Mid-Con Energy Partners LP (NASDAQ:MCEP) is an oil and gas limited partnership which acquires and develops properties. The company is focused on assets located in the mid-continent region of the United States. The company's primary experience is in acquiring developed wells and enhancing them using a technique known as waterflooding. Mid-Con makes money by selling the natural gas and oil extracted using this and other techniques. In addition, the company hedges large portions of its production with financial derivatives. [1]

Business Overview

For the 9 months ended in September 2010, the company reported Pro forma earnings. For the period, the total revenue was $35M and a net income of $20M. For the same period in 2009, the revenue was $17M and net income $4M. [2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on December 14, 2011. The company offered 5.4M shares each for $18. This was below the $19-$21 price range. The deal raised a total of $97M. The lead mangers of the deal were Royal Bank Of Canada (RY), Raymond James, and Wells Fargo.[3]

Trends & Forces

Focus on Developed Wells

Because Mid-Con focuses on using its waterfall technique on developed wells, the company's assets are generally near the end of their producing lives. As a result, the company needs to consistently acquire new properties in order to replace its assets. This replacement is particularly necessary in Mid-Con's case as opposed to other oil and gas companies since its developed wells often have already had the majority of their reserves extracted. [4]

  1. MCEP S-1/A 2011 PROSPECTUS SUMMARY "Overview" pp. 1-2
  2. MCEP S-1/A 2011 PROSPECTUS SUMMARY "Summary Historical and Pro Forma Financial Data" pp. 15-16
  3. Renaissance Capital - IPO Home "Mid-Con Energy prices IPO at $18, below the range" 14 Dec 2011
  4. MCEP S-1/A 2011 PROSPECTUS SUMMARY "Risk Factors" pp. 5-7
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