Tulsa, OK — January 10, 2018 — Tallgrass Resources III (Tallgrass), a Tulsa, Oklahoma-based energy company, is pleased to announce that it acquired Mid-Con Energy Partners LP’s (Nasdaq: MCEP) Southern Oklahoma assets in a deal that closed in late December 2017. These assets represent the next step in Tallgrass’s growth strategy and its entrance into the Southern Oklahoma market. This is Tallgrass’s second strategic acquisition in the last six months, and provides MCEP with liquidity and flexibility to pursue financial and operational alternatives for their business.
The newly acquired assets give Tallgrass additional insulation from commodity pricing volatility, as well as the opportunity to undertake a capital improvement and modernization program that will stabilize and increase production moving forward. Tallgrass Managing Member Chris Bird noted that, “the Mid-Con wells are already a high-quality asset. We look forward to using our technical and operational expertise to increase production and enhance value moving forward. These wells have been operating at the status quo without much investment since 2014. We believe this provides us with an opportunity to allocate capital to additional development and technology that will help these wells reach their full production potential.”
The deal marks Tallgrass’s second acquisition from a public company that was exploring strategic alternatives in 2017. Similar to Tallgrass’s August 2017 acquisition of Sanchez Midstream Partners LP’s Oklahoma production assets, this deal is a winning proposition for both Tallgrass and MCEP.
“This transaction was ideal for both sides,” said Tallgrass Resources Co-Founders Scott Alter and Jeff Jaeger. “We are excited to continue our expansion with this step into Southern Oklahoma, and the short timeline on which this deal was structured and closed provided additional liquidity to Mid-Con leadership within 45 days of initial discussions about the deal.”
About Tallgrass Resources
Tallgrass Resources is a Tulsa, Oklahoma-based energy company focused on the strategic acquisition and operation of oil and natural gas wells in the continental United States. Tallgrass Resources focuses on maximizing stakeholder value by enhancing production and efficient operation of their assets. The company is led by senior partners with expertise in the engineering and operational aspects of the energy business.