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Based in Houston, Texas, Midstates Petroleum (proposed MPO) scheduled a $408 million IPO with a market capitalization of $1.1 billion at a price range mid-point of $17 for Friday, April 20, 2012. [S-1]

MPO is one of nine IPOs scheduled for the week of April 16th. (Full IPO calendar here.)

Manager, Joint Managers: Goldman; Morgan Stanley; Wells Fargo.

SUMMARY
MPO is an independent exploration and production company focused on the development of oil-prone resources in the Upper Gulf Coast Tertiary trend onshore in central Louisiana.

All of MPO's growth has been driven through the development of its leasehold acreage.

VALUATION & CONCLUSION
Comparing MPO to Laredo Petroleum (NYSE:LPI), LPI looks more attractive, if you want to invest in the E&P section. MPO and LPI have similar valuation ratios but LPI has double the reserves of MPO, according to SEC filings, per dollar of market capitalization.

BUSINESS
MPO is an independent exploration and production company focused on the development of oil-prone resources in the Upper Gulf Coast Tertiary trend onshore in central Louisiana.

All of MPO's growth has been driven through the development of its leasehold acreage.

As of December 31, 2011, MPO's estimated net proved reserves were 26.2 MMBoe (barrels of oil equivalent), of which 75% was oil or NGLs and 43% was proved developed. During the year ended December 31, 2011, MPO properties had aggregate average net daily production of approximately 7,499 Boe/d

As of December 31, 2011, properties consisted of 92 gross active producing wells, 95% of which MPO operates, and in which MPO held an average working interest of 99% across its 77,100 net acre leasehold.

Note: about 25% of MPO's reserves are natural gas. Since December 31, natural gas prices have plummeted to the $2 Mcf range from the $4 Mcf range (Mcf = one thousand cubic feet).

Gas Glut Rejiggers Industry
"On Tuesday, April 10, 2012, natural-gas futures settled at $2.03 per million British thermal units-just a hint above $2, the lowest price since January 2002.

"The shock wave for industry could intensify this summer because the U.S. is running out of room to store the glut of natural gas, which could drive gas prices down to sustained lows not seen in decades."
From the Wall Street Journal, April 10, 2012

RESERVES
MPO believes it has an "estimated" 26.2 Mmboe, page 2 S-1

"BOE stands for Barrels of Oil Equivalents, a metric used by oil production companies and oil transportation companies to measure both the rate of oil production or transportation (IE, in barrel of oil equivalents per day) as well as total proven reserves in the ground.

"MMBOE stands for Million Barrels of Oil Equivalents, IE, one million BOE." Source

26.2 million barrels of energy at $100 per barrel has an estimated value of $2.6 billion. But just this year MPO's capital expenditures budget is $380 million.

GROWTH DRIVERS
MPO intends to drill and develop its current acreage position in the oil-prone portion of the Upper Gulf Coast Tertiary trend to maximize the value of resources potential. MPO also plans to increase its leasehold position.

MPO has identified an estimated 974 gross vertical drilling locations on its current leased acreage position and on acreage currently under option that MPO believes will increase reserves, production and cash flow.

CAPITAL EXPENDITURES
MPO's total 2011 capital expenditures were $264 million and MPO drilled or spud 32 wells. MPO's total 2012 capital expenditure budget is $380 million, 17% of which will be spent developing acreage currently under lease in the expansion areas.

COMPETITION
MPO competes with numerous entities, including major domestic and foreign oil companies, other independent oil and natural gas concerns and individual producers and operators.

USE OF PROCEEDS
MPO expects to receive $283 million from the sale 18 million shares. Shareholders intend to sell 6 million shares. MPO is allocating $67 million to redeem preferred shares, and $216 million to repay debt.

Source: IPO Preview: Midstates Petroleum