Press Release<< Back
Mid-Con Energy Partners, LP Announces Closing of Strategic Transaction and New Borrowing Base
“We are pleased to report that the previously announced transactions have closed as expected,” stated Mid-Con Energy’s CEO,
Details of the transactions include the following:
- Sale of substantially all of its
Texasproperties for $60.0 million, subject to customary purchase price adjustments;
- Purchase of producing properties in
Caddo, Grady, and OsageCounties, Oklahoma for $27.5 million, subject to customary purchase price adjustments;
- Excess cash used to reduce senior debt balance to
$68.0 millionas of March 31, 2019; and
- New borrowing base of
$110.0 million; providing $41.0 millionin liquidity, net of letters of credit.
Olmstead further stated, “Post-close, our asset base consists of long-lived, low decline properties with numerous opportunities for growth from developing new waterfloods in Oklahoma and
Oklahoma Assets Acquired
The properties acquired by the Partnership on
- Net proved developed producing reserves of 5.5 MMBoe (96% oil), as of April 1, 2019, based on
March 31, 2019 SECpricing;
- Production for fourth quarter 2018 was 1,347 Boe/d; and
- Average PDP decline rate of less than 5%
Borrowing Base Update
- Borrowing Base of
- Leverage Ratio will be calculated on a building, period annualized basis, beginning with the 2nd quarter 2019. The calculation for the period ending
June 30, 2019will be based on the trailing 3 months Consolidated EBITDAX, on an annualized basis. The calculation for the period ending September 30, 2019will be based on the trailing 6 months annualized. The calculation for the period ending December 31, 2019will be based on the trailing 9 months annualized. The calculation for all periods ending March 31, 2020, and later, will be based on the trailing 12 months.
- The next regularly scheduled borrowing base review will occur in the fall of 2019.
- As of
March 31, 2019, the Partnership had $68.0 Millionoutstanding on its Line of Credit.
This press release includes “forward-looking statements” — that is, statements related to future, not past, events within meaning of the federal securities laws. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “estimate,” “intend,” “expect,” “plan,” “project,” “should,” “goal,” “forecast,” “guidance,” “could,” “may,” “continue,” “might,” “potential,” “scheduled,” “pursue,” “target,” “will” and the negative of such terms or other comparable terminology. These forward-looking statements involve certain risks and uncertainties and ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, you should refer to
INVESTOR RELATIONS CONTACT
Source: Mid-Con Energy Partners, LP