The price, for properties in Oklahoma and Kansas, includes $325m in cash and 325,000 shares of Series A preferred stock with an initial liquidation preference value of $1,000 per share.
Midstates’ latest acquisition includes 114 gross producing wells that are 85% operated with an average 67% working interest and 53% net revenue interest.
The properties include 37 million barrels of oil equivalent of proved reserves that are 35% oil and 23% natural gas liquids.
In addition, the transaction covers 103,000 net acres, 84,000 of which are in the Mississippian Lime play, with 78,000 in Oklahoma and 6,000 in Kansas, and the remaining 19,000 in the Hunton play in Oklahoma.
The deal expands Midstates’ drilling inventory by 600 gross drilling locations, all of which are horizontal. Midstates will assume Eagle’s hedges on its production.
Midstates president and chief executive John Crum said the transaction is both a strategic and transformative acquisition for the company.
"The properties we are acquiring in the Mississippian Lime play are particularly appealing because they are in a market-recognized, emerging horizontal oil play with good predictability and solid economics.
Crum added that during the transition period, Steve Antry and his Eagle team have agreed to continue their fine work developing these assets.
Eagle CEO Steve Antry said, "We are delighted that Riverstone, our financial sponsor, will maintain a significant investment in Midstates and continue to support the growth of the combined portfolios."
The transaction, which will be effective 1 June 2012, is expected to close on or about 1 October 2012 subject to customary closing conditions.
The firm has entered into a transition services agreement with Eagle management and staff for a twelve-month period following transaction closing.
For this acquisition, Evercore Partners, SunTrust Robinson Humphrey, and BofA Merrill Lynch have served as advisors to Midstates.
