Mid-Con Energy Partners, LP (NASDAQ: MCEP) (“Mid-Con Energy” or the
“Partnership”) announced today its operating and financial results
for the first quarter 2019.
“We continue to transform Mid-Con Energy through
acquisitions and divestitures that are focused on improving our
financial flexibility and utilizing our operational expertise to
maximize the value of our assets,” said President and Chief
Executive Officer Jeff Olmstead. “On March 28, 2019, we closed on
the previously-announced Strategic Transaction. This transaction
consisted of two agreements, the disposition of substantially all
of our Texas assets and the acquisition of producing assets in
Caddo, Grady, and Osage Counties, Oklahoma. The net effect of the
transaction was to significantly reduce outstanding debt and to add
long-lived, low-decline assets with the potential for margin
enhancements through operational efficiency to our portfolio. Going
forward, we believe Unit Holders and the Partnership will benefit
from an improved capital structure, lower decline-rate portfolio
with development opportunities, and flexibility to prioritize cash
flow towards development projects, additional accretive
acquisitions or to continue to pay down debt.”
Olmstead continued, “We are excited with the
upside potential within our assets and we will continue to
demonstrate capital discipline, while executing operationally. As
we look to the future, we expect to continue evaluating potential
acquisitions of waterflood assets as well as complementary
long-lived, low-decline producing properties where we believe the
opportunity exists to enhance margins through our competitive
operational strengths.”
Recent Highlights
- Closed the divestiture of substantially all of the
Partnership’s Texas assets for $60.0 million in proceeds on March
28, 2019, subject to customary purchase price adjustments;
- Closed the acquisition of producing properties in Caddo, Grady,
and Osage Counties in Oklahoma for $27.5 million on March 28, 2019,
subject to customary purchase price adjustments;
- Averaged first quarter 2019 production of 3,467 barrels of oil
equivalent per day (Boe/d);
- Reported net loss of $3.8 million for the first quarter
2019;
- Reduced senior debt balance from $93.0 million at December 31,
2018, to $68.0 million as of March 31, 2019;
- Amended credit agreement on March 28, 2019, resulting in new
borrowing base of $110.0 million which provides $42.3 million in
liquidity, net of letters of credit as of April 26, 2019;
- Reported total leverage ratio as defined by credit agreement of
3.35x as of March 31, 2019;
- Generated first quarter 2019 adjusted EBITDA of $4.5
million(1).(1) Adjusted EBITDA is a Non-GAAP financial measure and
is described and reconciled to the most directly comparable GAAP
measure in the attached table under “Non-GAAP Financial
Measures.”
FIRST QUARTER 2019 RESULTS
Production - Production for the first quarter of
2019 was 312 MBoe, or 3,467 Boe/d with a 94% oil weighting. On a
daily basis, this represented a 5% decrease sequentially and a 24%
increase year-over-year. Production in the first quarter of 2019
was adversely impacted by winter weather in Wyoming and Texas as
well as by shut-ins in Wyoming due to realized pricing.
Year-over-year production increase was primarily due to the
acquisition of Oklahoma and Wyoming properties during 2018,
partially offset by the natural declines in the Texas properties.
The Partnership drilled 2 new producing wells in Oklahoma and
completed 2 wells in Texas during the first quarter 2019. We also
returned 9 wells to production in Oklahoma and 2 in Wyoming during
the same period.
Revenue and Price Realizations - Oil and natural
gas sales were $14.8 million in the first quarter of 2019, or
$47.58/Boe. On a per Boe basis, this represented a 2% decrease
sequentially and was primarily due to lower production. Cash
settlements received for matured derivatives, inclusive of net
premiums, were $0.1 million in the first quarter of 2019, or
$0.46/Boe. Cash settlements paid for matured derivatives, inclusive
of net premiums, were $3.39/Boe in the fourth quarter of 2018. Cash
settlements received from matured derivatives, inclusive of net
premiums were $5.25/Boe in the first quarter of 2018. The resulting
realized prices, after incorporating cash settlements from matured
derivatives, inclusive of net premiums, were $48.03/Boe in the
first quarter of 2019, $44.93/Boe in the fourth quarter of 2018,
and $53.13/Boe in the first quarter of 2018.
Lease Operating Expenses (“LOE”) - LOE was $6.8
million in the first quarter of 2019, representing a 3% increase
from the fourth quarter of 2018 and an increase of 42% from the
first quarter of 2018. On a per Boe basis, LOE in the first quarter
of 2019 was $21.89/Boe an increase of 11% sequentially and an
increase of 19% year-over-year. The sequential increase in
aggregate LOE, and on a per BOE basis, is primarily due to lower
production and higher costs associated with winter weather. The
year-over-year variance on aggregate LOE, and on a per Boe basis,
was primarily due to the acquisition of the Oklahoma and Wyoming
properties during 2018.
