MCEP - Mid-Con Energy Partners: Rising Production Costs May Lead To Negative Margins At Current Oil Prices
Mid-Con Energy Partners (MCEP) is facing very significant challenges with low oil prices, despite having a decent amount of hedges. Mid-Con's 2019 transactions involved it divesting some assets and acquiring other assets that had lease operating expenses that were $15 per BOE higher, while also reducing its debt. This was a bet on higher oil prices and its ability to reduce operating costs at those new properties. Initial attempts to reduce operating costs were positive, but in recent quarters its costs have been coming up.
As a result, at low-$30s WTI oil,