Mid-Con Energy Partners, LP Completes Strategic Recapitalization, Changes in Governance, Redetermination of Its Borrowing Base, and Selection of New Operator

TULSA, June 05, 2020 (GLOBE NEWSWIRE) -- Mid-Con Energy Partners, LP (NASDAQ: MCEP) (“Mid-Con” or the “Partnership”) has entered into a strategic recapitalization transaction with its preferred equity holders, providing for the conversion of all Series A and B Preferred Units into common units at an average conversion price of $3.12/unit.

In connection with the recapitalization, ownership of the Partnership’s general partner, Mid-Con GP, LLC (the “General Partner”), has been transferred to the Partnership, resulting in strengthened corporate governance, and a new Board of Directors has been elected by written consent of the holders of a majority of the common unitholders.

The Partnership also announced today the close of the spring redetermination of the borrowing base under its senior secured revolving credit facility (the “Credit Facility”) and an amendment of the Credit Facility. The borrowing base is now set at $64 million.

The Partnership also announced that Contango Resources, Inc. (“Contango Resources”), a subsidiary of Contango Oil & Gas Company (“Contango”) will be the new operator of the Partnership’s properties, replacing Mid-Con Energy Operating, LLC. The move is expected to generate pro-forma annual cash savings of approximately $6.5 million compared to 2019.

Mid-Con Energy Parties Enters into Transformational Capital Restructuring
Mid-Con an upstream production company focused on conventional assets in Oklahoma and Wyoming, today announced that it has completed a strategic recapitalization transaction, resulting in significant changes to its capital structure and governance to strengthen its balance sheet, create alignment across all unit holders, reduce costs and streamline operations, thereby creating immediate and sustainable value for all unit holders. The holders of all of the Partnership’s Class A and B preferred units (collectively, the “Preferred Units”), led by Goff Capital, Inc., (“Goff Capital”) have agreed to convert their Preferred Units to common units at an average conversion price of $3.12/unit. In addition, the equity holders of the General Partner have agreed to contribute the ownership of the General Partner to the Partnership in exchange for common units. In connection with these transactions, the limited partnership agreement of the Partnership has been amended, the directors of the General Partner have resigned, and a new Board of Directors has been elected by written consent of affiliates of Goff Capital that now hold a majority of the outstanding common units. Following these transactions, the Partnership will have 14,311,522 common units outstanding.