Midstates Petroleum reports loss for quarter

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TULSA (JR) – Midstates Petroleum Co. on Tuesday reported a net loss attributable to common shareholders for the third quarter of $494.5 million, compared with net income of $46.2 million for the third quarter of 2014.

The net loss for the third quarter included a before-tax impairment charge of $486.9 million.

Revenue for the quarter totaled $110.4 million, down from $224.8 million a year earlier. Revenue for the quarter included $50.7 million from oil sales, down from $125.4 million for the third quarter of 2014; $8.5 million from natural gas liquids, down from $23 million; and $17.5 million from natural gas, down from $24.6 million.

“In the third quarter, we benefited from continued improvements in drilling efficiency, operating reliably and at a low cost, and shepherding our liquidity,” said Jake Brace, president and CEO. “This enabled us to continue generating very strong returns in the current low commodity price environment and provides us with more operational flexibility as we move through the rest of 2015 and into 2016.”

Tulsa-based Midstates invested $55 million of operating capital during the third quarter, including $53.2 million in the Mississippian Lime and $1.8 million in the Anadarko Basin.

Production from Mississippian Lime properties averaged 26,358 barrels of oil equivalent per day for the third quarter.

Midstates had three rigs drilling in the Mississippian Lime horizontal well program in Woods and Alfalfa counties for the third quarter. Midstates spud 19 wells, of which eight were producing, eight were awaiting completion and three were drilling at Sept. 30.

Midstates plans to continue to operate a three-rig program in the Mississippian Lime in the near term. Midstates said it does not plan to operate any rigs in the Anadarko Basin area in the near term.

The net loss attributable to common shareholders for the first nine months of 2015 was $1.3 billion, compared with a net loss of $20.5 million for the first nine months of 2014.

Revenue for the first nine months of the year totaled $296.3 million, down from $517.4 million a year earlier.