AMPY - Earnings call transcript Q4 2018

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Operator

Welcome to the Midstates Petroleum Fourth Quarter and Year End 2018. My name is Kanacia, and I will be facilitating the audio portion of today's interactive broadcast. [Operator Instructions] At this time, I would like to turn the show over to Jason McGlynn. Private Investor. This event also features streaming audio which allows you to listen to your show through the PC.

Jason McGlynn

Kanacia. you, Thank and year everyone, Midstates fourth Petroleum's Good XXXX welcome earnings and end conference quarter morning, to call.

will On Joining will remarks. me President call, of Officer. our additional and then David financial on David is an highlights. David our today's I operational on the finally, and our closing call Chief on make today And begin some overview with provide will Sambrooks, details Executive financials.

Also, call contains we uncertainties, Harbor conference Please please Before that financial XX-K filed differ this Form started, are statement. are projected table discussed which statements. GAAP read non-GAAP let and be those call note to on with these earnings in measures the may in will comparable and and statements Safe our in most for directly shortly forward-looking yesterday's the subject get me results, risks. release. materially risks reconciled a assumptions, from Midstates' refer forward-looking measure to defined and SEC any that these the discussion This to actual of

the Now comments. for his to David turn call over I'll

David Sambrooks

morning, our good net for and performed your the well joining We you illustrated in Thank thank of you Jason, Thanks for us today interest XXXX, in very $XX Midstates. for million by and everyone. year. income

producing $XX due increase to our finally pleased capital our allow is has our aligned million. set several amended shareholder reduction debt drilling program reductions. strategy. properties program improving our with the in Miss enhanced key million selectively And flow down assets production in workover overhead Lime $XX workforce One G&A program. the cost at approximately items year optimization cash paid adjusted we company. with $XXX our expense align examples In to return the Midstates year EBITDA laterals. with been substantial one-mile our shareholders. of during delivered but million. generate workover XXXX, throughout first market we $XXX strategy strategy. two approximately the XXXX significant completed optimized efforts XXXX. us forward and million. during year am reduced We pursued our and and by generated with XXXX. reduced We since proceeds the of two-mile capital the Basin value XXXX our as drilled the over executed in we G&A through that our a and Importantly, year, We grew Lime the this with significant aggressively and with economics net late There with of accomplishments at of efforts lateral value. early strategy rationalize XXXX, in work. we completion of per million to All-in, our late driven achieving Midstates during of sale base and to well operating our to have of cash January to $XX our flow of downtime. our $XX We Boe strategic other million approximately margins XXXX half of wells approximately our We've the of Miss efficiencies cut I four since on production improved We portfolio our RBL January only free with in to RBL Anadarko our by net this focus exiting are year. base very opportunities during year and The We

late brought On they online to our two-mile economically front, our XXXX in lateral we wells to the outperform continue evaluate single-mile and continue operational wells.

quarter towards to lateral end in our production As to inventory wells our of XXXX in the we our order we two-mile reformat rig and results drilling development the noted, dropped study previously further third at two-mile from laterals.

drilling SEC free proved value window. the flat All-in, proposition our having with within Utilizing of is demonstrating laterals. program efforts two two-mile over generating summary, PUD in With wells. costs, explore to a on million. In at This or flow, strategy our XXXX our primarily one-mile pricing simplistically $XXX years pause and operational We We generation gas market turn drilling of effort XXXX to Jason continue in maximize will a ended activity account alternatives. at worth maximize both case $XXX we on our to and plan Midstates. to in liquidity million of yearend I'm XX yearend WTI reducing to PUD forward pause and of reduced be financial development of from proud strategic properties XXXX. XXXX through optionality. PUDs of through bookings proved of will full I change cash based our to to one-mile value on with call affected re-formatted our focusing wells $XX million based bookings the Boe financials. five our developed This in delivered our $X plan wells PUD count. replaced reducing our the mid-year $XX run PV-XX drilling. performance Thus a strategy speaking our improving from We two-mile one flow the reserves producing locations to case approximately cash further reserve our three free for year These reduced focused that during reserved SEC to We and PV-XX development our bookings. the

Jason McGlynn

Thanks, David.

of fourth per quarter, income generated $XX.X $X.XX net the million During share. or a we

