest rate for Oasis Petroleum’s long-term indebtedness.

General and administrative expenses and interest expense incurred from affiliate transactions with Oasis Petroleum include the following for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Expenses from affiliates
General and administrative	$	4,490	$	2,895	$	15,320	$	8,416
Interest expense, net of capitalized interest	—		2,714		—		6,945

5. Accrued Liabilities

The following table sets forth the Partnership’s accrued liabilities for the periods presented:

	September 30, 2018		December 31, 2017
	(In thousands)
Accrued capital costs	$	43,323	$	47,843
Accrued operating expenses	16,007		10,860
Other accrued liabilities	43		115
Total accrued liabilities	$	59,373	$	58,818

6. Property, Plant and Equipment

The following table sets forth the Partnership’s property, plant and equipment for the periods presented:

	September 30, 2018			December 31, 2017
	(In thousands)
Pipelines	$	364,199		$	255,231
Natural gas processing plant	112,563			102,371
Produced and flowback water facilities	92,646			80,050
Compressor stations	95,972			59,293
Other property and equipment	33,737			32,340
Construction in progress	177,417			124,643
Total property, plant and equipment	876,534			653,928
Less: accumulated depreciation and amortization	(54,555		)	(34,348		)
Total property, plant and equipment, net	$	821,979		$	619,580

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7. Long-Term Debt

On September 25, 2017, the Partnership entered into a credit agreement (the “Credit Agreement”) for a $200.0 million revolving credit facility with OMP Operating as borrower (the “Revolving Credit Facility”), which has a maturity date of September 25, 2022. On August 27, 2018, the Partnership entered into an amendment to the Credit Agreement to (i) increase the aggregate amount of commitments from $200.0 million to $250.0 million; (ii) provide for the ability to further increase commitments to $400.0 million; and (iii) add six new lenders to the bank group.

The Revolving Credit Facility is available to fund working capital and to finance acquisitions and other capital expenditures of the Partnership. The Revolving Credit Facility includes a letter of credit sublimit of $10.0 million and a swingline loans sublimit of $10.0 million. All obligations of OMP Operating, as the borrower under the Revolving Credit Facility, are unconditionally guaranteed on a joint and several basis by the Partnership, OMP Operating and Bighorn DevCo. At September 30, 2018, $166.0 million of borrowings were outstanding under the Revolving Credit Facility, and the weighted average interest rate on borrowings under the Revolving Credit Facility was 4.0%.

The Revolving Credit Facility is collateralized by mortgages and other security interests on substantially all of the Partnership’s and its subsidiaries’ properties and assets, including the equity interests in all present and future subsidiaries (subject to certain exceptions). Some or all of the collateral owned by Bobcat DevCo and Beartooth DevCo is subject to an intercreditor agreement between Wells Fargo, National Association (“Wells Fargo”), as administrative agent for the Revolving Credit Facility, and Wells Fargo as the administrative agent for the revolving credit facility of Oasis Petroleum, and acknowledged by OMS, Bobcat DevCo and Beartooth DevCo. The Revolving Credit Facility provides for customary representations, warranties and covenants, including, among other things, covenants relating to financial and collateral reporting, notices of material events, maintenance of the existence of the business and its properties, payment of obligations, the Partnership’s ability to enter into certain hedging agreements, limitations on the Partnership’s ability to sell or acquire properties and limitations on indebtedness and liens, dividends and distributions, transactions with affiliates and certain fundamental transactions.

Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable margin (as described below) plus (i) with respect to Eurodollar Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) or (ii) with respect to ABR Loans, the greatest of (A) the Prime Rate in effect on such day, (B) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00% or (C) the Adjusted LIBO Rate for a one-month interest period on such day plus 1.00% (each as defined in the Credit Agreement). The applicable margin for borrowings under the Revolving Credit Facility is determined in accordance with the Credit Agreement as follows:

Consolidated Total Leverage Ratio	Applicable Margin for Eurodollar Loans		Applicable Margin for ABR Loans		Commitment Fee Rate
Less than or equal to 3.00 to 1.00	1.75	%	0.75	%	0.375	%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00	2.00	%	1.00	%	0.375	%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00	2.25	%	1.25	%	0.500	%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00	2.50	%	1.50	%	0.500	%
Greater than 4.50 to 1.00	2.75	%	1.75	%	0.500	%

The Revolving Credit Facility also requires the Partnership to maintain the following financial covenants as of the end of each fiscal quarter:

• Consolidated Total Leverage Ratio: Prior to the date on which one or more of the credit parties have issued an aggregate principal amount of at least $150.0 million of senior notes (as permitted under the Revolving Credit Facility) (such date the “Covenant Changeover Date”), the Partnership and OMP Operating’s ratio of Total Debt to EBITDA (each as defined in the Credit Agreement) on a quarterly basis may not exceed 4.50 to 1.00 (or during an Acquisition Period (as defined in the Credit Agreement), 5.00 to 1.00). On a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of Total Debt to EBITDA may not exceed 5.25 to 1.00.

• Consolidated Senior Secured Leverage Ratio: On a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of Consolidated Senior Secured Funded Debt to EBITDA (each as defined in the Credit Agreement) may not exceed 3.75 to 1.00.

• Consolidated Interest Coverage Ratio: On a quarterly basis prior to the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense (each as defined in the Credit Agreement) may not be less than 3.00 to 1.00 and on a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense may not be less than 2.50 to 1.00.

The Partnership was in compliance with the financial covenants of the Revolving Credit Facility at September 30, 2018.

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8. Income Taxes

The Partnership is not a taxable entity for U.S. federal income tax purposes, and taxes are generally borne by unitholders through the allocation of taxable income. Accordingly, for the periods subsequent to the initial public offering, the Partnership does not record deferred taxes related to the aggregate differences in the tax bases and reported amounts of its assets and liabilities.

The Partnership did not record a tax provision for the three and nine months endedSeptember 30, 2018. The provision for income taxes recorded by the Predecessor for the three and nine months endedSeptember 30, 2017 was determined as if the Predecessor was a stand-alone taxpayer for the period prior to the initial public offering on September 25, 2017. The Predecessor’s effective tax rate for the three and nine months endedSeptember 30, 2017 was 35.2% and 36.8%, respectively. The effective tax rates for the three and nine months endedSeptember 30, 2017 were lower than the statutory tax rate applicable to the U.S. and the blended state rate for the states in which the Predecessor conducted its business primarily due to earnings not subject to tax for the period subsequent to the initial public offering on September 25, 2017.

9. Commitments and Contingencies

The Partnership has various contractual obligations in the normal course of its operations. Currently, there are no unrecorded commitments in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2018.

Water volume commitment agreements. As of September 30, 2018, the Partnership had certain agreements with an aggregate requirement to deliver a minimum quantity of approximately 16.3 million barrels of water, prior to any applicable volume credits, within specified timeframes, all of which are ten years or less. The estimable future commitments under these agreements were approximately $10.9 million as of September 30, 2018. 

Litigation. The Partnership is party to various legal and/or regulatory proceedings from time to time arising in the ordinary course of business. When the Partnership determines that a loss is probable of occurring and is reasonably estimable, the Partnership accrues an undiscounted liability for such contingencies based on its best estimate using information available at the time. The Partnership discloses contingencies where an adverse outcome may be material, or where in the judgment of management, the matter should otherwise be disclosed.

Mirada litigation. On March 23, 2017, Mirada filed a lawsuit against Oasis Petroleum, OPNA, and OMS, seeking monetary damages in excess of $100.0 million, declaratory relief, attorneys’ fees and costs (Mirada Energy, LLC, et al. v. Oasis Petroleum North America LLC, et al.; in the 334th Judicial District Court of Harris County, Texas; Case Number 2017-19911). In its original lawsuit, Mirada asserts that it is a working interest owner in certain acreage owned and operated by Oasis Petroleum in Wild Basin. Specifically, Mirada asserts that Oasis Petroleum has breached certain agreements by: (1) failing to allow Mirada to participate in Oasis Petroleum’s midstream operations in Wild Basin; (2) refusing to provide Mirada with information that Mirada contends is required under certain agreements and failing to provide information in a timely fashion; (3) failing to consult with Mirada and failing to obtain Mirada’s consent prior to drilling more than one well at a time in Wild Basin; and (4) overstating the estimated costs of proposed well operations in Wild Basin. Mirada seeks a declaratory judgment that OPNA be removed as operator in Wild Basin at Mirada’s election and that Mirada be allowed to elect a new operator; that certain agreements apply to Oasis Petroleum and Mirada and Wild Basin with respect to this dispute; that Oasis Petroleum be required to provide all information within its possession regarding proposed or ongoing operations in Wild Basin; and that OPNA not be permitted to drill, or propose to drill, more than one well at a time in Wild Basin without obtaining Mirada’s consent. Mirada also seeks a declaratory judgment with respect to Oasis Petroleum’s current midstream operations in Wild Basin. Specifically, Mirada seeks a declaratory judgment that Mirada has a right to participate in Oasis Petroleum’s Wild Basin midstream operations, consisting of produced and flowback water disposal, crude oil gathering and gas gathering and processing; that, upon Mirada’s election to participate, Mirada is obligated to pay its proportionate costs of Oasis Petroleum’s midstream operations in Wild Basin; and that Mirada would then be entitled to receive a share of revenues from the midstream operations and would not be charged any amount for its use of these facilities for production from the “Contract Area.”

On June 30, 2017, Mirada amended its original petition to add a claim that Oasis Petroleum has breached certain agreements by charging Mirada for midstream services provided by its affiliates and to seek a declaratory judgment that Mirada is entitled to be paid its share of total proceeds from the sale of hydrocarbons received by OPNA or any affiliate of OPNA without deductions for midstream services provided by OPNA or its affiliates.

On February 2, 2018 and February 16, 2018, Mirada filed a second and third amended petition, respectively. In these filings, Mirada alleged new legal theories for being entitled to enforce the underlying contracts, and added Bighorn DevCo LLC, Bobcat DevCo LLC and Beartooth DevCo LLC as defendants, asserting that these entities were created in bad faith in an effort to avoid contractual obligations owed to Mirada. Mirada may further amend its petition from time to time to assert additional claims as well as defendants.

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On March 2, 2018, Mirada filed a fourth amended petition that described Mirada’s alleged ownership and assignment of interests in assets purportedly governed by agreements at issue in the lawsuit.  On August 31, 2018, Mirada filed a fifth amended petition that added the Partnership as a defendant, asserting that it was created in bad faith in an effort to avoid contractual obligations owed to Mirada.

Oasis Petroleum believes that Mirada’s claims are without merit, that Oasis Petroleum has complied with its obligations under the applicable agreements and that some of Mirada’s claims are grounded in agreements which do not apply to Oasis Petroleum. Oasis Petroleum filed answers denying all of Mirada’s claims and intends to continue to vigorously defend against Mirada’s claims. The Partnership has not yet filed an answer because it has not yet been served with process. Discovery is ongoing, and each of the parties has made a number of procedural filings and motions, and additional filings and motions can be expected over the course of the claim. Trial is currently scheduled for May 2019. However, neither we nor Oasis Petroleum can predict or guarantee the ultimate outcome or resolution of such matter. If such matter were to be determined adversely to our or Oasis Petroleum’s interests, or if we or Oasis Petroleum were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on our business, results of operations and financial condition. Such an adverse determination could materially impact Oasis Petroleum’s ability to operate its properties in Wild Basin or develop its identified drilling locations in Wild Basin on its current development schedule. A determination that Mirada has a right to participate in Oasis Petroleum’s midstream operations could materially reduce the interests of Oasis Petroleum and us in our current assets and future midstream opportunities and related revenues in Wild Basin. Under the Omnibus Agreement the Partnership entered into with Oasis Petroleum in connection with the closing of our initial public offering, Oasis Petroleum agreed to indemnify the Partnership for any losses resulting from this litigation. However, the Partnership cannot guarantee that such indemnity will fully protect the Partnership from the adverse consequences of any adverse ruling.

10. Equity-Based Compensation

The Oasis Midstream Partners LP 2017 Long Term Incentive Plan (“LTIP”) provides for the grant, at the discretion of the Board of Directors of the General Partner, of options, unit appreciation rights, restricted units, phantom units, and other unit or cash-based awards. The purpose of awards under the LTIP is to provide additional incentive compensation to individuals providing services to the Partnership, and to align the economic interests of such individuals with the interests of the Partnership’s unitholders.

As of September 30, 2018, the aggregate number of common units that may be issued pursuant to any and all awards under the LTIP is equal to 1,980,118 common units, subject to adjustment due to recapitalization or reorganization, or related to forfeitures or expiration of awards, as provided under the LTIP. On January 1 of each calendar year following the adoption and prior to the expiration of the LTIP, the total number of common units that may be issued pursuant to the LTIP automatically increases by a number of common units equal to one percent of the number of common units outstanding on a fully diluted basis as of the close of business on the immediately preceding December 31 (calculated by adding to the number of common units outstanding, all outstanding securities convertible into common units on such date on an as converted basis). As a result of this adjustment, an additional 137,618 common units were reserved for issuance pursuant to awards under the LTIP on January 1, 2018.

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Phantom unit awards. On October 19, 2017, the Partnership granted under its LTIP 101,500 phantom unit awards (collectively the “Phantom Units” and each a “Phantom Unit”) to certain employees of Oasis Petroleum who are non-employees of the Partnership. Each Phantom Unit represents the right to receive a cash payment equal to the fair market value of one common unit on the day prior to the date it vests. Award recipients are also entitled to Distribution Equivalent Rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one common unit between the grant date and the vesting date. The Phantom Units vest in equal amounts each year over a three-year period. The Phantom Units are accounted for as liability-classified awards since the awards will settle in cash. Under the fair value method for liability-classified awards, compensation expense is remeasured each reporting period at fair value based upon the closing price of a publicly traded common unit. Oasis Petroleum will reimburse the Partnership for the cash settlement amount of these awards. The Partnership recognizes in its Condensed Consolidated Balance Sheets the compensation expense associated with these awards in accounts receivable from Oasis Petroleum and accrued liabilities. As of September 30, 2018, unrecognized equity-based compensation expense for all outstanding Phantom Units was $1.4 million, which is expected to be recognized over a weighted average period of 2.16 years. The following table summarizes information related to the Phantom Units held by certain non-employees of the Partnership:

	Phantom Units
Non-vested units outstanding at December 31, 2017	99,100
Granted	—
Vested	—
Forfeited	(9,600	)
Non-vested units outstanding at September 30, 2018	89,500

Restricted unit awards. The Partnership has granted to independent directors of the General Partner restricted unit awards under its LTIP, which vest over a one-year period. These awards are accounted for as equity-classified awards since the awards will settle in common units upon vesting. Under the fair value method for equity-classified awards, equity-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the vesting period. During the nine months ended September 30, 2018, the Partnership granted 17,260 restricted unit awards which vest over a one-year period with a weighted-average grant date fair value of $17.55 per common unit. Equity-based compensation expense recorded for restricted unit awards for the three and nine months endedSeptember 30, 2018 was approximately $0.1 million and $0.3 million, respectively. Equity-based compensation expense is included in general and administrative expenses on the Condensed Consolidated Statements of Operations. As of September 30, 2018, unrecognized equity-based compensation expense for all outstanding restricted unit awards was $0.2 million, which is expected to be recognized over a weighted average period of 0.54 years. The following table summarizes information related to restricted units held by certain directors of the General Partner:

	Restricted Units
Non-vested units outstanding at December 31, 2017	11,766
Granted	17,260
Vested	(11,766	)
Forfeited	—
Non-vested units outstanding at September 30, 2018	17,260

Restricted stock awards (Predecessor). Prior to the initial public offering on September 25, 2017, certain employees of Oasis Petroleum were granted restricted stock awards under its Amended and Restated 2010 Long Term Incentive Plan, the majority of which vest over a three-year period. Oasis Petroleum accounts for these awards as equity-classified awards, in accordance with GAAP. The value of restricted stock grants is based on the closing sales price of Oasis Petroleum’s common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. During the nine months ended September 30, 2017, employees of the Predecessor were granted restricted stock awards equal to 91,550 shares of common stock with a $14.95 weighted average grant date fair value per share.

In accordance with its indirect shared service expense allocation from Oasis Petroleum, the Predecessor recorded equity-based compensation expense associated with these awards of approximately $0.3 million and $1.0 million for the three and nine months endedSeptember 30, 2017, respectively, in general and administrative expenses on the Condensed Consolidated Statements of Operations. There is no unrecognized expense associated with these awards for the Partnership.

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11. Partnership Equity and Distributions

Cash distributions. On October 30, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2018 of $0.4300 per unit. The distribution will be payable on November 27, 2018 to unitholders of record as of November 9, 2018.

The following table details the distributions paid in respect of each period in which the distributions were earned:

					Distributions
					Limited Partners				General Partner
Period	Record Date	Distribution Date	Distribution per limited partner unit		Common units		Subordinated units		IDRs
			(In thousands, except per unit data)
Q3 2017(1)	February 16, 2018	February 26, 2018	$	0.0245	$	337	$	337	$	—
Q4 2017	February 16, 2018	February 26, 2018	0.3750		5,161		5,156		—
Q1 2018	May 17, 2018	May 29, 2018	0.3925		5,406		5,397		—
Q2 2018	August 16, 2018	August 28, 2018	0.4100		5,649		5,638		—
Q3 2018 (2)	November 9, 2018	November 27, 2018	0.4300		5,925		5,913		—

__________________

(1) Distribution prorated from the closing of the Partnership’s initial public offering on September 25, 2017.

(2) The cash distribution for the three months ended September 30, 2018 was determined based upon the number of units outstanding at November 1, 2018.

