Mid-Con Energy Partners, LP (NASDAQ: MCEP) (“Mid-Con Energy” or the
“Partnership”) announced today its operating and financial results
for fourth quarter and full year ended December 31, 2019.
“The Partnership acquired a significant number
of mature water flood properties in Oklahoma during 2019 and
successfully achieved first water injection at our Pine Tree
Shannon Unit (“PTSU”) in Wyoming,” said President and Chief
Operating Officer, Chad Roller. “Our PTSU, made effective in
the fourth quarter of 2019, represents the largest waterflood
development in the history of the Partnership. In the fourth
quarter, we drilled wells and collected core in two Oklahoma
waterflood properties acquired in 2018 with promising early results
from preliminary core analysis. Over the next year, we expect
to continue to high-grade development opportunities in our
portfolio to position the Partnership to reduce debt out of free
cash flow. In light of the recent commodity price volatility
as of March 9, 2020, we are assessing our business plan and will
make adjustments as needed. We will issue guidance for 2020
once we complete our assessment of the business plan at current
commodity prices.”
FULL YEAR 2019 SUMMARY
- In March 2019, we simultaneously closed the previously
announced definitive agreements to sell substantially all of our
oil and natural gas properties located in Texas for approximately
$59.8 million and to purchase certain oil and natural gas
properties located in Osage, Grady and Caddo Counties in Oklahoma
for an aggregate purchase price of approximately $28.1 million,
including final post-closing adjustments for each transaction.
- Received approval for unitization and began injection at PTSU,
the largest new waterflood project the Partnership has undertaken,
during the year ended December 31, 2019.
- Returned approximately 202 wells to production across the
portfolio during the year ended December 31, 2019.
- Drilled 2 injection wells and 5 producing wells in Oklahoma and
1 water supply well in Wyoming during the year ended December 31,
2019.
- Extended maturity of our revolving credit facility to May
2021.
- Decreased total revolving credit facility borrowings by $25.0
million during the year ended December 31, 2019.
- Full year net loss of $0.6 million in 2019 compared to a net
loss $18.3 million in 2018.
FINANCIAL SUMMARY
Production for fourth quarter 2019 averaged
3,609 Boe/d, compared to 3,543 Boe/d in the third quarter of 2019.
Commodity pricing increased during the fourth quarter 2019 as the
average realized oil price after derivatives was $53.34 versus
$52.05 per barrel in the third quarter 2019.
Lease operating expenses (“LOE”) for the fourth
quarter 2019 were $9.2 million ($27.59 per Boe) compared to $8.3
million ($25.44 per Boe) in the third quarter of 2019. The majority
of this increase was due to expenses associated with returning
wells to production, resulting in an increased producing well
count, and other workover expenses.
The Partnership spent $4.5 million on capital
expenditures (“CAPEX”) during the fourth quarter of 2019, compared
to CAPEX of $4.3 million during the third quarter of 2019. The
increased capital spend was related to drilling five wells (three
producing wells and two injection wells) in Oklahoma, re-completion
programs in Wyoming and Oklahoma and continued progress on the PTSU
waterflood project in Wyoming. High priority CAPEX in 2020 will be
directed to the PTSU waterflood project in Wyoming and waterflood
optimization projects in Oklahoma.
The increase in LOE and general and
administrative expenses lowered fourth quarter 2019 Adjusted
EBITDA(1) to $3.5 million from $4.4 million in the third quarter of
2019. During the fourth quarter 2019, the Partnership increased its
debt by $3.0 million to $68.0 million outstanding as of December
31, 2019. As of February 28, 2020, debt outstanding was $74.0
million.
(1) Non-GAAP financial measure. Please refer to the related
disclosure and reconciliation of net income (loss) to Adjusted
EBITDA included in this press release.
HEDGING SUMMARY
Mid-Con Energy enters into various commodity
derivative contracts intended to achieve more predictable cash
flows by reducing the Partnership’s exposure to short-term
fluctuations in oil prices. We believe this risk management
strategy will serve to secure a portion of our revenues and, by
retaining some opportunity to participate in upward price
movements, may also enable us to realize higher revenues during
periods when prices rise.
