oreide Law Investigating Midstates Petroleum Company
Soreide Law Group is investigating claims on behalf of investors who purchased Midstates Petroleum Company, Inc. (NYSE: MPO) from their broker. Primarily, Midstates Petroleum Company, Inc. is an independent production and exploration company which focuses on applying modern drilling techniques in liquids-rich and oil basis in the United States onshore area.
MPO’s Stock Price Plummets 66% From 52-Week High
Apparently, as of November 30, 2018, Midstates had roughly 25,300,000 shares of common stock outstanding. MPO closed at $6.82 a share on December 17, 2018. Significantly, this price is merely $0.60 above the 52 week low for MPO, and a staggering $12.22 drop from its 52 week high. Notably, as of December 17, 2018, MPO dropped in value by 66% from its 52 week high. Apparently, MPO is yet another energy company who incurred serious decline in value from volatility in the energy sector.
Midstates Petroleum Company Files Bankruptcy In 2016
Evidently, Midstates started issuing common stock on October 24, 2016 after it emerged from Chapter 11 bankruptcy protection. Specifically, on April 30, 2016, the company filed for bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, citing financial difficulty due to low oil prices. Notably, the company stated in its bankruptcy filings that it had in excess of $2,000,000,000.00 in debts and about $679,170,000.00 in assets. Evidently, the company aimed to restructure its balance sheet to mitigate the limitations on its ability to continue operations.
Lately, Midstates’ Board of Directors authorized a share repurchase program. Apparently, the company is attempting to buy back as much as $50,000,000.00 in common stock issued to shareholders. Evidently, the Company made the move to repay shareholders’ capital. As a reuslt, Midstates reportedly will not be drilling a rig in the first or second quarter of 2019.
Investors May Have Been Sold Unsuitable Oil And Gas Investments
Investors who purchased Midstates bonds or stocks from their broker may have sustained significant losses. Indeed, those losses, on occasion, can be attributed to the brokers and their firms selling investments that were not suitable for investors. Moreover, volatility in the oil and gas markets has alerted investors to their brokers’ negligence. Sometimes, these brokers over-concentrate investors’ assets in oil and gas, not considering the risk that the investor is comfortable taking.
Soreide Law Group is currently reviewing the potential liability of brokers and
their firms who have inappropriately sold MPO or bonds issued by Midstates Petroleum Company Inc. If you incurred losses by investing in MPO, contact Soreide Law Group at (888) 760-6552 to discuss your case with our qualified counsel. Soreide Law Group represents clients nationwide and only charges a fee upon making a recovery of losses.