Mid-Con Energy Partners LP (Nasdaq: MCEP) has announced its guidance and capital spending budget for 2015. Due to lower expected oil prices and higher capital costs in 2015, the partnership has limited capital spending to include only the most attractive development projects within the portfolio and at levels approximating the surplus from operating cash flow. The guidance reflects a more conservative development program than in prior years and may be adjusted to reflect changes in the partnership's outlook for oil prices in the future.
| 2015 | |
| Net production (Boe/d)(1) | 3,950 - 4,350 |
| Lease operating expenses per Boe | $20.00 - $24.00 |
| Production taxes (% of total revenue) | 6.3% - 6.8% |
| Estimated capital expenditures | $13.0 MM |
| (1) Production volumes in Boe equivalents calculated at a rate of six Mcf per Bbl. | |
ESTIMATED 2015 DISTRIBUTION COVERAGE SENSITIVITY
| Guided 2015 Production Volumes | |||||
| -10% | -5% | 4,150 Boe/d | +5% | +10% | |
| +$10.00 | 1.57x | 1.84x | 2.10x | 2.37x | 2.63x |
| +$5.00 | 1.52x | 1.76x | 2.01x | 2.25x | 2.49x |
| WTI Strip Pricing (1) | 1.47x | 1.69x | 1.91x | 2.13x | 2.35x |
| -$5.00 | 1.42x | 1.62x | 1.82x | 2.02x | 2.21x |
| -$10.00 | 1.37x | 1.55x | 1.72x | 1.90x | 2.07x |
| (1) Based on NYMEX WTI forward curve as of January 22, 2015. | |||||
EASTERN SHELF UPDATE
As announced on November 17, 2014, Mid-Con Energy closed its acquisition in the Eastern Shelf of the Permian Basin of approximately 6.1 MMboe of net proved reserves and is now fully operating the acquired properties. The partnership has seen positive preliminary injection response from prospective waterflood projects in the Eastern Shelf. The transition of nine new employees to Mid-Con Energy was completed in the fourth quarter 2014 and was conducted without any interruption to day-to-day operations. Noting the quality, professionalism and enthusiasm of the new employees combined with the early positive responses from injection, Mid-Con Energy continues to characterize the Eastern Shelf acquisition as solidly positive.
LIQUIDITY UPDATE
As of December 31, 2014, the partnership's total liquidity of $38.2 million included $3.2 million in cash and cash equivalents and $35.0 million of available borrowings under the revolving credit facility, which has a borrowing base of $240.0 million.
The partnership is based in Dallas.
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