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Midstates Petroleum Posts Updated Investor Presentation And Schedules Second Quarter 2017 Earnings Release and Conference Call


Midstates Petroleum Company, Inc. (MPO) (“Midstates” or the “Company”) today posted a supplemental presentation for investors on the Company's website, which provides significant operational, financial and strategic updates on the Company.

Fir Tree Partners, Centerbridge Partners, and Avenue Capital (owners of ~54% of shares outstanding) have recently elected to become restricted investors and are in regular dialogue with senior management and the board of directors on strategic matters to maximize shareholder returns.

The following are highlights included in the presentation:

  • Exploiting Strong Balance Sheet
    • ~$42mm of net debt and strong liquidity position of ~$126mm
    • ~55% of 2017 oil and gas production hedged at attractive prices
    • Year-to-date Adjusted G&A – Cash(1) expense of ~$2.60/boe; trending below the mid-point of guidance
    • RBL Lenders approved amendment in May 2017 providing operational flexibility and we plan to continue to work with them as we pursue our strategic goals
  • Return Value through Buybacks and/or Dividends
    • Based on YE 2016 PV-10 reserve value of ~$1.0bn(1)(2) vs. enterprise value of $375mm(3) and an EBITDA(1) multiple of less than 3x, Management and the Board believe MPO stock is currently undervalued
      • Implied 1P equity value of $36.27(2) vs. current share price of $13.30
    • As the Company continues to build cash, Management and the Board are also exploring the potential to initiate a share repurchase program(4) and/or issue cash dividends(4)
  • Development Focus on High Return Mississippian Lime
    • Generate IRRs greater than 35%(5) in current depressed price environment
    • Currently operating a two rig drilling program to generate high cash on cash returns, stimulate production growth and increase future cash flows
    • If oil sustains below $45/bbl, potential rig count reduction to 1 or 0 rigs in Q4 2017 to maximize free cash flows until commodity prices improve
  • Exploring Strategic Alternatives
    • Hired SunTrust Robinson Humphrey to explore strategic alternatives for Anadarko Basin and NW STACK positions
    • Anadarko Basin properties in north Texas and western Oklahoma include ~4,200(6) BOEPD of net production and ~97,000(6) net acres predominantly HBP
    • ~6,700(6) net acres in emerging NW STACK play in Dewey County, OK
    • Sold non-core Lincoln County, OK assets in July 2017
    • Continue to explore potential value-maximizing transactions for core Mississippian Lime position
  • Executive Leadership Search
    • As part of the long term post-restructuring plan, the Company has initiated a search for a permanent, post-restructuring Chief Executive Officer
    • In conjunction with new Chief Executive Officer search, the Company will identify a new Chief Financial Officer

(1) Adjusted G&A – Cash, PV-10, & EBITDA are a non-GAAP financial measures; Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures.

(2) 07.26.2017 Strip Pricing

(3) EV Value = Mkt Cap of ~$333mm (25,065,009 shares @ $13.30/share) & $42mm of Net Debt

(4) Subject to availability under then current credit agreement

(5) Assumes MPO YE 2016 CGA PUD Type Curve, 07.26.2017 strip pricing, & $2.8mm DCF well cost

(6) As of 07.26.2017; acreage inclusive of ~6,700 net acres in NW Stack

Second Quarter 2017 Earnings Release and Conference Call

In addition, the Company announced today that its second quarter 2017 earnings release will be issued on Tuesday, August 8, 2017, after the close of trading on the New York Stock Exchange. The Company will host a conference call to discuss second quarter results the following morning, Wednesday, August 9, 2017, at 11:00 a.m. Eastern time (10:00 a.m. Central time).

Participants may join the conference call by dialing (877) 645-4610 (for U.S. and Canada) or (707) 595-2723 (International). The conference call access code is 62354089 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 September 9 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 62354089 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 30 calendar days.

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 and the Anadarko Basin in Texas and Oklahoma.

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