Minimum quarterly distribution. The partnership agreement requires that all of the Partnership’s available cash be distributed quarterly. Under the current cash distribution policy, the Partnership intends to distribute to the holders of common units and subordinated units on a quarterly basis at least the minimum quarterly distribution of $0.3750 per unit, or $1.50 on an annualized basis, to the extent the Partnership has sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments to the General Partner and its affiliates.

Subordinated units. Oasis Petroleum owns all of the Partnership’s subordinated units. The partnership agreement provides that, during the subordination period, the common units have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to the minimum quarterly distribution, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. No arrearages will accrue or be payable on the subordinated units.

When the subordination period ends, each outstanding subordinated unit will convert into one common unit and will thereafter participate pro rata with the other common units in distributions of available cash.

The subordination period will end on December 31, 2020 if each of the following tests are met:

• for each of the three consecutive, non-overlapping four-quarter periods immediately preceding that date, aggregate distributions from operating surplus equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in each period;

• for the same three consecutive, non-overlapping four-quarter periods, the “adjusted operating surplus” (as defined in the partnership agreement) equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding during each quarter on a fully diluted weighted average basis; and

• there are no arrearages in payment of the minimum quarterly distribution on the common units.

Notwithstanding the foregoing, the subordination period will automatically terminate, and all of the subordinated units will convert into common units on a one-for-one basis, on the first business day after the distribution to unitholders in respect of any quarter, beginning with the quarter ending December 31, 2018, if each of the following has occurred:

• for one four-quarter period immediately preceding that date, aggregate distributions from operating surplus exceeded 150.0% of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in the period;

• for the same four-quarter period, the “adjusted operating surplus” (as defined in the Partnership’s Amended and Restated Agreement of Limited Partnership) equaled or exceeded 150.0% of the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding during each quarter on a fully diluted weighted average basis, plus the related distribution on the IDRs; and

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• there are no arrearages in payment of the minimum quarterly distributions on the common units.

Incentive distribution rights. The General Partner owns all of the Partnership’s IDRs, which will entitle it to increasing percentages, up to a maximum of 50.0%, of the cash the Partnership distributes in excess of $0.43125 per unit per quarter. The maximum distribution of 50.0% does not include any distributions that Oasis Petroleum may receive on common units or subordinated units that it owns. No distributions have been declared on the IDRs since the Partnership’s initial public offering.

Percentage allocations of available cash from operating surplus. For any quarter in which the Partnership has distributed cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum distribution, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the IDR holders in the following manner:

		Marginal Percentage Interest in Distributions
	Total Quarterly Distribution Per Unit	Unitholders		IDR Holders
Minimum Quarterly Distribution	up to $0.3750	100	%	—	%
First Target Distribution	above $0.3750 up to $0.4313	100	%	—	%
Second Target Distribution	above $0.4313 up to $0.4688	85	%	15	%
Third Target Distribution	above $0.4688 up to $0.5625	75	%	25	%
Thereafter	above $0.5625	50	%	50	%

12. Earnings Per Limited Partner Unit

Earnings per limited partner unit is computed by dividing the respective limited partners’ interest in earnings attributable to the Partnership by the weighted average number of common units and subordinated units outstanding. Because there is more than one class of participating securities, the Partnership uses the two-class method when calculating earnings per limited partner unit. The classes of participating securities include common units, subordinated units, and IDRs.

Diluted earnings per limited partner unit reflects the potential dilution that could occur if securities or agreements to issue common units, such as awards under the LTIP, were exercised, settled or converted into common units. When it is determined that potential common units should be included in diluted net income per limited partner unit calculation, the impact is reflected by applying the treasury stock method.

	Three Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	5,925	$	5,913	$	11,838
Undistributed earnings attributable to Oasis Midstream Partners LP	—		269		269		538
Net income attributable to Oasis Midstream Partners LP	$	—	$	6,194	$	6,182	$	12,376
Weighted average limited partner units outstanding
Basic			13,751
Diluted			13,769
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.45
Diluted			0.45
Anti-dilutive restricted units			8

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	Three Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

	Nine Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	16,980	$	16,948	$	33,928
Undistributed earnings attributable to Oasis Midstream Partners LP	—		423		423		846
Net income attributable to Oasis Midstream Partners LP	$	—	$	17,403	$	17,371	$	34,774
Weighted average limited partner units outstanding
Basic			13,750
Diluted			13,764
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	1.27
Diluted			1.26
Anti-dilutive restricted units			8

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	Nine Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

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Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”), as well as the unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q includes the results of operations of OMS Services LLC (“OMS”), our predecessor for accounting purposes (“Predecessor”), for periods prior to September 25, 2017, the date on which we completed the initial public offering. Our Predecessor financial statements include 100% of the operations of OMS, reflecting the historical ownership of these assets by Oasis Petroleum Inc. (“Oasis Petroleum”). Our future results of operations may not be comparable to our Predecessor’s historical results of operations. Please read “Items Affecting Comparability of Our Financial Condition and Results of Operations.”

Unless the context otherwise requires, references in this section to “we,” “us,” “our” or like terms, when used in reference to periods prior to September 25, 2017, refer to the operations of our Predecessor. References to “we,” “us,” “our” or like terms when used in reference to the period since September 25, 2017, or when used in the present tense or prospectively, refer to Oasis Midstream Partners LP and its subsidiaries (the “Partnership” or “OMP”).

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements give our current expectations, contain projections of results of operations or of financial condition or provide forecasts of future events. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” “continue” and other similar expressions are used to identify forward-looking statements.

Forward-looking statements can be affected by the assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed below and detailed under Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q. Actual results may vary materially. Although forward-looking statements reflect our good faith beliefs at the time they are made, you are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and you should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:

• an inability of Oasis Petroleum or our other future customers to meet their drilling and development plans on a timely basis or at all;

• the execution of our business strategies;

• the demand for and price of crude oil and natural gas, on an absolute basis and in comparison to the price of alternative and competing fuels;

• the fees we charge, and the margins we realize, from our midstream services;

• the cost of achieving organic growth in current and new markets;

• our ability to make acquisitions of other midstream infrastructure assets or other assets that complement or diversify our operations;

• our ability to make acquisitions of other assets on economically acceptable terms from Oasis Petroleum;

• the lack of asset and geographic diversification;

• the suspension, reduction or termination of our commercial agreements with Oasis Petroleum;

• labor relations and government regulations;

• competition and actions taken by third-party producers, operators, processors and transporters;

• outcomes of litigation and regulatory investigations, proceedings or inquiries;

• the demand for, and the costs of developing and conducting, our midstream infrastructure services;

• general economic conditions, including the risk of a prolonged economic slowdown or decline, or the risk of delay in a recovery, which can affect the long-term demand for midstream services;

• the price and availability of equity and debt financing;

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• operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control;

• potential effects arising from cyber threats, terrorist attacks and any consequential or other hostilities;

• interruption of our operations due to social, civil or political events or unrest;

• changes in environmental, safety and other laws and regulations;

• the effects of accounting pronouncements issued periodically during the periods covered by forward-looking statements;

• changes in our tax status;

• uncertainty regarding our future operating results; and

• certain factors discussed elsewhere in this Quarterly Report on Form 10-Q.

All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. We disclaim any obligation to update or revise these statements unless required by securities law. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this Quarterly Report on Form 10-Q are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. Some of the key factors which could cause actual results to vary from our expectations include, but are not limited to, commodity price volatility, inflation, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in projecting future throughput volumes, cash flow and access to capital, the timing of development expenditures and the other risks described under Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q.

Overview

We are a growth-oriented, fee-based master limited partnership formed by our sponsor, Oasis Petroleum Inc. (NYSE: OAS) (“Oasis Petroleum”), to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the crude oil and natural gas operations of Oasis Petroleum and are strategically positioned to capture volumes from other producers. Our current midstream operations are performed exclusively within the Williston Basin, one of the most prolific crude oil producing basins in North America. We generate a substantial portion of our revenues through 15-year, fixed-fee contracts pursuant to which we provide crude oil, natural gas and water midstream services for Oasis Petroleum. We expect to grow acquisitively through accretive, dropdown acquisitions, as well as organically as Oasis Petroleum continues to develop its acreage. Additionally, we expect to grow by offering our services to third parties and through acquisitions of midstream assets from third parties.

We operate in two primary areas with developed midstream infrastructure, both of which are supported by significant acreage dedications from Oasis Petroleum. In Wild Basin, Oasis Petroleum has dedicated to us approximately 65,000 acres, of which approximately 29,000 acres are within Oasis Petroleum’s current gross operated acreage position, and in which we have the right to provide crude oil, natural gas and water services to support Oasis Petroleum’s existing and future production. Outside of the Wild Basin, Oasis Petroleum has dedicated to us approximately 581,000 acres for produced and flowback water services, of which approximately 299,000 acres are within Oasis Petroleum’s current gross operated acreage, and approximately 364,000 acres for freshwater services, of which approximately 203,000 acres are within Oasis Petroleum’s current gross operated acreage.

We conduct our business through our ownership of development companies (“DevCos”), two of which are jointly-owned with Oasis Petroleum. We own a 100%, 10% and 40% equity interest in Bighorn DevCo LLC (“Bighorn DevCo”), Bobcat DevCo LLC (“Bobcat DevCo”) and Beartooth DevCo LLC (“Beartooth DevCo”), respectively. Oasis Petroleum owns a 90% and 60% non-controlling equity interest in Bobcat DevCo and Beartooth DevCo, respectively. In connection with our initial public offering, we entered into 15-year, fixed-fee contracts for natural gas services (gathering, compression, processing and gas lift), crude oil services (gathering, stabilization, blending and storage), produced and flowback water services (gathering and disposal) and freshwater services (fracwater and flushwater supply and distribution) with wholly owned subsidiaries of Oasis Petroleum. At the same time, we became a party to the long-term, FERC-regulated transportation services agreement governing the transportation of crude oil via pipeline from the Wild Basin operating area to Johnson’s Corner. We generate a substantial portion of our revenues through these contracts. We generally do not take ownership of the crude oil or natural gas that we handle for our customers, including Oasis Petroleum, which minimizes our direct exposure to commodity prices. We believe our contractual arrangements provide us with stable and predictable cash flows over the long-term. Oasis Petroleum has also granted us a right of first offer, which converts into a right of first refusal from any successor upon a change of control of Oasis Petroleum, with respect to its retained interests in our DevCos and any other midstream assets that Oasis Petroleum or any Oasis Petroleum successor builds with respect to its current acreage and elects to sell in the future.

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Highlights:

• Declared the quarterly cash distribution for the third quarter of 2018 of $0.4300 per unit, an approximate 5% increase from the cash distribution declared for the second quarter of 2018, in line with the Partnership’s 20% annualized distribution growth target.

• Net income was $38.8 million for the three months ended September 30, 2018 and net cash from operating activities was $40.8 million for the three months ended September 30, 2018.

• Adjusted EBITDA was $46.3 million for the three months ended September 30, 2018 and net Adjusted EBITDA to the Partnership was $16.6 million for the three months ended September 30, 2018. See “Non-GAAP Financial Measures” below. Net adjusted EBITDA was reduced by approximately $1.8 million related to non-recurring items.

• Distributable Cash Flow was $14.4 million for the three months ended September 30, 2018, resulting in distribution coverage of 1.22x. See “Non-GAAP Financial Measures” below.

• Increased water volumes in Beartooth DevCo to 151.3 thousand barrels of water per day (“Mbwpd”), a 54% increase compared to the third quarter of 2017. Approximately 75% of the increase was related to Oasis Petroleum produced water growth and approximately 25% was associated with increased freshwater volumes, which was largely driven by third-party sales.

The following table summarizes the gross throughput volumes, operating income, depreciation and amortization and capital expenditures for our midstream services for the period presented.

	Three Months Ended September 30,
	2018
	(In thousands, except throughput volumes)
Bighorn DevCo
Crude oil services volumes (Mbopd)	42.5
Natural gas services volumes (MMscfpd)	96.0
Operating income	$	5,345
Depreciation and amortization	2,845
Capital expenditures	7,914
Bobcat DevCo
Crude oil services volumes (Mbopd)	35.8
Natural gas services volumes (MMscfpd)	141.2
Water services volumes (Mbwpd)	54.3
Operating income	$	18,973
Depreciation and amortization	2,247
Capital expenditures	43,344
Beartooth DevCo
Water services volumes (Mbwpd)	151.3
Operating income	$	15,639
Depreciation and amortization	2,097
Capital expenditures	11,142
Oasis Midstream Partners LP
DevCo operating income	$	39,957
Public company expenses	959
OMP operating income	39,013
Depreciation and amortization	7,100
Equity-based compensation expense	63
Total capital expenditures (“CapEx”)	62,400
Maintenance CapEx	805
Expansion CapEx	61,595

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How We Evaluate Our Operations

We use a variety of financial and operating metrics to analyze our operating results and profitability. These metrics are significant factors in assessing our operating results and profitability and include: (i) throughput volumes, (ii) Adjusted EBITDA, (iii) Distributable Cash Flow, (iv) capital expenditures, (v) direct operating expenses and (vi) general and administrative expenses.

Throughput Volumes

The amount of revenue we generate primarily depends on the volumes of crude oil, natural gas and water for which we provide midstream services. By connecting new producing wells to our gathering systems and by increasing capacity on our systems, we are able to increase volumes. Additionally, by performing routine maintenance and monitoring of our infrastructure, we are able to minimize service interruptions on our gathering systems.

Under our commercial agreements with Oasis Petroleum and its wholly owned subsidiaries, we provide (i) natural gas gathering, compression, processing and gas lift services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for gas attributable to such acreage; (ii) crude gathering, stabilization, blending and storage services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for crude oil attributable to such acreage; (iii) produced and flowback water gathering and disposal services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for produced and flowback water attributable to such acreage; (iv) produced and flowback water gathering and disposal services, with approximately 581,000 dedicated acres that includes the Alger, Cottonwood, Hebron, Indian Hills and Red Bank operating areas; and (v) freshwater supply and distribution services, with approximately 364,000 dedicated acres that includes the Hebron, Indian Hills, Red Bank and Wild Basin operating areas. In addition, we are party to a crude oil transportation services agreement which provides for crude oil transportation services from the Wild Basin operating area to Johnson’s Corner through a FERC-regulated crude oil pipeline that has up to 75,000 barrels per day of operating capacity and firm capacity for committed shippers.

Throughput volumes are affected by changes in the supply of and demand for crude oil and natural gas in the markets served directly or indirectly by our assets. Because the production rate of a well declines over time, we must continually obtain new supplies of crude oil, natural gas and produced and flowback water to maintain or increase the throughput volumes on our midstream systems. Because freshwater supply and distribution services are largely dependent on well completion activities, our ability to provide freshwater supply and distribution services is contingent on our customers drilling and completing new wells in and around our freshwater infrastructure. Our customers’ willingness to engage in new development activity is determined by a number of factors, the most important of which are the prevailing and projected prices of crude oil and natural gas, the cost to drill, complete and operate a well, expected well performance, the availability and cost of capital and environmental and government regulations. We generally expect the level of development activity to positively correlate with long-term trends in commodity prices and similarly, production levels to positively correlate with development activity.

Our ability to maintain or increase existing throughput volumes and obtain new supplies of crude oil, natural gas and produced, flowback and freshwater are impacted by:

• successful development activity by Oasis Petroleum on our dedicated acreage and our ability to fund the capital costs required to connect our infrastructure assets to new wells;

• our ability to utilize the remaining uncommitted capacity on, or add additional capacity to, our infrastructure assets;

• the level of workovers and recompletions of wells on existing pad sites to which our infrastructure assets are connected;

• our ability to identify and execute organic expansion projects to capture incremental volumes from Oasis Petroleum and third parties;

• our ability to compete for volumes from successful new wells in the areas in which we operate outside of our dedicated acreage;

• our ability to provide crude oil, natural gas and water-related midstream services with respect to volumes produced on acreage that has been released from commitments with our competitors; and

• our ability to obtain financing for acquiring incremental assets in dropdown transactions from Oasis Petroleum.

We actively monitor producer activity in the areas served by our infrastructure assets to identify opportunities to connect new wells to our gathering systems.

Adjusted EBITDA and Distributable Cash Flow

We define Adjusted EBITDA as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, impairment, equity-based compensation expenses and other similar non-cash adjustments. We define Adjusted EBITDA attributable to the Partnership as Adjusted EBITDA less Adjusted EBITDA attributable to Oasis Petroleum’s retained

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interests in our DevCos. We define Distributable Cash Flow as Adjusted EBITDA attributable to the Partnership less cash paid for interest and maintenance capital expenditures attributable to the Partnership.

Adjusted EBITDA and Distributable Cash Flow are not presentations made in accordance with GAAP. These non-GAAP supplemental financial measures may be used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, to assess:

• our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;

• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;

• our ability to incur and service debt and fund capital expenditures; and

• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA and Distributable Cash Flow provides useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA and Distributable Cash Flow are net income and net cash provided by operating activities, respectively. Adjusted EBITDA and Distributable Cash Flow should not be considered as alternatives to GAAP net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and Distributable Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. Adjusted EBITDA or Distributable Cash Flow should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Additionally, because Adjusted EBITDA and Distributable Cash Flow may be defined differently by other companies in our industry, our definition of Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a further discussion of Adjusted EBITDA and Distributable Cash Flow and reconciliations of Adjusted EBITDA and Distributable Cash Flow to net income and net cash provided by operating activities, see “Non-GAAP Financial Measures” below.

