Mid-Con Energy Partners, LP Announces Sale of Southern Oklahoma Assets and Hiring of Financial Advisor
December 28 2017 - 4:20PM
Mid-Con Energy Partners, LP (NASDAQ:MCEP) (“Mid-Con Energy” or the
“Partnership”) today announces the sale of oil and natural gas
assets within its Southern Oklahoma core area to Exponent Energy
III, LLC (“Buyer”), a Tulsa-based company. The sale closed on
December 22nd at a purchase price of $22.0 Million with an
effective date of December 22, 2017.
Separately, Mid-Con Energy has hired Sagent
Advisors, LLC (“Sagent”) to assist it in exploring various
financing and strategic alternatives in the marketplace.
Sagent will be reviewing a number of alternatives for the
Partnership including, financing alternatives for growth
acquisitions, corporate structure alternatives, merger
opportunities and long-term financing alternatives. Sagent is
a leading global independent investment bank focused on providing
financial advice with broad experience in the oil and gas
industry.
“We are pleased to announce that the sale of our
Southern Oklahoma assets was completed last week,” commented Jeff
Olmstead, President and CEO. Mr. Olmstead commented further,
“We are excited to announce a partnership with Sagent Advisors to
help us with opportunities that exist in the marketplace
today. We have seen a number of waterflood opportunities
become available, and we are looking for financing options that
will allow us to acquire and exploit new assets in a way that is
accretive to our existing stakeholders. Sagent’s team has a
long history of executing for their clients, and we look forward to
working with them on these opportunities.”
The Partnership has not set a definitive
schedule for Sagent to complete its review of financing and
strategic alternatives and does not intend to provide any further
updates until such time as it has entered into a definitive
agreement with respect to a transaction, and there is no assurance
that the review process will result in the Partnership pursuing a
particular transaction or consummating any such transaction.
In addition, due to the closing of the sale of
assets, the previously disclosed waiver received by the Partnership
from the administrative agent and lenders under its revolving
credit facility waiving noncompliance with the leverage calculation
ratio thereunder has been extended, and the borrowing base has been
temporarily amended to $115.0MM. The partnership had $99.0MM
outstanding on the line of credit as of December 28, 2017. As
part of the review of its financing alternatives, the Partnership
is in active discussions with its lenders on an extension to its
revolving credit facility.
FORWARD-LOOKING STATEMENTSThis
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,” or "will" or
other similar words. 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 Mid-Con Energy's
filings with the Securities and Exchange Commission (“SEC”)
available at www.midconenergypartners.com or www.sec.gov. 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, 2016, and in other documents and reports we
file from time to time with the SEC.
INVESTOR RELATIONS
CONTACTIR@midcon-energy.com (918) 743-7575
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