Business Context and Reporting Period
This Form 8-K Current Report was filed by Midstates Petroleum Company, Inc. on March 22, 2013, covering events occurring on March 19, 2013. The filing addresses a material amendment to the company's credit facility and a planned departure of a director from the Board.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, or margin data. The primary financial disclosure relates to the company's debt capacity:
- Borrowing Base Increase: The borrowing base under the Credit Facility was increased from $250 million to $285 million.
- Credit Facility: The amendment was made to the Second Amended and Restated Credit Agreement dated June 8, 2012, with SunTrust Bank, N.A. as the administrative agent.
- Liquidity: The increase in the borrowing base enhances the company's available liquidity under the existing credit terms.
Material Changes
The most significant change reported is the expansion of the company's borrowing capacity by $35 million as part of a regular semi-annual redetermination. Additionally, the filing notes a governance change where Mr. Alex T. Krueger, President of First Reserve Corporation, has notified the company of his intent to resign from the Board of Directors. His resignation is contingent upon the Board identifying and appointing an additional independent director.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard incorporation by reference of the credit agreement amendment. The next regular redetermination of the borrowing base is scheduled for September 1, 2013.
Investor Verification Checklist
- Verify the full terms of the Second Amendment to the Credit Agreement (Exhibit 10.1) for any covenants or interest rate changes not detailed in the summary.
- Confirm the timeline for the appointment of the new independent director to finalize Mr. Krueger's resignation.
- Review the company's most recent 10-Q or 10-K for actual utilization of the increased $285 million borrowing base.