Capital Expenditures

The midstream energy business is capital intensive; thus, our operations require capital investments to maintain, expand, upgrade or enhance our existing operations. Our capital requirements are categorized as either:

Maintenance Capital Expenditures, which are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long-term, system operating capacity, operating income or revenue. Examples of maintenance capital expenditures are expenditures to repair, refurbish and replace pipelines, to maintain equipment reliability, integrity and safety and to comply with environmental laws and regulations. In addition, we designate a portion of our capital expenditures to connect new wells to maintain gathering throughput as maintenance capital expenditures to the extent such capital expenditures are necessary to maintain, over the long term, system operating capacity, operating income or revenue. Cash expenditures made solely for investment purposes will not be considered maintenance capital expenditures; or

Expansion Capital Expenditures, which are cash expenditures to acquire additional interests in our midstream assets and to construct new midstream infrastructure and those expenditures incurred in order to extend the useful lives of our assets, reduce costs, increase revenues or increase system throughput or capacity from current levels, including well connections that increase existing system operating capacity, operating income or revenue. Examples of expansion capital expenditures include the acquisition of additional interests in our DevCos and the construction, development or acquisition of additional midstream assets, in each case, to the extent such capital expenditures are expected to increase, over the long term, system operating capacity, operating income or revenue. In the future, if we make acquisitions that increase system operating capacity, operating income or revenue, the associated capital expenditures may also be considered expansion capital expenditures.

Direct Operating Expenses

We seek to maximize the profitability of our operations by effectively managing operating expenses. Direct operating expenses, which do not extend the useful life of existing property, plant and equipment, are primarily comprised of direct labor, utility costs, insurance premiums, third-party service provider costs, related property taxes and other non-income taxes, purchases of freshwater and expenditures to repair, refurbish and replace facilities and to maintain equipment reliability, integrity and safety.

Direct operating expenses fluctuate from period to period depending on the mix of activities performed during any specified period and the timing of these expenses. Because many of these expenses are fixed in nature, we expect to lower operating expenses as a percentage of revenue as we add incremental volumes onto our gathering systems. We will seek to manage our operating expenditures by scheduling periodic maintenance on our assets in order to minimize significant variability in these expenditures and their impact on our cash flow.

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General and Administrative Expenses

Historically, our Predecessor’s general and administrative expenses included an allocation of charges for the management and operation of our assets by Oasis Petroleum for general and administrative services, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. We are party to a 15-year services and secondment agreement with Oasis Petroleum (the “Services and Secondment Agreement”), pursuant to which Oasis Petroleum performs certain centralized corporate, general and administrative services for us, such as information technology, treasury, accounting, investor relations, human resources, legal services and other financial and administrative services.

In addition, Oasis Petroleum has seconded to us certain of its employees to operate, construct, manage and maintain our assets. The Services and Secondment Agreement requires us to reimburse Oasis Petroleum for direct general and administrative expenses incurred for the provision of these services. Oasis Petroleum charges us a combination of direct and indirect allocated charges for general and administrative services using certain estimates and assumptions of the expenses attributable to our operations. Management believes these estimates and assumptions are reasonable. In addition, we incur costs as a publicly traded partnership which consist primarily of accounting and audit fees, legal fees, board and director expenses, and equity-based compensation expenses.

Items Affecting Comparability of Our Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q includes results of operations attributable to our Predecessor for periods prior to September 25, 2017, the date on which we completed our initial public offering. Our future results of operations may not be comparable to our Predecessor’s historical results of operations for the following reasons:

Revenues. In connection with our initial public offering, we entered into 15-year, fixed-fee contracts for natural gas services (gathering, compression, processing and gas lift), crude oil services (gathering, stabilization, blending and storage), produced and flowback water services (gathering and disposal) and freshwater services (fracwater and flushwater supply and distribution) with Oasis Petroleum and its wholly owned subsidiaries. At the same time, we became a party to the long-term, FERC-regulated transportation services agreement governing the transportation of crude oil via pipeline from the Wild Basin area to Johnson’s Corner. Historically, our Predecessor had provided substantially all of their services to Oasis Petroleum operated wells at prevailing market rates. Following the closing of the initial public offering, we earn revenues under our long-term, fixed-fee commercial agreements with Oasis Petroleum.

Oasis Petroleum’s retained interests. Our Predecessor’s results of operations included 100% of the revenues and expenses associated with OMS. At the closing of the initial public offering, OMS contributed to us a 100%, 10% and 40% equity interest in Bighorn DevCo, Bobcat DevCo and Beartooth DevCo, respectively. Following the closing of the initial public offering, we consolidated the financial position and results of operations of our equity interest in Bighorn DevCo under the voting interest consolidation model in accordance with GAAP. We consolidate the financial position and results of operations of our equity interests and Oasis Petroleum’s retained interest in Bobcat DevCo and Beartooth DevCo under the variable interest entity (“VIE”) consolidation model in accordance with GAAP. Oasis Petroleum’s retained portions of these interests are reflected as non-controlling interests in our condensed consolidated financial statements.

Excluded assets. Certain midstream infrastructure assets, liabilities, revenues and expenses included in our Predecessor’s historical financial statements have been excluded from the businesses of the DevCos upon formation.

General and administrative expenses. Our Predecessor’s general and administrative expenses included direct labor and indirect shared service expense allocations for support functions provided by Oasis Petroleum, as Oasis Petroleum provided substantial labor and overhead support for us. These support functions included general and administrative services, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, taxes and engineering. Allocations were based primarily on headcount and direct usage during the respective periods of operations. We believe that these allocations were reasonable and reflected the utilization of services provided and benefits received, but may have differed from the cost that would have been incurred had we operated as a stand-alone entity for the years presented. Following the closing of the initial public offering, under our Services and Secondment Agreement, Oasis Petroleum charges us a combination of direct and indirect allocated charges for general and administrative services.

Financing. Historically, our Predecessor’s operations and capital expenditure requirements were financed solely with capital contributions from Oasis Petroleum. Our Predecessor recognized interest expense related to its fundingactivity with Oasis Petroleum based on capital expenditures for the period using the weighted average effective interest rate of Oasis Petroleum’s long-term indebtedness.

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In connection with the initial public offering, we entered into a credit agreement (the “Credit Agreement”) for a revolving credit facility with OMP Operating LLC as borrower (the “Revolving Credit Facility”). Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable margin (as described in the Credit Agreement) plus (i) with respect to Eurodollar Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) or (ii) with respect to ABR Loans, the greatest of (A) the Prime Rate in effect on such day, (B) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00% or (C) the Adjusted LIBO Rate for a one-month interest period on such day plus 1.00% (each as defined in the Credit Agreement).

Income taxes. Our Predecessor determined income tax expense and related deferred tax balance sheet accounts on a separate return method for the periods prior to the initial public offering. Following the closing of the initial public offering, we are treated as a partnership for U.S. federal income tax purposes and, therefore, generally are not liable for entity-level federal income taxes.

Results of Operations

Revenues

Our revenues are primarily generated from charging fees for the midstream services we provide. These services include (i) natural gas gathering, compression, processing and gas lift services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for gas attributable to such acreage; (ii) crude gathering, stabilization, blending and storage services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for crude oil attributable to such acreage; (iii) produced and flowback water gathering and disposal services, with approximately 65,000 dedicated acres in the Wild Basin operating area and firm capacity for produced and flowback water attributable to such acreage; (iv) produced and flowback water gathering and disposal services, with approximately 581,000 dedicated acres that includes the Alger, Cottonwood, Hebron, Indian Hills and Red Bank operating areas; and (v) freshwater supply and distribution services, with approximately 364,000 dedicated acres that includes the Hebron, Indian Hills, Red Bank and Wild Basin operating areas. In addition, we are party to a crude oil transportation services agreement which provides for crude oil transportation services from the Wild Basin operating area to Johnson’s Corner through a FERC-regulated crude oil pipeline that has up to 75,000 barrels per day of operating capacity and firm capacity for committed shippers.

The following table summarizes our revenues for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018		2017		Change		2018		2017		Change
	(In thousands)
Operating results
Revenues
Midstream services for Oasis Petroleum	$	68,863	$	47,002	$	21,861	$	194,694	$	123,777	$	70,917
Midstream services for third parties	2,604		379		2,225		4,752		1,556		3,196
Total revenues	$	71,467	$	47,381	$	24,086	$	199,446	$	125,333	$	74,113

Three months ended September 30, 2018 as compared to three months ended September 30, 2017

Total midstream revenues increased$24.1 million to $71.5 million during the three months ended September 30, 2018 as compared to the three months ended September 30, 2017. This increase was driven by a $12.2 millionincrease related to higher water service volumes due to an increase in produced and flowback water gathering and injection volumes from Oasis Petroleum, as well as an increase in freshwater volumes delivered to Oasis Petroleum and third parties. In addition, there was a $11.9 millionincrease related to higher crude oil and natural gas service volumes, partially offset by downtime at the natural gas processing plant in Wild Basin during the three months ended September 30, 2018.

Nine months ended September 30, 2018 as compared to nine months ended September 30, 2017

Total midstream revenues increased$74.1 million to $199.4 million during the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017. This increase was driven by a $38.7 millionincrease related to higher crude oil and natural gas service volumes, partially offset by downtime at the natural gas processing plant in Wild Basin during the three months ended September 30, 2018. In addition, there was a $35.4 millionincrease related to higher water service volumes due to an increase in produced and flowback water gathering and injection volumes from Oasis Petroleum, as well as an increase in freshwater volumes delivered to Oasis Petroleum and third parties.

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Expenses and other income

The following table summarizes our operating expenses and other income and expenses for the periods presented:

	Three Months Ended September 30,									Nine Months Ended September 30,
	2018			2017			Change			2018			2017			Change
	(In thousands)
Operating expenses
Direct operating	$	19,816		$	13,015		$	6,801		$	53,266		$	31,108		$	22,158
Depreciation and amortization	7,189			4,147			3,042			20,212			11,359			8,853
General and administrative	5,449			5,084			365			17,496			13,868			3,628
Total operating expenses	32,454			22,246			10,208			90,974			56,335			34,639
Operating income	39,013			25,135			13,878			108,472			68,998			39,474
Other income (expense)
Interest expense, net of capitalized interest	(163		)	(2,733		)	2,570			(608		)	(6,965		)	6,357
Other income (expense)	(15		)	5			(20		)	(15		)	7			(22		)
Total other income (expense)	(178		)	(2,728		)	2,550			(623		)	(6,958		)	6,335
Income before income taxes	38,835			22,407			16,428			107,849			62,040			45,809
Income tax expense	—			7,898			(7,898		)	—			22,858			(22,858		)
Net income	38,835			14,509			24,326			107,849			39,182			68,667
Less: net income prior to the initial public offering	—			12,904			(12,904		)	—			37,577			(37,577		)
Net income subsequent to the initial public offering	38,835			1,605			37,230			107,849			1,605			106,244
Less: net income attributable to non-controlling interests subsequent to the initial public offering	26,459			1,079			25,380			73,075			1,079			71,996
Net income attributable to Oasis Midstream Partners LP	$	12,376		$	526		$	11,850		$	34,774		$	526		$	34,248

Three months ended September 30, 2018 as compared to three months ended September 30, 2017

Direct operating expenses. The $6.8 millionincrease for the three months ended September 30, 2018 as compared to the three months ended September 30, 2017 was primarily driven by a $4.6 million increase related to higher crude oil and natural gas direct operating costs due to increased crude oil and natural gas service volumes, coupled with a $2.2 million increase related to produced and flowback water and freshwater direct operating costs as a result of higher water service volumes.

Depreciation and amortization. Depreciation and amortization expense increased$3.0 million to $7.2 million for the three months ended September 30, 2018 as compared to three months ended September 30, 2017, primarily as a result of additional assets placed into service.

General and administrative (“G&A”) expenses. G&A expenses include direct labor and allocated costs of overhead support provided by Oasis Petroleum, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. The increase of $0.4 million in G&A expenses for the three months ended September 30, 2018 as compared to three months ended September 30, 2017 was primarily a result of increased employee compensation as a result of organizational growth.

Interest expense. The $2.6 milliondecrease in interest expense, net of capitalized interest, for the three months ended September 30, 2018 as compared to the three months ended September 30, 2017 was attributable to a lower weighted average borrowing rate on the Revolving Credit Facility compared to the weighted average borrowing rate of the Predecessor.

Income tax expense. The Partnership is not a taxable entity for U.S. federal income tax purposes and taxes are generally borne by our partners through the allocation of taxable income. Income tax expense for the three months ended September 30, 2017 was recorded at 35.2% of pre-tax net income.

Nine months ended September 30, 2018 as compared to nine months ended September 30, 2017

Direct operating expenses. The $22.2 millionincrease for the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017 was primarily driven by a $12.4 million increase related to higher crude oil and natural gas

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direct operating costs due to increased crude oil and natural gas service volumes, coupled with a $9.8 million increase related to produced and flowback water and freshwater direct operating costs as a result of higher water service volumes.

Depreciation and amortization. Depreciation and amortization expense increased$8.9 million to $20.2 million for the nine months ended September 30, 2018 as compared to nine months ended September 30, 2017, primarily as a result of additional assets placed into service.

G&A expenses. G&A expenses include direct labor and allocated costs of overhead support provided by Oasis Petroleum, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. The increase of $3.6 million in G&A expenses for the nine months ended September 30, 2018 as compared to nine months ended September 30, 2017 was primarily a result of increased employee compensation as a result of organizational growth.

Interest expense. The $6.4 milliondecrease in interest expense, net of capitalized interest, for the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017 was attributable to a lower weighted average borrowing rate on the Revolving Credit Facility compared to the weighted average borrowing rate of the Predecessor.

Income tax expense. The Partnership is not a taxable entity for U.S. federal income tax purposes and taxes are generally borne by our partners through the allocation of taxable income. Income tax expense for the nine months ended September 30, 2017 was recorded at 36.8% of pre-tax net income.

Liquidity and Capital Resources

Our primary sources of liquidity include cash generated from operations and borrowings under our Revolving Credit Facility. We believe cash generated from these sources will be sufficient to meet our short-term working capital needs, long-term capital expenditure requirements and quarterly cash distributions. As a result, we expect to fund future expansion capital expenditures and acquisitions primarily from a combination of borrowings under our Revolving Credit Facility and, if necessary, the issuance of additional equity or debt securities. We expect our future cash requirements relating to working capital, maintenance capital expenditures and quarterly cash distributions to our unitholders will be funded from cash flows internally generated from our operations.

Our cash flows for the nine months ended September 30, 2018 and 2017 are presented below:

	Nine Months Ended September 30,
	2018			2017
	(In thousands)
Net cash provided by operating activities	$	156,900		$	71,569
Net cash used in investing activities	(219,819		)	(136,861		)
Net cash provided by financing activities	67,026			65,292
Increase in cash and cash equivalents	$	4,107		$	—

Cash flows provided by operating activities

Net cash provided by operating activities was $156.9 million and $71.6 million for the nine months ended September 30, 2018 and 2017, respectively. The increase in cash flows from operating activities for the nine months ended September 30, 2018 as compared to 2017 was primarily due to an increase in net income as a result of higher throughput volumes on our systems.

Cash flows used in investing activities

Net cash used in investing activities was $219.8 million and $136.9 million for the nine months ended September 30, 2018 and 2017, respectively. The increase in net cash used in investing activities for the nine months ended September 30, 2018 as compared to 2017 was attributable to the capital spending on our second Wild Basin gas plant and the development of additional midstream infrastructure in Wild Basin.

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Our capital expenditures are summarized in the following table⁽¹⁾:

	1Q2018				2Q2018				3Q2018				Nine Months Ended September 30, 2018
	(In thousands)
Capital expenditures	Gross		Net		Gross		Net		Gross		Net		Gross		Net
Maintenance capital expenditures	$	2,379	$	796	$	2,163	$	497	$	805	$	418	$	5,347	$	1,711
Expansion capital expenditures	78,867		48,663		68,139		18,603		61,595		16,287		208,601		83,553
Total CapEx	$	81,246	$	49,459	$	70,302	$	19,100	$	62,400	$	16,705	$213,948		$	85,264

Our capital expenditures by DevCo are summarized in the following table⁽¹⁾:

		1Q2018				2Q2018				3Q2018				Nine Months Ended September 30, 2018
		(In thousands)
DevCo	OMP Ownership	Gross		Net		Gross		Net		Gross		Net		Gross		Net
Bighorn DevCo	100%	$	42,185	$	42,185	$	8,840	$	8,840	$	7,914	$	7,914	$	58,939	$	58,939
Bobcat DevCo	10%	27,835		2,783		47,751		4,775		43,344		4,334		118,930		11,892
Beartooth DevCo	40%	11,226		4,491		13,711		5,485		11,142		4,457		36,079		14,433
Total CapEx		$	81,246	$	49,459	$	70,302	$	19,100	$	62,400	$	16,705	$	213,948	$	85,264

__________________

(1) Capital expenditures reflected in the tables above differ from capital expenditures shown in the statement of cash flows in our condensed consolidated financial statements because amounts reflected in the tables above include accrued capital expenditures.

Cash flows provided by financing activities

For the nine months ended September 30, 2018 and 2017, net cash provided by financing activities was $67.0 million and $65.3 million, respectively. The primary sources of net cash provided by financing activities for the nine months ended September 30, 2018 was from net borrowings under our Revolving Credit Facility of $88.0 million and capital contributions from non-controlling interests of $115.5 million, offset by distributions to non-controlling interests of $103.1 million and distributions to unitholders of $33.1 million. The primary sources of net cash provided by financing activities for the nine months ended September 30, 2017 were proceeds from our initial public offering of $115.8 million and capital contributions from Oasis Petroleum of $65.1 million, offset by distributions to Oasis Petroleum of $113.7 million.

