Contango Completes Acquisition of Mid-Con Energy Partners

Rhea-AI Summary

Contango Oil & Gas Company (NYSE American: MCF) has completed its acquisition of Mid-Con Energy Partners, LP (NASDAQ: MCEP), with Mid-Con unitholders receiving 1.75 shares of Contango for each unit. This merger consolidates operations in Fort Worth, Texas, and increases the ownership stake of Contango's Chairman, John Goff, to 24.3%. CEO Wilkie S. Colyer emphasized the merger's strategic significance for enhancing shareholder value and expanding production capabilities, especially in the current market environment.

Positive

• Successful acquisition of Mid-Con Energy Partners contributes to strategic growth.
• Consolidation in Fort Worth, enhancing operational efficiency.
• Increased shareholder ownership for Chairman John Goff to 24.3%, indicating strong management commitment.

Negative

• None.

• Mid-Con Energy Partners unitholders receive 1.75 Contango share per MCEP unit
• Contango’s and Mid-Con’s operations will be consolidated in Fort Worth, TX
• As a result, John Goff, Contango’s Chairman and largest shareholder, ownership in Contango increases to 24.3%
  

FORT WORTH, Texas, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Contango Oil & Gas Company (NYSE American: MCF) (“Contango” or the “Company”) today announced the successful completion of its acquisition of Mid-Con Energy Partners, LP (“Mid-Con”) (NASDAQ: MCEP).

In accordance with the terms of the merger agreement, Mid-Con unitholders will receive 1.75 shares of Contango common stock for each unit of Mid-Con common units owned. Prior to the open of trading today, Mid-Con common units ceased to be listed for trading on the Nasdaq Global Select Market.

Wilkie S. Colyer, Jr., Contango’s Chief Executive Officer, commented, “After many months of significant effort from both companies, this merger further highlights Contango’s ability to execute on its strategy to acquire producing properties and implement cost-cutting efforts that maximize shareholder returns. As a result of the merger, our largest shareholder and Chairman, John C. Goff, has increased his ownership to just under 25% of the combined business. The Board and management team remain committed to growing shareholder value as we look for new opportunities in the current dislocated market environment. We welcome Mid-Con’s investors, employees, and other stakeholders to the Contango platform.”

About Contango

Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana and Wyoming and, when determined appropriate, to use that cash flow to explore, develop, and increase production from its existing properties, to acquire additional PDP-heavy crude oil and natural gas properties or to pay down debt. Additional information is available on the Company’s website at http://contango.com. Information on our website is not part of this release.

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on Contango’s current expectations. The words and phrases “should”, “could”, “may”, “will”, “believe”, “plan”, “intend”, “expect”, “potential”, “possible”, and similar expressions identify forward-looking statements and express Contango’s expectations about future events. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that Contango expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Contango’s control. Consequently, actual future results could differ materially from Contango’s expectations due to a number of factors, including, but not limited to market conditions, industry conditions, the impact of COVID-19 pandemic, the consummation of the asset acquisition, actions by third parties (including investors and the seller), and other factors which could affect Contango’s operations or financial results, including those described in Contango’s Annual Report on Form 10-K and other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results and developments may differ materially from the projections in the forward-looking statements. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, except as required by law.

Contango Oil & Gas Company
E. Joseph Grady, 713-236-7400
Senior Vice President and Chief Financial Officer
Source: Contango Oil & Gas Company

 

FAQ

What is the significance of Contango's acquisition of Mid-Con Energy Partners?

The acquisition consolidates operations, enhances shareholder value, and increases production capabilities.

What do Mid-Con unitholders receive in the acquisition?

Mid-Con unitholders will receive 1.75 shares of Contango for each unit held.

Where will Contango and Mid-Con's operations be consolidated?

Operations will be consolidated in Fort Worth, Texas.

What is John Goff's stake in Contango after the merger?

John Goff's ownership in Contango increases to 24.3% following the acquisition.