Business Context and Reporting Period
This Form 8-K was filed by Midstates Petroleum Company, Inc. on September 26, 2012. The report details a material definitive agreement entered into on the same date regarding the company's credit facility. Note: The request metadata references "Amplify Energy Corp.," but the filing text explicitly identifies the registrant as Midstates Petroleum Company, Inc.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or margin data. The primary financial metric disclosed relates to debt capacity:
- Unsecured Indebtedness Allowance: Increased from $275 million to $600 million.
- Borrowing Base: The increase in unsecured indebtedness allowance occurs without a corresponding reduction in the borrowing base.
Material Changes
On September 26, 2012, Midstates and its wholly owned subsidiary, Midstates Petroleum Company LLC, amended their existing Credit Facility (originally dated June 8, 2012, and previously amended on September 7, 2012). The key change is an increase in the allowance for incurring certain unsecured indebtedness. This allowance was previously raised to $550 million in the First Amendment; the current Amendment raises it further to $600 million.
Outlook, Risks, and Contingencies
Contingency: The amendment to increase the unsecured indebtedness allowance to $600 million is contingent upon the consummation of an acquisition contemplated by an Asset Purchase Agreement with Eagle Energy Production, LLC, and the satisfaction of other customary conditions.
Management Commentary: The filing states that all other terms of the First Amendment remain unaffected. The full text of the Amendment is filed as Exhibit 10.1.
Investor Verification Checklist
- Verify the status of the Asset Purchase Agreement with Eagle Energy Production, LLC to confirm if the $600 million debt allowance increase has been triggered.
- Review Exhibit 10.1 for the complete terms of the Amendment to the Credit Agreement.
- Confirm the current borrowing base limits to understand total leverage capacity alongside the new unsecured debt allowance.
- Clarify the corporate relationship between Midstates Petroleum Company, Inc. and Amplify Energy Corp., as the filing name differs from the request metadata.