Midstates Petroleum Company, Inc. (NYSE:MPO) Q3 2018 Earnings Conference Call - Final Transcript
Nov 09, 2018 • 09:00 am ET
Good morning, and welcome to the Midstates Petroleum Third Quarter Earnings Conference Call. My name is Grace, and I will be facilitating the audio portion of today's interactive broadcast. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Jason McGlynn. Sir, the floor is yours.
Good morning, everyone, and welcome to Midstates Petroleum's third quarter 2018 earnings conference call. Joining me on the call today is David Sambrooks, our President and Chief Executive Officer.
On today's call, David will begin with an overview of our operational and financial highlights. I will then provide additional details on our operations and financials. And finally, David will make some closing comments, and we will take your questions.
(Forward-Looking Cautionary Statements)
Also, please note that any non-GAAP financial measures discussed on this call are defined and reconciled to the most directly comparable GAAP measure in the table in yesterday's earnings release.
Now I'll turn the call over to David for his comments.
Thank you for joining us today, and thank you for your interest in Midstates.
We have great third quarter one that demonstrated fulfillment of the strategy we put in place a year ago aimed at focusing activity, reducing costs, generating substantial free cash flow and improving liquidity to create maximum optionality. I'll go into details on the quarter shortly but first some comments on the Board changes that we announced yesterday.
I would like to thank our outgoing Board members Jake Brace, Michael Reddin, and Bruce Vincent. I appreciate the input and guidance provided by Jake, Mike and Bruce and would like to thank them for their contributions.
I would also like to welcome incoming directors Randal Klein, Evan Lederman, and David Proman. The firms these gentlemen represent own 40% of the outstanding shares of Midstates and we look forward to their insights and contributions.
The new Board expects to focus on returning a significant amount of capital to shareholders from forecasted free cash flow generation, will also pursuing strategic and opportunistic mergers and acquisitions. We believe there's a great value in our Miss Lime asset, our strong financial position and our clean balance sheet and we're excited about the future possibilities for Midstates.
Now to the quarter. We performed very well in the third quarter and posted strong results. Importantly, as has been our strategy since late 2017, we generated significant operating cash flow of approximately $10 million during the quarter with adjusted EBITDA of approximately $32 million and our total capital came in at $22 million.
We continue to execute on our market focus strategy laid out late last year, we have enhanced the value of our Miss Lime assets through our substantial workover program, the optimization of our drilling and completion program and improving efficiencies throughout the company.
We closed the sale of our Anadarko Basin producing properties earlier this year with that proceeds of approximately $54 million, while retaining our Northwest STACK position to explode later.
We have pay down $100 million of