Midstates Petroleum Announces Agreement for Sale of Anadarko Basin Producing Properties for $58 Million

TULSA, Okla.–(BUSINESS WIRE)–Midstates Petroleum Company, Inc. (“Midstates” or the “Company”) (NYSE:
MPO) today announced that it has executed a Purchase and Sale Agreement
(“PSA”) with an undisclosed buyer for the sale of its Anadarko Basin
producing properties located in the Texas panhandle and western Oklahoma
for total consideration of $58 million, subject to standard closing and
post-closing adjustments. These divested properties had fourth quarter
2017 net production of approximately 3,900 barrels of oil equivalent
(“Boe”) per day and year-end 2017 proved developed PV-10 at SEC pricing
of approximately $53 million. The transaction price represents a forward
adjusted EBITDA multiple of 4.6x, which is accretive to the Company’s
current adjusted EBITDA multiple of 2.6x.

In anticipation of the sale of these assets, Midstates completed a
reduction-in-force in January 2018 to align our staffing levels with
current activity, reducing adjusted cash G&A expense by $3 – $5 million
annually.

David Sambrooks, President and Chief Executive Officer, commented, “The
sale of our Anadarko Basin properties aligns perfectly with our strategy
to focus our activity, reduce costs, generate substantial free cash flow
and improve liquidity for maximum optionality. We are pleased to
monetize these assets and generate significant cash to further
strengthen our balance sheet, while retaining the upside optionality of
our NW STACK position. As we look to the future, we will continue to
focus on improving margins and increasing operational efficiencies in
our Mississippian Lime assets.”

Upon closing, proceeds from the sale will be used to pay down a portion
of the outstanding borrowings under the Company’s revolving credit
facility and for general corporate purposes. Following the closing of
this sale, Midstates will evaluate a range of options to make best use
of its liquidity and free cash flow, including the possibility of M&A
transactions, stock repurchases, or dividends to stockholders. The
transaction has an effective date of January 1, 2018 and is expected to
close in the second quarter of 2018, subject to customary closing
conditions.

SunTrust Robinson Humphrey acted as advisor to the Company on this
transaction.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements that are not
statements of historical fact, including statements regarding the
Company’s strategy, future operations, financial position, estimated
revenues and losses, projected costs, resource potential, drilling
locations, prospects and plans and objectives of management, are
considered forward-looking statements. Without limiting the generality
of the foregoing, these statements are based on certain assumptions made
by the Company based on management's experience, expectations and
perception of historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. Although the
Company believes that its plans, intentions and expectations reflected
in or suggested by the forward-looking statements made in this press
release are reasonable, the Company gives no assurance that these plans,
intentions or expectations will be achieved when anticipated or at all.
Moreover, such statements are subject to a number of factors, many of
which are beyond the control of the Company, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These factors include, but are not limited
to variations in the market demand for, and prices of, oil and natural
gas; uncertainties about the Company’s estimated quantities of oil and
natural gas reserves, resource potential and drilling locations; the
adequacy of the Company’s capital resources and liquidity; general
economic and business conditions; weather-related downtime; failure to
realize expected value creation from property acquisitions;
uncertainties about the Company’s ability to replace reserves and
economically develop its current reserves; risks related to the
concentration of the Company’s operations; drilling results; and
potential financial losses or earnings reductions from the Company’s
commodity derivative positions.

Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.

About Midstates Petroleum Company, Inc.

Midstates Petroleum Company, Inc. is an independent exploration and
production company focused on the application of modern drilling and
completion techniques in oil and liquids-rich basins in the onshore U.S.
The Company’s operations are currently focused on the oilfield in the
Mississippian Lime play in Oklahoma.

Contacts

Midstates Petroleum Company, Inc.
Jason McGlynn, 918-947-4614
[email protected]