Revolving credit facility. We have the Revolving Credit Facility with an aggregate amount of commitments of $250.0 million as of September 30, 2018. The Revolving Credit Facility is available to fund working capital and to finance acquisitions and other capital expenditures. At September 30, 2018, $166.0 million of borrowings were outstanding under the Revolving Credit Facility, and the weighted average interest rate on borrowings under the Revolving Credit Facility was 4.0%.

On August 27, 2018, we entered into an amendment to the Revolving Credit Facility to (i) increase the aggregate amount of commitments from $200.0 million to $250.0 million; (ii) provide for the ability to further increase commitments to $400.0 million and (iii) add six new lenders to the bank group. The Revolving Credit Facility matures on September 25, 2022.

The Credit Agreement includes certain financial covenants as of the end of each fiscal quarter, including a (1) consolidated total leverage ratio, (2) consolidated senior secured leverage ratio and (3) consolidated interest coverage ratio (each covenant as described in the Credit Agreement). We were in compliance with the financial covenants at September 30, 2018.

Cash Distributions

Our partnership agreement requires that all of the Partnership’s available cash be distributed quarterly. Under the current cash distribution policy, the Partnership intends to distribute to the holders of common units and subordinated units on a quarterly basis at least the minimum quarterly distribution of $0.3750 per unit, or $1.50 on an annualized basis, to the extent the Partnership has sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments to the General Partner and its affiliates. 

On October 30, 2018, the Board of Directors of the General Partner, declared the quarterly distribution for the third quarter of 2018 of $0.4300 per unit. The distribution will be payable on November 27, 2018 to unitholders of record as of November 9, 2018.

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Non-GAAP Financial Measures

Cash Interest, Adjusted EBITDA and Distributable Cash Flow are supplemental non-GAAP financial measures that are used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP financial measures should not be considered in isolation or as a substitute for interest expense, net income (loss), operating income (loss), net cash provided by (used in) operating activities or any other measures prepared under GAAP. Because Cash Interest, Adjusted EBITDA and Distributable Cash Flow exclude some but not all items that affect interest expense, net income and net cash provided by operating activities and may vary among companies, the amounts presented may not be comparable to similar metrics of other companies.

Cash Interest

We define Cash Interest as interest expense plus capitalized interest less amortization of deferred financing costs included in interest expense. Cash Interest is not a measure of interest expense as determined by GAAP. Management believes that the presentation of Cash Interest provides useful additional information to investors and analysts for assessing the interest charges incurred on our debt, excluding non-cash amortization, and our ability to maintain compliance with our debt covenants.

The following table presents a reconciliation of the GAAP financial measure of interest expense, net of capitalized interest, to the non-GAAP financial measure of Cash Interest for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Interest expense, net of capitalized interest	$	163		$	2,733		$	608		$	6,965
Capitalized interest	1,708			436			3,905			658
Amortization of deferred financing costs(1)	(128		)	(7		)	(361		)	(7		)
Cash Interest	1,743			3,162			4,152			7,616
Less: Cash Interest prior to the initial public offering	—			3,149			—			7,603
Cash Interest attributable to Oasis Midstream Partners LP	$	1,743		$	13		$	4,152		$	13

___________________

(1) Represents the amortization of deferred financing costs on the Revolving Credit Facility. See Note 7 to our unaudited condensed consolidated financial statements for a description of our long-term debt.

Adjusted EBITDA

We define Adjusted EBITDA as earnings before interest expense (net of capitalized interest), income taxes, depreciation, amortization, equity-based compensation expenses and other similar non-cash adjustments. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Adjusted EBITDA provides information useful to investors and analysts for assessing the Partnership’s results of operations, financial performance and its ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnership’s ability to maintain compliance with its debt covenants. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities, respectively.

Distributable Cash Flow

We define Distributable Cash Flow as Adjusted EBITDA attributable to the Partnership less Cash Interest and maintenance capital expenditures attributable to the Partnership. Distributable Cash Flow should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Management believes that the presentation of Distributable Cash Flow provides information useful to investors and analysts for assessing the Partnership’s results of operations, financial performance and ability to generate cash from its business operations without regard to its financing methods or capital structure, coupled with the Partnership’s ability to make distributions to its unitholders. The GAAP measures most directly comparable to Distributable Cash Flow are net income and net cash provided by operating activities, respectively.

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The following table presents reconciliations of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measure of Adjusted EBITDA and Distributable Cash Flow for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Net income	$	38,835		$	14,509		$	107,849		$	39,182
Income tax expense	—			7,898			—			22,858
Depreciation and amortization	7,189			4,147			20,212			11,359
Equity-based compensation expense	114			—			280			—
Interest expense, net of capitalized interest	163			2,733			608			6,965
Other non-cash adjustments	—			286			—			999
Adjusted EBITDA	46,301			29,573			128,949			81,363
Less: Adjusted EBITDA prior to the initial public offering	—			27,694			—			79,484
Adjusted EBITDA subsequent to the initial public offering	46,301			1,879			128,949			1,879
Less: Adjusted EBITDA attributable to non-controlling interests	29,739			1,214			82,250			1,214
Adjusted EBITDA attributable to Oasis Midstream Partners LP	16,562			665			46,699			665
Cash Interest attributable to Oasis Midstream Partners LP	1,743			13			4,152			13
Maintenance capital expenditures	418			84			1,711			84
Distributable Cash Flow attributable to Oasis Midstream Partners LP	$	14,401		$	568		$	40,836		$	568
Net cash provided by operating activities	$	40,753		$	29,093		$	156,900		$	71,569
Current tax expense	—			6,042			—			17,618
Interest expense, net of capitalized interest	163			2,733			608			6,965
Changes in working capital	5,516			(8,288		)	(28,324		)	(14,782		)
Other non-cash adjustments	(131		)	(7		)	(235		)	(7		)
Adjusted EBITDA	46,301			29,573			128,949			81,363
Less: Adjusted EBITDA prior to the initial public offering	—			27,694			—			79,484
Adjusted EBITDA subsequent to the initial public offering	46,301			1,879			128,949			1,879
Less: Adjusted EBITDA attributable to non-controlling interests	29,739			1,214			82,250			1,214
Adjusted EBITDA attributable to Oasis Midstream Partners LP	16,562			665			46,699			665
Cash Interest attributable to Oasis Midstream Partners LP	1,743			13			4,152			13
Maintenance capital expenditures	418			84			1,711			84
Distributable Cash Flow attributable to Oasis Midstream Partners LP	$	14,401		$	568		$	40,836		$	568

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Off-Balance Sheet Arrangements

We have not entered into any transactions, agreements or other contractual arrangements that would result in off-balance sheet liabilities.

Critical Accounting Policies and Estimates

There have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017 other than as disclosed in Note 2 to our unaudited condensed consolidated financial statements.

Item 3. — Quantitative and Qualitative Disclosures About Market Risk

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risk. The term “market risk” refers to the risk of loss arising from adverse changes in commodity prices and interest rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures.

Concentration of customer credit risk. We are dependent on Oasis Petroleum as our most significant customer, and we expect to derive a substantial majority of our revenues from Oasis Petroleum for the foreseeable future. As a result, any event, whether in our dedicated areas or otherwise, that adversely affects Oasis Petroleum’s production, drilling schedule, financial condition, leverage, market reputation, liquidity, results of operations or cash flows may adversely affect our revenues and cash available for distribution. Further, we are subject to the risk of non-payment or non-performance by Oasis Petroleum. We cannot predict the extent to which Oasis Petroleum’s business would be impacted if conditions in the energy industry were to deteriorate, nor can we estimate the impact such conditions would have on Oasis Petroleum’s ability to execute its drilling and development program or to perform under our agreements. Any material non-payment or non-performance by Oasis Petroleum could reduce our ability to make distributions to our unitholders. We did not experience any significant defaults on accounts receivable for the nine months ended September 30, 2018.

Commodity price risk. We have limited direct exposure to risks associated with fluctuating commodity prices due to the nature of our business and our long-term, fixed-fee arrangements with Oasis Petroleum. However, to the extent that our future contractual arrangements with Oasis Petroleum or third parties do not provide for fixed-fee structures, we may become subject to commodity price risk. Additionally, as a substantial portion of our revenues are derived from Oasis Petroleum, we will be indirectly subject to risks associated with fluctuating commodity prices to the extent that lower commodity prices adversely affect Oasis Petroleum’s production, drilling schedule, financial condition, leverage, market reputation, liquidity, results of operations or cash flows.

Interest rate risk. We havea Revolving Credit Facility which provides for an aggregate commitment amount of $250million. At September 30, 2018, we had $166.0 million of borrowings under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable margin (as described below) plus (i) with respect to Eurodollar Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) or (ii) with respect to ABR Loans, the greatest of (A) the Prime Rate in effect on such day, (B) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00% or (c) the Adjusted LIBO Rate for a one-month interest period on such day plus 1.00% (each as defined in the Credit Agreement). The applicable margin for borrowings under the Revolving Credit Facility is based on the Partnership’s most recently tested consolidated total leverage ratio and varies from (a) in the case of Eurodollar Loans, 1.75% to 2.75%, and (b) in the case of ABR Loans or swingline loans, 0.75% to 1.75%. The unused portion of the Revolving Credit Facility is subject to a commitment fee ranging from 0.375% to 0.50%.

At September 30, 2018, the outstanding borrowings under our Revolving Credit Facility bore interest at LIBOR plus a 1.75% margin. We do not currently, but may in the future, utilize interest rate derivatives to mitigate interest rate exposure in efforts to reduce interest rate expense related to debt issued under our Revolving Credit Facility. Interest rate derivatives would be used solely to modify interest rate exposure and not to modify the overall leverage of the debt portfolio.

Item 4. — Controls and Procedures

Evaluation of disclosure controls and procedures. As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”), our principal executive officer, and our Chief Financial Officer (“CFO”), our principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2018. Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information

33

is accumulated and communicated to our management, including our CEO and CFO as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our CEO and CFO have concluded that our disclosure controls and procedures were effective at September 30, 2018.

Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the three months ended September 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. — Legal Proceedings

Our operations are subject to a variety of risks and disputes normally incident to our business. As a result, we may, at any given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business. However, except as disclosed below, we are not currently subject to any potentially material litigation. We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our insurance advisors and brokers, believe are reasonable and prudent. We cannot, however, assure our unitholders that this insurance will be adequate to protect us from all material expenses related to potential future claims for personal and property damage or that these levels of insurance will be available in the future at economical prices.

Mirada litigation. On March 23, 2017, Mirada filed a lawsuit against Oasis Petroleum, OPNA, and OMS, seeking monetary damages in excess of $100.0 million, declaratory relief, attorneys’ fees and costs (Mirada Energy, LLC, et al. v. Oasis Petroleum North America LLC, et al.; in the 334th Judicial District Court of Harris County, Texas; Case Number 2017-19911). In its original lawsuit, Mirada asserts that it is a working interest owner in certain acreage owned and operated by Oasis Petroleum in Wild Basin. Specifically, Mirada asserts that Oasis Petroleum has breached certain agreements by: (1) failing to allow Mirada to participate in Oasis Petroleum’s midstream operations in Wild Basin; (2) refusing to provide Mirada with information that Mirada contends is required under certain agreements and failing to provide information in a timely fashion; (3) failing to consult with Mirada and failing to obtain Mirada’s consent prior to drilling more than one well at a time in Wild Basin; and (4) overstating the estimated costs of proposed well operations in Wild Basin. Mirada seeks a declaratory judgment that OPNA be removed as operator in Wild Basin at Mirada’s election and that Mirada be allowed to elect a new operator; that certain agreements apply to Oasis Petroleum and Mirada and Wild Basin with respect to this dispute; that Oasis Petroleum be required to provide all information within its possession regarding proposed or ongoing operations in Wild Basin; and that OPNA not be permitted to drill, or propose to drill, more than one well at a time in Wild Basin without obtaining Mirada’s consent. Mirada also seeks a declaratory judgment with respect to Oasis Petroleum’s current midstream operations in Wild Basin. Specifically, Mirada seeks a declaratory judgment that Mirada has a right to participate in Oasis Petroleum’s Wild Basin midstream operations, consisting of produced and flowback water disposal, crude oil gathering and gas gathering and processing; that, upon Mirada’s election to participate, Mirada is obligated to pay its proportionate costs of Oasis Petroleum’s midstream operations in Wild Basin; and that Mirada would then be entitled to receive a share of revenues from the midstream operations and would not be charged any amount for its use of these facilities for production from the “Contract Area.”

On June 30, 2017, Mirada amended its original petition to add a claim that Oasis Petroleum has breached certain agreements by charging Mirada for midstream services provided by its affiliates and to seek a declaratory judgment that Mirada is entitled to be paid its share of total proceeds from the sale of hydrocarbons received by OPNA or any affiliate of OPNA without deductions for midstream services provided by OPNA or its affiliates.

On February 2, 2018 and February 16, 2018, Mirada filed a second and third amended petition, respectively. In these filings, Mirada alleged new legal theories for being entitled to enforce the underlying contracts, and added Bighorn DevCo LLC, Bobcat DevCo LLC and Beartooth DevCo LLC as defendants, asserting that these entities were created in bad faith in an effort to avoid contractual obligations owed to Mirada.

On March 2, 2018, Mirada filed a fourth amended petition that described Mirada’s alleged ownership and assignment of interests in assets purportedly governed by agreements at issue in the lawsuit.  On August 31, 2018, Mirada filed a fifth amended petition that added the Partnership as a defendant, asserting that it was created in bad faith in an effort to avoid contractual obligations owed to Mirada.

Oasis Petroleum believes that Mirada’s claims are without merit, that Oasis Petroleum has complied with its obligations under the applicable agreements and that some of Mirada’s claims are grounded in agreements which do not apply to Oasis Petroleum. Oasis Petroleum filed answers denying all of Mirada’s claims and intends to continue to vigorously defend against Mirada’s claims. The Partnership has not yet filed an answer because it has not yet been served with process. Discovery is ongoing, and each of the parties has made a number of procedural filings and motions, and additional filings and motions can be expected over the course of the claim. Trial is currently scheduled for May 2019. However, neither we nor Oasis Petroleum can predict or guarantee the ultimate outcome or resolution of such matter. If such matter were to be determined adversely to our or Oasis Petroleum’s interests, or if we or Oasis Petroleum were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on our business, results of operations and financial condition. Such an adverse determination could materially impact Oasis Petroleum’s ability to operate its properties in Wild Basin or develop its identified drilling locations in Wild Basin on its current development schedule. A determination that Mirada has a right to participate in Oasis Petroleum’s midstream operations could materially reduce the interests of Oasis Petroleum and us in our current assets and future midstream opportunities and related revenues in Wild Basin. Under the Omnibus Agreement the Partnership entered into with Oasis Petroleum in connection with the closing of our initial public offering, Oasis Petroleum

35

agreed to indemnify the Partnership for any losses resulting from this litigation. However, the Partnership cannot guarantee that such indemnity will fully protect the Partnership from the adverse consequences of any adverse ruling.

Item 1A. — Risk Factors

Our business faces many risks. Any of the risks discussed elsewhere in this Form 10-Q and our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations.

For a discussion of our potential risks and uncertainties, see the information in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”). There have been no material changes in our risk factors from those described in our 2017 Annual Report and subsequent SEC filings.

36

Item 6. — Exhibits

Exhibit No.	Description of Exhibit
10.1	First Amendment to Credit Agreement, dated as of August 27, 2018 among Oasis Midstream Partners LP, as Parent, OMP Operating LLC, as Borrower, the Other Credit Parties party thereto, Wells Fargo Bank, N.A., as Administrative Agent and the Lenders thereto (filed as Exhibit 10.1 to the Partnership’s Current Report on Form 8-K on August 31, 2018 and incorporated herein by reference).
31.1(a)	Sarbanes-Oxley Section 302 certification of Principal Executive Officer.
31.2(a)	Sarbanes-Oxley Section 302 certification of Principal Financial Officer.
32.1(b)	Sarbanes-Oxley Section 906 certification of Principal Executive Officer.
32.2(b)	Sarbanes-Oxley Section 906 certification of Principal Financial Officer.
101.INS(a)	XBRL Instance Document.
101.SCH(a)	XBRL Schema Document.
101.CAL(a)	XBRL Calculation Linkbase Document.
101.DEF(a)	XBRL Definition Linkbase Document.
101.LAB(a)	XBRL Labels Linkbase Document.
101.PRE(a)	XBRL Presentation Linkbase Document.

___________________

(a)     Filed herewith.

(b)     Furnished herewith.