As of December 31, 2019, the following table
reflects volumes of Mid-Con Energy’s production hedged by commodity
derivative contracts, with the corresponding prices at which the
production is hedged:
Period Covered |
|
Weighted Average Fixed Price |
|
|
Weighted Average Floor Price |
|
|
Weighted Average Ceiling Price |
|
|
Total BblsHedged/day |
|
|
Index |
Swaps - 2020 |
|
$ |
55.81 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
1,931 |
|
|
NYMEX-WTI |
Swaps - 2021 |
|
$ |
55.78 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
672 |
|
|
NYMEX-WTI |
Collars - 2021 |
|
$ |
— |
|
|
$ |
52.00 |
|
|
$ |
58.80 |
|
|
|
672 |
|
|
NYMEX-WTI |
ANNUAL REPORT ON FORM 10-K
Our consolidated, audited financial statements
and related footnotes will be available in our Annual Report on
2019 Form 10-K for year ended December 31, 2019 which will be filed
on or about March 12, 2020.
UNITHOLDERS’ SCHEDULE K-1
Our unitholders’ Schedule K-1 for the tax year
2019 are available for download on the Mid-Con Energy website. Any
questions related to Schedule K-1 should be directed to Mid-Con
Energy Tax Package Support at 1-855-886-9760.
ABOUT MID-CON ENERGY PARTNERS,
LP
Mid-Con Energy is a publicly held Delaware
limited partnership formed in July 2011 to own, acquire and develop
producing oil and natural gas properties in North America, with a
focus on Enhanced Oil Recovery. Mid-Con Energy’s core areas of
operation are located primarily in Oklahoma and Wyoming. For more
information, please visit Mid-Con Energy’s website at
www.midconenergypartners.com.
FORWARD-LOOKING STATEMENTS
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 due to a number of factors including but not
limited to volatility of commodity prices; revision to oil and
natural gas reserves estimates as a result of changes in commodity
prices; effectiveness of risk management activities; business
strategies; future financial and operating results; our ability to
pay distributions; ability to replace the reserves we produce
through acquisitions and the development of our properties; future
capital requirements and availability of financing; technology and
cybersecurity; realized oil and natural gas prices; production
volumes; lease operating expenses; general and administrative
expenses; cash flow and liquidity; availability of production
equipment; availability of oil field labor; capital expenditures;
availability and terms of capital; marketing of oil and natural
gas; general economic conditions; world-wide epidemics, including
the coronavirus; competition in the oil and natural gas industry;
environmental liabilities; counterparty credit risk; governmental
regulation and taxation; compliance with NASDAQ listing
requirements; developments in oil producing and natural gas
producing countries; plans, objectives, expectations and
intentions; and any other risks and uncertainties discussed in our
Form 10-K and other filings with the SEC.
Mid-Con Energy undertakes no obligation and does
not intend to update these forward-looking statements to reflect
events or circumstances occurring after this press release. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
All forward-looking statements are qualified in their entirety by
this cautionary statement and our SEC filings. Please see the risks
and uncertainties detailed in the “Forward-Looking Statements” and
“Risk Factors” sections of our Annual Report on Form 10-K for the
year ended December 31, 2019, and in other documents and reports we
file from time to time with the SEC.
