Mid-Con Energy Partners, LP Announces Full Year And Fourth Quarter 2012 Results, 2012 Year End Proved Reserves, 2013 Guidance And Updated Hedge Positions

Hedging Update

Mid-Con Energy enters into various commodity derivative contracts intended to achieve more predictable cash flows and to reduce its exposure to fluctuations in the price of oil. The Partnership's hedging program objective is to protect its ability to make current distributions, and to be better positioned to increase its quarterly distribution over time, while retaining some ability to participate in upward movements in oil prices. Mid-Con Energy uses a phased approach, looking approximately 36 months forward while targeting a higher hedged percentage in the near 12 months of the period.

Supplementing its primary hedging strategy described above, Mid-Con Energy also intends to enter into additional commodity derivative contracts in connection with material increases in its estimated production and at times when management believes market conditions or other circumstances suggest that it is prudent to do so, as opposed to entering into commodity derivative contacts at predetermined times or on prescribed terms.

As of March 5, 2013, the following table reflects volumes of Mid-Con Energy's production covered by commodity derivative contracts, and the average prices at which the production will be hedged:

	2013	2014	2015
Oil Derivative Contracts:
A. Swap Contracts:
Volume (Bbl/d)	1,696	1,973	164
Weighted Average Floor Price per Bbl	$98.10	$93.56	$90.05
B. Put/Call Option Contracts (Collars):
Volume (Bbl/d)	296	–	–
Weighted Average Floor/Ceiling Price per Bbl	$97.67 -- $108.80	–	–
Total Oil Derivative Contracts (A+B):
Volume (Bbl/d)	1,992	1,973	164
Weighted Average Floor Price per Bbl	$98.03	$93.56	$90.05
% of Estimated Oil Production Hedged - Total Proved (1)	76.3%	70.3%	5.4%
(1) Based on total proved oil reserves reflected in December 31, 2012 reserve report audited by Cawley, Gillespie & Associates, Inc.

Liquidity Update

As of December 31, 2012, the Partnership's total liquidity of $53.1 million included $1.1 million in cash and cash equivalents and $52.0 million of available borrowings under the revolving credit facility, which has a current borrowing base of $130.0 million.

« First ‹ Previous 1 2 3 4 5 6 7 8 9 Next › Last »