Midstates Petroleum Co. Inc. (NYSE: MPO) raised doubts about its ability to remain as a going concern and said it may need to seek Chapter 11 bankruptcy protection.
"We have substantial debt obligations and may not be able to maintain adequate liquidity throughout 2016," Midstates Petroleum said March 30.
A more than 70% fall in oil prices since mid-June has dwindled the oil market and pushed many oil and gas producers to file for bankruptcy.
About 40 oil and gas producers across the globe have filed for bankruptcy since oil prices began to decline in late 2014, and up to a third of all energy companies may fail unless prices recover, consulting firm Deloitte said last month.
Midstates Petroleum said on March 30 it had engaged financial and legal advisers to analyze strategic alternatives to address its liquidity and capital structure.
"The company believes a filing under Chapter 11 of the U.S. Bankruptcy Code may provide the most expeditious manner in which to effect a capital structure solution," the company said.
Oklahoma-based Midstates had total debt of about $1.8 billion as of Feb. 26, excluding outstanding borrowings under its credit facility.
The company had cash and cash equivalents of about $81 million as of Dec. 31.
Recommended Reading
The Jones Act: An Old Law on a Voyage to Nowhere
2024-04-12 - Keeping up with the Jones Act is a burden for the energy industry, but efforts to repeal the 104-year-old law may be dead in the water.
US Orders Most Companies to Wind Down Operations in Venezuela by May
2024-04-17 - The U.S. Office of Foreign Assets Control issued a new license related to Venezuela that gives companies until the end of May to wind down operations following a lack of progress on national elections.
Vietnam Seeks Delicate Balance Among US, China, Russia
2024-02-08 - Ongoing U.S. tensions with China and Russia offer Vietnam an opportunity to boost economic ties with the former if American investors can steer past geopolitical smokescreens and destine funds for infrastructure, power and LNG projects all somewhat tied to Vietnam’s manufacturing sector.
Kinder Morgan Exec: Building Pipelines ‘Challenging, but Manageable’
2024-04-05 - Allen Fore, vice president of public affairs for Kinder Morgan, said building anything, from a new road to an ice cream shop, can be tough but dealing with stakeholders up front can move projects along.
FERC Again Approves TC Energy Pipeline Expansion in Northwest US
2024-04-19 - The Federal Energy Regulatory Commission shot down opposition by environmental groups and states to stay TC Energy’s $75 million project.