Business Context and Reporting Period
This Form 8-K was filed by Midstates Petroleum Company, Inc. on October 2, 2014, reporting events occurring on September 30, 2014. The filing addresses a material definitive agreement regarding the company's credit facility.
Key Financial Metrics
- Borrowing Base: Increased from $475 million to $525 million.
- Debt Capacity: The increase reflects a semi-annual redetermination of the borrowing base under the Second Amended and Restated Credit Facility.
- Liquidity: The amendment enhances available liquidity by expanding the borrowing base by $50 million.
Material Changes
The primary material change is the execution of an Assignment and Borrowing Base Increase Agreement. This amendment raised the borrowing base limit by approximately 10.5% ($50 million) compared to the previous limit of $475 million. The filing text does not provide specific revenue, profit, or cash flow figures for the period.
Outlook and Management Commentary
The borrowing base increase was part of the regular semi-annual redetermination process. The next scheduled regular redetermination is set for April 1, 2015. The filing does not contain specific forward-looking guidance, risk factors, or management commentary beyond the description of the credit facility amendment.
Investor Verification Checklist
- Verify the full terms of the Assignment and Borrowing Base Increase Agreement in Exhibit 10.1.
- Confirm the current utilization of the credit facility to assess actual available liquidity.
- Review the criteria used for the borrowing base redetermination to understand the valuation of underlying assets.
- Monitor the next scheduled redetermination date of April 1, 2015.