Midstates Petroleum based in Tulsa reported its second quarter operations saw an increase in oil production but also a $1.5 million net loss or 6 cents a share.
Net income a year earlier totaled $13.7 million or 53 cents a share. The net loss for the second quarter compared to the $4 million in net income in the first quarter of 2018.
Midstates’ adjusted earnings before interest, taxes, depreciation and amortization was $27 million, down from the $29.1 million for the same quarter in 2017 and the $29.7 million reported in the first quarter of this year.
Still, David Sambrooks, President and CEO was pleased with the company accomplishments so far this year.
“We have closed the sale of our non-core Anadarko asset, paid down a considerable portion of our outstanding debt, grown our Mississippian Lime production and lowered lease operating expenses.”
The firm’s Mississippian Lime production grew by 11% in the second quarter and the company is predicting expense reductions in the second half of 2018. Mississippian Lime production grew to 17,202 BOEPD in the second quarter.
“Additionally, we brought online Midstates’ first 2-two-mile lateral wells during the quarter,” added Sambrooks. “Operational results were excellent with an average drill and complete cost for the 2 wells of only $1.8 million per one mile lateral.”
He said it was a nearly 455 savings in per mile costs.
The quarter also saw the company close its strategic sale of its Anadarko Basin producing properties in the Texas Panhandle and western Oklahoma for $58 million. Net proceeds totaled about $54 million.
The company used the proceeds to pay down $50 million in outstanding borrowings under the company’s revolving credit facility.
More details can be found here.