Midstates Petroleum Company, Inc. (NYSE: MPO) today announced its third quarter 2013 financial and operating results.
Third quarter highlights:
- Average daily production rose 45% to 28,464 net barrels of oil equivalent (“Boe”) per day from 19,634 Boe per day in the second quarter of 2013. Third quarter 2013 included a 751 Boe per day imbalance settlement related to prior period Mississippian Lime production.
- Cash operating expenses fell significantly to $16.98 per Boe compared to $21.07 per Boe in the second quarter of 2013.
- Drilling activity reached record levels with 39 wells spud during the quarter and 40 wells brought online. Midstates had 10 rigs active at the end of the quarter.
- Adjusted EBITDA totaled $101.6 million, a record high, up 90% compared to $53.4 million for the second quarter 2013.
- Adjusted Net Income totaled a loss of $0.8 million, or $0.01 loss per share, compared with a net loss of $4.2 million, or $0.06 loss per share, in the second quarter of 2013.
John Crum, Chairman, President and CEO, commented, “Our strong growth in production together with an ongoing focus on controlling operating costs yielded record results for the third quarter. Exceeding $100 million in adjusted EBITDA for the first time was a significant milestone for us and is indicative of the growth we can achieve with our expanded asset base. We have more than doubled our production in the Mississippian Lime properties since their acquisition in October 2012 and are experiencing encouraging results in our new Anadarko Basin assets. We believe our ramped-up drilling program will drive further growth for the balance of 2013 and into next year.”
Financial Discussion(Adjusted EBITDA, Adjusted Net Income and Cash Operating Expenses are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure under “Non-GAAP Financial Measures” in the tables below.) Adjusted EBITDA totaled $101.6 million in the third quarter of 2013, up significantly from $32.7 million in the third quarter of 2012 and $53.4 million (which was reduced by $11.5 million of acquisition and transaction costs) in the second quarter of 2013.