Business Context and Reporting Period
This Form 8-K is a current report filed by Midstates Petroleum Company, Inc. (not Amplify Energy Corp.) on January 26, 2018, covering events occurring on January 23, 2018. The filing addresses the departure of a senior executive and the execution of a related separation agreement.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on personnel changes and contractual obligations rather than periodic financial performance.
Material Changes
- Executive Departure: Mitchell G. Elkins, Executive Vice President - Operations, ceased employment effective January 23, 2018.
- Separation Agreement: A Separation Agreement dated January 24, 2018, was entered into with Mr. Elkins.
- Compensation Terms: The agreement stipulates:
- A lump sum payment for accrued obligations.
- Payment of any accrued incentives.
- A lump sum payment equal to the sum of his base salary and target bonus.
- Monthly cash payments for 12 months covering the cost of continued medical, dental, and vision coverage.
- Legal Provisions: The agreement includes confidentiality, non-disparagement, and waiver/release clauses.
Guidance, Outlook, and Risks
The filing contains no guidance, outlook, or management commentary regarding future financial performance. The primary risk disclosed is the loss of a senior operations executive, though the separation terms are structured to provide a defined transition period for benefits.
Investor Verification Checklist
- Verify the exact terms of the Separation Agreement in Exhibit 10.1 attached to the filing.
- Confirm the total estimated cash outflow for the lump sum payments and 12-month benefit continuation.
- Assess the impact of the Executive Vice President - Operations departure on ongoing operational stability.
- Note that the registrant is Midstates Petroleum Company, Inc., not Amplify Energy Corp.