TULSA, Okla.–(BUSINESS WIRE)–Midstates Petroleum Company, Inc. (“Midstates” or the “Company”) (NYSE: MPO) today announced that its Board of Directors approved a share repurchase program authorizing the purchase of up to $50 million of the Company’s common stock. The Company may repurchase common stock in a single transaction or from time to time through open market purchases or other transactions, in amounts, at prices, and at such times the Company deems appropriate. The share repurchase program does not obligate the Company to repurchase any specific number of shares, and may be suspended, modified or terminated at any time without prior notice. In addition to this $50 million share repurchase program, the Company’s Board of Directors and Management are continuing to consider additional returns of capital through share tenders or cash dividends.
Midstates had approximately 25.3 million shares of common stock outstanding as of November 30, 2018.
In light of the current commodity price environment and the Company’s near-term focus of returning capital to shareholders, Midstates does not intend to operate a drilling rig during the first half of 2019. The Company will continue to evaluate its future activity levels and capital expenditure program on an ongoing basis.
David Sambrooks, President and Chief Executive Officer, commented, “Consistent with our commitment to return capital to our shareholders, we are pleased that our Board has approved this significant stock repurchase program which equates to over 20% of our current market cap. We remain focused on maximizing shareholder value and being prudent financial stewards. As such, given the current macro-economic conditions and the fact that we have over 90% of our core acreage HBP, we have decided to take a pause on our drilling program as we enter 2019. While we monitor the pricing environment during this pause, we will take this opportunity to further evaluate our new drilling and completions techniques, explore additional ways to reduce costs and continue to generate considerable free cash flow. Our management team and our Board continue to believe in the significant value of our Miss Lime asset and its ability to generate significant returns for our shareholders.”