S&P lifts Midstates view to positive

Standard & Poor's said it revised the outlook on Midstates Petroleum Co. Inc. to positive from stable and affirmed its B corporate credit rating.

The agency also said it placed the senior unsecured ratings on CreditWatch with developing implications, pending the final financing chosen for the acquisition.

Midstates is acquiring about 36.4 million barrels of oil equivalent in the Anadarko Basin from Panther Energy LLC and partners, Red Willow Mid-Continent LLC and LINN Energy Holdings LLC.

The company's business risk will significantly improve upon closing of the transaction, which will meaningfully increase both the scale and geographic diversity of its operations, S&P said.

The acquisition will improve the company's geographic diversity by adding Anadarko Basin assets to the company's existing Wilcox and Mississippian Lime plays, the agency said.

Nevertheless, the company needs to successfully operate the Panther assets, S&P said, as well as continue to successfully increase its existing reserves.

The ratings also consider the company's limited scale of operations, aggressive debt leverage and high capital spending levels, the agency said.

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