On the agenda for the next Board meeting.??
TULSA — It's been a tough few days for Midstates Petroleum Co. Inc. as the Tulsa oil company delayed a $16 million interest payment, fired its independent accountant and had its credit line slashed.
Midstates lenders on Friday cut the company's borrowing base to $170 million from $252 million previously, leaving the company overdrawn by about $82 million. Under terms of the borrowing agreement, Midstates has 30 days to pay off the overage amount or set up a payment plan.
Like many oil and natural gas producers, Midstates uses unproduced oil and natural gas as assets to secure its loans. Lower commodity prices have reduced the value of that collateral, cutting the amount the company can borrow.
Midstates said the lower borrowing base does not properly value the assets the company has used as collateral. The company said it plans to negotiate with its lenders regarding the credit line and a repayment schedule.
Also on Friday, Midstates exercised its 30-day grace period on a $16 million interest payment on its 10.75 percent senior notes due 2020.
Midstates said it has $301 million in cash and that it is in the best interest of stakeholders to "actively address the company's debt and capital structure." Midstates executives are continuing discussions with creditors, the company said.
Midstates directors last week dismissed Deloitte & Touche LLP as the company's independent auditor and selected Grant Thornton LLP as its replacement.
Deloitte & Touche included language in both Midstates' 2014 and 2015 financial statements that it had "substantial doubt" about the company's ability to continue as a going concern.
Midstates said it had no disagreement with Deloitte & Touche on any matter of accounting principles or practices, financial statement disclosures or auditing scope or procedures.
Midstates' stock price closed at 30 cents a share Monday, down a penny on the day and off almost 98 percent over the past year.
Midstates last year was removed from the New Yo
Eagle Ford properties are not economical at current oil prices..... more bad news coming in the next few days.
Murphy Oil Corp. in joining U.S. producers in cutting jobs at home and abroad as a prolonged collapse in crude prices crimps cash flows.
The company is reducing jobs in every location as it trims spending and seeks savings, Kelly Whitley, a spokeswoman for El Dorado, Arkansas-based Murphy, said in an e-mail Friday. The company, which had about 1,300 employees at the end of last year, is “not prepared to quantify" the size of the cuts at this time, Murphy said. Canadian Broadcasting Corp. reported the layoffs on its website earlier.
Devon Energy confirms it is closing its Houston area offices, affecting about 60 workers. The move comes about a month after the Oklahoma City-based energy firm announced a cutback of 20 percent of its total workforce. The layoffs in February affected nearly 1,000 employees.
The south Texas office was located in the suburb of Spring and it was there that the Eagle Ford shale operations were partially handled. Devon ended up with the office when it acquired south Texas properties in 2013 of Geosouthern Energy.
Sentiment: Strong Sell
PostRock Energy Corporation announced Friday that it filed for Chapter 11 bankruptcy reorganization to facilitate an orderly sale of substantially all of their assets.
In its bankruptcy filing, Oklahoma City-based PostRock said it had assets ranging between $10 million and $50 million, with debts from $50 million and $100 million. The oil and natural gas company does not expect any recovery for its stockholders and indicates they will lose their entire investment.
In March, PostRock said its lenders called the company’s debts and shareholders would lose their investment after the company defaulted on its loans. That came after its credit line was cut in half last year, leaving the company overdrawn by more than $37 million.
PostRock said it had 129 employees at its Oklahoma City headquarters and at operations in southeastern Kansas and northeastern Oklahoma.
SD is in too deep also..not enough creative cash to make the deal work.. looks like Chapter 11 also....
Sandridge Energy Inc. warned Wednesday the prolonged downturn in energy prices could force it to seek bankruptcy protection as the oil and gas exploration company struggles to address its high debt load.
The Oklahoma City company has been working with financial advisers to explore its options and said in its annual report that could include “a restructuring, amendment or refinancing of existing debt through a private restructuring or reorganization under chapter 11 of the bankruptcy code.”
Sandridge had previously said the report would contain a “going concern” warning from its auditor because of substantial doubt regarding its ability to continue operations, which violates the terms of its revolving credit facility.
Also that day, Midstates Petroleum cut 30 positions in its corporate office as well as a small number of employees serving in related roles in Midstates’ field offices. Approximately 120 employees worked for Midstates in Tulsa after the company relocated its headquarters here from Houston in late 2014.
Midstates issued the following statement:
“Like many companies in our industry, the decline in energy prices has posed significant challenges to Midstates,” the statement read.
“On February 25th, we announced changes that affected 30 employees in our corporate offices as well as a small number of employees serving in related roles in our field offices. This decision was very difficult and we recognize that many good people have left our organization. We express our gratitude for the contributions of the individuals impacted by this difficult but necessary action.”
Alfalfa: Midstates Petroleum Co., LLC; Wessels 2612 No. 2H-26 A Well; NW/4 NE/4 NW/4 NW/4 (BHL) of 26-26N-12W; 27 BOPD, 700 MCFPD; TD 11,379’.
Alfalfa: Midstates Petroleum Co., LLC; Glass 2512 No. 5H-18 BC Well; NW/4 NE/4 NE/4 NW/4 (SL) of 18-25N-12W; 182 BOPD, 551 MCFPD; TD 11,439’.
March 30 (Reuters) - Midstates Petroleum Company Inc :
* Says has engaged advisors to analyze strategic alternatives to address its liquidity and capital structure
* Believes filing under Chapter 11 of U.S. Bankruptcy code may provide most expeditious manner to effect capital structure solution
* Says co has substantial debt obligations and may not be able to maintain adequate liquidity throughout 2016
* Says may be unable to continue as a going concern
Glad you got your modest profit and bailed --- Bankruptcy chapter 11 was in the works for almost two years.....too much debt...low revenue..bad properties... low producing wells. Getting rid of Crum, then Hill and then the next President in December... Jake was brought in because he is a specialist in Bankruptcy (not an oil man) . All these facts pointed to Bankruptcy....