Attached files
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8-K/A - FORM 8-K/A - Mid-Con Energy Partners, LP | d467407d8ka.htm |
EX-99.1 - EXHIBIT 99.1 - Mid-Con Energy Partners, LP | d467407dex991.htm |
EX-23.1 - EXHIBIT 23.1 - Mid-Con Energy Partners, LP | d467407dex231.htm |
Exhibit 99.2
MID-CON ENERGY PARTNERS, LP and subsidiaries
Pro Forma Condensed Consolidated Balance Sheet
September 30, 2012
(In thousands)
(Unaudited)
Company | ||||||||||||
Company | Hugoton | Pro Forma | ||||||||||
Consolidated | Properties | Combined | ||||||||||
CURRENT ASSETS: |
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Cash & cash equivalents |
$ | 1,057 | $ | | $ | 1,057 | ||||||
Accounts receivable: |
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Oil and gas sales |
5,459 | | 5,459 | |||||||||
Other |
303 | | 303 | |||||||||
Derivative financial instruments |
3,872 | | 3,872 | |||||||||
Prepaids and other |
129 | | 129 | |||||||||
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Total current assets |
10,820 | | 10,820 | |||||||||
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PROPERTY & EQUIPMENT, at cost: |
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Oil & gas properties, successful efforts method: |
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Proved properties |
127,576 | 29,105 | (a)(b) | 156,681 | ||||||||
Accumulated depletion, depreciation and amortization |
(18,723 | ) | | (18,723 | ) | |||||||
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Total property and equipment, net |
108,853 | 29,105 | 137,958 | |||||||||
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DERIVATIVE FINANCIAL INSTRUMENTS |
2,299 | | 2,299 | |||||||||
OTHER ASSETS |
455 | | 455 | |||||||||
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Total assets |
$ | 122,427 | $ | 29,105 | $ | 151,532 | ||||||
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CURRENT LIABILITIES |
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Accounts payable |
$ | 5,904 | $ | | $ | 5,904 | ||||||
Accrued liabilities |
869 | | 869 | |||||||||
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Total current liabilities |
6,773 | | 6,773 | |||||||||
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LONG TERM DEBT |
60,000 | 28,856 | (a) | 88,856 | ||||||||
ASSET RETIREMENT OBLIGATION |
2,506 | 249 | (b) | 2,755 | ||||||||
EQUITY |
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Partnership equity |
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General partner |
1,491 | | 1,491 | |||||||||
Limited partners |
51,657 | | 51,657 | |||||||||
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Total equity |
53,148 | | 53,148 | |||||||||
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Total liabilities and equity |
$ | 122,427 | $ | 29,105 | $ | 151,532 | ||||||
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See accompanying notes to pro forma financial statements
11
MID-CON ENERGY PARTNERS, LP
Pro Forma Consolidated Statements of Operations
For the Nine Months Ended September 30, 2012
(In thousands, except per unit data)
(Unaudited)
Company | ||||||||||||||||
Company | Hugoton | Pro Forma | Pro Forma | |||||||||||||
Consolidated | Properties | Adjustments | Combined | |||||||||||||
Revenues: |
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Oil sales |
$ | 43,937 | $ | 6,061 | $ | | $ | 49,998 | ||||||||
Natural gas sales |
462 | 107 | | 569 | ||||||||||||
Realized gain on derivatives, net |
1,980 | | | 1,980 | ||||||||||||
Unrealized gain on derivatives, net |
3,638 | | | 3,638 | ||||||||||||
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Total revenues |
50,017 | 6,168 | | 56,185 | ||||||||||||
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Operating costs and expenses: |
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Lease operating expenses |
7,359 | 1,648 | | 9,007 | ||||||||||||
Oil and gas production taxes |
1,298 | 525 | | 1,823 | ||||||||||||
Impairment of proved oil and gas properties |
1,255 | | | 1,255 | ||||||||||||
Depreciation, depletion and amortization |
7,320 | | 1,184 | (c) | 8,504 | |||||||||||
Accretion of discount on asset retirement obligation |
92 | | 7 | (d) | 99 | |||||||||||
General and administrative |
8,583 | | | 8,583 | ||||||||||||
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Total operating costs and expenses |
25,907 | 2,173 | 1,191 | 29,271 | ||||||||||||
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Income from operations |
24,110 | 3,995 | (1,191 | ) | 26,914 | |||||||||||
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Other income (expense): |
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Interest income and other |
7 | | | 7 | ||||||||||||
Interest expense |
(1,164 | ) | | (554 | ) (e) | (1,718 | ) | |||||||||
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Total other income (expense) |
(1,157 | ) | | (554 | ) | (1,711 | ) | |||||||||
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Net income |
$ | 22,953 | $ | 3,995 | $ | (1,745 | ) | $ | 25,203 | |||||||
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Computation of net income per limited partner unit: |
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General partners interest in net income |
$ | 455 | 500 | |||||||||||||
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Limited partners interest in net income |
$ | 22,498 | $ | 24,703 | ||||||||||||
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Net income per limited partner unit (basic and diluted) |
$ | 1.26 | $ | 1.39 | ||||||||||||
Weighted average limited partner units outstanding: |
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(basic and diluted) |
17,790 | 17,790 | ||||||||||||||
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See accompanying notes to pro forma financial statements
12
MID-CON ENERGY PARTNERS, LP
Pro Forma Consolidated Statements of Operations
For the Year Ended December 31, 2011
(In thousands, except per unit data)
(Unaudited)
Company | ||||||||||||||||
Company | Hugoton | Pro Forma | Pro Forma | |||||||||||||
Consolidated | Properties | Adjustments | Combined | |||||||||||||
Revenues: |
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Oil sales |
$ | 36,813 | $ | 8,174 | $ | | $ | 44,987 | ||||||||
Natural gas sales |
1,218 | 192 | | 1,410 | ||||||||||||
Realized gain (loss) on derivatives, net |
