Midstates Petroleum Announces $50 Million Share Repurchase Program and Provides Operational Update
Midstates Petroleum Company, Inc. (“Midstates” or the “Company”) (NYSE:
MPO) today announced that its Board of Directors approved a share
repurchase program authorizing the purchase of up to $50 million of the
Company’s common stock. The Company may repurchase common stock in a
single transaction or from time to time through open market purchases or
other transactions, in amounts, at prices, and at such times the Company
deems appropriate. The share repurchase program does not obligate the
Company to repurchase any specific number of shares, and may be
suspended, modified or terminated at any time without prior notice. In
addition to this $50 million share repurchase program, the Company’s
Board of Directors and Management are continuing to consider additional
returns of capital through share tenders or cash dividends.
Midstates had approximately 25.3 million shares of common stock
outstanding as of November 30, 2018.
Operational Update
In light of the current commodity price environment and the Company’s
near-term focus of returning capital to shareholders, Midstates does not
intend to operate a drilling rig during the first half of 2019. The
Company will continue to evaluate its future activity levels and capital
expenditure program on an ongoing basis.
David Sambrooks, President and Chief Executive Officer, commented,
“Consistent with our commitment to return capital to our shareholders,
we are pleased that our Board has approved this significant stock
repurchase program which equates to over 20% of our current market cap.
We remain focused on maximizing shareholder value and being prudent
financial stewards. As such, given the current macro-economic conditions
and the fact that we have over 90% of our core acreage HBP, we have
decided to take a pause on our drilling program as we enter 2019. While
we monitor the pricing environment during this pause, we will take this
opportunity to further evaluate our new drilling and completions
techniques, explore additional ways to reduce costs and continue to
generate considerable free cash flow. Our management team and our Board
continue to believe in the significant value of our Miss Lime asset and
its ability to generate significant returns for our shareholders.”
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements that are not
statements of historical fact, including statements regarding the
Company’s strategy, future operations, financial position, estimated
revenues and losses, projected costs, resource potential, drilling
locations, prospects and plans and objectives of management, are
considered forward-looking statements. Without limiting the generality
of the foregoing, these statements are based on certain assumptions made
by the Company based on management’s experience, expectations and
perception of historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. Although the
Company believes that its plans, intentions and expectations reflected
in or suggested by the forward-looking statements made in this press
release are reasonable, the Company gives no assurance that these plans,
intentions or expectations will be achieved when anticipated or at all.
Moreover, such statements are subject to a number of factors, many of
which are beyond the control of the Company, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These factors include, but are not limited
to variations in the market demand for, and prices of, oil and natural
gas; uncertainties about the Company’s estimated quantities of oil and
natural gas reserves, resource potential and drilling locations; the
adequacy of the Company’s capital resources and liquidity; general
economic and business conditions; weather-related downtime; failure to
realize expected value creation from property acquisitions;
uncertainties about the Company’s ability to replace reserves and
economically develop its current reserves; risks related to the
concentration of the Company’s operations; drilling results; and
potential financial losses or earnings reductions from the Company’s
commodity derivative positions.
Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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.
The Company’s operations are currently focused on oilfields in the
Mississippian Lime play in Oklahoma.
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