Midstates Petroleum Co. (NYSE: MPO) said April 4 it will sell Anadarko Basin properties for $58 million as the Tulsa, Okla.-based company aims to bring down costs.

An undisclosed company agreed to buy the properties located in the Texas panhandle and western Oklahoma. Midstates will retain the Northwest Stack undeveloped acreage in Dewey County, Okla.

“The sale of our Anadarko Basin properties aligns perfectly with our strategy to focus our activity, reduce costs, generate substantial free cash flow and improve liquidity for maximum optionality,” David Sambrooks, president and CEO of Midstates, said in a statement. “We are pleased to monetize these assets and generate significant cash to further strengthen our balance sheet, while retaining the upside optionality of our Northwest Stack position.”

Sambrooks added the company will continue to focus on improving margins and increasing operational efficiencies in its Mississippian Lime assets, in Woods and Alfalfa counties, Okla.

The divested properties produced about 3,900 barrels of oil equivalent per day net in fourth-quarter 2017 and had a proved developed PV-10 value of roughly $53 million at year-end 2017, according to the company release.

Midstates said proceeds from the sale will be used to pay down debt and for general corporate purposes upon closing, which is expected in second-quarter 2018.

In anticipation of the sale of these assets, Midstates completed a reduction-in-force in January to align its staffing levels with current activity, reducing adjusted cash G&A expense by $3 million to $5 million annually.

Midstates set an operational capex of $100 million to $120 million for 2018.

SunTrust Robinson Humphrey was adviser to Midstates on the divestiture. The transaction has an effective date of Jan. 1.