Production and Ad Valorem Taxes - Production and
ad valorem taxes in the first quarter of 2019 were $1.3 million, or
$4.11/Boe, reflecting an effective tax rate of 8.6%. Production and
ad valorem taxes in the fourth quarter of 2018 were $1.7 million,
or $4.99/Boe, for an effective tax rate of 10.3%. Production and ad
valorem taxes in the first quarter of 2018 were $1.0 million, or
$4.10/Boe, reflecting an effective tax rate of 5.9%. The sequential
decrease in effective tax rate was primarily due to ad valorem tax
adjustments related to acquisitions that impacted fourth quarter
2018.
General and Administrative Expenses (“G&A”)
- G&A in the first quarter of 2019 was $2.7 million, or
$8.53/Boe. This compares to fourth quarter 2018 G&A of $1.6
million, or $4.64/Boe. G&A in the first quarter of 2018 was
$1.9 million, or $7.52/Boe. The increase both sequentially and
year-over-year was primarily due to professional and other fees
related to acquisition and divestiture activities.
Net Income (Loss) - For the first quarter of
2019, Mid-Con Energy reported net loss of $3.8 million. Net loss
per limited partner unit was $0.16 (basic and diluted) based on the
weighted average limited partner units outstanding during the
period of 30.6 million (basic and diluted). Net income for the
fourth quarter of 2018 was $2.4 million, or $0.04 (basic) and $0.02
(diluted) per limited partner unit, based on a weighted average of
30.4 million (basic) and 52.6 million (diluted). Net loss for the
first quarter of 2018 was $10.4 million, or $0.37 per limited
partner unit (basic and diluted), based on a weighted average of
30.2 million limited partner units outstanding during the
period.
Adjusted EBITDA - Adjusted EBITDA, a non-GAAP
measure, for the first quarter of 2019 was $4.5 million, or
$14.42/Boe, compared to $15.12/Boe in the fourth quarter of 2018
and $23.81/Boe in the first quarter of 2018. The sequential
decrease in Adjusted EBITDA, in aggregate and per Boe, was
primarily due to lower production and increased professional and
other fees related to acquisition and divestiture
activities.
BALANCE SHEET, LIQUIDITY AND BORROWING
BASE SUMMARY
On March 28, 2019, in conjunction with the
closing of the sale of the Partnership’s Texas assets and
concurrent acquisition of producing properties in Caddo, Grady, and
Osage Counties in Oklahoma, the Partnership’s borrowing base was
updated to $110.0 million. As of March 31, 2019, the Partnership
had $68.0 million of borrowings outstanding on its revolving credit
facility. The next borrowing base redetermination will be before or
during the fall of 2019.
On April 26, 2019, total liquidity was $42.3
million, which consisted of $1.3 million of cash and $41.0 million
of available borrowings under its revolving credit facility.
STRATEGIC TRANSACTION
On March 28, 2019, the Partnership announced the
closing of the previously announced Strategic Transaction, which
included the divestiture of substantially all of Mid-Con Energy’s
Texas assets for $60.0 million in proceeds and the simultaneous
acquisition of producing properties in Caddo, Grady, and Osage
Counties in Oklahoma for $27.5 million. Each individual transaction
is subject to customary purchase price adjustments. Further, in
conjunction with the closing of the transaction, the Partnership
and its lenders executed Amendment No. 13 to the Credit Agreement
and set the borrowing base at $110.0 million.
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 March 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 |
|
DifferentialFixed Price |
|
|
WeightedAverageFixed Price |
|
|
WeightedAverageFloor Price |
|
|
WeightedAverageCeiling Price |
|
|
Total
BblsHedged/day |
|
|
Index |
Swaps - 2019 |
|
$ |
— |
|
|
$ |
56.10 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
1,727 |
|
|
NYMEX-WTI |
Swaps - 2019 |
|
$ |
(20.15 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
150 |
|
|
WCS-CRUDE-OIL |
Swaps - 2020 |
|
$ |
— |
|
|
$ |
55.81 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
1,931 |
|
|
NYMEX-WTI |
Swaps - 2021 |
|
$ |
— |
|
|
$ |
55.78 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
672 |
|
|
NYMEX-WTI |
Collars - 2021 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
52.00 |
|
|
$ |
58.80 |
|
|
|
672 |
|
|
NYMEX-WTI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED UNIT DISTRIBUTION
The Partnership announces that the Board of
Directors of its general partner declared a cash distribution for:
(1) its Class A Convertible Preferred Units for the first quarter
of 2019, a cash distribution of $0.0430 per Preferred Unit and (2)
its Class B Convertible Preferred Units for the first quarter of
2019, a cash distribution of $0.0306 per Preferred Unit, according
to terms outlined in the Partnership Agreement. Such cash
distributions will be paid on or before May 15, 2019, to holders of
record as of the close of business on May 7, 2019.
