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
TC Energy’s Keystone Back Online After Temporary Service Halt
2024-03-10 - As Canada’s pipeline network runs full, producers are anxious for the Trans Mountain Expansion to come online.
TC Energy's Keystone Oil Pipeline Offline Due to Operational Issues, Sources Say
2024-03-07 - TC Energy's Keystone oil pipeline is offline due to operational issues, cutting off a major conduit of Canadian oil to the U.S.
Early Startup of Trans Mountain Pipeline Expansion Surprises Analysts
2024-04-04 - Analysts had expected the Trans Mountain Pipeline expansion to commence operations in June but the company said the system will begin shipping crude on May 1.
Enterprise Gains Deepwater Port License for SPOT Offshore Texas
2024-04-09 - Enterprise Products Partners’ Sea Port Oil Terminal is located approximately 30 nautical miles off Brazoria County, Texas, in 115 ft of water and is capable of loading 2 MMbbl/d of crude oil.
Enbridge Announces $500MM Investment in Gulf Coast Facilities
2024-03-06 - Enbridge’s 2024 budget will go primarily towards crude export and storage, advancing plans that see continued growth in power generated by natural gas.