Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Midstates Petroleum To Acquire Panther Assets In Anadarko Basin For $620 Mln

RELATED NEWS
Trade MPO now with 

Midstates Petroleum Co., Inc. (MPO: Quote) Thursday said it has agreed with Panther Energy, LLC, and its partners, to acquire producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma, for $620 million in cash. The company said the acquisition will help grow its fourth quarter production by over 50 percent.

Panther Energy's partners comprise Red Willow Mid-Continent, LLC and LINN Energy Holdings, LLC, together called Panther. Both Panther Energy and Red Willow are subsidiaries of Southern Ute Indian Tribe Growth Fund.

Midstates sees the transaction to be immediately accretive in 2013 to cash flow per share, as well as earnings, EBITDA, proved reserves and production per share. The transaction will be effective April 1, 2013 and the deal is expected to close on or about May 31.

John Crum, chairman, chief executive officer and president stated, "The acquisition we announced today greatly enhances our scope, scale and identified resource potential. On a variety of key metrics and in particular cash flow, the transaction is immediately accretive in 2013, and with a full year impact from the Panther assets is strongly accretive in 2014 and beyond."

The Houston, Texas-based oil and gas company noted that the transaction will add about 36.4 million barrels of oil equivalent proved reserves that are 45 percent oil and 21 percent natural gas liquids, of which 34 percent are proved developed producing.

Net current daily production will increase by around 8,000 barrels of oil equivalent per day.

The company's pro forma reserves, including the acquisition, would continue to be oil and liquids-rich and total 111.8 Mmboe comprising 48 percent oil, 20 percent NGLs, and 32 percent natural gas. The reserve life of the assets being acquired is about 12.5 years.

In connection with the acquisition, Midstates has secured $620 million in bridge loan commitments from Morgan Stanley Senior Funding, Inc. and SunTrust Robinson Humphrey, Inc. Midstates intends to permanently finance the acquisition by raising $725 to $750 million, of which $100 to $125 million would be equity, pending market conditions, and the balance would be debt.

MPO closed Wednesday's regular trading at $7.38 on the NYSE.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Computer and printer maker Hewlett-Packard Co. said Tuesday after the markets closed that its fourth quarter profit fell 6% from last year, as revenue declined 2%. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. This organic and natural products company has experienced strong compounded annual growth over the last four fiscal years with its net sales growing 25% and adjusted income from continuing operations over 30%. Here is a quick summary of the earnings reported after the bell on Nov. 24. 1. Amira Nature Foods Ltd (ANFI) reported net income for the second quarter of $8.3 million or $0.29 per share, compared to $5.0 million or $0.18 per share for the year-ago quarter. Excluding items, adjusted earnings...
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.