Organization and Nature of Operations

Organization. Oasis Midstream Partners LP (the “Partnership”) 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.

Initial public offering. On September 25, 2017, the Partnership completed its initial public offering of 7,500,000 common units representing limited partner interests in the Partnership at a price to the public of $17.00 per common unit. Additionally, on October 10, 2017, the Partnership issued an additional 1,125,000 common units representing limited partner interests in the Partnership, pursuant to the underwriters’ over-allotment option at the same price and on the same terms. The Partnership received net proceeds of $134.2 million, after deducting underwriting discounts, structuring fees and offering costs. The Partnership distributed net proceeds of $132.1 million to Oasis Petroleum. The initial public offering was pursuant to the Partnership’s registration statement on Form S-1, as amended, filed with the Securities and Exchange Commission (“SEC”) and declared effective on September 20, 2017. The Partnership’s common units are traded on the New York Stock Exchange under the symbol OMP.

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”), two of which are jointly-owned with Oasis Petroleum. In connection with the Partnership’s initial public offering, Oasis Petroleum contributed to the Partnership a 100% ownership interest in Bighorn DevCo, a 10% ownership interest in Bobcat DevCo and a 40% ownership interest in Beartooth DevCo. On November 19, 2018, the Partnership acquired an additional 15% ownership interest in Bobcat DevCo and an additional 30% ownership interest in Beartooth DevCo (see Note 4 — Dropdown of DevCo Ownership Interests). As of December 31, 2018, the Partnership’s assets and ownership interests in the DevCos are as follows:



DevCos	Areas Served	Service Lines	OMP Ownership
Bighorn DevCo	Wild Basin	– Natural gas processing – Crude oil stabilization – Crude oil blending – Crude oil and NGL storage – Crude oil transportation	100%
Bobcat DevCo	Wild Basin	– Natural gas gathering – Natural gas compression – Gas lift – Crude oil gathering – Produced and flowback water gathering – Produced and flowback water disposal	25%
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	70%

Nature of business. The Partnership divides its operations into 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, gas and water services to support Oasis Petroleum’s existing and future production. In addition, Oasis Petroleum has dedicated to the Partnership approximately 581,000 acres and 364,000 acres for produced and flowback water services and freshwater services, respectively, of which approximately 299,000 acres and 203,000 acres, respectively, are within Oasis Petroleum’s current gross operated acreage. The Partnership has also received certain commitments from third parties in which the Partnership has the right to provide its full suite of midstream services to support existing and future third party volumes.

The Partnership generates substantially all 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 natural gas, crude oil and water that flows through the Partnership’s systems, and the Partnership does not take ownership to the crude oil or natural gas that it handles for Oasis Petroleum; however, the Partnership takes ownership of natural gas under certain purchase arrangements with third parties.

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 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 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. 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.