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			OASIS MIDSTREAM PARTNERS LP
			By: OMP GP LLC, its general partner
Date:	November 6, 2018	By:	/s/ Taylor L. Reid
			Taylor L. Reid
			Chief Executive Officer and Director (Principal Executive Officer)

By:	/s/ Richard N. Robuck
	Richard N. Robuck
	Senior Vice President and Chief Financial Officer (Principal Accounting Officer and Principal Financial Officer)

38

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Taylor L. Reid, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Oasis Midstream Partners LP (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 6, 2018	/s/ Taylor L. Reid
		Taylor L. Reid
		Chief Executive Officer and Director
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Richard N. Robuck, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Oasis Midstream Partners LP (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 6, 2018	/s/ Richard N. Robuck
		Richard N. Robuck
		Senior Vice President and Chief Financial Officer
		(Principal Accounting Officer and Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Oasis Midstream Partners LP (the “Partnership”) on Form 10-Q for the quarter ended September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Taylor L. Reid, Chief Executive Officer and Director of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

Date:	November 6, 2018	/s/ Taylor L. Reid
		Taylor L. Reid
		Chief Executive Officer and Director
		(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Oasis Midstream Partners LP (the “Partnership”) on Form 10-Q for the quarter ended September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard N. Robuck, Senior Vice President and Chief Financial Officer of the Partnership, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

Date:	November 6, 2018	/s/ Richard N. Robuck
		Richard N. Robuck
		Senior Vice President and Chief Financial Officer
		(Principal Accounting Officer and Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	OMP
Entity Registrant Name	Oasis Midstream Partners LP
Entity Central Index Key	0001652133
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Common Units [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,779,026
Subordinated Units [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		13,750,000

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Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 4,990	$ 883
Accounts receivable	5,054	834
Accounts receivable from Oasis Petroleum	72,896	85,818
Prepaid expenses	96	778
Total current assets	83,036	88,313
Property, plant and equipment	876,534	653,928
Less: accumulated depreciation and amortization	(54,555)	(34,348)
Total property, plant and equipment, net	821,979	619,580
Other assets	1,981	2,013
Total assets	906,996	709,906
Current liabilities
Accounts payable	460	0
Accounts payable to Oasis Petroleum	24,940	11,638
Accrued liabilities	59,373	58,818
Accrued interest payable	172	114
Total current liabilities	84,945	70,570
Long-term debt	166,000	78,000
Asset retirement obligations	1,497	1,316
Total liabilities	252,442	149,886
Commitments and contingencies
Partners’ Equity
General Partner	0	0
Total partners’ equity	248,420	246,574
Non-controlling interests	406,134	313,446
Total equity	654,554	560,020
Total liabilities and equity	906,996	709,906
Common Units [Member]
Partners’ Equity
Limited Partners	168,387	167,401
Subordinated Units [Member]
Partners’ Equity
Limited Partners	$ 80,033	$ 79,173

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Condensed Consolidated Balance Sheet (Unaudited) Parenthetical - shares shares in Thousands	Sep. 30, 2018	Dec. 31, 2017
Common Units [Member]
Units issued (shares)	13,779	13,762
Units outstanding (shares)	13,779	13,762
Subordinated Units [Member]
Units issued (shares)	13,750	13,750
Units outstanding (shares)	13,750	13,750

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Condensed Consolidated Statement of Operations (Unaudited) - USD ($) shares in Thousands		3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Total revenues		$ 71,467,000	$ 47,381,000	$ 199,446,000	$ 125,333,000
Operating expenses
Direct operating		19,816,000	13,015,000	53,266,000	31,108,000
Depreciation and amortization		7,189,000	4,147,000	20,212,000	11,359,000
General and administrative		5,449,000	5,084,000	17,496,000	13,868,000
Total operating expenses		32,454,000	22,246,000	90,974,000	56,335,000
Operating income		39,013,000	25,135,000	108,472,000	68,998,000
Interest expense, net of capitalized interest		(163,000)	(2,733,000)	(608,000)	(6,965,000)
Other income (expense)		(15,000)	5,000	(15,000)	7,000
Total other income (expense)		(178,000)	(2,728,000)	(623,000)	(6,958,000)
Income before income taxes		38,835,000	22,407,000	107,849,000	62,040,000
Income tax expense		0	7,898,000	0	22,858,000
Net income	$ 1,605,000	38,835,000	14,509,000	107,849,000	39,182,000
Less: Net income attributable to non-controlling interests subsequent to the initial public offering	1,079,000	26,459,000		73,075,000
Net income attributable to Oasis Midstream Partners LP	$ 526,000	$ 12,376,000	526,000	$ 34,774,000	526,000
Common Units [Member]
Earnings per limited partner unit (Note 12)
Net income per limited partner unit (basic) subsequent to the Offering (in dollars per share)	$ 0.02	$ 0.45		$ 1.27
Weighted average number of limited partner units outstanding - Basic
Weighted average number of limited partner units outstanding (Basic) (shares)	12,625	13,751		13,750
Subordinated Units [Member]
Earnings per limited partner unit (Note 12)
Net income per limited partner unit (diluted) subsequent to the Offering (in dollars per share)	$ 0.02	$ 0.45		$ 1.26
Weighted average number of limited partner units outstanding - Diluted
Weighted average number of limited partner units outstanding (Diluted) (shares)	12,625	13,769		13,764
Oasis Petroleum [Member]
Revenues
Total revenues		$ 68,863,000	47,002,000	$ 194,694,000	123,777,000
Third Parties [Member]
Revenues
Total revenues		$ 2,604,000	$ 379,000	$ 4,752,000	$ 1,556,000

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Condensed Consolidated Statements of Changes in Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Noncontrolling Interest [Member]	Unitholders [Member] Common Units [Member]	Unitholders [Member] Subordinated Units [Member]
Beginning balance at Dec. 31, 2017	$ 560,020	$ 313,446	$ 167,401	$ 79,173
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions from non-controlling interests	122,678	122,678
Distributions to non-controlling interests	(103,065)	(103,065)
Distributions to unitholders	(33,080)		(16,554)	(16,526)
Equity-based compensation	280		280
Other	(128)		(128)
Net income	107,849	73,075	17,388	17,386
Ending balance at Sep. 30, 2018	$ 654,554	$ 406,134	$ 168,387	$ 80,033

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income	$ 107,849	$ 39,182
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,212	11,359
Deferred income taxes	0	5,240
Equity-based compensation expenses	280	999
Deferred financing costs amortization and other	235	7
Working capital changes:
Change in accounts and insurance receivable	8,747	(8,479)
Change in other current assets	0	(94)
Change in prepaid expenses	682	445
Change in accounts payable and accrued liabilities	18,895	5,292
Change in current income taxes payable	0	17,618
Net cash provided by operating activities	156,900	71,569
Cash flows from investing activities:
Capital expenditures	(219,819)	(129,020)
Acquisitions	0	(7,841)
Net cash used in investing activities	(219,819)	(136,861)
Cash flows from financing activities:
Capital contributions from parent	0	65,145
Proceeds from the initial public offering, net of offering costs	0	115,813
Distribution to Oasis Petroleum subsequent to the initial public offering	0	(113,712)
Capital contributions from non-controlling interests	115,502	0
Distributions to non-controlling interests	(103,065)	0
Distributions to unitholders	(33,080)	0
Deferred financing costs	(331)	(1,954)
Proceeds from revolving credit facility	123,000	0
Principal payments on revolving credit facility	(35,000)	0
Net cash provided by financing activities	67,026	65,292
Increase in cash and cash equivalents	4,107	0
Beginning of period	883	0
End of period	4,990	0
Supplemental non-cash transactions:
Change in accrued capital expenditures	(4,520)	17,872
Change in asset retirement obligations	180	138
Installment notes from acquisition	0	4,875
Contribution of capital expenditures from non-controlling interests	$ 7,176	$ 0

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Organization and Nature of Operations

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of Operations

Organization and Nature of Operations

Organization.Oasis Midstream Partners LP (the “Partnership” or “Oasis Midstream”) is a growth-oriented, fee-based master limited partnership formed by its sponsor, Oasis Petroleum Inc. (together with its subsidiaries, “Oasis Petroleum”) to own, develop, operate and acquire a diversified portfolio of midstream assets in North America that are integral to the crude oil and natural gas operations of Oasis Petroleum and are strategically positioned to capture volumes from other producers.

Contributed businesses.The Partnership conducts its business through its ownership of development companies: Bighorn DevCo LLC (“Bighorn DevCo”), Bobcat DevCo LLC (“Bobcat DevCo”) and Beartooth DevCo LLC (“Beartooth DevCo,” and collectively with Bighorn DevCo and Bobcat DevCo, the “DevCos”). In connection with the Partnership’s initial public offering on September 25, 2017, Oasis Petroleum contributed to the Partnership ownership interests in the following DevCos:

DevCos	Areas Served	Service Lines	Oasis Midstream Ownership
Bighorn DevCo	Wild Basin	– Gas processing – Crude stabilization – Crude blending – Crude and NGL storage – Crude transportation	100%
Bobcat DevCo	Wild Basin	– Gas gathering – Gas compression – Gas lift – Crude gathering – Produced and flowback water gathering – Produced and flowback water disposal	10%
Beartooth DevCo	Alger Cottonwood Hebron Indian Hills Red Bank Wild Basin	– Produced and flowback water gathering – Produced and flowback water disposal – Freshwater supply and distribution	40%

In exchange for the contribution of ownership interests in the DevCos, Oasis Petroleum received 5,125,000 common units and 13,750,000 subordinated units, representing a limited partner interest in the Partnership and the right to receive cash distributions from the Partnership. In addition to and concurrent with the closing of the initial public offering, the Partnership’s general partner, OMP GP LLC (the “General Partner”), retained a non-economic general partnership interest and was issued incentive distribution rights in the Partnership (the “IDRs”).

Nature of business.The Partnership operates in two primary areas with developed midstream infrastructure, both of which are supported by significant acreage dedications from Oasis Petroleum. In Wild Basin, Oasis Petroleum has dedicated to the Partnership approximately 65,000 acres, of which approximately 29,000 acres are within Oasis Petroleum’s current gross operated acreage position, and in which the Partnership has the right to provide crude oil, natural gas and produced and flowback water services to support Oasis Petroleum’s existing and future production. Outside of Wild Basin, Oasis Petroleum has dedicated to the Partnership approximately 581,000 acres for produced and flowback water services, of which approximately 299,000 acres are within Oasis Petroleum’s current gross operated acreage, and approximately 364,000 acres for freshwater services, of which approximately 203,000 acres are within Oasis Petroleum’s current gross operated acreage.

The Partnership generates a substantial portion of its revenues through long-term, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of crude oil, natural gas, produced and flowback water and freshwater that flows through Oasis Midstream’s systems, and Oasis Midstream generally does not take ownership of the crude oil or natural gas that it handles for its customers, including Oasis Petroleum.

Predecessor. Prior to the initial public offering on September 25, 2017, Oasis Petroleum’s midstream services were performed by Oasis Midstream Services LLC (“OMS”), which constitutes the predecessor to the Partnership for accounting purposes (the “Predecessor”). The condensed consolidated financial statements include the results of the Predecessor for the periods presented prior to the initial public offering on September 25, 2017. Certain midstream infrastructure assets, liabilities, revenues and expenses included in the Predecessor’s historical financial statements have been excluded from the businesses of the DevCos upon formation. These excluded assets are not included in the condensed consolidated financial statements for the periods presented subsequent to the initial public offering on September 25, 2017. Substantially all of the services of the Predecessor were provided to Oasis Petroleum North America LLC (“OPNA”), a wholly owned subsidiary of Oasis Petroleum that conducts Oasis Petroleum’s crude oil and natural gas exploration and production activities in the Williston Basin. The Predecessor financial statements have been prepared from the separate records maintained by Oasis Petroleum and may not necessarily be indicative of the actual results of operations that might have occurred if the Predecessor had been operated separately during the periods reported.

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Basis of Presentation

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Presentation

The accompanying condensed consolidated financial statements of the Partnership have not been audited by the Partnership’s independent registered public accounting firm, except that the Condensed Consolidated Balance Sheet at December 31, 2017 is derived from audited financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for fair statement of the Partnership’s financial position have been included. Management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

These interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”).

Consolidation

The Partnership’s condensed consolidated financial statements include its accounts and the accounts of the DevCos. With respect to Bobcat DevCo and Beartooth DevCo, management has determined that OMS’s equity at risk was established with non-substantive voting rights, making Bobcat DevCo and Beartooth DevCo variable interest entities (“VIEs”) under the rules of the Financial Accounting Standards Board (“FASB”). Through its 100% ownership interest in OMP Operating LLC (“OMP Operating”), which owns controlling interests in Bobcat DevCo and Beartooth DevCo, the Partnership has the authority to direct the activities that most significantly affect the economic performance of these entities and the obligation to absorb losses or the right to receive benefits that could be potentially significant to them. Therefore, the Partnership is considered the primary beneficiary of Bobcat DevCo and Beartooth DevCo and is required to consolidate these entities in its financial statements under the VIE consolidation model. With respect to Bighorn DevCo, the Partnership is required to consolidate Bighorn DevCo under the voting interest consolidation model because Bighorn DevCo is an indirect wholly owned subsidiary of the Partnership.

Non-Controlling Interests

The non-controlling interests represent Oasis Petroleum’s retained ownership interest in Bobcat DevCo and Beartooth DevCo of 90% and 60%, respectively.

Significant Accounting Policies

There have been no material changes to the Partnership’s critical accounting policies and estimates from those disclosed in the 2017 Annual Report, other than as noted below.

Revenue recognition. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which uses a five-step model to recognize revenue from customer contracts. ASU 2014-09 was applied on a modified retrospective basis. The adoption of ASU 2014-09 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. Disclosures in accordance with the requirements of ASU 2014-09 have been provided in Note 3.

Statement of cash flows. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 was applied on a retrospective basis. The adoption of ASU 2016-15 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Business combinations. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was adopted on a prospective basis. The adoption of ASU 2017-01 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Equity-based compensation. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 was adopted on a prospective basis. The adoption of ASU 2017-09 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Recent Accounting Pronouncements

Leases. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”), which requires a lessee to recognize lease payment obligations and a corresponding right-of-use asset to be measured at fair value on the balance sheet. ASU 2016-02 also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years.

In January 2018, the FASB issued Accounting Standards Update No. 2018-01, Land easement practical expedient for transition to Topic 842, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840, Leases. The Partnership plans to elect this practical expedient.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, Targeted Improvements - Lease Topic 842, which allows entities another option for transition and also provides lessors with a practical expedient to combine lease and non-lease components. The Partnership will adopt the new leases standard using the required modified retrospective approach and plans to elect the option to recognize a cumulative effect adjustment of initially applying the guidance to the opening balance of retained earnings in the period of adoption, rather than recognizing in the earliest period presented. Prior period amounts will not be adjusted.

The Partnership is in the process of analyzing its lease arrangements and is continuing to identify and put in place necessary changes to its business processes and controls to support the adoption of the new standard, including implementing a new lease accounting software to assess the portfolio of leases, assist in the quantification of the expected impact on the consolidated financial statements and facilitate the calculations of the related accounting entries and disclosures. The Partnership is currently evaluating the effect that adopting the new lease guidance will have on its financial position, cash flows and results of operations.

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Revenue Recognition

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASC 606 - Revenue from Contracts with Customers (“ASC 606”). This standard was effective in the first quarter of 2018 and the Partnership adopted the new standard using the modified retrospective method. The Partnership applied ASC 606 to all new contracts entered into after January 1, 2018 and all existing contracts for which all (or substantially all) of the revenue has not been recognized under legacy revenue guidance as of December 31, 2017. ASC 606 supersedes previous revenue recognition requirements in ASC 605 and includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services.

In accordance with the adoption of ASC 606, management evaluated its contracts with customers to apply the five-step revenue recognition model. The adoption of ASC 606 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations.

Revenue from contracts with customers

The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Crude oil and natural gas revenues.The Partnership is party to certain contracts for crude oil gathering, stabilization, blending, storage and transportation, as well as natural gas gathering, compression, processing and gas lift services. Under these customer contracts, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Water revenues.The Partnership is also party to certain contracts with customers for water services, which includes produced and flowback water gathering and disposal services and freshwater supply and distribution services. Under its customer contracts for produced and flowback water services, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Under its customer contracts for freshwater supply and distribution services, the Partnership supplies and distributes freshwater to its customers for hydraulic fracturing and production optimization. These contracts contain multiple distinct performance obligations since each freshwater barrel can be sold separately and is not dependent or highly interrelated with other barrels. Revenue associated with freshwater supply and distribution services is recognized at a point in time based upon the transaction price when title, control and risk of loss transfers to the customer, which occurs at the delivery point. Payments are due from customers 30 days after receipt of invoice.

Disaggregation of revenues

The following table summarizes revenues associated with contracts with customers for crude oil, natural gas and water services for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Crude oil and natural gas services revenue	$	34,347	$	22,419	$	98,489	$	59,798
Water services revenue	37,120		24,962		100,957		65,535
Total revenues	$	71,467	$	47,381	$	199,446	$	125,333

Contract balances

Under the Partnership’s customer contracts, invoicing occurs once the Partnership’s performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Partnership’s contracts do not give rise to contract assets or liabilities under ASC 606.

Performance obligations

The majority of the Partnership’s customer contracts have a term greater than one year. The Partnership recognizes revenue under the right to invoice practical expedient for its contracts for crude oil, natural gas and produced and flowback water services and is not required to disclose the transaction price allocated to remaining performance obligations. Under the Partnership’s customer contracts for freshwater supply and distribution services, each barrel of freshwater delivered represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

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Transactions with Affiliates

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Transactions with Affiliates

Transactions with Affiliates

Revenues.ThePartnership generates a substantial portion of its revenues through 15-year, fee-based contractual arrangements with wholly owned subsidiaries of Oasis Petroleum for midstream services. These services include (i) gas gathering, compression, processing and gas lift services; (ii) crude gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. The revenue earned from these services is generally directly related to the volume of crude oil, natural gas, produced and flowback water and freshwater that flows through the Partnership’s systems, and the Partnership generally does not take ownership of the crude oil or natural gas that it handles for its customers, including Oasis Petroleum.

