What Does The Update From Midstates Petroleum Company Inc (NYSE:MPO) Say?
Midstates Petroleum Company Inc (NYSE:MPO) has issued an update about its fourth quarter operations as well as a preliminary production and capital expenditure guidance for the fiscal year 2013.
Fourth Quarter Outlook
Midstates updated that in the last quarter of fiscal year 2013, it had five rigs active and working in its Mississippian Lime drilling program, under which nearly 21 gross horizontal wells were bored during the time and five among which were drilling by the end of the year. In addition, the company also had active five rigs in Anadarko basin, which have spud 15 gross horizontal wells and five among which too were drilling at the closing of the year. Midstates reported that it did not undertake the drilling of fresh boreholes in the coastal belt of Gulf region for the period of the last three months, but has successfully completed two existing wells.
Overall the company’s production jumped to 9%, that is, 31,100 barrels (Boe) for a single day in the fourth quarter, against 28,464 barrels a day during the previous quarter. The company said that the extreme cold weather in the Mid-continent region has impacted its production over there, which came down by 250 Boe a day there.
Midstates anticipates quarter four adjusted earnings before other charges to be in between $115 to $120 million.
Financial Year 2013 Guidance
Based on the estimates of preliminary capital budget, Midstates anticipates its production to be in between 33,000-36,000 Barrels of oil equivalent per day for the full year 2013, while it estimates the 2014 capital budget to be around $500-$550 million.Among this, it projects 55-60% to be contributed by Mississippian Lime program, Anadarko Basin program contribution to be25-30% and the rest from its Gulf Coast region. The company sees the production in the first three of the fiscal year 2014 to continue to be impacted due to harsh weather conditions.
Midstates will announce its fourth quarter results on March 4th,2014.