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Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy

Midcon Energy · Dec 4, 2012 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 1
    Mid-Con Energy Partners, LP Wells Fargo Securities Pipeline, MLP and Energy Symposium December 4, 2012 NASDAQ: Financial MCEP information www.midconenergypartners.com as of November 28, 2012 1
  2. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 2
    Mid-Con Energy Partners, LP Founded on Secondary Oil Recovery Techniques Private entity established in 2004, with principal investment from Yorktown Energy Partners (Yorktown), focused on waterflood development in the mid-continent…
  3. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 3
    Asset Overview Mid-Con Energy Partners, LP 10.0 MMBoe Total Proved 1,844 net Boe/d in June 2012 Harker Ranch 69% Proved Developed R/P Ratio of 15 Years 99% Oil / 99% Operated 22,216 gross (14,289 net) acres CO Hugoton Basin KS…
  4. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 4
    Oil Recovery Overview Original Oil in Place OOIP Primary Production 10 to 25% Initial production from the reservoir typically recovered as a result of expansion of reservoir fluids which are naturally pressured within the producing…
  5. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 5
    Waterflooding Overview Waterflooding increases production and recovery of oil in place by displacing oil from injection wells to producing wells Historically, the success of waterfloods has been attributable to the quality of the…
  6. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 6
    Waterflood Strategy: Successful Response and Growth Reservoir Fill-Up Start Production Water Response Injection BOPD Primary Secondary Production Production Time Elapsed Waterflood Life NASDAQ: MCEP…
  7. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 7
    Establishing A Track Record Key Goals at IPO Mid-Con Energys Track Record Average 3Q 2012 quarterly net production of 1,913 Boe Grow Through per day increased 48% over 3Q 2011 Waterflood Strategy Completed multiple, strategic bolt-on…
  8. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 8
    Operating Strategy Exploit Potential of Increase production and recovery from existing reserve portfolio (99% Oil) Existing Property Base Average daily production in 3Q 2012 increased over 48% YoY Our affiliate, Mid-Con Energy…
  9. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 9
    Organic Growth Profile Production Growth of Existing Asset Base 2,000 1,913 Average Daily Production (Boe/d) 1,600 1,200 800 819 400 - NASDAQ: MCEP www.midconenergypartners.com 10
  10. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 10
    Acquisition Strategy Four Sources of Potential Acquisitions Yorktown Mid-Con Mid-Con Mid-Con GP & Partners & Energy III Energy IV Management (Private Affiliate) (Private Affiliate) Affiliates Waterflood Broader geography,…
  11. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 11
    Recent Acquisitions: War Party I and II Acquisition Overview Closed in October 2012 for 3.7 million, subject to post-closing adjustments Acquired additional working interests in existing Mid-Con Energy operated War Party I and II…
  12. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 12
    Recent Acquisitions: Clawson Ranch Acquisition Overview Closed in November 2012 for 28.9 million, subject to post-closing adjustments Previously announced acquisition of 71% of the working interests for 20.7 million in October, and…
  13. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 13
    Equity Offering On October 22, 2012 Mid-Con Energy completed its public offering of 4,600,000 units representing limited partner interests at a price to the public of 21.20 per unit Mid-Con Energy sold 1,000,000 primary units and…
  14. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 14
    Distribution Growth Mid-Con Energys Board of Directors of its general partner increased the 3Q 2012 distribution by 0.01 to 0.485 per unit, or 1.94 per unit on an annualized basis Management is targeting annual distribution growth of…
  15. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 15
    Borrowing Base and Liquidity Borrowing base increased 30% to 130.0 Revolving Credit Facility million in November 2012 ( in millions) Pro forma liquidity at September 30, 140.0 2012 of 71.1 million 1.1 million in cash and cash…
  16. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 16