Expenses.Oasis Petroleum provides substantial labor and overhead support for the Partnership. The Partnership is party to a 15-year services and secondment agreement with Oasis Petroleum pursuant to which Oasis Petroleum provides all personnel, equipment, electricity, chemicals and services (including third-party services) required for the Partnership to operate such assets, and the Partnership reimburses Oasis Petroleum for its share of the actual costs of operating such assets (the “Services and Secondment Agreement”). In addition, pursuant to the Services and Secondment Agreement, Oasis Petroleum performs centralized corporate, general and administrative services for the Partnership, such as legal, corporate recordkeeping, planning, budgeting, regulatory, accounting, billing, business development, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, investor relations, cash management and banking, payroll, internal audit, tax and engineering. Oasis Petroleum has also seconded to the Partnership certain of its employees to operate, construct, manage and maintain its assets, and the Partnership reimburses Oasis Petroleum for direct general and administrative expenses incurred by Oasis Petroleum for the provision of these services. The expenses of executive officers and non-executive employees are allocated to the Partnership based on the amount of time spent managing its business and operations. For the periods prior to the initial public offering, shared services and direct labor were allocated to the Predecessor primarily based on headcount and direct usage during the respective years. Management believes that these allocations are reasonable and reflect the utilization of services provided and benefits received, but may differ from the cost that would have been incurred had the Predecessor operated as a stand-alone company for the periods presented prior to the initial public offering.

Additionally, for the period prior to the initial public offering, interest expense was recognized by the Predecessor related to its funding activity with Oasis Petroleum based on capital expenditures for the period using the weighted average effective interest rate for Oasis Petroleum’s long-term indebtedness.

General and administrative expenses and interest expense incurred from affiliate transactions with Oasis Petroleum include the following for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Expenses from affiliates
General and administrative	$	4,490	$	2,895	$	15,320	$	8,416
Interest expense, net of capitalized interest	—		2,714		—		6,945

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Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

The following table sets forth the Partnership’s accrued liabilities for the periods presented:

	September 30, 2018		December 31, 2017
	(In thousands)
Accrued capital costs	$	43,323	$	47,843
Accrued operating expenses	16,007		10,860
Other accrued liabilities	43		115
Total accrued liabilities	$	59,373	$	58,818

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

The following table sets forth the Partnership’s property, plant and equipment for the periods presented:

	September 30, 2018			December 31, 2017
	(In thousands)
Pipelines	$	364,199		$	255,231
Natural gas processing plant	112,563			102,371
Produced and flowback water facilities	92,646			80,050
Compressor stations	95,972			59,293
Other property and equipment	33,737			32,340
Construction in progress	177,417			124,643
Total property, plant and equipment	876,534			653,928
Less: accumulated depreciation and amortization	(54,555		)	(34,348		)
Total property, plant and equipment, net	$	821,979		$	619,580

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Long-Term Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

On September 25, 2017, the Partnership entered into a credit agreement (the “Credit Agreement”) for a $200.0 million revolving credit facility with OMP Operating as borrower (the “Revolving Credit Facility”), which has a maturity date of September 25, 2022. On August 27, 2018, the Partnership entered into an amendment to the Credit Agreement to (i) increase the aggregate amount of commitments from $200.0 million to $250.0 million; (ii) provide for the ability to further increase commitments to $400.0 million; and (iii) add six new lenders to the bank group.

The Revolving Credit Facility is available to fund working capital and to finance acquisitions and other capital expenditures of the Partnership. The Revolving Credit Facility includes a letter of credit sublimit of $10.0 million and a swingline loans sublimit of $10.0 million. All obligations of OMP Operating, as the borrower under the Revolving Credit Facility, are unconditionally guaranteed on a joint and several basis by the Partnership, OMP Operating and Bighorn DevCo. At September 30, 2018, $166.0 million of borrowings were outstanding under the Revolving Credit Facility, and the weighted average interest rate on borrowings under the Revolving Credit Facility was 4.0%.

The Revolving Credit Facility is collateralized by mortgages and other security interests on substantially all of the Partnership’s and its subsidiaries’ properties and assets, including the equity interests in all present and future subsidiaries (subject to certain exceptions). Some or all of the collateral owned by Bobcat DevCo and Beartooth DevCo is subject to an intercreditor agreement between Wells Fargo, National Association (“Wells Fargo”), as administrative agent for the Revolving Credit Facility, and Wells Fargo as the administrative agent for the revolving credit facility of Oasis Petroleum, and acknowledged by OMS, Bobcat DevCo and Beartooth DevCo. The Revolving Credit Facility provides for customary representations, warranties and covenants, including, among other things, covenants relating to financial and collateral reporting, notices of material events, maintenance of the existence of the business and its properties, payment of obligations, the Partnership’s ability to enter into certain hedging agreements, limitations on the Partnership’s ability to sell or acquire properties and limitations on indebtedness and liens, dividends and distributions, transactions with affiliates and certain fundamental transactions.

Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to the applicable margin (as described below) plus (i) with respect to Eurodollar Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) or (ii) with respect to ABR Loans, the greatest of (A) the Prime Rate in effect on such day, (B) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00% or (C) the Adjusted LIBO Rate for a one-month interest period on such day plus 1.00% (each as defined in the Credit Agreement). The applicable margin for borrowings under the Revolving Credit Facility is determined in accordance with the Credit Agreement as follows:

Consolidated Total Leverage Ratio	Applicable Margin for Eurodollar Loans		Applicable Margin for ABR Loans		Commitment Fee Rate
Less than or equal to 3.00 to 1.00	1.75	%	0.75	%	0.375	%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00	2.00	%	1.00	%	0.375	%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00	2.25	%	1.25	%	0.500	%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00	2.50	%	1.50	%	0.500	%
Greater than 4.50 to 1.00	2.75	%	1.75	%	0.500	%

The Revolving Credit Facility also requires the Partnership to maintain the following financial covenants as of the end of each fiscal quarter:

• Consolidated Total Leverage Ratio: Prior to the date on which one or more of the credit parties have issued an aggregate principal amount of at least $150.0 million of senior notes (as permitted under the Revolving Credit Facility) (such date the “Covenant Changeover Date”), the Partnership and OMP Operating’s ratio of Total Debt to EBITDA (each as defined in the Credit Agreement) on a quarterly basis may not exceed 4.50 to 1.00 (or during an Acquisition Period (as defined in the Credit Agreement), 5.00 to 1.00). On a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of Total Debt to EBITDA may not exceed 5.25 to 1.00.

• Consolidated Senior Secured Leverage Ratio: On a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of Consolidated Senior Secured Funded Debt to EBITDA (each as defined in the Credit Agreement) may not exceed 3.75 to 1.00.

• Consolidated Interest Coverage Ratio: On a quarterly basis prior to the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense (each as defined in the Credit Agreement) may not be less than 3.00 to 1.00 and on a quarterly basis following the Covenant Changeover Date, the Partnership and OMP Operating’s ratio of EBITDA to Consolidated Interest Expense may not be less than 2.50 to 1.00.

The Partnership was in compliance with the financial covenants of the Revolving Credit Facility at September 30, 2018.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Partnership is not a taxable entity for U.S. federal income tax purposes, and taxes are generally borne by unitholders through the allocation of taxable income. Accordingly, for the periods subsequent to the initial public offering, the Partnership does not record deferred taxes related to the aggregate differences in the tax bases and reported amounts of its assets and liabilities.

The Partnership did not record a tax provision for the three and nine months endedSeptember 30, 2018. The provision for income taxes recorded by the Predecessor for the three and nine months endedSeptember 30, 2017 was determined as if the Predecessor was a stand-alone taxpayer for the period prior to the initial public offering on September 25, 2017. The Predecessor’s effective tax rate for the three and nine months endedSeptember 30, 2017 was 35.2% and 36.8%, respectively. The effective tax rates for the three and nine months endedSeptember 30, 2017 were lower than the statutory tax rate applicable to the U.S. and the blended state rate for the states in which the Predecessor conducted its business primarily due to earnings not subject to tax for the period subsequent to the initial public offering on September 25, 2017.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Partnership has various contractual obligations in the normal course of its operations. Currently, there are no unrecorded commitments in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2018.

Water volume commitment agreements. As of September 30, 2018, the Partnership had certain agreements with an aggregate requirement to deliver a minimum quantity of approximately 16.3 million barrels of water, prior to any applicable volume credits, within specified timeframes, all of which are ten years or less. The estimable future commitments under these agreements were approximately $10.9 million as of September 30, 2018. 

Litigation. The Partnership is party to various legal and/or regulatory proceedings from time to time arising in the ordinary course of business. When the Partnership determines that a loss is probable of occurring and is reasonably estimable, the Partnership accrues an undiscounted liability for such contingencies based on its best estimate using information available at the time. The Partnership discloses contingencies where an adverse outcome may be material, or where in the judgment of management, the matter should otherwise be disclosed.

Mirada litigation. On March 23, 2017, Mirada filed a lawsuit against Oasis Petroleum, OPNA, and OMS, seeking monetary damages in excess of $100.0 million, declaratory relief, attorneys’ fees and costs (Mirada Energy, LLC, et al. v. Oasis Petroleum North America LLC, et al.; in the 334th Judicial District Court of Harris County, Texas; Case Number 2017-19911). In its original lawsuit, Mirada asserts that it is a working interest owner in certain acreage owned and operated by Oasis Petroleum in Wild Basin. Specifically, Mirada asserts that Oasis Petroleum has breached certain agreements by: (1) failing to allow Mirada to participate in Oasis Petroleum’s midstream operations in Wild Basin; (2) refusing to provide Mirada with information that Mirada contends is required under certain agreements and failing to provide information in a timely fashion; (3) failing to consult with Mirada and failing to obtain Mirada’s consent prior to drilling more than one well at a time in Wild Basin; and (4) overstating the estimated costs of proposed well operations in Wild Basin. Mirada seeks a declaratory judgment that OPNA be removed as operator in Wild Basin at Mirada’s election and that Mirada be allowed to elect a new operator; that certain agreements apply to Oasis Petroleum and Mirada and Wild Basin with respect to this dispute; that Oasis Petroleum be required to provide all information within its possession regarding proposed or ongoing operations in Wild Basin; and that OPNA not be permitted to drill, or propose to drill, more than one well at a time in Wild Basin without obtaining Mirada’s consent. Mirada also seeks a declaratory judgment with respect to Oasis Petroleum’s current midstream operations in Wild Basin. Specifically, Mirada seeks a declaratory judgment that Mirada has a right to participate in Oasis Petroleum’s Wild Basin midstream operations, consisting of produced and flowback water disposal, crude oil gathering and gas gathering and processing; that, upon Mirada’s election to participate, Mirada is obligated to pay its proportionate costs of Oasis Petroleum’s midstream operations in Wild Basin; and that Mirada would then be entitled to receive a share of revenues from the midstream operations and would not be charged any amount for its use of these facilities for production from the “Contract Area.”

On June 30, 2017, Mirada amended its original petition to add a claim that Oasis Petroleum has breached certain agreements by charging Mirada for midstream services provided by its affiliates and to seek a declaratory judgment that Mirada is entitled to be paid its share of total proceeds from the sale of hydrocarbons received by OPNA or any affiliate of OPNA without deductions for midstream services provided by OPNA or its affiliates.

On February 2, 2018 and February 16, 2018, Mirada filed a second and third amended petition, respectively. In these filings, Mirada alleged new legal theories for being entitled to enforce the underlying contracts, and added Bighorn DevCo LLC, Bobcat DevCo LLC and Beartooth DevCo LLC as defendants, asserting that these entities were created in bad faith in an effort to avoid contractual obligations owed to Mirada. Mirada may further amend its petition from time to time to assert additional claims as well as defendants.

On March 2, 2018, Mirada filed a fourth amended petition that described Mirada’s alleged ownership and assignment of interests in assets purportedly governed by agreements at issue in the lawsuit.  On August 31, 2018, Mirada filed a fifth amended petition that added the Partnership as a defendant, asserting that it was created in bad faith in an effort to avoid contractual obligations owed to Mirada.

Oasis Petroleum believes that Mirada’s claims are without merit, that Oasis Petroleum has complied with its obligations under the applicable agreements and that some of Mirada’s claims are grounded in agreements which do not apply to Oasis Petroleum. Oasis Petroleum filed answers denying all of Mirada’s claims and intends to continue to vigorously defend against Mirada’s claims. The Partnership has not yet filed an answer because it has not yet been served with process. Discovery is ongoing, and each of the parties has made a number of procedural filings and motions, and additional filings and motions can be expected over the course of the claim. Trial is currently scheduled for May 2019. However, neither we nor Oasis Petroleum can predict or guarantee the ultimate outcome or resolution of such matter. If such matter were to be determined adversely to our or Oasis Petroleum’s interests, or if we or Oasis Petroleum were forced to settle such matter for a significant amount, such resolution or settlement could have a material adverse effect on our business, results of operations and financial condition. Such an adverse determination could materially impact Oasis Petroleum’s ability to operate its properties in Wild Basin or develop its identified drilling locations in Wild Basin on its current development schedule. A determination that Mirada has a right to participate in Oasis Petroleum’s midstream operations could materially reduce the interests of Oasis Petroleum and us in our current assets and future midstream opportunities and related revenues in Wild Basin. Under the Omnibus Agreement the Partnership entered into with Oasis Petroleum in connection with the closing of our initial public offering, Oasis Petroleum agreed to indemnify the Partnership for any losses resulting from this litigation. However, the Partnership cannot guarantee that such indemnity will fully protect the Partnership from the adverse consequences of any adverse ruling.

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Equity-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

Equity-Based Compensation

The Oasis Midstream Partners LP 2017 Long Term Incentive Plan (“LTIP”) provides for the grant, at the discretion of the Board of Directors of the General Partner, of options, unit appreciation rights, restricted units, phantom units, and other unit or cash-based awards. The purpose of awards under the LTIP is to provide additional incentive compensation to individuals providing services to the Partnership, and to align the economic interests of such individuals with the interests of the Partnership’s unitholders.

As of September 30, 2018, the aggregate number of common units that may be issued pursuant to any and all awards under the LTIP is equal to 1,980,118 common units, subject to adjustment due to recapitalization or reorganization, or related to forfeitures or expiration of awards, as provided under the LTIP. On January 1 of each calendar year following the adoption and prior to the expiration of the LTIP, the total number of common units that may be issued pursuant to the LTIP automatically increases by a number of common units equal to one percent of the number of common units outstanding on a fully diluted basis as of the close of business on the immediately preceding December 31 (calculated by adding to the number of common units outstanding, all outstanding securities convertible into common units on such date on an as converted basis). As a result of this adjustment, an additional 137,618 common units were reserved for issuance pursuant to awards under the LTIP on January 1, 2018.

Phantom unit awards. On October 19, 2017, the Partnership granted under its LTIP 101,500 phantom unit awards (collectively the “Phantom Units” and each a “Phantom Unit”) to certain employees of Oasis Petroleum who are non-employees of the Partnership. Each Phantom Unit represents the right to receive a cash payment equal to the fair market value of one common unit on the day prior to the date it vests. Award recipients are also entitled to Distribution Equivalent Rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one common unit between the grant date and the vesting date. The Phantom Units vest in equal amounts each year over a three-year period. The Phantom Units are accounted for as liability-classified awards since the awards will settle in cash. Under the fair value method for liability-classified awards, compensation expense is remeasured each reporting period at fair value based upon the closing price of a publicly traded common unit. Oasis Petroleum will reimburse the Partnership for the cash settlement amount of these awards. The Partnership recognizes in its Condensed Consolidated Balance Sheets the compensation expense associated with these awards in accounts receivable from Oasis Petroleum and accrued liabilities. As of September 30, 2018, unrecognized equity-based compensation expense for all outstanding Phantom Units was $1.4 million, which is expected to be recognized over a weighted average period of 2.16 years. The following table summarizes information related to the Phantom Units held by certain non-employees of the Partnership:

	Phantom Units
Non-vested units outstanding at December 31, 2017	99,100
Granted	—
Vested	—
Forfeited	(9,600	)
Non-vested units outstanding at September 30, 2018	89,500

Restricted unit awards. The Partnership has granted to independent directors of the General Partner restricted unit awards under its LTIP, which vest over a one-year period. These awards are accounted for as equity-classified awards since the awards will settle in common units upon vesting. Under the fair value method for equity-classified awards, equity-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the vesting period. During the nine months ended September 30, 2018, the Partnership granted 17,260 restricted unit awards which vest over a one-year period with a weighted-average grant date fair value of $17.55 per common unit. Equity-based compensation expense recorded for restricted unit awards for the three and nine months endedSeptember 30, 2018 was approximately $0.1 million and $0.3 million, respectively. Equity-based compensation expense is included in general and administrative expenses on the Condensed Consolidated Statements of Operations. As of September 30, 2018, unrecognized equity-based compensation expense for all outstanding restricted unit awards was $0.2 million, which is expected to be recognized over a weighted average period of 0.54 years. The following table summarizes information related to restricted units held by certain directors of the General Partner:

	Restricted Units
Non-vested units outstanding at December 31, 2017	11,766
Granted	17,260
Vested	(11,766	)
Forfeited	—
Non-vested units outstanding at September 30, 2018	17,260

Restricted stock awards (Predecessor). Prior to the initial public offering on September 25, 2017, certain employees of Oasis Petroleum were granted restricted stock awards under its Amended and Restated 2010 Long Term Incentive Plan, the majority of which vest over a three-year period. Oasis Petroleum accounts for these awards as equity-classified awards, in accordance with GAAP. The value of restricted stock grants is based on the closing sales price of Oasis Petroleum’s common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. During the nine months ended September 30, 2017, employees of the Predecessor were granted restricted stock awards equal to 91,550 shares of common stock with a $14.95 weighted average grant date fair value per share.

In accordance with its indirect shared service expense allocation from Oasis Petroleum, the Predecessor recorded equity-based compensation expense associated with these awards of approximately $0.3 million and $1.0 million for the three and nine months endedSeptember 30, 2017, respectively, in general and administrative expenses on the Condensed Consolidated Statements of Operations. There is no unrecognized expense associated with these awards for the Partnership.

