MCEP - Mid-Con Energy Partners: Reduced Cost Structure Due To Management Agreement With Contango And Preferred Unit Conversion
Mid-Con Energy Partners (MCEP) announced a number of significant moves. Preferred unitholders (led by Goff Capital) converted all the preferred units into common units. CEO Randy Olmstead resigned from the company and most of its Board of Directors resigned and were replaced by new directors. Contango Resources is now serving as the operator of Mid-Con's assets, resulting in estimated savings of $6.5 million per year.
These moves help improve Mid-Con's longer-term outlook, although as its credit facility borrowing base was reduced by 33%, it will still be in debt reduction mode going forward.