TULSA — Another Oklahoma-based oil and gas company is on its way to being gone.
In a move one analyst expects to see more of, Mid-Con Energy Partners announced Monday it is merging with Contango Oil & Gas.
The Fort Worth, Texas-based Contango will assume ownership of Mid-Con’s assets as part of an all-stock deal valued at $400 million that’s expected to close by early next year.
Contango officials said the deal benefits their company because it increases its exposure to proved-developed oil reserves at an attractive price, reduces its costs and provides Mid-Con’s investors with greater liquidity, financial stability and future growth opportunities.
The announcement comes about 60 days after Mid-Con issued “going concern” language in a quarterly filing it made in August.
Then, Mid-Con officials stated its ability to operate into the future would depend on whether or not it could successfully renegotiate its revolving credit agreement.
“There can be no assurance, however, that such discussions will result in a refinancing of the credit facility on acceptable terms, if at all, or provide any specific amount of additional liquidity,” the filing stated.
In the second quarter of 2020, Mid-Con Energy Partners posted a net loss of about $11.9 million, or $2.29 per share, on total revenues of about $1.3 million.