Memorial Production Partners LP Announces Second Quarter 2012 Results, Updated Commodity Hedge Positions And Updated 2012 Guidance
Hedge Summary Table
| July 2012 - | Year Ending December 31, | Jan 2017 - | ||||
| Dec-12 | 2013 | 2014 | 2015 | 2016 | Sep 2017 | |
| Natural Gas Derivative Contracts: | ||||||
| Swap contracts: | ||||||
| Volume (MMBtu/d) | 22,229 | 36,499 | 40,221 | 36,420 | 33,550 | 30,992 |
| Weighted-average fixed price | $4.50 | $4.45 | $4.43 | $4.35 | $4.56 | $4.33 |
| Collar contracts: | ||||||
| Volume (MMBtu/d) | 18,913 | 6,674 | - | - | - | - |
| Weighted-average ceiling price | $5.87 | $5.80 | - | - | - | - |
| Weighted-average floor price | $4.83 | $5.07 | - | - | - | - |
| Put options: | ||||||
| Volume (MMBtu/d) | 2,283 | - | - | - | - | - |
| Weighted-average floor price | $4.80 | - | - | - | - | - |
| Total natural gas volumes hedged (MMBtu/d) | 43,425 | 43,173 | 40,221 | 36,420 | 33,550 | 30,992 |
| Total weighted-average fixed/floor price | $4.66 | $4.54 | $4.43 | $4.35 | $4.56 | $4.33 |
| Percent of target production hedged | 87.6% | 87.0% | 81.1% | 73.4% | 67.8% | 62.5% |
| Crude Oil Derivative Contracts: | ||||||
| Swap contracts: | ||||||
| Volume (Bbl/d) | 155 | 152 | 176 | 264 | 246 | 247 |
| Weighted-average fixed price | $98.63 | $99.53 | $89.99 | $90.93 | $91.03 | $87.75 |
| Collar contracts: | ||||||
| Volume (Bbl/d) | 147 | 156 | 105 | - | - | - |
| Weighted-average ceiling price | $115.12 | $116.94 | $117.72 | - | - | - |
| Weighted-average floor price | $86.67 | $87.16 | $90.00 | - | - | - |
| Total crude oil volumes hedged (Bbl/d) | 302 | 308 | 281 | 264 | 246 | 247 |
| Total weighted-average fixed/floor price | $92.81 | $93.26 | $89.99 | $90.93 | $91.03 | $87.75 |
| Percent of target production hedged | 81.8% | 83.6% | 76.2% | 71.6% | 67.0% | 67.0% |
| Natural Gas Liquids Derivative Contracts: | ||||||
| Swap contracts: | ||||||
| Volume (Bbl/d) | 356 | 477 | - | - | - | - |
| Weighted-average fixed price | $44.93 | $52.94 | - | - | - | - |
| Collar contracts: | ||||||
| Volume (Bbl/d) | 124 | - | - | - | - | - |
| Weighted-average ceiling price | $93.57 | - | - | - | - | - |
| Weighted-average floor price | $75.16 | - | - | - | - | - |
| Total NGL volumes hedged (Bbl/d) | 480 | 477 | - | - | - | - |
| Total weighted-average fixed/floor price | $52.73 | $52.94 | - | - | - | - |
| Percent of target production hedged | 56.1% | 55.7% | 0.0% | 0.0% | 0.0% | 0.0% |
As of July 1, 2012, MEMP has entered into the following interest rate derivative hedging transactions:
- MEMP has hedged $150.0 million or 75% of its variable rate exposure on its $199 million debt outstanding as of August 1, 2012 over a 5-year term ending December 14, 2016 at a weighted average fixed annual LIBOR rate of 1.12%.
Additional information regarding MEMP's hedging summary can be found on its website, www.memorialpp.com , under the Investor Relations section.
Updated 2012 Guidance
The following guidance is subject to the cautionary statements and limitations described under the "Forward-Looking Statements" caption at the end of this press release. MEMP's 2012 guidance has been updated to reflect actual changes in commodity prices and the impact of growth capital spending and takes into account the impact of the oil and gas producing properties acquired in the second quarter, including those considered transactions between entities under common control. A summary of the guidance, assuming no additional acquisitions, is presented below:| Full Year 2012 Guidance | |
| Annual Production (Bcfe) | 20 - 21 |
| Adjusted EBITDA ($MM) | $69 - $71 |
| Distributable Cash Flow ($MM) | $52 - $54 |
| DCF Coverage | 1.2x - 1.3x |
| Maintenance Capex ($MM) | $11.8 |
| Growth Capex ($MM) | $6 - $9 |
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