Mid Mid-Con Con Ener Energy P y Par artner tners, s, LP LP - - PowerPoint PPT Presentation

Mid Mid-Con Con Ener Energy P y Par artner tners, s, LP LP

Supplemental: Third Quarter 2018 Results November 6, 2018

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Forw

• rwar

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

• f 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

• bligation 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
• f 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;
• volatility of commodity prices;
• future financial and operating results, and our ability to

pay distributions;

• ability to replace the reserves we produce through

acquisitions and the development of our properties;

• revisions to oil and natural gas reserves estimates as a

result of changes in commodity prices;

• technology;
• realized oil and natural gas prices;
• production volumes;
• lease operating expenses;
• general and administrative expenses;
• cash flow and liquidity;
• availability of production equipment;
• availability of oil field labor;
• capital expenditures;
• Future capital requirements and availability and terms of

capital;

• marketing of oil and natural gas;
• general economic conditions;
• competition in the oil and natural gas industry;
• effectiveness of risk management activities;
• environmental liabilities;
• counterparty credit risk;
• governmental regulation and taxation;
• developments in oil producing and natural gas producing

countries; and

• plans, objectives, expectations and intentions.

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NASDAQ: MCEP ● www.midconenergypartners.com

2.86x $28 MM

3Q1 3Q18 High 8 Highlights lights

(1) Leverage ratio covenant as calculated by our credit agreement (2) Numbers represent contract purchase price, subject to customary post-closing adjustments

Opportunistic Acquisitions Partnership Growth Stronger Financial Position

$24.9 MM $14.7 MM

In Transactions

(YTD)

In Transactions

(3Q18)

+28.9% +23.6%

Production Growth

(YTD)

EBITDA Growth

(YTD)

Leverage Ratio

(3Q18)

Liquidity

(3Q18)

(1) (2) (2)

NASDAQ: MCEP ● www.midconenergypartners.com 4

Building Project Inventory

Sustaina Sustainable ble Gr Growth wth

Favorable market conditions

• Buyers market for conventional assets

within our existing core areas

Maintaining strong balance sheet

• Focusing on assets with stable production

that are additive to borrowing base

Adding low-decline PDP

• Leveraging our core operational strengths

to add value through optimizations

Building inventory of growth assets

• Acquiring operated interests in assets with

significant waterflood potential

Opportunistic Acquisitions Organic Growth

New waterflood development

• Continuing new investments to provide

future production growth

Near-term inventory

• Executing on new inventory of return to

production and optimization projects

High grading upside opportunities

• Directing focus on areas of recent success,

while investing to de-risk future potential

Waterflood expansion opportunities

• Maintaining production through expansion
• f existing waterflood projects

NASDAQ: MCEP ● www.midconenergypartners.com 5

Perf erfor

• rmance T

mance Trends ends

Adjusted EBITDA Growth Production Growth

3,300 2,800 2,934 3,609 FY Mid-Point Guidance 1Q18 2Q18 3Q18

Average Boe/d

6,049 6,630 7,475 1Q18 2Q18 3Q18

Adjusted EBITDA ($M)

6 NASDAQ: MCEP ● www.midconenergypartners.com

$121 $122 $99 $89 $87 $96 $19 $18 $16 $35 $37 $28 $1.0 $1.0 $1.0 3.58x 4.80x 3.54x 3.34x 3.14x 2.86x 0.00x 1.00x 2.00x 3.00x 4.00x 5.00x $- $20 $40 $60 $80 $100 $120 $140 $160 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Debt Outstanding Borrowings Available Letter of Credit Debt/EBITDA (Compliance TTM) Debt/EBITDA (Compliance Building TTM)

De Debt bt & Liqu & Liquidity idity

Borrowings Outstanding & Leverage Ratio(1)

$MM

(1) Leverage ratio covenant as calculated by our credit agreement

Appen ppendix dix

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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) 332 267 322 65 24.4% 10 3.2% Average daily production (Boe/d) 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% 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 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% General and administrative 4.50 $ 5.09 $ 3.69 $ (0.59) $

• 11.6%

0.81 $ 21.9% 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%

Oper Operating and ting and Financial Financial Results esults

(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. (3) 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 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.

Sequential and YoY Variance Analysis

(1) (1) (2) (2) (3) (3)

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3Q18 Guidance & Ca Q18 Guidance & Capital pital Budget Budget

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.