MID-CON ENERGY PARTNERS, LP and subsidiaries |
|
Consolidated Balance Sheets |
|
(in thousands, except number of units) |
|
(Unaudited) |
|
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
255 |
|
|
$ |
467 |
|
Accounts receivable |
|
|
6,853 |
|
|
|
4,194 |
|
Derivative financial instruments |
|
|
— |
|
|
|
5,666 |
|
Prepaid expenses |
|
|
87 |
|
|
|
118 |
|
Assets held for sale |
|
|
365 |
|
|
|
430 |
|
Total current assets |
|
|
7,560 |
|
|
|
10,875 |
|
Property and equipment |
|
|
|
|
|
|
|
|
Oil and natural gas properties, successful efforts method |
|
|
|
|
|
|
|
|
Proved properties |
|
|
261,375 |
|
|
|
379,441 |
|
Unproved properties |
|
|
3,125 |
|
|
|
2,928 |
|
Other property and equipment |
|
|
1,262 |
|
|
|
427 |
|
Accumulated depletion, depreciation, amortization and
impairment |
|
|
(72,303 |
) |
|
|
(175,948 |
) |
Total property and equipment, net |
|
|
193,459 |
|
|
|
206,848 |
|
Derivative financial
instruments |
|
|
730 |
|
|
|
2,418 |
|
Other assets |
|
|
1,020 |
|
|
|
1,563 |
|
Total assets |
|
$ |
202,769 |
|
|
$ |
221,704 |
|
LIABILITIES, CONVERTIBLE
PREFERRED UNITS AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
|
|
|
|
Trade |
|
$ |
320 |
|
|
$ |
141 |
|
Related parties |
|
|
6,902 |
|
|
|
3,732 |
|
Derivative financial instruments |
|
|
1,944 |
|
|
|
— |
|
Accrued liabilities |
|
|
795 |
|
|
|
2,024 |
|
Other current liabilities |
|
|
430 |
|
|
|
— |
|
Total current liabilities |
|
|
10,391 |
|
|
|
5,897 |
|
Long-term debt |
|
|
68,000 |
|
|
|
93,000 |
|
Other long-term liabilities |
|
|
457 |
|
|
|
47 |
|
Asset retirement obligations |
|
|
30,265 |
|
|
|
26,001 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Class A convertible preferred
units - 11,627,906 issued and outstanding, respectively |
|
|
22,964 |
|
|
|
21,715 |
|
Class B convertible preferred
units - 9,803,921 issued and outstanding, respectively |
|
|
14,829 |
|
|
|
14,635 |
|
Equity, per accompanying
statements |
|
|
|
|
|
|
|
|
General partner |
|
|
(793 |
) |
|
|
(786 |
) |
Limited partners - 30,824,291 and 30,436,124 units issued and
outstanding, respectively |
|
|
56,656 |
|
|
|
61,195 |
|
Total equity |
|
|
55,863 |
|
|
|
60,409 |
|
Total liabilities, convertible preferred units and equity |
|
$ |
202,769 |
|
|
$ |
221,704 |
|
|
|
|
|
|
|
|
|
|
Mid-Con Energy Partners, LP and subsidiaries |
|
Condensed Consolidated Statements of
Operations |
|
(in thousands, except per unit data) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil sales |
|
$ |
16,309 |
|
|
$ |
15,966 |
|
|
$ |
63,163 |
|
|
$ |
65,206 |
|
Natural gas sales |
|
|
374 |
|
|
|
318 |
|
|
|
1,304 |
|
|
|
1,130 |
|
Other operating revenues |
|
|
297 |
|
|
|
458 |
|
|
|
1,280 |
|
|
|
778 |
|
(Loss) gain on derivatives, net |
|
|
(7,174 |
) |
|
|
24,914 |
|
|
|
(10,246 |
) |
|
|
5,674 |
|
Total revenues |
|
|
9,806 |
|
|
|
41,656 |
|
|
|
55,501 |
|
|
|
72,788 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
9,160 |
|
|
|
6,642 |
|
|
|
31,870 |
|
|
|
22,537 |
|
Production and ad valorem taxes |
|
|
1,402 |
|
|
|
1,680 |
|
|
|
5,486 |
|
|
|
5,483 |
|
Other operating expenses |
|
|
642 |
|
|
|
657 |
|
|
|
2,068 |
|
|
|
945 |
|
Impairment of proved oil and natural gas properties |
|
|
— |
|
|
|
21,450 |
|
|
|
384 |
|
|
|
31,160 |
|
Impairment of assets held for sale |
|
|
65 |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
Depreciation, depletion and amortization |
|
|
2,595 |
|
|
|
5,105 |
|
|
|
10,621 |
|
|
|
16,751 |
|
Dry holes and abandonments of unproved properties |