FISCAL YEAR 2019 GUIDANCE
The following outlook is subject to all the
cautionary statements and limitations described under the
“Forward-Looking Statements” caption at the end of this press
release. These estimates and assumptions reflect management’s best
judgment based on current and anticipated market conditions and
other factors. Although we believe such estimates and assumptions
to be reasonable, they are inherently uncertain and involve a
number of risks and uncertainties that are beyond our control.
|
|
|
Guidance as of May 1, 2019 |
|
FY 2019 |
Net
production (Boe/d)(1) |
|
3,400 -
3,800 |
Lease
operating expenses per Boe |
|
$21.00
- $24.00 |
Production and ad valorem taxes (% of total revenue) |
|
8.00% -
9.50% |
Estimated capital expenditures |
|
9.0
MM |
(1) Production volumes in Boe equivalents calculated at a rate
of six Mcf per Bbl. |
|
FIRST QUARTER 2019 CONFERENCE
CALL
As announced on April 30, 2019, Mid-Con Energy’s
management will host a conference call on Thursday, May 2, 2019, at
9:00 a.m. ET. Interested parties are invited to participate via
telephone by dialing 1-877-847-5946 (Conference ID: 2352589) at
least five minutes prior to the scheduled start time of the call,
or via webcast by clicking on "Events & Presentations” in the
investor relations section of the Mid-Con Energy website at
www.midconenergypartners.com. A replay of the conference call will
be available through Thursday, May 9, 2019, by dialing
1-855-859-2056 (Conference ID: 2352589). Additionally, a webcast
archive will be available at www.midconenergypartners.com.
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. 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, 2018, and in other documents and reports we
file from time to time with the SEC.
|
|
Mid-Con Energy Partners, LP and
subsidiaries |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except number of units) |
|
(Unaudited) |
|
|
|
|
|
|
|
March 31,
2019 |
|
|
December 31,
2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
185 |
|
|
$ |
467 |
|
Accounts
receivable |
|
|
|
|
|
|
|
|
Oil and
natural gas sales |
|
|
5,035 |
|
|
|
3,691 |
|
Other |
|
|
179 |
|
|
|
503 |
|
Derivative financial instruments |
|
|
— |
|
|
|
5,666 |
|
Prepaid
expenses and other |
|
|
487 |
|
|
|
118 |
|
Assets
held for sale, net |
|
|
430 |
|
|
|
430 |
|
Total
current assets |
|
|
6,316 |
|
|
|
10,875 |
|
Property and
equipment |
|
|
|
|
|
|
|
|
Oil and
natural gas properties, successful efforts method |
|
|
|
|
|
|
|
|
Proved
properties |
|
|
276,389 |
|
|
|
379,441 |
|
Unproved
properties |
|
|
3,371 |
|
|
|
2,928 |
|
Other
property and equipment |
|
|
1,551 |
|
|
|
427 |
|
Accumulated depletion, depreciation, amortization and
impairment |
|
|
(90,710 |
) |
|
|
(175,948 |
) |
Total
property and equipment, net |
|
|
190,601 |
|
|
|
206,848 |
|
Derivative financial
instruments |
|
|
— |
|
|
|
2,418 |
|
Other assets |
|
|
1,385 |
|
|
|
1,563 |
|
Total
assets |
|
$ |
198,302 |
|
|
$ |
221,704 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE PREFERRED UNITS AND EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
|
|
|
|
|
|
Trade |
|
$ |
804 |
|
|
$ |
141 |
|
Related
parties |
|
|
1,176 |
|
|
|
3,732 |
|
Derivative financial instruments |
|
|
2,928 |
|
|
|
— |
|
Accrued
liabilities |
|
|
590 |
|
|
|
2,024 |
|
Other
current liabilities |
|
|
408 |
|
|
|
— |
|
Total
current liabilities |
|
|
5,906 |
|
|
|
5,897 |
|
Derivative financial
instruments |
|
|
1,329 |
|
|
|
— |
|
Long-term debt |
|
|
68,000 |
|
|
|
93,000 |
|
Other long-term
liabilities |
|
|
782 |
|
|
|
47 |
|
Asset retirement
obligations |
|
|
29,780 |
|
|
|
26,001 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Class A convertible
