First Quarter 2013 Results
Production volumes for the first quarter of 2013 were 226 thousand barrels of oil equivalent (MBoe) or approximately 2,511 Boe per day on average. In comparison, Mid-Con Energy's production volumes for the first quarter of 2012 were 155 MBoe, or approximately 1,703 Boe per day on average. Year over year gains in production were propelled by continued waterflood response to injection, infill drilling in the Partnership's Southern Oklahoma core area and the full quarter impact of properties acquired during 2012.
Oil sales, excluding the effect of commodity derivatives, were $20.0 million in first quarter of 2013 and resulted in an average realized oil price of $90.90 per barrel (Bbl), compared to $102.24 per Bbl in the first quarter of 2012. Approximately 81% of Mid-Con Energy's oil production during the first quarter of 2013 was hedged at an average price of $98.07 per Bbl. Given the favorable variance between the average hedge price and NYMEX WTI, the Partnership received $0.7 million for realized commodity derivatives during the first quarter of 2013, or $3.06 per Bbl. In comparison, Mid-Con Energy paid $0.1 million for realized commodity derivatives during the first quarter of 2012, or ($0.89) per Bbl.
Lease operating expenses were $3.3 million, or $14.81 per Boe, in the first quarter of 2013, compared to $1.9 million, or $12.56 per Boe, in the first quarter of 2012. Total lease operating expenses increased over the prior year period largely due to an expansion in well count stemming from development programs and properties acquired during 2012.Production taxes in the first quarter of 2013 were $0.8 million, or $3.50 per Boe, for an effective tax rate of approximately 3.9%. Production taxes in the first quarter of 2012 were $0.7 million, or $4.33 per Boe, for an effective tax rate of approximately 4.3%. A portion of Mid-Con Energy's wells in Oklahoma continue to receive a reduced production tax rate due to the state's Enhanced Recovery Project Gross Production Tax Exemption.
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