PostRock Energy Corporation(PSTR) (“PostRock”) today announced the appointment of a new director. Simultaneously, it announced that it had engaged Evercore Group L.L.C. to help explore strategic alternatives.
Alexander P. Lynch, a partner of White Deer Energy, was added to the Board on February 6th, increasing the Board to seven members. Mr. Lynch has nearly 40 years of experience in finance and investment banking. Prior to joining White Deer, he served as Global Chairman – Investment Banking for J.P. Morgan. He has served on the boards of a number of NYSE-listed public companies, including Patina Oil & Gas Corporation and Range Resources Corporation.
Given the challenges created by current oil and gas prices, the Company decided it was prudent to enlist an outside advisor to assist the Board in evaluating strategic alternatives.
About the Company
PostRock Energy Corporation is engaged in the development, production and gathering of crude oil and natural gas, primarily focused in the Cherokee Basin of southeast Kansas and northeast Oklahoma, and in central Oklahoma. The Company owns and operates over 3,000 wells and maintains nearly 2,200 miles of gas gathering lines primarily in the Cherokee Basin.
MIDSTATES PETROLEUM RELEASE
Midstates Petroleum Company, Inc. (MPO) (“Midstates” or the “Company”) today provided an operational update for the fourth quarter of 2014, disclosed the date of the fourth quarter earnings release and conference call, and announced the engagement of Evercore Group LLC as advisors to explore strategic alternatives.
During the fourth quarter of 2014, total Company production averaged approximately 33,750 barrels of oil equivalent (Boe) per day of which approximately 42% was oil, 21% was natural gas liquids (“NGLs”) and the balance was natural gas. Production from the Company’s Mississippian Lime properties averaged approximately 25,000 Boe per day. Midstates invested approximately $115 to $120 million in operational capital expenditures during the fourth quarter of 2014 and Adjusted EBITDA is expected to total approximately $110 to $115 million. With another strong quarter of production growth, full year production averaged approximately 32,100 Boe per day. Capital expenditures totaled approximately $530 million and Adjusted EBITDA is expected to be approximately $470 million. All three measures fell within the previously defined guidance ranges.
The Company has reduced its total active rig count to four rigs, all of which are operating on its Mississippian Lime properties, and is continuing to evaluate its future activity levels and capital expenditure program in light of the current commodity price environment. Midstates is also working with its suppliers and service companies to reduce costs and improve margins.
Dr. Peter Hill, Midstates’ Interim CEO commented, “Our highly successful drilling program in our premier Miss Lime acreage continued to yield strong results in the fourth quarter. Our knowledge of the play has continued to be refined and our operational achievements over the year demonstrate our value improvement. Our asset base provides us with a solid platform for value growth into the future, and even in the current WTI strip price environment, we are generating approximately 20% rates of return, on average, from our Miss Lime wells.”
Fourth Quarter Earnings Conference Call
Midstates also announced today that it expects its fourth quarter 2014 earnings release will be issued on Tuesday, March 3, after the close of trading on the NYSE. The Company will host a conference call to discuss fourth quarter results the following morning, Wednesday, March 4 at 10:00 a.m. Eastern time (9:00 a.m. Central time).
Participants may join the conference call by dialing (877) 645-4610 (for U.S. and Canada) or (281) 241-6688 (International). The conference call access code is 84065172 for all participants. To listen via live web cast, please visit the Investor Relations section of the Company’s website,www.midstatespetroleum.com.
An audio replay of the conference call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until midnight on March 11 and can be accessed by dialing (855) 859-2056 (for U.S. and Canada) or (404) 537-3406 (International). The conference call audio replay access code is 84065172 for all participants. The audio replay will also be available in the Investors section of the Company’s website approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates’ drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company’s operations also include the upper Gulf Coast tertiary trend in central Louisiana. Additional information about the Company is available at www.midstatespetroleum.com.