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October 2015 Investor Presentation – Midcon Energy

Midcon Energy · Oct 1, 2015 · 46 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. October 2015 Investor Presentation – Midcon Energy – slide 1
    Mid-Con Energy Partners, LP Investor Presentation Financial information as of October 1, 2015 NASDAQ: MCEP www.midconenergypartners.com 1
  2. October 2015 Investor Presentation – Midcon Energy – slide 2
    Investment Highlights The The Right Right Strategy Team The The Right Right Assets Structure NASDAQ: MCEP www.midconenergypartners.com 3
  3. October 2015 Investor Presentation – Midcon Energy – slide 3
    The Right Strategy NASDAQ: MCEP www.midconenergypartners.com 4
  4. October 2015 Investor Presentation – Midcon Energy – slide 4
    Mid-Con Energy Partners, LP The Waterflood Guys Reserves and Production Core strength in enhanced oil recovery, focusing on waterflooding Reserves(1): 23.2 MMboe Employees have prior experience in over 150 waterflood Proved…
  5. October 2015 Investor Presentation – Midcon Energy – slide 5
    Operating Strategy Increase production and recovery from existing reserve portfolio (95% Oil) Exploit Potential Of Existing Average daily production in 2Q15 increased 1% from 1Q15 Property Base 35.4% CAGR in production since IPO…
  6. October 2015 Investor Presentation – Midcon Energy – slide 6
    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…
  7. October 2015 Investor Presentation – Midcon Energy – slide 7
    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…
  8. October 2015 Investor Presentation – Midcon Energy – slide 8
    The Right Team NASDAQ: MCEP www.midconenergypartners.com 9
  9. October 2015 Investor Presentation – Midcon Energy – slide 9
    The Waterflood Guys EXPERTISE: We are the waterflood guys. We focus on maximizing economically recoverable oil. In other words, we are Looking for oil in an oilfield. EXPERIENCE: Our management team and employees have…
  10. October 2015 Investor Presentation – Midcon Energy – slide 10
    The Right Assets NASDAQ: MCEP www.midconenergypartners.com 11
  11. October 2015 Investor Presentation – Midcon Energy – slide 11
    Asset Overview(1) Northeastern Oklahoma % of Total Reserves 37% Hugoton % of Total Daily Production 29% % of Total Reserves 17% % of Total Daily Production 17% Southern Oklahoma Total Mid-Con Energy Partners, LP % of Total…
  12. October 2015 Investor Presentation – Midcon Energy – slide 12
    Proved Reserves by Core Area 2011-2014 Northeastern Oklahoma Southern Oklahoma Hugoton Permian Gulf Coast / Other 25,000 23,230 3% 20,000 32% 26% CAGR 13,934 15,000 17% Mboe 13,146 10,049 17% 10,000 5,000…
  13. October 2015 Investor Presentation – Midcon Energy – slide 13
    Organic Success in NE OK Cleveland Unit Extracting New Production from an Old Field OIL (Daily) GAS (Daily) 800 Early waterflood response observed 700 Initiated 21 well drilling program 600 Average Daily Production (Gross)…
  14. October 2015 Investor Presentation – Midcon Energy – slide 14
    NE OK Oilton Field: Red Fork Sand Waterflood 250 Oilton Field - M. Farris Lease BOPD MCFD Red Fork Sand Waterflood on Farris Lease Red Fork Recompletions 200 Solution Gas Drive w/ nearby waterflood analogies Primary Production Six…
  15. October 2015 Investor Presentation – Midcon Energy – slide 15
    Evaluating Strawn Potential: Permian White Flats AH McElmurray 4 Cambrian recompletion Jessie Little A 3 New drill, Strawn completion Jessie Little 4 Cambrian producer Jessie Little A 1 recompleted in the Strawn sand in…
  16. October 2015 Investor Presentation – Midcon Energy – slide 16
    2Q15 Adjusted EBITDA per Boe MCEPs Wide Cash Margins Compare Favorably to Peers Adjusted EBITDA/Boe Adjusted EBITDA/Boe excluding the effects of hedging % Oil Peer Average = 22.56/Boe Peer Average = 6.50/Boe 40 MCEP vs. Peers 1.36x…
  17. October 2015 Investor Presentation – Midcon Energy – slide 17
