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Memorial Production Partners LP Message Board

  • busy26795 busy26795 Mar 20, 2013 6:43 AM Flag

    Get in on this secondary MEMP at this price with the distribution rate raise the yield is 11.19% immediately accretive to distributable cas

    Memorial Production to acquire oil and gas properties; Raises distribution rate
    – Mon, Mar 18, 2013 5:04 PM EDT

    Memorial Production Partners LP (MEMP) announced that it has signed a definitive agreement to acquire certain oil and gas producing properties in East Texas and North Louisiana from its sponsor, Memorial Resource Development LLC, for a purchase price of $200M, which includes $4M of net working capital and other customary purchase price adjustments. The transaction will have an effective date of January 1 and is expected to close in March. Terms of the transaction were approved by the Board of Directors of the general partner of MEMP and by the Board's conflicts committee, which is comprised entirely of independent directors. Subject to the closing of this transaction, the Board of Directors of MEMP's general partner approved an increase in the distribution rate to $0.5125 per unit for the first quarter. This distribution rate will represent an annualized amount of $2.05 per unit and a 7.9% increase over the annualized minimum quarterly distribution of $1.90 per unit, as well as a 1.0% increase over the fourth quarter annualized distribution of $2.03 per unit. The acquired properties represent additional working interests in MEMP's existing 697 gross (196 net) wells located in the Carthage, Minden, and Spider fields in Rusk and Panola Counties in East Texas and DeSoto Parish in North Louisiana. MEMP will operate approximately half of the producing wells and 80% of the PDP reserves.

    The transaction is expected to be immediately accretive to distributable cash flow. The company is revising its 2013 EBITDA guidance range to $154M-$158M from previous $120M-$124M. It is also revising its 2013 distributable cash flow guidance range to $98M-$104M from $78M-$82M.

    Sentiment: Strong Buy

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    • I've been all over it! Even got some premarklet @ $18.20 before they announced the price!

      Bought large at $18.60 and $18.53

      Unlike other recent secondaries, the stock has gone into non-flipper hands so you don't xsee the whole offering size being shorted down to the bid or even below the bid with the concession.

      The magic of 11%!

      Merrill had a positive report out on MEMP yesterday. Accretive, good covergae of distribution, long lasting wells.

    • Memorial Production Partners LP to Acquire Oil and Gas Properties, Announces Distribution Increase, Borrowing Base Increase and Updated 2013 Guidance

      Sentiment: Strong Buy

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