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Partnership Equity and Distributions

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Partnership Equity and Distributions

Partnership Equity and Distributions

Cash distributions. On October 30, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2018 of $0.4300 per unit. The distribution will be payable on November 27, 2018 to unitholders of record as of November 9, 2018.

The following table details the distributions paid in respect of each period in which the distributions were earned:

					Distributions
					Limited Partners				General Partner
Period	Record Date	Distribution Date	Distribution per limited partner unit		Common units		Subordinated units		IDRs
			(In thousands, except per unit data)
Q3 2017(1)	February 16, 2018	February 26, 2018	$	0.0245	$	337	$	337	$	—
Q4 2017	February 16, 2018	February 26, 2018	0.3750		5,161		5,156		—
Q1 2018	May 17, 2018	May 29, 2018	0.3925		5,406		5,397		—
Q2 2018	August 16, 2018	August 28, 2018	0.4100		5,649		5,638		—
Q3 2018 (2)	November 9, 2018	November 27, 2018	0.4300		5,925		5,913		—

__________________

(1) Distribution prorated from the closing of the Partnership’s initial public offering on September 25, 2017.

(2) The cash distribution for the three months ended September 30, 2018 was determined based upon the number of units outstanding at November 1, 2018.

Minimum quarterly distribution. The partnership agreement requires that all of the Partnership’s available cash be distributed quarterly. Under the current cash distribution policy, the Partnership intends to distribute to the holders of common units and subordinated units on a quarterly basis at least the minimum quarterly distribution of $0.3750 per unit, or $1.50 on an annualized basis, to the extent the Partnership has sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments to the General Partner and its affiliates.

Subordinated units. Oasis Petroleum owns all of the Partnership’s subordinated units. The partnership agreement provides that, during the subordination period, the common units have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to the minimum quarterly distribution, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. No arrearages will accrue or be payable on the subordinated units.

When the subordination period ends, each outstanding subordinated unit will convert into one common unit and will thereafter participate pro rata with the other common units in distributions of available cash.

The subordination period will end on December 31, 2020 if each of the following tests are met:

• for each of the three consecutive, non-overlapping four-quarter periods immediately preceding that date, aggregate distributions from operating surplus equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in each period;

• for the same three consecutive, non-overlapping four-quarter periods, the “adjusted operating surplus” (as defined in the partnership agreement) equaled or exceeded the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding during each quarter on a fully diluted weighted average basis; and

• there are no arrearages in payment of the minimum quarterly distribution on the common units.

Notwithstanding the foregoing, the subordination period will automatically terminate, and all of the subordinated units will convert into common units on a one-for-one basis, on the first business day after the distribution to unitholders in respect of any quarter, beginning with the quarter ending December 31, 2018, if each of the following has occurred:

• for one four-quarter period immediately preceding that date, aggregate distributions from operating surplus exceeded 150.0% of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding in each quarter in the period;

• for the same four-quarter period, the “adjusted operating surplus” (as defined in the Partnership’s Amended and Restated Agreement of Limited Partnership) equaled or exceeded 150.0% of the sum of the minimum quarterly distribution multiplied by the total number of common units and subordinated units outstanding during each quarter on a fully diluted weighted average basis, plus the related distribution on the IDRs; and

• there are no arrearages in payment of the minimum quarterly distributions on the common units.

Incentive distribution rights. The General Partner owns all of the Partnership’s IDRs, which will entitle it to increasing percentages, up to a maximum of 50.0%, of the cash the Partnership distributes in excess of $0.43125 per unit per quarter. The maximum distribution of 50.0% does not include any distributions that Oasis Petroleum may receive on common units or subordinated units that it owns. No distributions have been declared on the IDRs since the Partnership’s initial public offering.

Percentage allocations of available cash from operating surplus. For any quarter in which the Partnership has distributed cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum distribution, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the IDR holders in the following manner:

		Marginal Percentage Interest in Distributions
	Total Quarterly Distribution Per Unit	Unitholders		IDR Holders
Minimum Quarterly Distribution	up to $0.3750	100	%	—	%
First Target Distribution	above $0.3750 up to $0.4313	100	%	—	%
Second Target Distribution	above $0.4313 up to $0.4688	85	%	15	%
Third Target Distribution	above $0.4688 up to $0.5625	75	%	25	%
Thereafter	above $0.5625	50	%	50	%

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Net Income Per Limited Partner Unit

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Net Income Per Limited Partner Unit

Earnings Per Limited Partner Unit

Earnings per limited partner unit is computed by dividing the respective limited partners’ interest in earnings attributable to the Partnership by the weighted average number of common units and subordinated units outstanding. Because there is more than one class of participating securities, the Partnership uses the two-class method when calculating earnings per limited partner unit. The classes of participating securities include common units, subordinated units, and IDRs.

Diluted earnings per limited partner unit reflects the potential dilution that could occur if securities or agreements to issue common units, such as awards under the LTIP, were exercised, settled or converted into common units. When it is determined that potential common units should be included in diluted net income per limited partner unit calculation, the impact is reflected by applying the treasury stock method.

	Three Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	5,925	$	5,913	$	11,838
Undistributed earnings attributable to Oasis Midstream Partners LP	—		269		269		538
Net income attributable to Oasis Midstream Partners LP	$	—	$	6,194	$	6,182	$	12,376
Weighted average limited partner units outstanding
Basic			13,751
Diluted			13,769
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.45
Diluted			0.45
Anti-dilutive restricted units			8

	Three Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

	Nine Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	16,980	$	16,948	$	33,928
Undistributed earnings attributable to Oasis Midstream Partners LP	—		423		423		846
Net income attributable to Oasis Midstream Partners LP	$	—	$	17,403	$	17,371	$	34,774
Weighted average limited partner units outstanding
Basic			13,750
Diluted			13,764
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	1.27
Diluted			1.26
Anti-dilutive restricted units			8

	Nine Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Presentation

Presentation

The accompanying condensed consolidated financial statements of the Partnership have not been audited by the Partnership’s independent registered public accounting firm, except that the Condensed Consolidated Balance Sheet at December 31, 2017 is derived from audited financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for fair statement of the Partnership’s financial position have been included. Management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

These interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain disclosures have been condensed or omitted from these financial statements. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 Annual Report”).

Consolidation

Consolidation

The Partnership’s condensed consolidated financial statements include its accounts and the accounts of the DevCos. With respect to Bobcat DevCo and Beartooth DevCo, management has determined that OMS’s equity at risk was established with non-substantive voting rights, making Bobcat DevCo and Beartooth DevCo variable interest entities (“VIEs”) under the rules of the Financial Accounting Standards Board (“FASB”). Through its 100% ownership interest in OMP Operating LLC (“OMP Operating”), which owns controlling interests in Bobcat DevCo and Beartooth DevCo, the Partnership has the authority to direct the activities that most significantly affect the economic performance of these entities and the obligation to absorb losses or the right to receive benefits that could be potentially significant to them. Therefore, the Partnership is considered the primary beneficiary of Bobcat DevCo and Beartooth DevCo and is required to consolidate these entities in its financial statements under the VIE consolidation model. With respect to Bighorn DevCo, the Partnership is required to consolidate Bighorn DevCo under the voting interest consolidation model because Bighorn DevCo is an indirect wholly owned subsidiary of the Partnership.

Non-controlling Interests

Non-Controlling Interests

The non-controlling interests represent Oasis Petroleum’s retained ownership interest in Bobcat DevCo and Beartooth DevCo of 90% and 60%, respectively.

Revenue from contracts with customers

Revenue recognition. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which uses a five-step model to recognize revenue from customer contracts. ASU 2014-09 was applied on a modified retrospective basis. The adoption of ASU 2014-09 did not result in a material impact to the Partnership’s financial position, cash flows or results of operations. Disclosures in accordance with the requirements of ASU 2014-09 have been provided in Note 3.

Revenue from contracts with customers

The unit of account in ASC 606 is a performance obligation, which is a promise in a contract to transfer to a customer either a distinct good or service (or bundle of goods or services) or a series of distinct goods or services provided over a period of time. ASC 606 requires that a contract’s transaction price, which is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, is to be allocated to each performance obligation in the contract based on relative standalone selling prices and recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Crude oil and natural gas revenues.The Partnership is party to certain contracts for crude oil gathering, stabilization, blending, storage and transportation, as well as natural gas gathering, compression, processing and gas lift services. Under these customer contracts, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Water revenues.The Partnership is also party to certain contracts with customers for water services, which includes produced and flowback water gathering and disposal services and freshwater supply and distribution services. Under its customer contracts for produced and flowback water services, the Partnership has a series of performance obligations to provide daily integrated midstream services on a stand ready basis over a period of time. This represents a single performance obligation since the customer simultaneously receives and consumes the benefits of these services on a daily basis. Satisfaction of the performance obligation is measured as each day of service is completed, which directly corresponds with its right to consideration from the customer. Revenues associated with these contracts are recognized based upon the transaction price at month-end under the right to invoice practical expedient. Payments are typically due from customers 30 days after receipt of invoice.

Under its customer contracts for freshwater supply and distribution services, the Partnership supplies and distributes freshwater to its customers for hydraulic fracturing and production optimization. These contracts contain multiple distinct performance obligations since each freshwater barrel can be sold separately and is not dependent or highly interrelated with other barrels. Revenue associated with freshwater supply and distribution services is recognized at a point in time based upon the transaction price when title, control and risk of loss transfers to the customer, which occurs at the delivery point. Payments are due from customers 30 days after receipt of invoice.

Statement of Cash Flows

Statement of cash flows. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 was applied on a retrospective basis. The adoption of ASU 2016-15 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Business Combinations

Business combinations. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”), which provides guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 was adopted on a prospective basis. The adoption of ASU 2017-01 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Equity-based Compensation

Equity-based compensation. In the first quarter of 2018, the Partnership adopted Accounting Standards Update No. 2017-09, Scope of Modification Accounting (“ASU 2017-09”), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 was adopted on a prospective basis. The adoption of ASU 2017-09 did not result in a material impact to the Partnership’s financial position, cash flows, results of operations or financial statement disclosures.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Leases. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”), which requires a lessee to recognize lease payment obligations and a corresponding right-of-use asset to be measured at fair value on the balance sheet. ASU 2016-02 also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those years.

In January 2018, the FASB issued Accounting Standards Update No. 2018-01, Land easement practical expedient for transition to Topic 842, which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840, Leases. The Partnership plans to elect this practical expedient.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, Targeted Improvements - Lease Topic 842, which allows entities another option for transition and also provides lessors with a practical expedient to combine lease and non-lease components. The Partnership will adopt the new leases standard using the required modified retrospective approach and plans to elect the option to recognize a cumulative effect adjustment of initially applying the guidance to the opening balance of retained earnings in the period of adoption, rather than recognizing in the earliest period presented. Prior period amounts will not be adjusted.

The Partnership is in the process of analyzing its lease arrangements and is continuing to identify and put in place necessary changes to its business processes and controls to support the adoption of the new standard, including implementing a new lease accounting software to assess the portfolio of leases, assist in the quantification of the expected impact on the consolidated financial statements and facilitate the calculations of the related accounting entries and disclosures. The Partnership is currently evaluating the effect that adopting the new lease guidance will have on its financial position, cash flows and results of operations.

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Organization and Nature of Operations (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Ownership Interests in DevCos

In connection with the Partnership’s initial public offering on September 25, 2017, Oasis Petroleum contributed to the Partnership ownership interests in the following DevCos:

DevCos	Areas Served	Service Lines	Oasis Midstream Ownership
Bighorn DevCo	Wild Basin	– Gas processing – Crude stabilization – Crude blending – Crude and NGL storage – Crude transportation	100%
Bobcat DevCo	Wild Basin	– Gas gathering – Gas compression – Gas lift – Crude gathering – Produced and flowback water gathering – Produced and flowback water disposal	10%
Beartooth DevCo	Alger Cottonwood Hebron Indian Hills Red Bank Wild Basin	– Produced and flowback water gathering – Produced and flowback water disposal – Freshwater supply and distribution	40%

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenues associated with contracts with customers for crude oil, natural gas and water services for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Crude oil and natural gas services revenue	$	34,347	$	22,419	$	98,489	$	59,798
Water services revenue	37,120		24,962		100,957		65,535
Total revenues	$	71,467	$	47,381	$	199,446	$	125,333

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Transactions with Affiliates (Tables)

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Schedule of Related Party Operating Expenses

General and administrative expenses and interest expense incurred from affiliate transactions with Oasis Petroleum include the following for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Expenses from affiliates
General and administrative	$	4,490	$	2,895	$	15,320	$	8,416
Interest expense, net of capitalized interest	—		2,714		—		6,945

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Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

The following table sets forth the Partnership’s accrued liabilities for the periods presented:

	September 30, 2018		December 31, 2017
	(In thousands)
Accrued capital costs	$	43,323	$	47,843
Accrued operating expenses	16,007		10,860
Other accrued liabilities	43		115
Total accrued liabilities	$	59,373	$	58,818

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

The following table sets forth the Partnership’s property, plant and equipment for the periods presented:

	September 30, 2018			December 31, 2017
	(In thousands)
Pipelines	$	364,199		$	255,231
Natural gas processing plant	112,563			102,371
Produced and flowback water facilities	92,646			80,050
Compressor stations	95,972			59,293
Other property and equipment	33,737			32,340
Construction in progress	177,417			124,643
Total property, plant and equipment	876,534			653,928
Less: accumulated depreciation and amortization	(54,555		)	(34,348		)
Total property, plant and equipment, net	$	821,979		$	619,580

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Schedule of Applicable Margins Under Revolving Credit Facility

The applicable margin for borrowings under the Revolving Credit Facility is determined in accordance with the Credit Agreement as follows:

Consolidated Total Leverage Ratio	Applicable Margin for Eurodollar Loans		Applicable Margin for ABR Loans		Commitment Fee Rate
Less than or equal to 3.00 to 1.00	1.75	%	0.75	%	0.375	%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00	2.00	%	1.00	%	0.375	%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00	2.25	%	1.25	%	0.500	%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00	2.50	%	1.50	%	0.500	%
Greater than 4.50 to 1.00	2.75	%	1.75	%	0.500	%

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Equity-based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Phantom Units Held

The following table summarizes information related to the Phantom Units held by certain non-employees of the Partnership:

	Phantom Units
Non-vested units outstanding at December 31, 2017	99,100
Granted	—
Vested	—
Forfeited	(9,600	)
Non-vested units outstanding at September 30, 2018	89,500

Schedule of Restricted Award Activity

The following table summarizes information related to restricted units held by certain directors of the General Partner:

	Restricted Units
Non-vested units outstanding at December 31, 2017	11,766
Granted	17,260
Vested	(11,766	)
Forfeited	—
Non-vested units outstanding at September 30, 2018	17,260

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Partnership Equity and Distributions (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Schedule of Percentage Allocations of Available Cash from Operating Surplus

For any quarter in which the Partnership has distributed cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum distribution, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders and the IDR holders in the following manner:

		Marginal Percentage Interest in Distributions
	Total Quarterly Distribution Per Unit	Unitholders		IDR Holders
Minimum Quarterly Distribution	up to $0.3750	100	%	—	%
First Target Distribution	above $0.3750 up to $0.4313	100	%	—	%
Second Target Distribution	above $0.4313 up to $0.4688	85	%	15	%
Third Target Distribution	above $0.4688 up to $0.5625	75	%	25	%
Thereafter	above $0.5625	50	%	50	%

The following table details the distributions paid in respect of each period in which the distributions were earned:

					Distributions
					Limited Partners				General Partner
Period	Record Date	Distribution Date	Distribution per limited partner unit		Common units		Subordinated units		IDRs
			(In thousands, except per unit data)
Q3 2017(1)	February 16, 2018	February 26, 2018	$	0.0245	$	337	$	337	$	—
Q4 2017	February 16, 2018	February 26, 2018	0.3750		5,161		5,156		—
Q1 2018	May 17, 2018	May 29, 2018	0.3925		5,406		5,397		—
Q2 2018	August 16, 2018	August 28, 2018	0.4100		5,649		5,638		—
Q3 2018 (2)	November 9, 2018	November 27, 2018	0.4300		5,925		5,913		—

__________________

(1) Distribution prorated from the closing of the Partnership’s initial public offering on September 25, 2017.

(2) The cash distribution for the three months ended September 30, 2018 was determined based upon the number of units outstanding at November 1, 2018.

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Net Income Per Limited Partner Unit (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of Net Income per Limited Partner Unit

	Three Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	5,925	$	5,913	$	11,838
Undistributed earnings attributable to Oasis Midstream Partners LP	—		269		269		538
Net income attributable to Oasis Midstream Partners LP	$	—	$	6,194	$	6,182	$	12,376
Weighted average limited partner units outstanding
Basic			13,751
Diluted			13,769
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.45
Diluted			0.45
Anti-dilutive restricted units			8

	Three Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

	Nine Months Ended September 30, 2018
	General Partner		Limited Partners
	IDRs		Common units		Subordinated units		Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared	$	—	$	16,980	$	16,948	$	33,928
Undistributed earnings attributable to Oasis Midstream Partners LP	—		423		423		846
Net income attributable to Oasis Midstream Partners LP	$	—	$	17,403	$	17,371	$	34,774
Weighted average limited partner units outstanding
Basic			13,750
Diluted			13,764
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	1.27
Diluted			1.26
Anti-dilutive restricted units			8

	Nine Months Ended September 30, 2017
	General Partner		Limited Partners
	IDRs		Common units			Subordinated units			Total
	(In thousands, except per unit data)
Net income attributable to Oasis Midstream Partners LP:
Distribution declared(1)	$	—	$	337		$	337		$	674
Excess distributions attributable to Oasis Midstream Partners LP	—		(71		)	(77		)	(148		)
Net income attributable to Oasis Midstream Partners LP	$	—	$	266		$	260		$	526
Weighted average limited partner units outstanding
Basic			12,625
Diluted			12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Basic			$	0.02
Diluted			0.02
Anti-dilutive restricted units			12

___________________

(1) On February 2, 2018, the Board of Directors of the General Partner declared the quarterly cash distribution for the third quarter of 2017 of $0.0245 per unit for the six days ended September 30, 2017. The cash distribution for the third quarter of 2017 was prorated from the closing of the initial public offering on September 25, 2017.

