Midstates Petroleum amends credit agreement, adds flexibility

By Wendy Van Sickle

Columbus, Ohio, Nov. 21 – Midstates Petroleum Co., Inc. amended its senior secured credit agreement effective Nov. 16 to remove some restrictions on cash payments pertaining to share repurchases and dividends, according to a press release.

The change improves the company’s financial flexibility, Midstates said.

The amendment adds a minimum liquidity requirement of $50 million and states that the company’s total net indebtedness to EBITDA ratio for the most recent four fiscal quarters must not exceed 1.5x in order to make cash distributions to shareholders or to effectuate any share repurchases.

“As we communicated in our third quarter release, given Midstates’ strong financial position and forecasted significant free cash flow generation, we have been evaluating ways to return capital to shareholders through a possible share tender, share repurchase program or cash dividends,” Midstates president and chief executive officer David Sambrooks said in the release.

“To this end, we are very pleased with this amendment to our senior secured credit facility as it is a necessary first step to allow Midstates additional flexibility to return capital to shareholders.”

Midstates Petroleum is a Tulsa, Okla.-based exploration and production company.

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