This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Memorial Production Partners LP To Acquire Oil And Gas Properties And Announces Increased Borrowing Base Of $380 Million

HOUSTON, Sept. 18, 2012 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (Nasdaq:MEMP) announced today that it has signed a definitive agreement to acquire certain oil and natural gas properties in East Texas from Goodrich Petroleum Corporation, for a purchase price of $95 million, subject to customary purchase price adjustments. The transaction is expected to close on or about September 28, 2012, subject to customary approvals and closing conditions, and will be financed with borrowings under MEMP's existing credit facility. The effective date for this transaction is July 1, 2012. These properties are located in the South Henderson field of Rusk County, Texas.

The acquisition is expected to be immediately accretive to both distributable cash flow per unit and net asset value per unit while improving MEMP's operating margin. Management will evaluate the impact of the acquisition on current distribution levels as it integrates these acquired assets. Additionally, MEMP will provide updated 2012 production and financial guidance in conjunction with the closing of the transaction. 

"This is our fourth transaction since our IPO, which demonstrates our commitment to grow MEMP through strategic acquisitions and provides MEMP with predictable, low operating cost and long-lived production," said John A. Weinzierl, Chairman, President and Chief Executive Officer of the general partner of MEMP.  "We also appreciate the ongoing support and contributions to our growth from our banks since our formation," Weinzierl added.

Operational highlights of the transaction:

  • Estimated net proved reserves of approximately 139 Bcfe
  • 22% proved developed reserves
  • Proved reserve to production ratio of approximately 30 years
  • Current net production of approximately 12.6 MMcfe per day, of this amount, approximately 62% is natural gas and 38% is oil and natural gas liquids
  • Producing wells: 42 gross (40 net), average working interest of 96%, which will be 95% operated by MEMP
  • Approximately 8,450 gross acres (7,120 net), all of which is held by production
  • 25 gross (19 net) current proved undeveloped horizontal drilling locations in the Cotton Valley formation

Financial highlights of the transaction:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,944.25 -191.47 -1.06%
S&P 500 2,080.88 -20.16 -0.96%
NASDAQ 4,945.31 -37.4990 -0.75%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs