Mid Mid-Con Con Ener Energy P y Par artner tners, s, LP LP Supplemental: Third Quarter 2018 Results November 6, 2018 1
Forw orwar ard-Look Looking ing Sta Statements tements This presentation includes forward-looking statements — that is, statements related to future, not past, events within the meaning of the federal securities laws. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate," "believe," "estimate," "intend," "expect," "plan," "project," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," or "will" and the negative of such terms or other comparable terminology. These forward-looking statements involve certain risks and uncertainties and ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, you should refer to Mid-Con Energy's filings with the Securities and Exchange Commission (SEC) available at www.midconenergypartners.com or www.sec.gov. Mid-Con Energy undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this presentation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. All forward-looking statements are qualified in their entirety by this cautionary statement and other SEC filings. These forward – looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about our: • • business strategies; availability of oil field labor; • • volatility of commodity prices; capital expenditures; • • future financial and operating results, and our ability to Future capital requirements and availability and terms of pay distributions; capital; • • ability to replace the reserves we produce through marketing of oil and natural gas; • acquisitions and the development of our properties; general economic conditions; • • revisions to oil and natural gas reserves estimates as a competition in the oil and natural gas industry; • result of changes in commodity prices; effectiveness of risk management activities; • • technology; environmental liabilities; • • realized oil and natural gas prices; counterparty credit risk; • • production volumes; governmental regulation and taxation; • • lease operating expenses; developments in oil producing and natural gas producing • general and administrative expenses; countries; and • • cash flow and liquidity; plans, objectives, expectations and intentions. • availability of production equipment; NASDAQ: MCEP ● www.midconenergypartners.com 2
3Q1 3Q18 High 8 Highlights lights (2) $24.9 MM In Transactions (YTD) Opportunistic Acquisitions (2) $14.7 MM In Transactions (3Q18) +28.9% Production Growth (YTD) Partnership Growth +23.6% EBITDA Growth (YTD) (1) 2.86x Leverage Ratio (3Q18) Stronger Financial Position $28 MM Liquidity (3Q18) (1) Leverage ratio covenant as calculated by our credit agreement (2) Numbers represent contract purchase price, subject to customary post-closing adjustments NASDAQ: MCEP ● www.midconenergypartners.com 3
Sustaina Sustainable ble Gr Growth wth Building Project Inventory Organic Growth Opportunistic Acquisitions Favorable market conditions New waterflood development Buyers market for conventional assets Continuing new investments to provide within our existing core areas future production growth Maintaining strong balance sheet Near-term inventory Focusing on assets with stable production Executing on new inventory of return to that are additive to borrowing base production and optimization projects Adding low-decline PDP High grading upside opportunities Leveraging our core operational strengths Directing focus on areas of recent success, to add value through optimizations while investing to de-risk future potential Building inventory of growth assets Waterflood expansion opportunities Acquiring operated interests in assets with Maintaining production through expansion significant waterflood potential of existing waterflood projects NASDAQ: MCEP ● www.midconenergypartners.com 4
Perf erfor ormance T mance Trends ends Production Growth Adjusted EBITDA Growth 7,475 3,609 3,300 6,630 6,049 2,934 2,800 FY Mid-Point 1Q18 2Q18 3Q18 1Q18 2Q18 3Q18 Guidance Adjusted EBITDA ($M) Average Boe/d NASDAQ: MCEP ● www.midconenergypartners.com 5
Debt De bt & Liqu & Liquidity idity Borrowings Outstanding & Leverage Ratio (1) $160 5.00x 4.80x $140 $19 $18 $1.0 $1.0 $1.0 4.00x 3.54x $120 $35 $37 $28 3.58x $16 3.34x $100 3.00x 3.14x 2.86x $MM $80 2.00x $60 $40 1.00x $20 $121 $122 $99 $89 $87 $96 $- 0.00x 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Debt Outstanding Borrowings Available Letter of Credit Debt/EBITDA (Compliance TTM) Debt/EBITDA (Compliance Building TTM) (1) Leverage ratio covenant as calculated by our credit agreement NASDAQ: MCEP ● www.midconenergypartners.com 6
Appen ppendix dix
Operating and Oper ting and Financial Financial Results esults Sequential and YoY Variance Analysis Three Months Ended Variance Analysis September 30 June 30 September 30 Quarter-over-quarter Year-over-year (unaudited, in thousands, except per unit data) 2018 2018 2017 # % # % Select Operating Results Oil (MBbl) 309 251 304 58 23.1% 5 1.6% Natural gas (MMcf) 139 92 105 47 51.1% 34 32.4% Total production (Mboe) (1) 332 267 322 65 24.4% 10 3.2% Average daily production (Boe/d) (1) 3,609 2,934 3,500 675 23.0% 109 3.1% Select Financial Results Oil sales $ 18,765 $ 15,931 $ 13,731 $ 2,834 17.8% $ 5,034 36.7% Natural gas sales 380 264 233 116 43.9% 147 63.1% Cash settlements on matured derivatives (2,683) (2,181) (1,013) (502) 23.0% (1,670) 164.9% Oil & natural gas sales plus cash settlements from matured derivatives, inclusive of premiums, net 16,462 14,014 12,951 2,448 17.5% 3,511 27.1% Lease operating expenses $ 6,654 $ 5,251 $ 6,122 $ 1,403 26.7% $ 532 8.7% Oil and gas production taxes $ 1,157 $ 963 $ 857 $ 194 20.1% $ 300 35.0% (2) General and administrative $ 1,494 $ 1,358 $ 1,188 $ 136 10.0% $ 306 25.8% Net (loss) income $ (3,349) $ (6,855) $ (7,921) $ 3,506 -51.1% $ 4,572 -57.7% Select Non-GAAP Measures (3) 0 Adjusted EBITDA $ 7,475 $ 6,630 $ 3,899 $ 845 12.7% $ 3,576 91.7% Free Cash Flow $ 2,931 $ 2,517 $ (1,736) $ 414 16.4% $ 4,667 -268.8% Select Results per Boe (unless otherwise noted) Oil sales (per Bbl) $ 60.73 $ 63.47 $ 45.17 $ (2.74) -4.3% $ 15.56 34.5% Natural gas sales (per Mcf) $ 2.73 $ 2.87 $ 2.22 $ (0.14) -4.7% $ 0.51 23.2% Oil & Natural Gas Sales $ 57.64 $ 60.66 $ 43.37 $ (3.02) -5.0% $ 14.27 32.9% Cash settlements for matured derivatives, inclusive of premiums, net $ (8.08) $ (8.17) $ (3.15) $ 0.09 -1.1% $ (4.93) 156.8% Oil & natural gas sales revenues $ 49.56 $ 52.49 $ 40.22 $ (2.93) -5.6% $ 9.34 23.2% Lease operating expenses $ 20.03 $ 19.67 $ 19.01 $ 0.37 1.9% $ 1.02 5.4% Oil and gas production taxes $ 3.48 $ 3.61 $ 2.66 $ (0.12) -3.4% $ 0.82 30.9% (2) General and administrative $ 4.50 $ 5.09 $ 3.69 $ (0.59) -11.6% $ 0.81 21.9% (3) Select Non-GAAP Measures Adjusted EBITDA $ 22.50 $ 24.83 $ 12.11 $ (2.33) -9.4% $ 10.40 85.8% Free Cash Flow $ 8.82 $ 9.43 $ (5.39) $ (0.60) -6.4% $ 14.22 -263.7% (1) Production volumes in Boe equivalents calculated at a rate of six Mcf per Bbl. (2) General and administrative include non-cash equity-based compensation expense. This presentation includes "Adjusted EBITDA" , and “Free Cash Flow", each of which are non-generally accepted accounting principles ("Non-GAAP") measures, and should not be considered an (3) alternative to net income (loss), net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. NASDAQ: MCEP ● www.midconenergypartners.com 8
3Q18 Guidance & Ca Q18 Guidance & Capital pital Budget Budget FY 2018 Guidance FY2018 Guidance as of 11/05/2018 2018 Net production (Boe/d) (1) 3,200 - 3,400 Lease operating expenses per Boe (1) $20.00 - $21.00 Production taxes (% of total revenue) 6.50% - 7.00% Estimated capital expenditures $8.7 MM NOTE: This outlook is subject to all the cautionary statements and limitations described under the "Forward-Looking Statements" caption included at the beginning of this presentation. (1) Production volumes in Boe equivalents calculated at a rate of six Mcf per Bbl. NASDAQ: MCEP ● www.midconenergypartners.com 9
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