preferred units - 11,627,906 issued and outstanding,
respectively |
|
|
22,016 |
|
|
|
21,715 |
|
Class B convertible
preferred units - 9,803,921 issued and outstanding,
respectively |
|
|
14,683 |
|
|
|
14,635 |
|
Equity, per
accompanying statements |
|
|
|
|
|
|
|
|
General
partner |
|
|
(831 |
) |
|
|
(786 |
) |
Limited
partners - 30,785,958 and 30,436,124 units issued and outstanding,
respectively |
|
|
56,637 |
|
|
|
61,195 |
|
Total
equity |
|
|
55,806 |
|
|
|
60,409 |
|
Total
liabilities, convertible preferred units and equity |
|
$ |
198,302 |
|
|
$ |
221,704 |
|
Mid-Con Energy Partners, LP and
subsidiaries |
|
Condensed Consolidated Statements of
Operations |
|
(in thousands, except per unit data) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2019 |
|
|
2018 |
|
Revenues |
|
|
|
|
|
|
|
|
Oil
sales |
|
$ |
14,594 |
|
|
$ |
14,544 |
|
Natural
gas sales |
|
|
250 |
|
|
|
168 |
|
Other
operating revenues |
|
|
372 |
|
|
|
— |
|
Loss on
derivatives, net |
|
|
(12,198 |
) |
|
|
(3,382 |
) |
Total
revenues |
|
|
3,018 |
|
|
|
11,330 |
|
Operating costs and
expenses |
|
|
|
|
|
|
|
|
Lease
operating expenses |
|
|
6,830 |
|
|
|
4,640 |
|
Production and ad valorem taxes |
|
|
1,282 |
|
|
|
1,033 |
|
Other
operating expenses |
|
|
473 |
|
|
|
— |
|
Impairment of proved oil and natural gas properties |
|
|
— |
|
|
|
8,751 |
|
Depreciation, depletion and amortization |
|
|
3,098 |
|
|
|
3,441 |
|
Dry holes
and abandonments of unproved properties |
|
|
— |
|
|
|
88 |
|
Accretion
of discount on asset retirement obligations |
|
|
328 |
|
|
|
153 |
|
General
and administrative |
|
|
2,662 |
|
|
|
1,894 |
|
Total
operating costs and expenses |
|
|
14,673 |
|
|
|
20,000 |
|
Gain (loss) on sales of
oil and natural gas properties, net |
|
|
9,469 |
|
|
|
(400 |
) |
Loss from
operations |
|
|
(2,186 |
) |
|
|
(9,070 |
) |
Other (expense)
income |
|
|
|
|
|
|
|
|
Interest
income |
|
|
8 |
|
|
|
2 |
|
Interest
expense |
|
|
(1,615 |
) |
|
|
(1,339 |
) |
Other
income |
|
|
5 |
|
|
|
— |
|
Loss on
settlements of asset retirement obligations |
|
|
— |
|
|
|
(11 |
) |
Total
other expense |
|
|
(1,602 |
) |
|
|
(1,348 |
) |
Net loss |
|
|
(3,788 |
) |
|
|
(10,418 |
) |
Less:
Distributions to preferred unitholders |
|
|
1,149 |
|
|
|
1,016 |
|
Less:
General partner's interest in net loss |
|
|
(45 |
) |
|
|
(123 |
) |
Limited partners'
interest in net loss |
|
$ |
(4,892 |
) |
|
$ |
(11,311 |
) |
Limited partners'
interest in net loss per unit |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.16 |
) |
|
$ |
(0.37 |
) |
Weighted average
limited partner units outstanding |
|
|
|
|
|
|
|
|
Limited
partner units (basic and diluted) |
|
|
30,630 |
|
|
|
30,176 |
|
Mid-Con Energy Partners, LP and
subsidiaries |
|
Condensed Consolidated Statements of Cash
Flows |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
Three Months
EndedMarch 31, |
|
|
|
2019 |
|
|
2018 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(3,788 |
) |
|
$ |
(10,418 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
3,098 |
|
|
|
3,441 |
|
Debt
issuance costs amortization |
|
|
178 |
|
|
|
154 |
|
Accretion
of discount on asset retirement obligations |
|
|
328 |
|
|
|
153 |
|
Impairment of proved oil and natural gas properties |
|
|
— |
|
|
|
8,751 |
|
Dry holes
and abandonments of unproved properties |
|
|
— |
|
|
|
88 |
|
Loss on
settlements of asset retirement obligations |
|
|
— |
|
|
|
11 |
|
Cash paid
for settlements of asset retirement obligations |
|
|
— |
|
|
|
(27 |
) |
Mark to
market on derivatives |
|
|
|
|
|
|
|
|
Loss on
derivatives, net |
|
|
12,198 |
|
|
|
3,382 |
|
Cash