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

10 NASDAQ: MCEP ● www.midconenergypartners.com

Oil Hedges 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 WTI Swap Volume (Bbl/d) 467 1,938 1,798 1,720 1,664 1,646 1,607 1,554 Swap Price ($/Bbl) 54.19 $ 56.24 $ 56.15 $ 56.10 $ 56.05 $ 55.17 $ 55.17 $ 54.06 $ Collar Volume (Bbl/d) 1,141

• Call Strike Price ($/Bbl)

53.13 $

• $
• $
• $
• $
• $
• $
• $

Put Strike Price ($/Bbl) 43.57 $

• $
• $
• $
• $
• $
• $
• $

Put Volume (Bbl/d) 326

• Put Strike Price ($/Bbl)

45.00 $

• $
• $
• $
• $
• $
• $
• $

Total Hedged Volume (Bbl/d) 1,934 1,938 1,798 1,720 1,664 1,646 1,607 1,554 Floor Strike Price ($/Bbl) 46.38 $ 56.24 $ 56.15 $ 56.10 $ 56.05 $ 55.17 $ 55.17 $ 54.06 $ % PVD Hedged 63% 63% 59% 56% 54% 54% 52% 51%

$30 $40 $50 $60 $70 $80 $90 0% 20% 40% 60% 80%

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Average Hedge Price ($/Bbl)

Collar (% Hedged, LHS) Swap (% Hedged) Put (% Hedged, LHS) Floor Price ($/Bbl, RHS) WTI Futures ($/Bbl, RHS)

Commodity Commodity Deriva Derivativ tives es

Summary of Current Portfolio

(1) Deferred premium puts include premiums that are to be paid monthly as the contracts settle. (2) % Hedged Estimated Reserve Oil Production based on 2018 guidance (updated as of 09/30/2018) mid-point of production forecast, assuming 93% oil.

(2) (1)

NASDAQ: MCEP ● www.midconenergypartners.com 11 September 30 June 30 September 30 2018 2018 2017 Net loss (3,349) $ (6,855) $ (7,921) $ Interest expense, net 1,619 1,410 1,623 Depreciation, depletion and amortization 4,812 3,393 4,350 Accretion of discount on asset retirement obligations 404 191 142 Impairment of proved oil & natural gas properties

• 959

4,850 Dry holes and abandonment of unproved properties 10 97

• Loss on derivatives, net

6,358 9,500 2,749 Cash settlements (paid) received for matured derivatives, net (2,483) (2,181) 323 Cash settlements received for early termination of derivatives

• 147

Cash premiums paid for derivatives, net (200)

• (2,438)

Non-cash equity-based compensation 303 128 74 Loss (gain) on sales of oil and natural gas properties 1 (12)

• Adjusted EBITDA

7,475 $ 6,630 $ 3,899 $ Less: Cash interest expense 1,414 1,262 1,261 Total Capital Expenditure 2,330 2,151 3,874 Distributions to preferred unitholders 800 700 500 Free Cash Flow 2,931 $ 2,517 $ (1,736) $ Three Months Ended

Appen ppendix dix

Non-GAAP Summary(1)

(1) This presentation includes "EBITDA", "Adjusted EBITDA" , and “Free Cash Flow", each of which are non-generally accepted accounting principles ("Non-GAAP") measures, and should not be considered an 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.

(1) (1)

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Appen ppendix dix

Non-GAAP Summary

NON-GAAP FINANCIAL MEASURES This presentation, the financial tables and other supplemental information include “Adjusted EBITDA” and “Free Cash Flow” which are a non-generally accepted accounting principles (“Non-GAAP”) measures used by our management to describe financial performance with external users of our financial statements. The Partnership believes the Non-GAAP financial measures described above are useful to investors because they are used by many companies in its industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate the financial performance

• f the Partnership and to compare the financial performance of the Partnership with the performance of other publicly traded partnerships within its

industry. Adjusted EBITDA should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA is defined as net income (loss) plus (minus):

• Interest expense, net;
• Depreciation, depletion and amortization;
• Accretion of discount on asset retirement obligations;
• (Gain) loss on derivatives, net;
• Cash settlements received (paid) for matured derivatives, net;
• Cash settlements received (paid) for early terminations of derivatives, net;
• Cash premiums received (paid) for derivatives, net;
• Cash premiums received (paid) at inception of derivatives, net;
• Impairment of proved oil and natural gas properties;
• Impairment of proved oil and natural gas properties held for sale;
• Dry holes and abandonment of unproved properties;
• Non-cash equity-based compensation; and
• (Gain) loss on sales of oil and natural gas properties, net.

Free Cash Flow should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Free Cash Flow is defined as Adjusted EBITDA less:

• Cash interest expense
• Total capital expenditure
• Distributions to preferred unit holders

Mid id-Con Con Ener nergy P Par artner tners, LP , LP I Inves estor tor Rela elations tions

2431 E. 61st Street, Suite 850 Tulsa, OK 74136 IR@midcon-energy.com 918.743.7575 13