Dallas, Texas 10/30/2013 (Financialstrend) – Midstates Petroleum Company Inc (NYSE:MPO) is a $392 million market capitalized independent oil and gas producer. In the past week of trading the stock has lost close to 5.6% of its market value. This dip in market confidence in the stock came post an 11.7% increase the stock has posted in its valuation in the past 30 days. The appreciation in value over the past month was triggered by the company entering into reworked debt deal with its current creditors.
As per the terms of the new debt agreement, the company has a increased borrowing base from previous $425 million to the new ceiling of $500 million. The lenders will next look at reworking on the credit base in April 2014.
The stock price rallied upwards in the back of the network. The rally was further sustained when it became public that the company Chief executive officer John Crum has increased his personal stake in the stock by purchasing ten thousand shares of the common stock at $5.26 per share. This announcement came out on October 15. The stock was trading at $5.16 as of close of business on October 14. This purchase of substantive stock at a premium by company insider fuelled a bull run on the stock. Thanks to this undue investor interest, the stock appreciated by close to 8% during trading on October 16. With the latest purchase, people in the know have stated that the CEO’s personal stake in the firm has gone up to 1.33 million shares.
The oil company has managed to post sales of $311 million over the past 12 months and recorded a net loss of $38 million. In the past one year the stock has shed close to 9.6% of its market valuation and is trading at 5.73 per share as of close of business on October 29.