|
|
— |
|
|
|
417 |
|
|
|
— |
|
|
|
612 |
|
Accretion of discount on asset retirement obligations |
|
|
428 |
|
|
|
(27 |
) |
|
|
1,596 |
|
|
|
721 |
|
General and administrative |
|
|
2,158 |
|
|
|
1,565 |
|
|
|
8,572 |
|
|
|
6,311 |
|
Total operating costs and expenses |
|
|
16,450 |
|
|
|
37,489 |
|
|
|
60,662 |
|
|
|
84,520 |
|
(Loss) gain on sales of oil and
natural gas properties, net |
|
|
(21 |
) |
|
|
(120 |
) |
|
|
9,671 |
|
|
|
(509 |
) |
(Loss) income from
operations |
|
|
(6,665 |
) |
|
|
4,047 |
|
|
|
4,510 |
|
|
|
(12,241 |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
3 |
|
Interest expense |
|
|
(1,147 |
) |
|
|
(1,641 |
) |
|
|
(5,166 |
) |
|
|
(6,010 |
) |
Other expense |
|
|
(56 |
) |
|
|
(35 |
) |
|
|
(3 |
) |
|
|
(15 |
) |
Gain on sale of other assets |
|
|
— |
|
|
|
— |
|
|
|
123 |
|
|
|
— |
|
(Loss) gain on settlements of asset retirement obligations |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(73 |
) |
|
|
10 |
|
Total other expense |
|
|
(1,204 |
) |
|
|
(1,678 |
) |
|
|
(5,109 |
) |
|
|
(6,012 |
) |
Net (loss) income |
|
|
(7,869 |
) |
|
|
2,369 |
|
|
|
(599 |
) |
|
|
(18,253 |
) |
Less: Distributions to preferred unitholders |
|
|
1,171 |
|
|
|
1,153 |
|
|
|
4,643 |
|
|
|
4,456 |
|
Less: General partner's interest in net (loss) income |
|
|
(91 |
) |
|
|
29 |
|
|
|
(7 |
) |
|
|
(214 |
) |
Limited partners' interest in net
(loss) income |
|
$ |
(8,949 |
) |
|
$ |
1,187 |
|
|
$ |
(5,235 |
) |
|
$ |
(22,495 |
) |
Limited partners' interest in net
(loss) income per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.29 |
) |
|
$ |
0.04 |
|
|
$ |
(0.17 |
) |
|
$ |
(0.74 |
) |
Diluted |
|
$ |
(0.29 |
) |
|
$ |
0.02 |
|
|
$ |
(0.17 |
) |
|
$ |
(0.74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partner
units outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner units (basic) |
|
|
30,824 |
|
|
|
30,436 |
|
|
|
30,764 |
|
|
|
30,328 |
|
Limited partner units (diluted) |
|
|
30,824 |
|
|
|
52,579 |
|
|
|
30,764 |
|
|
|
30,328 |
|
Mid-Con Energy Partners, LP and subsidiaries |
|
Condensed Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
|
Year Ended December 31, |
|
|
|
2019 |
|
|
2018 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(599 |
) |
|
$ |
(18,253 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
10,621 |
|
|
|
16,751 |
|
Debt issuance costs amortization |
|
|
702 |
|
|
|
678 |
|
Accretion of discount on asset retirement obligations |
|
|
1,596 |
|
|
|
721 |
|
Impairment of proved oil and natural gas properties |
|
|
384 |
|
|
|
31,160 |
|
Impairment of assets held for sale |
|
|
65 |
|
|
|
— |
|
Dry holes and abandonments of unproved properties |
|
|
— |
|
|
|
612 |
|
Loss (gain) on settlements of asset retirement obligations |
|
|
73 |
|
|
|
(10 |
) |
Cash paid for settlements of asset retirement obligations |
|
|
(97 |
) |
|
|
(128 |
) |
Mark to market on derivatives |
|
|
|
|
|
|
|
|
Loss (gain) on derivatives, net |
|
|
10,246 |
|
|
|
(5,674 |
) |
Cash settlements paid for matured derivatives, net |
|
|
(949 |
) |
|
|
(6,928 |
) |
Cash premiums paid for derivatives |
|
|
— |
|
|
|
(401 |
) |
(Gain) loss on sales of oil and natural gas properties |
|
|
(9,671 |
) |
|
|
509 |
|
Gain on sale of other assets |
|
|
(123 |
) |
|
|
— |
|
Non-cash equity-based compensation |
|
|
696 |
|
|
|
744 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,856 |
) |
|
|
1,367 |
|
Prepaid expenses and other assets |
|
|
70 |
|
|
|
(61 |
) |
Accounts payable - trade and accrued liabilities |