    Merit of EOR Assets Well Recognized Among MLP Peers Upstream MLP EOR Transactions Over Last 24 Months 1 LINE Sep-14 680 2 LRE Sep-14 38 3 ARP May-14 420 4 MEMP May-14 935 5 LGCY Mar-14 112 6 LINE Dec-13 2,316 4 MEMP - Lost…
  18. October 2015 Investor Presentation – Midcon Energy – slide 18
    Operating cash flows, unhedged, positive above 30/Boe Cash Surplus, inclusive of CAPEX & distribution, above 50/Boe Cash expenses (/Boe) CAPEX (/Boe) Distribution (/Boe) Cash surplus/(short-fall) (/Boe) 80 70 2Q15 30.31 60 Results…
  19. October 2015 Investor Presentation – Midcon Energy – slide 19
    MCEP units Simplified Net Asset Value (NAV) Assets 30 30.00 Proven reserves (MMboe) 23.2 MCEP unit price of 2.15 at Sep 30, 2015 Units outstanding (MM) 30.1 discounts long-term average WTI price of 49.12 NAV per MCEP unit…
  20. October 2015 Investor Presentation – Midcon Energy – slide 20
    The Right Structure NASDAQ: MCEP www.midconenergypartners.com 21
  21. October 2015 Investor Presentation – Midcon Energy – slide 21
    Partnership Structure and Public Ownership: Targeting EOR Properties at All Stages of Development High MCEP(1) Mid-Con Energy III, LLC Private Affiliate Sponsored by Yorktown Energy Partners since 2004 Officers & Directors…
  22. October 2015 Investor Presentation – Midcon Energy – slide 22
    2015 Capital Budget Summary by Core Area By Core Area By Fiscal Quarter ( in thousands) ( in thousands) 5,000 S OK HUG 5% 3% GC/ 4,000 OTHER 6% 3,000 PERMIAN 12,853 47% Total 2,000 NE OK CapEx 40% 1,000 -…
  23. October 2015 Investor Presentation – Midcon Energy – slide 23
    Consistent Maintenance Capital Methodology Since Inception: 2015 Results = Reduced CapEx Delivers Modest Production Growth Maintenance Capex/Boe 70 67.22 68.03 0% 64.17 Adjusted EBITDA (/Boe and Maintenance CapEx %) 64.56 64.38 6%…
  24. October 2015 Investor Presentation – Midcon Energy – slide 24
    Leverage & Liquidity(1) Borrowing 3Q13: 4Q13: 2Q14: 3Q14: 4Q14: 2Q15: Base 130MM 150MM 170MM 190MM 240MM 220MM 4.0x Debt to EBITDA Covenant (RHS) 4.00x 240 35 37 3.50x 20 200 3.15 3.00x 22 Debt / EBITDA 160 31 2.77…
  25. October 2015 Investor Presentation – Midcon Energy – slide 25
    Hedge Profile 3,500 Hedge Volumes (LHS) WTI Futures (RHS) Price (/Bbl) 100 3,000 90 Production Hedged (Bbl/d) Average Prices (/Bbl) 2,500 80 2,000 70 1,500 60 1,000 500 50 - 40 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Oil…
  26. October 2015 Investor Presentation – Midcon Energy – slide 26
    2015 Guidance and Capital Budget(1) 2015 & 2016 Distribution Coverage Sensitivity 2015 Guidance and Capital Budget 2015 (2) Net production (Boe/d) 4,300 - 4,600 Lease operating expenses per Boe 20.00 - 24.00 Production taxes (% of…
  27. October 2015 Investor Presentation – Midcon Energy – slide 27
    Strategic Objectives for 2015 SecuringTHE SECURING the FUTURE future Reduced distribution to support balance sheet Restructured hedges to secure revenues and borrowing base LIVING LivingWITHIN within CASH cash FLOW flow…
  28. October 2015 Investor Presentation – Midcon Energy – slide 28
    Investment Highlights The The Right Right Strategy Team The The Right Right Assets Structure NASDAQ: MCEP www.midconenergypartners.com 30
  29. October 2015 Investor Presentation – Midcon Energy – slide 29
    Contact Information Headquarters Investor Relations 2501 N. Harwood Krista McKinney Suite 2410 Manager of Investor Relations Dallas, TX 75201 kmckinneymidcon-energy.com 972.479.5980 972.479.5980 NASDAQ: MCEP…
  30. October 2015 Investor Presentation – Midcon Energy – slide 30
    Appendix NASDAQ: MCEP www.midconenergypartners.com 32
  31. October 2015 Investor Presentation – Midcon Energy – slide 31
    Appendix: Second Quarter 2015 Results Production 2Q15 average net production of 4,615 Boe/d increased approximately 1% over 1Q15 Growth LOE 2Q15 LOE of 18.14/Boe decreased approximately 16% from 1Q15 Adjusted EBITDA(1) 2Q15…
  32. October 2015 Investor Presentation – Midcon Energy – slide 32
    Appendix: Financial and Operating Results Three Months Ended Variance Analysis June 30, March 31, June 30, Quarter-over-quarter Year-over-year (unaudited, in thousands, except per unit data) 2015 2015 2014 % % Oil (MBbl) 397 391 245 6…
