Midstates Petroleum Reaffirms $252 Million Revolving Credit Facility and Provides Operational Update
Midstates Petroleum Company, Inc. (NYSE:MPO) (“Midstates” or the
“Company”) announced today that, as a result of its lenders' semi-annual
review, the borrowing base under its revolving credit facility has been
reaffirmed at $252 million. There are currently no borrowings under the
credit facility. The Company also provided an operational update for the
third quarter of 2015.
Operational Update
During the third quarter of 2015, total Company production averaged
32,609 barrels of oil equivalent (Boe) per day of which approximately
39% was oil, 21% was natural gas liquids (“NGLs”) and the balance was
natural gas. The temporary interruption of production at a Midstates’
well site due to a previously reported incident reduced third quarter
production by approximately 650 Boe per day. Production from the
impacted well site was restored in August. Production from the Company’s
Mississippian Lime properties averaged 26,358 Boe per day. Midstates
currently estimates operating capital expenditures will be in the range
of $55 million to $60 million and anticipates adjusted EBITDA will be
near the bottom end of the previously disclosed range of $80 million to
$90 million.
The Company’s total operated rig count remains at three rigs, all of
which are drilling in the Mississippian Lime. Midstates plans to
continue to operate a three rig program in the Mississippian Lime in the
near term. The Company said that its current AFE for wells drilled in
the Mississippian Lime is approximately $3.1 million per well and the
average drilling cycle time has been reduced from 19 days to 17 days.
Jake Brace, Midstates President and CEO, commented, “Our Miss Lime
drilling program continued to yield strong results in the third quarter.
As a result of drilling efficiencies and our capital cost management
initiative, we have surpassed our initial 2015 Miss Lime well cost
target and our standard well costs are now $3.1 million. With our type
curve and new well costs, we are generating attractive rates of return
in excess of 35%.”
Mr. Brace continued, “We believe we have the liquidity needed to
navigate the existing environment and protect our flexibility and
optionality until the macro outlook improves. The reaffirmation of our
borrowing base allows us the flexibility to continue to develop our
premier position in the Miss Lime, even in the current price and reduced
drilling environment.”
Updated Company Presentation
Midstates has posted an updated investor presentation to the Company’s
website, www.midstatespetroleum.com/.
Other Information
Certain statements in this news release regarding future expectations
and plans for future activities may be regarded as “forward-looking
statements” within the meaning of the Securities Litigation Reform Act.
All forward-looking statements involve risks and uncertainties. The
occurrence of the events described and the achievement of the expected
results depend on many events and assumptions, some or all of which are
not predictable or within our control. Factors that may cause actual
results to differ from expected results include, but are not limited to,
financial market conditions, changes in commodities prices and costs of
drilling and completion, operating hazards, drilling risks, and the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks
discussed in detail in the Company’s Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking statements. Should one or more
of the risks or uncertainties referenced above occur, or should
underlying assumptions prove incorrect, our actual results and plans
could differ materially from those expressed in any forward-looking
statements. Further, new factors that could cause actual results to
differ materially from those described in forward-looking statements
emerge from time to time, and it is not possible to predict all such
factors, or the extent to which any such factor or combination of
factors may cause actual results to differ from those contained in any
forward-looking statement.
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 and the Anadarko Basin in Texas and
Oklahoma.
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Copyright Business Wire 2015
Source: Business Wire
(October 20, 2015 - 6:45 AM EDT)
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