|
|
97 |
|
|
|
(210 |
) |
Accounts payable - related parties |
|
|
1,554 |
|
|
|
1,708 |
|
Net cash provided by operating activities |
|
|
11,809 |
|
|
|
22,585 |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Acquisitions of oil and natural gas properties |
|
|
(3,331 |
) |
|
|
(21,243 |
) |
Additions to oil and natural gas properties |
|
|
(13,868 |
) |
|
|
(8,617 |
) |
Proceeds from sales of oil and natural gas properties |
|
|
33,453 |
|
|
|
1,044 |
|
Proceeds from sale of other assets |
|
|
123 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
16,377 |
|
|
|
(28,816 |
) |
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
Proceeds from line of credit |
|
|
11,000 |
|
|
|
22,000 |
|
Payments on line of credit |
|
|
(36,000 |
) |
|
|
(28,000 |
) |
Debt issuance costs |
|
|
(198 |
) |
|
|
(681 |
) |
Proceeds from sale of Class B convertible preferred units, net of
offering costs |
|
|
— |
|
|
|
14,847 |
|
Distributions to Class A convertible preferred units |
|
|
(2,000 |
) |
|
|
(2,500 |
) |
Distributions to Class B convertible preferred units |
|
|
(1,200 |
) |
|
|
(800 |
) |
Net cash (used in) provided by financing activities |
|
|
(28,398 |
) |
|
|
4,866 |
|
Net decrease in cash and cash equivalents |
|
|
(212 |
) |
|
|
(1,365 |
) |
Beginning cash and cash
equivalents |
|
|
467 |
|
|
|
1,832 |
|
Ending cash and cash
equivalents |
|
$ |
255 |
|
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
Mid-Con Energy Partners, LP and
subsidiariesNet Production Volumes, Average Sales
Prices and Unit Costs per Boe(Unaudited)
|
|
Three Months EndedDecember
31, |
|
|
|
|
|
|
|
|
|
|
Year EndedDecember 31, |
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
Change |
|
|
% Change |
|
|
2019 |
|
|
2018 |
|
|
Change |
|
|
% Change |
|
Production volumes, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls) |
|
|
302 |
|
|
|
314 |
|
|
|
(12 |
) |
|
(4 |
%) |
|
|
|
1,179 |
|
|
|
1,112 |
|
|
|
67 |
|
|
6 |
% |
|
Natural gas (MMcf) |
|
|
178 |
|
|
|
140 |
|
|
|
38 |
|
|
27 |
% |
|
|
|
676 |
|
|
|
457 |
|
|
|
219 |
|
|
48 |
% |
|
Total (MBoe) |
|
|
332 |
|
|
|
337 |
|
|
|
(5 |
) |
|
(1 |
%) |
|
|
|
1,292 |
|
|
|
1,188 |
|
|
|
104 |
|
|
9 |
% |
|
Average daily net production (Boe/d) |
|
|
3,609 |
|
|
|
3,663 |
|
|
|
(54 |
) |
|
(1 |
%) |
|
|
|
3,540 |
|
|
|
3,255 |
|
|
|
285 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per Bbl) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales price |
|
$ |
54.00 |
|
|
$ |
50.85 |
|
|
$ |
3.15 |
|
|
6 |
% |
|
|
$ |
53.57 |
|
|
$ |
58.64 |
|
|
$ |
(5.07 |
) |
|
(9 |
%) |
|
Effect of net settlements on matured derivative instruments |
|
$ |
(0.66 |
) |
|
$ |
(3.64 |
) |
|
$ |
2.98 |
|
|
(82 |
%) |
|
|
$ |
(0.80 |
) |
|
$ |
(6.59 |
) |
|
$ |
5.79 |
|
|
88 |
% |
|
Realized oil price after derivatives |
|
$ |
53.34 |
|
|
$ |
47.21 |
|
|
$ |
6.13 |
|
|
13 |
% |
|
|
$ |
52.77 |
|
|
$ |
52.05 |
|
|
$ |
0.72 |
|
|
1 |
% |
|
Natural gas (per Mcf) |
|
$ |
2.10 |
|
|
$ |
2.27 |
|
|
$ |
(0.17 |
) |
|
(7 |
%) |
|
|
$ |
1.93 |
|
|
$ |
2.47 |
|
|
$ |
(0.54 |
) |
|
(22 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit costs per Boe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
$ |
27.59 |
|
|
$ |
19.71 |
|
|
$ |
7.88 |
|
|
40 |
% |
|
|
$ |
24.67 |
|
|
$ |
18.97 |
|
|
$ |
5.70 |
|
|
30 |
% |
|
Production and ad valorem taxes |
|
$ |
4.22 |
|
|
$ |
4.99 |
|
|
$ |
(0.77 |
) |
|
(15 |
%) |
|
|
$ |
4.25 |
|
|
$ |
4.62 |
|
|
$ |
(0.37 |
) |
|
(8 |
%) |
|
