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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