Finance & Investing | Fundraising | Capital Markets | Private Equity Activity
Midstates Petroleum Reaffirms Borrowing Base
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Midstates Petroleum Company, Inc. announced that, as a result of its lenders' semiannual review, the borrowing base under its revolving credit facility has been reaffirmed at $525 million, with no reduction upon the anticipated closing in April of the Dequincy property sale. The Company also amended the leverage ratio covenant associated with the borrowing base to expand it to 4.5 times through December 31, 2015. The borrowing base is supported solely by the Company's Midcontinent assets and on December 31, 2014, the Company had $435 million drawn under this facility.
Jake Brace, President and CEO, stated, “This is another positive step and reconfirms the strength of our premier Mississippian Lime position as well as our growth in production and proved reserves. The combination of our strong 2015 hedge position, continued focus on aggressively managing our level of capital expenditures and the proceeds from the pending sale of our Dequincy assets will give us time to thoughtfully proceed with our review of options to further enhance our liquidity and provide financial flexibility.”