Mid-Con Energy Partners sold the oil and natural gas assets within its Southern Oklahoma core area to Exponent Energy III, a Tulsa, OK-based company. In connection with the divestiture, Wells Fargo reduced the company’s borrowing base to $115 million.
The sale closed on December 22 at a purchase price of $22 million with an effective date of December 22, 2017.
Separately, Mid-Con Energy hired Sagent Advisors to assist it in exploring various financing and strategic alternatives in the marketplace. Sagent will review a number of alternatives for the partnership, including financing alternatives for growth acquisitions, corporate structure alternatives, merger opportunities and long-term financing alternatives. Sagent is an independent investment bank focused on providing financial advice with broad experience in the oil and gas industry.
As part of the review of its financing alternatives, the partnership is in active discussions with its lenders on an extension to its revolving credit facility.
According to a related 8-K filing, in connection with the divestiture, the partnership and its lenders amended its credit agreement, dated December 20, 2011, among Mid-Con Properties, as borrower and Wells Fargo Bank as administrative agent and collateral agent for the lenders.
Among other changes, the amendment decreased the conforming borrowing base of the partnership’s senior secured revolving credit facility to $115 million and provided a waiver of the partnership’s previously disclosed noncompliance with the leverage ratio calculation under the amendment through January 31, 2018.
