Contango Oil & Gas to Acquire Mid-Con Energy Partners in All-stock Merger

The acquisition of Mid-Con Energy by Contango Oil & Gas is “simply the next step, and certainly not our last, in our stated goal of consolidating a sector that is in dire need of it,” Contango CEO Wilkie Colyer says.

Contango Oil & Gas to Acquire Mid-Con Energy Partners in All-stock Merger

Following Contango’s merger with Mid-Con Energy, the combined company will be headquartered in Fort Worth, Texas, but will continue to maintain a presence in both the Houston and Oklahoma markets. (Source: Hart Energy)

Contango Oil & Gas Co. agreed on Oct. 26 to acquire Tulsa, Okla.-based Mid-Con Energy Partners LP in an all-stock merger that continues Contango’s consolidation strategy.

The transaction, which implies an enterprise value for the combined entity in excess of $400 million based on the closing price on Oct. 23, amplifies Contango’s ability to play offense amid the dislocation in the sector, while providing Mid-Con’s unitholders with greater liquidity, financial stability and opportunities for growth on a larger platform, the companies said in a joint statement.

“This combination increases our exposure to long-lived oil reserves and is accretive to Contango shareholders,” Wilkie Colyer, Contango’s CEO, said in the statement. “Our definition of accretive, by the way, is that it increases the intrinsic value of Contango on a per-share basis, and this transaction certainly fits that bill.”

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.