Business Context and Reporting Period
This Form 8-K is filed by Midstates Petroleum Company, Inc. (not Amplify Energy Corp.) on March 29, 2018. The report discloses the entry into a material definitive agreement regarding the sale of specific assets.
Key Financial Metrics
The filing does not provide standard financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. The only specific financial figure disclosed is the transaction value:
- Contract Price: $58.0 million (subject to customary closing adjustments).
Material Changes
The material change reported is the execution of a Purchase and Sale Agreement (PSA) on March 29, 2018. Midstates Petroleum Company LLC (a wholly owned subsidiary) agreed to sell substantially all of its wells and related leases in the Anadarko Basin (Texas and Oklahoma) to an undisclosed buyer. This transaction is referred to as the "Anadarko Divestiture."
Outlook, Risks, and Contingencies
- Closing Timeline: Expected to close on or before May 30, 2018, with an effective date of January 1, 2018.
- Conditions Precedent: Closing is subject to the satisfaction or waiver of specified conditions, including the material accuracy of representations and warranties.
- Termination Risks: The agreement may be terminated if closing does not occur by June 28, 2018, or due to material breaches, title defects, environmental issues, or casualty defects.
- Uncertainty: The filing explicitly states there can be no assurance that closing conditions will be satisfied.
Investor Verification Checklist
- Verify the identity of the undisclosed buyer.
- Confirm the final closing date and whether the May 30, 2018 deadline is met.
- Review the final purchase price after customary closing adjustments.
- Check the subsequent Form 10-Q for the three months ending March 31, 2018, for the full text of the PSA.
- Monitor for any announcements regarding the failure to satisfy closing conditions or termination of the agreement.