Business Context and Reporting Period
This Form 8-K Current Report was filed by Midstates Petroleum Company, Inc. on November 1, 2017, regarding events occurring on October 27, 2017. The filing details a material definitive agreement concerning the company's senior secured credit facility.
Key Financial Metrics
- Borrowing Base: The agreement reaffirmed the borrowing base under the Senior Secured Credit Agreement (RBL Credit Agreement) at $170,000,000.
- Debt Facility: The agreement relates to the RBL Credit Agreement dated October 21, 2016, with SunTrust Bank, N.A. serving as the administrative agent.
- Other Metrics: The filing text does not provide specific values for revenue, profit, cash flow, margins, or overall liquidity beyond the reaffirmed borrowing base.
Material Changes
- Property Exclusion: Certain oil and gas properties in the Anadarko Basin (Texas and Oklahoma) were excluded from the borrowing base determination.
- Disposition Rights: The agreement permits the disposition of the excluded Anadarko Basin properties under the terms of the RBL Credit Agreement.
- Scheduling: The next scheduled redetermination of the borrowing base is set for on or about April 1, 2018.
Outlook, Risks, and Management Commentary
Management disclosed the agreement via a press release on November 1, 2017. The filing notes that the information provided is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be incorporated by reference into registration statements unless specifically identified. The filing does not contain explicit forward-looking guidance, risk factors, or commentary on unusual items beyond the mechanics of the credit agreement amendment.
Investor Verification Checklist
- Verify the specific list of Anadarko Basin properties excluded from the borrowing base.
- Review the full text of the Borrowing Base Redetermination Agreement (Exhibit 10.1) for covenants and conditions related to the property dispositions.
- Confirm the current outstanding debt balance relative to the $170,000,000 borrowing base to assess available liquidity.
- Monitor the April 1, 2018, borrowing base redetermination for potential changes in credit capacity.