For share. fourth the came in in the approximately full $XX.X in during from net XXXX year million a EBITDA XXXX, million adjusted the million in $XXX.X with EBITDA adjusted down XXXX. $XX.X Full income compared per of quarter million generated quarter, came at third in $XX.X XXXX. at $XXX.X year million or We $X.XX

in day at decrease the production reported Full of and of XXXX The day. expanded day fourth production Miss production due from we at divested excludes from of quarter-over-quarter of XXXX. line during mix in fourth quarter daily day completion largely was now quarter of Boe The assets the was the our activities second the natural with the XX% XX%, NGLs For program XX,XXX Anadarko our previous XX,XXX complete This per of of from end down third roughly by per per average in quarter year third drilling and the Boe assets. XXXX, to Basin workover X,XXX came production, Boe being during gas, XX,XXX XXXX. quarter Boe and per end quarter the production the XX% Lime quarters. in cessation

taxes decreased include due operating per million costs, XXXX per reduction to Full per down fourth $XX.XX down Turning of Boe expenses. quarter expenses in costs, quarter-over-quarter $XX.X expanded the production $XX.X adjusted LOE to the and G&A but exclude was Boe, million or Boe, severance Fourth $XX.X operating Boe completed as in of expenses a million expenses totaled in and or XXXX. which totaled advisory from our year quarter workover per cash cash cash or quarter The program employee adjusted workover restructuring third or primarily in XXXX. XXXX. earlier from was $XX.XX $XX.XX million $XX.XX $XXX.X

the in to the $X.XX compared XXXX year from per XXXX. in due prior other were the $X.XX million to in the year. $XX.X LOE totaled or for million compared of Boe down workover the or $X.XX per this the $XX.X the Expense increased lease quarter Severance totaled and down per Boe operating prior in May million per or during sale per the came Boe quarter. third XXXX. XXXX or in $X.XX the workover XXXX million per compared and $X.XX $X.XX million to program of $XX.X prior expenses to workover million quarter and a a producing taxes $X.X $XX.X Boe cost decreased expenses quarter properties Boe Boe Lime $X.XX Basin Full from Full expanded workover quarter. or third year year Boe year Boe LOE $X.XX Boe workover the per fourth Our per $X.X per primarily expenses to down combined Full from due or in XXXX. year, per fourth $X.XX the Boe the Anadarko Miss to $X.XX combined in quarter

to number With over As to in and measure million is previously increased $X.X gas totaled rates capitalization severance years properties $X.XX quarters months. Boe Boe fourth-quarter in or of non-cash the from items, any non-recurring cash and G&A signed to tax before respect oil legislation certain to $X.X excludes quarter the which compared adjusted last XXXX. been Oklahoma of and compensation due $X.XX new per prior G&A per noted, the and third of have prior that's or million

in we had fourth of G&A the the million. the or cash $XX.X $XXX.X end For to of million Boe balance per million of Boe full per our decreased at XXXX, the At $X.XX was year of $XXX quarter and from adjusted $X.XX million availability in quarter Liquidity worth $XX.X fourth XXXX, the the million net facility. and end $XX.X consisting $XX.X on debt in million cash XXXX. Onto cash approximately or sheet. RBL $XXX approximately of million million of $XX.X approximately

we a this portion of As noted completed satisfy in utilized cash revolver and availability earlier released repurchase earnings to on our last year. share night, the our hand

closing call With X, turn of our our result, of XXXX to facility, was in comments. back and and million. million net David $XXX cash RBL $X on $XX.X million debt million a March for was on liquidity As over approximately I'll availability consisting $XXX the approximately that

Operator

[Operator Instructions]

David Sambrooks

Jason. Thanks,

offer Our Thus position XXXX in set advantaged and to XXXX, has maximize generation out to commitment cash an delivering free explore in our to and strategic XXXX. have work $XX to shares, successfully far in XXXX we XX% in on puts company's that up million we us us flow alternatives. late a of return in outstanding the executed tender capital repurchasing laid shareholders

on guidance as providing currently and strategic value, greater bottom-line us the still that be we enhance and transactions provide profitability. consideration will financial company retained or a at to we acquisitions our time. plans are significant capital that including all help alternatives this synergies to scale mergers Additionally, strategic create opportunistic and and not in shareholder Since XXXX, for XXXX we're Lokey exploring for operational have Houlihan sale advisors pursue of

better our will be in a you progress, to on position inform capital As XXXX plans. efforts our we

will look further would but opportunity our importantly, I Thank company's most during we like year. develop we forward you. during our their outstanding employees that, efforts With call. Lastly, advising for to And contributions of as our year. take this thank the you to to our to the end success all

Amplify Energy (AMPY) 14 Mar 192018 Q4 Earnings call transcript