Introduction
When it comes to investing it can be very difficult to find anything for free, especially with markets around their record heights. Thankfully very desirable opportunities still arise, such as Oasis Midstream Partners (OMP
Oasis Midstream Partners: Pay For Their Current Distributions And Get Any Growth For Free
Summary
- Oasis Midstream Partners not only survived the turmoil of 2020 but their solid financial performance and strong fundamentals allowed them to sustain their very high yielding distributions.
- When entering 2021, they have restarted their distribution growth with quarterly increases but the market is assigning no value despite them having the ability to keep it going.
- This means that investors can pay for their current distributions and get any growth for free.
- Based upon my discounted cash flow valuations, it appears that their intrinsic value is around 70% higher than their current unit price if they continue growing their distributions as expected.
- Since this is very desirable, it should be no surprise that my bullish rating is being maintained.
I primarily focus on income investments, as well as deep value and contrarian opportunities.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OMP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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