Oil & Gas Financial Journal Transaction of the Year, Midcontinent 2013
Awarded to: Midstates Petroleum Company, Inc.
Oil & Gas Awards Judges Comments
“The Midstates acquisition satisfies all of the criteria for a rational producing property acquisition. It adds P1 reserves rich in valuable liquids (66% oil and NGL’s) at $17/boe, and production at a solid price of $77,500/boed.”
“Operational synergies are already present for them in the Midcon region, which should translate to at least marginally improved LOE. With the majority of the financing to come from debt sources – in a period of low interest rates – the weighted cost of capital for this acquisition should be very attractive. Looks like a solid deal.”
Midstates Petroleum Company, Inc. – Corporate Overview
Midstates Petroleum Company, Inc. (NYSE:MPO) is an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources onshore in the U.S.
From the Company’s inception in 1993 through its Initial Public Offering in early 2012, Midstates was focused solely in the Upper Gulf Coast Tertiary trend onshore in Louisiana. On October 1, 2012, Midstates greatly increased its scope and scale with the $650 million acquisition of producing properties and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma from Eagle Energy. On May 31, 2013, Midstates again diversified its portfolio of properties with the $620 million acquisition of producing properties and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma from Panther Energy.
Following that most recent acquisition, proved reserves on a pro-forma basis were estimated at 112 million barrels of oil equivalent (Boe). In early September, Midstates disclosed that its production had grown to approximately 30,000 Boe per day compared with about 10,000 Boe per day in 2012. The Company currently has 10 rigs actively drilling and expects to invest $550 to $575 million in its capital investment program in 2013. Midstates is headquartered in Houston and has a large regional office in Tulsa, Oklahoma.
Midcontinent 2013 Winners
- Drilling Company of the Year - Precision Drilling Corporation
- E&P Company of the Year - Continental Resources
- Engineering Company of the Year - Willbros Group, Inc.
- Environmental Initiative of the Year - Preferred Sands
- Future Industry Leader - Michael Sloan - Canyon Oilfield Services
- General Industry Service Award - Best Well Services, LLC
- Health & Safety Initiative of the Year - Honeywell
- Industry Leader - J. Mike Stice - CEO, Access Midstream
- Industry Supplier of the Year - Light Tower Rentals, Inc.
- Manufacturer of the Year - Emerson Process Managements' Remote Automation Solutions
- Midstream Company of the Year - PVR Partners, L.P.
- Oil & Gas Financial Journal Transaction of the Year - Midstates Petroleum Company, Inc.
- Recruitment Agency of the Year - Progressive GE
- Risk Management Provider of the Year - Arthur J. Gallagher Risk Management Services, Inc.
- Trucking Company of the Year - Hearn Trucking, LLC
- Water Management Company of the Year - Fidelity National Environmental Solutions
- Well Completion Company of the Year - C&J Energy Services