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Organization and Nature of Operations (Details) a in Thousands		9 Months Ended
	Sep. 25, 2017 shares	Sep. 30, 2018 a area
Limited Partners' Capital Account [Line Items]
Number of primary areas with developed infrastructure | area		2
Bighorn DevCo [Member]
Limited Partners' Capital Account [Line Items]
Ownership interest (percent)	100.00%
Bobcat DevCo [Member]
Limited Partners' Capital Account [Line Items]
Ownership interest (percent)	10.00%
Beartooth DevCo [Member]
Limited Partners' Capital Account [Line Items]
Ownership interest (percent)	40.00%
Wild Basin [Member] | Oil, Gas and Water Services [Member]
Limited Partners' Capital Account [Line Items]
Gross dedicated acreage received from Oasis (acres)		65
Wild Basin [Member] | Fresh Water [Member]
Limited Partners' Capital Account [Line Items]
Gross dedicated acreage received from Oasis (acres)		364
Wild Basin [Member] | Produced Water [Member]
Limited Partners' Capital Account [Line Items]
Gross dedicated acreage received from Oasis (acres)		581
Oasis Petroleum [Member] | Common Units [Member]
Limited Partners' Capital Account [Line Items]
Common units sold in public offering (shares) | shares	5,125,000
Oasis Petroleum [Member] | Subordinated Units [Member]
Limited Partners' Capital Account [Line Items]
Common units sold in public offering (shares) | shares	13,750,000
Oasis Petroleum [Member] | Wild Basin [Member] | Oil, Gas and Water Services [Member]
Limited Partners' Capital Account [Line Items]
Dedicated acreage still within Oasis' gross operated acreage position (acres)		29
Oasis Petroleum [Member] | Wild Basin [Member] | Fresh Water [Member]
Limited Partners' Capital Account [Line Items]
Dedicated acreage still within Oasis' gross operated acreage position (acres)		203
Oasis Petroleum [Member] | Wild Basin [Member] | Produced Water [Member]
Limited Partners' Capital Account [Line Items]
Dedicated acreage still within Oasis' gross operated acreage position (acres)		299

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Basis of Presentation (Details)		9 Months Ended
	Sep. 25, 2017	Sep. 30, 2018
Bobcat DevCo [Member]
Variable Interest Entity [Line Items]
Ownership interest (percent)	10.00%
Beartooth DevCo [Member]
Variable Interest Entity [Line Items]
Ownership interest (percent)	40.00%
Oasis Midstream Partners, LP [Member] | OMP Operating, LLC [Member]
Variable Interest Entity [Line Items]
Ownership interest (percent)		100.00%
Oasis Petroleum [Member] | Bobcat DevCo [Member]
Variable Interest Entity [Line Items]
Non-controlling interest (percent)		90.00%
Oasis Petroleum [Member] | Beartooth DevCo [Member]
Variable Interest Entity [Line Items]
Non-controlling interest (percent)		60.00%

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Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 71,467	$ 47,381	$ 199,446	$ 125,333
Crude Oil and Natural Gas Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	34,347	22,419	98,489	59,798
Water Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 37,120	$ 24,962	$ 100,957	$ 65,535

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Transactions with Affiliates (Details) - Oasis [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transaction [Line Items]
General and administrative	$ 4,490	$ 2,895	$ 15,320	$ 8,416
Interest expense, net of capitalized interest	$ 0	$ 2,714	$ 0	$ 6,945
Commercial Agreements with OPNA, Oasis Petroleum Marketing LLC (“OPM”) and OMS [Member]
Related Party Transaction [Line Items]
Term of contractual arrangements			15 years
Centralized Corporate, General and Administrative Services [Member] | Commercial Agreements with OPNA, Oasis Petroleum Marketing LLC (“OPM”) and OMS [Member]
Related Party Transaction [Line Items]
Term of contractual arrangements			15 years

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued capital costs	$ 43,323	$ 47,843
Accrued operating expenses	16,007	10,860
Other accrued liabilities	43	115
Total accrued liabilities	$ 59,373	$ 58,818

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Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 876,534	$ 653,928
Less: accumulated depreciation and amortization	(54,555)	(34,348)
Total property, plant and equipment, net	821,979	619,580
Pipelines [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	364,199	255,231
Natural Gas Processing Plant [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	112,563	102,371
Produced and Flowback Water Facilities [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	92,646	80,050
Compressor Stations [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	95,972	59,293
Other Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	33,737	32,340
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 177,417	$ 124,643

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Long-Term Debt - Narrative (Details)	9 Months Ended
	Sep. 30, 2018 USD ($)	Aug. 27, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 25, 2017 USD ($)
Line of Credit Facility [Line Items]
Borrowings outstanding	$ 166,000,000		$ 78,000,000
Maximum consolidated senior secured leverage ratio	3.75
Covenant Period One [Member]
Line of Credit Facility [Line Items]
Maximum consolidated total leverage ratio	4.50
Minimum consolidated interest coverage ratio	3.00
Covenant Period Two [Member]
Line of Credit Facility [Line Items]
Maximum consolidated total leverage ratio	5.00
Minimum consolidated interest coverage ratio	2.50
Covenant Period Three [Member]
Line of Credit Facility [Line Items]
Maximum consolidated total leverage ratio	5.25
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Borrowing capacity increase limit		$ 400,000,000
Minimum aggregate principal amount threshold under covenant	$ 150,000,000
ABR Loans [Member] | Revolving Credit Facility [Member] | Federal Funds Effective Rate [Member]
Line of Credit Facility [Line Items]
Spread on variable rate (percent)	0.50%
ABR Loans [Member] | Revolving Credit Facility [Member] | Adjusted LIBOR [Member]
Line of Credit Facility [Line Items]
Spread on variable rate (percent)	1.00%
The Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum aggregate commitment amount		$ 250,000,000		$ 200,000,000
Borrowings outstanding	$ 166,000,000
Weighted average interest rate (percent)	4.00%
The Credit Agreement [Member] | Letters of Credit [Member]
Line of Credit Facility [Line Items]
Maximum aggregate commitment amount				10,000,000
The Credit Agreement [Member] | Swingline Loans [Member]
Line of Credit Facility [Line Items]
Maximum aggregate commitment amount				$ 10,000,000

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Long-Term Debt - Applicable Margins Under Revolving Credit Facility (Details)	9 Months Ended
	Sep. 30, 2018
Less than or equal to 3.00 to 1.00 | Maximum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	3.00
Less than or equal to 3.00 to 1.00 | OMP Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Commitment fee rate (percent)	0.375%
Less than or equal to 3.00 to 1.00 | OMP Revolving Line of Credit [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	1.75%
Less than or equal to 3.00 to 1.00 | OMP Revolving Line of Credit [Member] | Alternate Based Rate (ABR) [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	0.75%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 | Maximum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	3.50
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 | Minimum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	3.00
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 | OMP Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Commitment fee rate (percent)	0.375%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 | OMP Revolving Line of Credit [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	2.00%
Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00 | OMP Revolving Line of Credit [Member] | Alternate Based Rate (ABR) [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	1.00%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 | Maximum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	4.00
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 | Minimum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	3.50
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 | OMP Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Commitment fee rate (percent)	0.50%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 | OMP Revolving Line of Credit [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	2.25%
Greater than 3.50 to 1.00 but less than or equal to 4.00 to 1.00 | OMP Revolving Line of Credit [Member] | Alternate Based Rate (ABR) [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	1.25%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 | Maximum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	4.50
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 | Minimum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	4.00
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 | OMP Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Commitment fee rate (percent)	0.50%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 | OMP Revolving Line of Credit [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	2.50%
Greater than 4.00 to 1.00 but less than or equal to 4.50 to 1.00 | OMP Revolving Line of Credit [Member] | Alternate Based Rate (ABR) [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	1.50%
Greater than 4.50 to 1.00 | Minimum [Member]
Debt Instrument [Line Items]
Consolidated total leverage ratio	4.50
Greater than 4.50 to 1.00 | OMP Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Commitment fee rate (percent)	0.50%
Greater than 4.50 to 1.00 | OMP Revolving Line of Credit [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	2.75%
Greater than 4.50 to 1.00 | OMP Revolving Line of Credit [Member] | Alternate Based Rate (ABR) [Member]
Debt Instrument [Line Items]
Applicable margin (percent)	1.75%

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Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Holiday [Line Items]
Tax provision	$ 0	$ 7,898,000	$ 0	$ 22,858,000
Predecessor [Member]
Income Tax Holiday [Line Items]
Effective tax rate (percent)		35.20%		36.80%

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Commitments and Contingencies (Details) bbl in Millions, $ in Millions		9 Months Ended
	Mar. 23, 2017 USD ($)	Sep. 30, 2018 USD ($) bbl
Mirada Litigation [Member]
Loss Contingencies [Line Items]
Monetary damages sought (in excess of)	$ 100.0
Water Volume Commitment Agreements [Member]
Loss Contingencies [Line Items]
Minimum quantity to be delivered (barrels) | bbl		16.3
Term of contractual arrangements		10 years
Estimable future commitments under volume commitment agreements		$ 10.9

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Equity-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended		9 Months Ended
	Jan. 01, 2018	Oct. 19, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 25, 2017
Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional number of shares reserved for issuance (shares)	1,980,118
Annual increase in number of common units authorized for issuance as a percentage of units outstanding (percent)			1.00%		1.00%
Aggregate number of common units that may be issued (shares)			137,618		137,618
Phantom Units [Member] | Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (shares)					0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (shares)	99,100				99,100
Granted (shares)					0
Vested (shares)					0
Forfeited (shares)					(9,600)
Outstanding at end of period (shares)			89,500		89,500
Restricted Unit Awards [Member] | Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost			$ 0.2		$ 0.2
Weighted average recognition period					6 months 15 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (shares)	11,766				11,766
Vested (shares)					(11,766)
Forfeited (shares)					0
Outstanding at end of period (shares)			17,260		17,260
Predecessor [Member] | Restricted Stock [Member] | Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (shares)						91,550
Vesting period of granted awards							3 years
Weighted average grant date per share (in dollars per share)						$ 14.95
Stock-based compensation expense				$ 0.3		$ 1.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (shares)						91,550
Oasis Midstream Partners, LP [Member] | Phantom Units [Member] | Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (shares)		101,500
Vesting period of granted awards		3 years
Unrecognized compensation cost			$ 1.4		$ 1.4
Weighted average recognition period					2 years 1 month 29 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (shares)		101,500
OMP General Partner LLC [Member] | Restricted Unit Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (shares)					17,260
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (shares)					17,260
OMP General Partner LLC [Member] | Restricted Unit Awards [Member] | Long Term Incentive Plan (LTIP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					1 year
Weighted average grant date per share (in dollars per share)					$ 17.55
Stock-based compensation expense			$ 0.1		$ 0.3

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Partnership Equity and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					6 Months Ended	9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
Distribution Made to Limited Partner [Line Items]
Cash distributions declared per limited partner unit (in usd per share)	$ 0.43	$ 0.41	$ 0.3925	$ 0.375	$ 0.0245
Distribution	$ 11,838				$ 674		$ 33,928	$ 674
IDR holders [Member]
Distribution Made to Limited Partner [Line Items]
Distribution	$ 0	$ 0	$ 0	$ 0	0		$ 0	0
Cash Distribution [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)	$ 0.3750
Partners annualized distribution (in dollars per share)							$ 1.50
Termination threshold as percentage of sum of minimum distribution multiplied by total number of units outstanding (percent)						150.00%	50.00%
Basis for General Partners' interest in distributions (in dollars per share)							$ 0.43125
Cash Distribution [Member] | Target Distribution up to $0.375 [Member] | Maximum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.375
Cash Distribution [Member] | Target Distribution above $0.375 up to $0.4313 [Member] | Minimum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.375
Cash Distribution [Member] | Target Distribution above $0.375 up to $0.4313 [Member] | Maximum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.4313
Cash Distribution [Member] | Target Distribution above $0.4313 up to $0.4688 [Member] | Minimum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.4313
Cash Distribution [Member] | Target Distribution above $0.4313 up to $0.4688 [Member] | Maximum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.4688
Cash Distribution [Member] | Target Distribution above $$0.4688 up to 0.5625 [Member] | Minimum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.4688
Cash Distribution [Member] | Target Distribution above $$0.4688 up to 0.5625 [Member] | Maximum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							0.5625
Cash Distribution [Member] | Target Distribution above $0.5625 [Member] | Minimum [Member]
Distribution Made to Limited Partner [Line Items]
Partners quarterly distribution (in dollars per share)							$ 0.5625
Cash Distribution [Member] | Unitholders [Member] | Target Distribution up to $0.375 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	100.00%						100.00%
Cash Distribution [Member] | Unitholders [Member] | Target Distribution above $0.375 up to $0.4313 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	100.00%						100.00%
Cash Distribution [Member] | Unitholders [Member] | Target Distribution above $0.4313 up to $0.4688 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	85.00%						85.00%
Cash Distribution [Member] | Unitholders [Member] | Target Distribution above $$0.4688 up to 0.5625 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	75.00%						75.00%
Cash Distribution [Member] | Unitholders [Member] | Target Distribution above $0.5625 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	50.00%						50.00%
Cash Distribution [Member] | IDR holders [Member] | Target Distribution up to $0.375 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	0.00%						0.00%
Cash Distribution [Member] | IDR holders [Member] | Target Distribution above $0.375 up to $0.4313 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	0.00%						0.00%
Cash Distribution [Member] | IDR holders [Member] | Target Distribution above $0.4313 up to $0.4688 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	15.00%						15.00%
Cash Distribution [Member] | IDR holders [Member] | Target Distribution above $$0.4688 up to 0.5625 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	25.00%						25.00%
Cash Distribution [Member] | IDR holders [Member] | Target Distribution above $0.5625 [Member]
Distribution Made to Limited Partner [Line Items]
Marginal percentage interest in distributions (percent)	50.00%						50.00%
Common Units [Member] | Unitholders [Member]
Distribution Made to Limited Partner [Line Items]
Distribution	$ 5,925	5,649	5,406	5,161	337		$ 16,980	337
Subordinated Units [Member] | Unitholders [Member]
Distribution Made to Limited Partner [Line Items]
Distribution	$ 5,913	$ 5,638	$ 5,397	$ 5,156	$ 337		$ 16,948	$ 337

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Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended					9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distribution declared		$ 11,838				$ 674	$ 33,928	$ 674
Undistributed earnings attributable to Oasis Midstream Partners LP		538					846
Excess distributions attributable to Oasis Midstream Partners LP						(148)		(148)
Earnings attributable to Oasis Midstream Partners LP	$ 526	$ 12,376				$ 526	$ 34,774	526
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Cash distributions declared per limited partner unit (in usd per share)		$ 0.43	$ 0.41	$ 0.3925	$ 0.375	$ 0.0245
Common Units [Member]
Weighted average units outstanding:
Weighted average number of limited partner units outstanding (Basic) (shares)	12,625	13,751					13,750
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Net income per limited partner unit (basic) subsequent to the Offering (in dollars per share)	$ 0.02	$ 0.45					$ 1.27
Subordinated Units [Member]
Weighted average units outstanding:
Weighted average number of limited partner units outstanding (Diluted) (shares)	12,625	13,769					13,764
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Net income per limited partner unit (diluted) subsequent to the Offering (in dollars per share)	$ 0.02	$ 0.45					$ 1.26
General Partner [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distribution declared		$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	0
Undistributed earnings attributable to Oasis Midstream Partners LP		0					0
Excess distributions attributable to Oasis Midstream Partners LP						0		0
Earnings attributable to Oasis Midstream Partners LP		0				0	0	0
Limited Partner [Member] | Common Units [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distribution declared		5,925	5,649	5,406	5,161	337	16,980	337
Undistributed earnings attributable to Oasis Midstream Partners LP		269					423
Excess distributions attributable to Oasis Midstream Partners LP						(71)		(71)
Earnings attributable to Oasis Midstream Partners LP		$ 6,194				$ 266	$ 17,403	$ 266
Weighted average units outstanding:
Weighted average number of limited partner units outstanding (Basic) (shares)		13,751				12,625	13,750	12,625
Weighted average number of limited partner units outstanding (Diluted) (shares)		13,769				12,625	13,764	12,625
Net income attributable to Oasis Midstream Partners LP per limited partner unit
Net income per limited partner unit (basic) subsequent to the Offering (in dollars per share)		$ 0.45				$ 0.02	$ 1.27	$ 0.02
Net income per limited partner unit (diluted) subsequent to the Offering (in dollars per share)		$ 0.45				$ 0.02	$ 1.26	$ 0.02
Anti-dilutive restricted units (shares)		8				12	8	12
Limited Partner [Member] | Subordinated Units [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distribution declared		$ 5,913	$ 5,638	$ 5,397	$ 5,156	$ 337	$ 16,948	$ 337
Undistributed earnings attributable to Oasis Midstream Partners LP		269					423
Excess distributions attributable to Oasis Midstream Partners LP						(77)		(77)
Earnings attributable to Oasis Midstream Partners LP		$ 6,182				$ 260	$ 17,371	$ 260