logo
Plus   Neg
Share
Email
Comment

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

Midstates Petroleum Co., Inc. (MPO) 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
Dish Network Corp. on Wednesday reported a surge in profit for the fourth quarter from last year, reflecting an income tax benefit that helped offset the impact of lower revenues. The latest quarter's results were positively impacted by an income tax benefit of about $1.2 billion due to an adjustment to deferred tax assets and liabilities related to tax reform legislation. Shares of Glencore plc were gaining around 4 percent in the morning trading in London after the producer and marketer of commodities reported Wednesday a significant growth in fiscal 2017 profit on strong higher commodity prices. Chief Executive Officer Ivan Glasenberg said, "Our performance in 2017 was our strongest on record, driven by our leading Marketing and Industrial asset businesses." Shares of Orange SA were gaining around 2 percent in the early morning trading in Paris after the French telecom major reported Wednesday a significant growth in fiscal 2017 profit from continuing operations with revenue growth in most regions, mainly France and Spain. In France, revenue grew for the first time since 2009. Attributable net income, meanwhile, declined on the absence of prior
comments powered by Disqus
Follow RTT