Depreciation, depletion and amortization |
|
$ |
7.82 |
|
|
$ |
15.15 |
|
|
$ |
(7.33 |
) |
|
(48 |
%) |
|
|
$ |
8.22 |
|
|
$ |
14.10 |
|
|
$ |
(5.88 |
) |
|
(42 |
%) |
|
General and administrative expenses |
|
$ |
6.50 |
|
|
$ |
4.64 |
|
|
$ |
1.86 |
|
|
40 |
% |
|
|
$ |
6.63 |
|
|
$ |
5.31 |
|
|
$ |
1.32 |
|
|
25 |
% |
|
NON-GAAP FINANCIAL MEASURE
This press release, the financial tables and
other supplemental information include “Adjusted EBITDA” which is a
non-generally accepted accounting principles (“Non-GAAP”) measure
used by our management to describe financial performance with
external users of our financial statements. The Partnership
believes the Non-GAAP financial measure described above is useful
to investors because this measurement is used by many companies in
its industry as a measurement of financial performance and is
commonly employed by financial analysts and others to evaluate the
financial performance of the Partnership and to compare the
financial performance of the Partnership with the performance of
other publicly traded partnerships within its industry. 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.
Adjusted EBITDA is defined as net income (loss)
plus (minus):
- Interest expense, net;
- Depreciation, depletion and amortization;
- Accretion of discount on asset retirement obligations;
- Impairment of proved oil and natural gas properties;
- Impairment of assets held for sale;
- Dry holes and abandonments of unproved properties;
- (Gain) loss on derivatives, net;
- Cash settlements received (paid) for matured derivatives,
net;
- Cash premiums received (paid) for derivatives, net;
- Non-cash equity-based compensation;
- (Gain) loss on sale of other assets; and
- (Gain) loss on sales of oil and natural gas properties,
net.
Mid-Con Energy Partners, LP and subsidiaries |
|
Reconciliation of Net Income (Loss) to Adjusted
EBITDA |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember
31, |
|
|
Year EndedDecember 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net (loss) income |
|
$ |
(7,869 |
) |
|
$ |
2,369 |
|
|
$ |
(599 |
) |
|
$ |
(18,253 |
) |
Interest expense, net |
|
|
1,147 |
|
|
|
1,641 |
|
|
|
5,156 |
|
|
|
6,007 |
|
Depreciation, depletion and amortization |
|
|
2,595 |
|
|
|
5,105 |
|
|
|
10,621 |
|
|
|
16,751 |
|
Accretion of discount on asset retirement obligations |
|
|
428 |
|
|
|
(27 |
) |
|
|
1,596 |
|
|
|
721 |
|
Impairment of proved oil and natural gas properties |
|
|
— |
|
|
|
21,450 |
|
|
|
384 |
|
|
|
31,160 |
|
Impairment of assets held for sale |
|
|
65 |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
Dry holes and abandonments of unproved properties |
|
|
— |
|
|
|
417 |
|
|
|
— |
|
|
|
612 |
|
Loss (gain) on derivatives, net |
|
|
7,174 |
|
|
|
(24,914 |
) |
|
|
10,246 |
|
|
|
(5,674 |
) |
Cash settlements paid for matured derivatives, net |
|
|
(199 |
) |
|
|
(940 |
) |
|
|
(949 |
) |
|
|
(6,928 |
) |
Cash premiums paid for derivatives |
|
|
— |
|
|
|
(201 |
) |
|
|
— |
|
|
|
(401 |
) |
Non-cash equity-based compensation |
|
|
119 |
|
|
|
74 |
|
|
|
696 |
|
|
|
744 |
|
Gain on sales of other assets |
|
|
— |
|
|
|
— |
|
|
|
(123 |
) |
|
|
— |
|
Loss (gain) on sales of oil and natural gas properties, net |
|
|
21 |
|
|
|
120 |
|
|
|
(9,671 |
) |
|
|
509 |
|
Adjusted EBITDA |
|
$ |
3,481 |
|
|
$ |
5,094 |
|
|
$ |
17,422 |
|
|
$ |
25,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTOR RELATIONS
CONTACTIR@midcon-energy.com (918) 743-7575
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