    Current Hedge Profile Mid-Con Energy intends to hedge a significant portion of its production to minimize the impact of commodity price volatility on cash available for distribution Current Volumes Hedged & Average Floor Price 1,600…
  17. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 17
    Hedging Detail Months Settlement Instrument Total Bbls. NYMEX Outstanding Price Floor Ceiling Type Per Month Index Oct-Dec 2012 100.00 117.00 Collar 6,000 WTI Oct-Dec 2012 104.28 Swap 6,000 WTI Oct-Dec 2012 100.00 Swap 8,000 WTI…
  18. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 18
    Proved Reserve Comparison Oil as Percentage of Total Proved Reserves (Boe)(1)(2) 100.0% 99% 80.0% 61% 60% 60.0% 56% 46% Average : 43% 40.0% 35% 34% 25% 20.0% 8% 4% 0.0% MCEP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5…
  19. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 19
    Peer Margin / Boe Comparison 3Q 2012 Cash Margin / Boe(1)(2) 75.00 67.22 60.00 45.00 Average : 34.16 30.00 15.00 0.00 MCEP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 (1) Cash margin sourced…
  20. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 20
    Current Yield 12.0% 11.4% 10.7% 10.0% 10.1% 10.2% 9.6% 9.3% 9.4% 8.6% Average Yield: 9.2% 8.0% 7.3% 6.0% 5.1% 4.0% 2.0% 10-Year Treasury: 1.6% 0.0% EVEP LINE VNR PSE LGCY MCEP BBEP LRE QRE MEMP *All unit prices…
  21. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 21
    Investment Highlights The Right Assets Long life, low decline Relatively low risk waterflood projects Significant up-front capex already spent Growth from existing asset base 99% oil high margin cash flow, positive long-term oil…
  22. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 22
    Contact Information Headquarters: Tulsa Operations: 2501 N. Harwood Street, Suite 2410 2431 E. 61st Street, Suite 850 Dallas, TX 75201 Tulsa, OK 74136 (972) 479-5980 (918) 743-7575 Contact: Jeffrey Olmstead President and Chief Financial…
  23. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 23
    Questions & Answers NASDAQ: MCEP www.midconenergypartners.com 24
  24. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 24
    Appendix NASDAQ: MCEP www.midconenergypartners.com 25
  25. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 25
    Core Area: Southern Oklahoma Property Highlights Ardmore West Long-lived assets that are in the early stages of waterflooding Production is expected to increase during the next few years based on SE Hewitt continued waterflood…
  26. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 26
    Core Area: Northeastern Oklahoma Property Highlights Includes three fields / projects Cleveland (Pawnee Co., OK) Cushing (Creek Co., OK) Skiatook (Osage Co., OK) Cleveland / Cushing are mature, shallow, multi-pay zone fields…
  27. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 27
    Core Area: Hugoton Basin Property Highlights Includes four units Cheyenne Harker Ranch (Cheyenne Co., CO) War Party I (Texas Co., OK) War Party II (Texas Co., OK) Clawson Ranch (Texas Co., OK) War Party I & II were acquired in…
  28. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 28
    Mid-Con Energy Highlights Increased Increased Production 48% YoY Adjusted EBITDA 79% YoY 3Q 2012 average production of 1,913 3Q 2012 Adjusted EBITDA of 11.8 Boe per day, up from 3Q 2011 average million, compared to 6.6 million in 3Q…
  29. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 29
    Earnings Summary Three Months Ended September 30, June 30, 2012 2011 2012 ( in thousands, except per unit data) Production: Oil (MBbl) 171 111 154 Natural gas (MMcf) 31 47 28 Total (MBoe) (1) 176 119 159 Average net daily…
  30. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 30
    Coverage Ratio Calculation Three Months Ended September 30, 2012 ( in thousands, except per unit data) Adjusted EBITDA (1) 11,830 Less: Cash interest expense 340 Estimated maintenance capital expenditures 762 Distributable…
  31. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 31
    Capital Expenditures 3Q 2012 capital expenditures of 9.5 million ( in millions) 3Q 2012 (Actual) 4Q 2012 (Estimated) Capital Expenditures Capital Expenditures Growth Maint. Total Growth Maint. Total Hugoton Basin 1.6 0.2 1.8 - 0.1…
  32. Wells Fargo Securities Pipeline MLP Energy Symposium – Midcon Energy – slide 32
    Non-GAAP Measures This presentation includes Adjusted EBITDA and Distributable Cash Flow, each of which are non- generally accepted accounting principles (Non-GAAP) measures, and should not be considered an alternative to net income,…

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