Midstates Petroleum Company, Inc. (NYSE: MPO) ("Midstates" or the "Company") announced today its financial and operating results for the three months ended September 30, 2012. Midstates’ third quarter results featured increased production led by a 13% uplift in oil and a highly successful first horizontal Wilcox completion at North Cowards Gully, which has averaged over 1,400 gross barrels of oil equivalent ("Boe") per day since first production on September 15, 2012. The Company indicated that third quarter results do not reflect any impact from the Eagle Energy Acquisition which closed October 1, 2012.
Key points for the three months ended September 30, 2012 include:
Adjusted EBITDA totaled $32.7 million. See "Non-GAAP Financial Measures" in the tables below for a definition of Adjusted EBITDA and a reconciliation to net income (loss) and net cash provided by operating activities.
Adjusted Net Income (which excludes unrealized gains/losses on derivatives and the related income tax effect) totaled $0.1 million. See "Non-GAAP Financial Measures" in the tables below for a definition of Adjusted Net Income and reconciliation to net income (loss).
Average daily production rose to 8,182 net Boe per day from 7,904 net Boe per day in the second quarter of 2012; oil production and natural gas liquids ("NGL") volumes rose 13% and 18%, respectively, compared with the second quarter of 2012, while natural gas volumes were lower by 28%.
Cash Operating Expenses (which includes lease operating and workover expenses, severance and ad valorem taxes, and the cash portion of general and administrative expenses) were $26.67 per Boe, before costs associated with the Eagle Energy Acquisition. See "Non-GAAP Financial Measures" in the tables below for a definition of Cash Operating Expenses and reconciliation to Operating Expenses.
20 gross wells and two horizontal sidetracks were spud during the third quarter of 2012, of which nine were producing, eight were awaiting completion, four were drilling at quarter end and one was a mechanical dry hole. Since September 30, 2012, Midstates has spud 13 additional wells, including those spud on its newly acquired Mississippian Lime properties.
Completed the Musser-Davis 8H-1 horizontal well located in the North Cowards Gully Field in Beauregard Parish, Louisiana. The well continues to show strong production results and has averaged 1,263 gross Boe per day for the seven day period ending November 5, 2012. Four horizontal projects are currently underway, with two at West Gordon, one at South Bearhead Creek and one at North Cowards Gully.
Source: Business Wire
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