settlements received (paid) for matured derivatives |
|
|
143 |
|
|
|
(1,324 |
) |
(Gain)
loss on sales of oil and natural gas properties |
|
|
(9,469 |
) |
|
|
400 |
|
Non-cash
equity-based compensation |
|
|
334 |
|
|
|
239 |
|
Changes
in operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(1,344 |
) |
|
|
234 |
|
Other
receivables |
|
|
127 |
|
|
|
(280 |
) |
Prepaids
and other |
|
|
(369 |
) |
|
|
(331 |
) |
Accounts
payable - trade and accrued liabilities |
|
|
432 |
|
|
|
319 |
|
Accounts
payable - related parties |
|
|
(2,999 |
) |
|
|
(357 |
) |
Net cash
(used in) provided by operating activities |
|
|
(1,131 |
) |
|
|
4,435 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Acquisitions of oil and natural gas properties |
|
|
(2,796 |
) |
|
|
(8,899 |
) |
Additions
to oil and natural gas properties |
|
|
(3,057 |
) |
|
|
(1,465 |
) |
Proceeds
from sales of oil and natural gas properties |
|
|
32,502 |
|
|
|
1,151 |
|
Net cash
provided by (used in) investing activities |
|
|
26,649 |
|
|
|
(9,213 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Proceeds
from line of credit |
|
|
7,000 |
|
|
|
2,000 |
|
Payments
on line of credit |
|
|
(32,000 |
) |
|
|
(11,762 |
) |
Debt
issuance costs |
|
|
— |
|
|
|
(651 |
) |
Proceeds
from sale of Class B convertible preferred units, net of offering
costs |
|
|
— |
|
|
|
14,971 |
|
Distributions to Class A convertible preferred units |
|
|
(500 |
) |
|
|
(1,000 |
) |
Distributions to Class B convertible preferred units |
|
|
(300 |
) |
|
|
— |
|
Net cash
(used in) provided by financing activities |
|
|
(25,800 |
) |
|
|
3,558 |
|
Net
decrease in cash and cash equivalents |
|
|
(282 |
) |
|
|
(1,220 |
) |
Beginning cash and cash
equivalents |
|
|
467 |
|
|
|
1,832 |
|
Ending cash and cash
equivalents |
|
$ |
185 |
|
|
$ |
612 |
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES
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 Adjusted EBITDA 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;
- (Gain) loss on derivatives,
net;
- Cash settlements received (paid)
for matured derivatives, net;
- Cash premiums received (paid) for
derivatives, net;
- Impairment of proved oil and
natural gas properties;
- Non-cash equity-based
compensation;
- (Gain) loss on sales of oil and
natural gas properties, net; and
- Dry holes and abandonments on
unproved properties.
|
Mid-Con Energy Partners, LP and
subsidiaries |
Reconciliation of Net (Loss) Income to Adjusted
EBITDA |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Thee Month Ended |
|
|
March 31, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
Net
(loss) income |
|
$
(3,788) |
|
$
2,369 |
|
$
(10,418) |
Interest
expense, net |
|
1,607 |
|
1,641 |
|
1,337 |
Depreciation, depletion and amortization |
|
3,098 |
|
5,105 |
|
3,441 |
Accretion of discount on asset retirement obligations |
|
328 |
|
(27) |
|
153 |
Impairment of proved oil and natural gas properties |
|
— |
|
21,450 |
|
8,751 |
Dry
holes and abandonments of unproved properties |
|
— |
|
417 |
|
88 |
Loss
(gain) on derivatives, net |
|
12,198 |
|
(24,914) |
|
3,382 |
Cash
settlements received (paid) for matured derivatives |
|
143 |
|
(940) |
|
(1,324) |
Cash
premiums paid for derivatives, net |
|
— |
|
(201) |
|
— |
Non-cash
equity-based compensation |
|
334 |
|
74 |
|
239 |
(Gain)
loss on sales of oil and natural gas properties, net |
|
(9,469) |
|
120 |
|
400 |
Adjusted
EBITDA |
|
$ 4,451 |
|
$ 5,094 |
|
$ 6,049 |
|
|
|
|
|
|
|
INVESTOR RELATIONS
CONTACTIR@midcon-energy.com(918) 743-7575
Mid Con Energy Partners (NASDAQ:MCEP)
Historical Stock Chart
From Apr 2024 to May 2024
Mid Con Energy Partners (NASDAQ:MCEP)
Historical Stock Chart
From May 2023 to May 2024