(2,157 | ) | | | (2,157 | ) | ||||||||||
Unrealized gain on derivatives, net |
3,437 | | | 3,437 | ||||||||||||
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Total revenues |
39,311 | 8,366 | | 47,677 | ||||||||||||
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Operating costs and expenses: |
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Lease operating expenses |
8,491 | 1,907 | | 10,398 | ||||||||||||
Oil and gas production taxes |
1,869 | 704 | | 2,573 | ||||||||||||
Dry holes and abandonments of unproved properties |
813 | | | 813 | ||||||||||||
Geological and geophysical |
172 | | | 172 | ||||||||||||
Depreciation, depletion and amortization |
7,160 | | 1,580 | (c) | 8,740 | |||||||||||
Accretion of discount on asset retirement obligation |
78 | | 7 | (d) | 85 | |||||||||||
General and administrative |
1,924 | | | 1,924 | ||||||||||||
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Total operating costs and expenses |
20,507 | 2,611 | 1,587 | 24,705 | ||||||||||||
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Income from operations |
18,804 | 5,755 | (1,587 | ) | 22,972 | |||||||||||
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Other income (expense): |
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Interest income and other |
216 | | | 216 | ||||||||||||
Interest expense |
(578 | ) | | (728 | ) (e) | (1,306 | ) | |||||||||
Gain on sale of assets |
1,621 | | | 1,621 | ||||||||||||
Equity-based compensation |
(1,671 | ) | | | (1,671 | ) | ||||||||||
Other revenue and expenses, net |
576 | | | 576 | ||||||||||||
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Total other income (expense) |
164 | | (728 | ) | (564 | ) | ||||||||||
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Net income |
$ | 18,968 | $ | 5,755 | $ | (2,315 | ) | $ | 22,408 | |||||||
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Computation of net income per limited partner unit: |
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General partners interest in net income |
$ | 379 | 448 | |||||||||||||
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Limited partners interest in net income |
$ | 18,589 | $ | 21,960 | ||||||||||||
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Net income per limited partner unit (basic and diluted) |
$ | 1.05 | $ | 1.24 | ||||||||||||
Weighted average limited partner units outstanding: |
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(basic and diluted) |
17,640 | 17,640 | ||||||||||||||
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See accompanying notes to pro forma financial statements
13
Mid-Con Energy Partners, LP
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
1. | Basis of Presentation |
The unaudited pro forma condensed consolidated financial statements give pro forma effect to the acquisition of certain oil properties and additional working interest located in the Hugoton Basin area in Texas County, Oklahoma (the Hugoton Properties). These properties represent approximately 30% of the total asset value of Mid-Con Energy Partners, LP (the Company) and approximately 21% of the oil and gas revenues less direct operating expenses of the oil and gas assets of the Company at December 31, 2011. The Company completed this acquisition on November 2, 2012.
The unaudited pro forma condensed consolidated balance sheet of the Company at September 30, 2012 has been prepared giving effect to the Hugoton Properties as if the acquisition had occurred on September 30, 2012. The unaudited pro forma consolidated statements of operations for the year ended December 31, 2011 and the nine months ended September 30, 2012 have been prepared giving effect to the acquisition of the Hugoton Properties as if the acquisition had occurred on January 1, 2011.
The unaudited condensed consolidated balance sheet and the unaudited consolidated statement of operations of the Company for the nine months ended September 30, 2012 are derived from the Companys financial statements included in its third quarter 2012 Form 10Q filing.
The unaudited consolidated statement of operations of the Company for the year ended December 31, 2011 is derived from the Companys audited financial statements included in its December 31, 2011 Form 10K filing.
The pro forma adjustments are based upon available information and certain assumptions that management of the Company believes are reasonable. The pro forma consolidated financial statements do not purport to represent what the Companys financial position or results of operations actually would have been had such transactions in fact occurred on the dates indicated or to project the Companys financial position or results of operations for any future date or period.
Acquisitions
On November 2, 2012, the Company acquired certain oil properties and additional working interest located in the Hugoton Basin in Texas County, Oklahoma. The combined purchase price for these properties and additional working interest was approximately $28.9 million. The transactions were financed using proceeds from our credit facility. The historical results of operations of the Hugoton Properties are based on the audited statement of oil and gas revenues and direct operating expenses for the year ended December 31, 2011 and the unaudited statement of oil and gas revenues and direct operating expenses for the nine months ended September 30, 2012, included elsewhere in this report.
2. | Pro Forma Adjustments |
(a) | These adjustments give effect to the acquisition of certain oil properties and additional working interest for cash with funds provided by the Companys credit facility. |
(b) | These adjustments reflect the increase in the estimated asset retirement obligation associated with these properties. |
(c) | The pro forma depreciation, depletion and amortization expense has been adjusted to reflect additional expense for the Hugoton Properties. The pro forma depreciation, depletion and amortization expense for the Hugoton Properties was computed using the pro forma capitalized costs, pro forma production and estimated reserves. |
(d) | The pro forma accretion has been adjusted to reflect additional accretion for the Hugoton Properties. |
(e) | The pro forma interest expense has been adjusted to reflect the estimated additional interest associated with the acquisition of the properties from the funds provided by the Companys credit facility. |
14