While in reported talks for a possible merger with SandRidge Energy in Oklahoma City, Tulsa’s Midstates Energy reported a net loss of $85 million in 2017 and a workforce reduction carried out in January 2018.
The company released its 2017 and fourth quarter 2017 earnings report on Wednesday. The year-end loss was $85.1 million or $3.39 loss per share for the year.
Midstates also revealed it carried out a workforce reduction in January 2018 “to better align our general and administrative expense with our current activity level.” It said the savings would toal $3 million to $5 million.
During the fourth quarter of 2017, the company expanded its number of frac stages on wells from 17 to as many as 25 stages during the completion operations. As a result, the cost per well rose from $2.8 million to $3.3 million.
“Production results from this pilot program are currently being evaluated and the completion design optimization program is expected to continue in 2018,” stated the company in its report.
At the same time, the company went from a two-rig operation to a one-rig program, a move that came after David Sambrooks became President and Chief Executive Officer in November 2017 and ordered a strategic review of all areas of operations.
Midstates also expanded its saltwater disposal injection well operations in 2017, bringing online three more non-Arbuckle wells in Woods and Alfalfa counties. The company added one more Alfalfa County wastewater injection well in February 2018. It now has 11 wells operating in the two counties with a total permitted injection capacity of nearly 240,000 barrels of water a day.
Midstates has engaged SunTrust to explore strategic alternatives for its Anadarko Basin producing properties. The Company will retain the NW STACK undeveloped acreage in Dewey County, Oklahoma.
The Company’s Anadarko Basin assets averaged production of 3,890 BOEPD in the fourth quarter of 2017, of which 35% was oil, 27% NGLs, and 38% natural gas.