Midstates Petroleum Company Inc (NYSE:MPO) Asset Sale Nixed


Dallas, Texas 12/15/2014 (FINANCIALSTRENDS) – Midstates Petroleum Company Inc (NYSE:MPO) had reached its 52-week low on Tuesday last because the transaction sale of DeQuincy assets in Louisiana had fallen short. As of now the assets at DeQuincy produce approximately 1,400 boe, which is 70% oil and it is soon expected to look at $20 million by April 1, 2015.

Termination of the Agreement

In a press release dated December 8, 2014 announced that the DeQuincy area assets in Louisiana stand terminated against earlier Purchase and Sale Agreement drawn with third-party.  Assets are expected in the range $13 million to $17 million by 2015 as per prices of today. The $5 million deposit, which the buyer has paid as part of the PSA is expected to be retained by the company.

Dr. Peter Hill the Interim President and CEO of Midstates remarked that the transaction could not be completed despite the strategy. The operational flexibility that the company has was further highlighted by the CEO. He also highlighted that the company continued to have its short term rig and service contracts, besides hedging strongly for 2015. It is expected that the company will continue to manage the interest of asset buyers even as it pursues other asset sales besides monetization of these assets the CEO asserted. The company is an independent exploration company and is focused on production by using sophisticated drilling techniques. The oil and liquids-rich basins in the onshore US Midstates drilling is focused in the Mississippian Lime oil play regions of Oklahoma.

Analyst Northland Capital cuts MPO

Midstates Petroleum Company Inc(NYSE:MPO) was witness to analysts reviews posts its stock market plays. Analysts Northland Capital has cut MPO price target down to $4.50 from its prior target price of $5.50. The analyst comments that as per current environment, the stock is likely to be troubled by debt. The analyst firm believes that MPO will sees its debt rise, because of lack of cash input, despite displaying increased production after retaining its assets.

Midstates Petroleum Company Inc(NYSE:MPO)is currently expending nearly $1.15 drilling per dollar which will allow it sell oil and gas. The cash flow outspend is a practice, in the times of the shale boom.

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