  33. October 2015 Investor Presentation – Midcon Energy – slide 33
    Appendix: Non-GAAP Summary(1) Three Months Ended Variance Analysis June 30, March 31, June 30, Quarter-over-quarter Year-over-year 2015 2015 2014 % % Net income (loss) (7,944) (4,112) 3,847 (3,832) 93.2% (11,791) na Interest…
  34. October 2015 Investor Presentation – Midcon Energy – slide 34
    Appendix: Operating Results per Boe Three Months Ended Variance Analysis June 30, March 31, June 30, Quarter-over-quarter Year-over-year Operating Results per Boe (/Boe) 2015 2015 2014 % % Oil & natural gas sales revenues 51.45 42.65…
  35. October 2015 Investor Presentation – Midcon Energy – slide 35
    Appendix: 2014 Acquisitions: Adding Quality Properties Oilton Drop-Down August 5, 2014: Acquired a 97% working interest in the Oilton Field for 56.5 million, Hugoton Drop-Down adding 2.6 MMboe of net proved reserves (88% February 28,…
  36. October 2015 Investor Presentation – Midcon Energy – slide 36
    Appendix: Eastern Shelf Acquisition EOR Prospects Offer Organic Development Potential In November 2014, MCEP acquired 6.1MMBoe of proved reserves in the Eastern Shelf of the Permian for 117.6 million. Key Attributes High…
  37. October 2015 Investor Presentation – Midcon Energy – slide 37
    Appendix: Permian OBrien Asset Overview Strawn Unit Stonewall Corsica Unit 26% of Total MCEP Reserves(1) Kent Haskell Sagerton NE 29% of Total MCEP Daily Production(2) Tomkins Field Eleven Counties in Texas: Coke Fisher Jones…
  38. October 2015 Investor Presentation – Midcon Energy – slide 38
    Appendix: Northeastern Oklahoma Asset Overview KS 37% of Total MCEP Reserves(1) OK 29% of Total MCEP Production(2) Osage, Pawnee, Creek and Osage Seminole Counties, OK Skiatook Five Properties: Cleveland Cushing Cleveland…
  39. October 2015 Investor Presentation – Midcon Energy – slide 39
    Appendix: Southern Oklahoma Asset Overview 17% of Total MCEP Reserves(1) 23% of Total MCEP Daily Production(2) Carter and Love Counties, OK Six Properties: Ardmore West Eastman Hills Highlands Battle Springs Southeast Hewitt…
  40. October 2015 Investor Presentation – Midcon Energy – slide 40
    Appendix: Hugoton Asset Overview Harker Ranch Cheyenne 17% of Total MCEP Reserves(1) 17% of Total MCEP Daily Production(2) Cheyenne County, CO Potter County, TX Cimarron and Texas Counties, OK Eight Properties: CO KS Harker…
  41. October 2015 Investor Presentation – Midcon Energy – slide 41
    Appendix: Gulf Coast TX Asset Overview 3% of Total MCEP Reserves(1) 2% of Total MCEP Production(2) One Property: Liberty South Liberty Liberty South (1) Reserve data based on December 31, 2014 reserve report audited by…
  42. October 2015 Investor Presentation – Midcon Energy – slide 42
    Appendix: NE OK Cleveland Unit 2014 Waterflood Development Cleveland C Sand Net Isopach New waterflood development in the north half of the unit NASDAQ: MCEP www.midconenergypartners.com 44
  43. October 2015 Investor Presentation – Midcon Energy – slide 43
    Appendix: Increasing Injection = Increasing Production *Injection and production volumes are presented on a gross basis. NASDAQ: MCEP www.midconenergypartners.com 45
  44. October 2015 Investor Presentation – Midcon Energy – slide 44
    Appendix: Increasing Injection = Increasing Production *Injection and production volumes are presented on a gross basis. NASDAQ: MCEP www.midconenergypartners.com 46
  45. October 2015 Investor Presentation – Midcon Energy – slide 45
    Appendix: Increasing Injection = Increasing Production NASDAQ: MCEP www.midconenergypartners.com 47
  46. October 2015 Investor Presentation – Midcon Energy – slide 46
    Appendix: Mid-Con Energy Timeline 1986 The 2004 Mid-Con Energy 2011 Merged Mid- genesis of Mid- I, LLC formed with Con Energy I/II into Con Energys Mid-Con Energy November properties contributed August 5 original Partners, LP MCEP by…

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