Lower 48 E&P Consolidation Continues as Contango, Mid-Con Agree to Merge

One day after two giant Canadian producers announced a tie-up and less than a week after other mega mergers were announced, Houston-based Contango Oil & Gas Co. agreed to expand its holdings in the Lower 48 in an all-stock merger with Mid-Con Energy Partners LP. 

Contango works the shallow waters of the Gulf of Mexico (GOM) and across the Lower 48, mostly in Louisiana, Oklahoma, Texas and Wyoming. Mid-Con, formed in 2011 and which has Contango ties, focuses on enhanced oil recovery primarily in Oklahoma and Wyoming. 

For each common unit, Mid-Con unitholders would receive 1.75 shares of Contango common stock, representing a 5% premium based on a 15-day volume weighted average price. The exchange ratio implies an enterprise value for the combined entity of more than $400 million...