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Memorial Production Partners LP Announces First Quarter 2013 Results, Updated Commodity Hedge Positions And Updated 2013 Guidance

Stocks in this article: MEMP

HOUSTON, May 8, 2013 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (Nasdaq:MEMP) announced today its operating and financial results for the three months ended March 31, 2013. In addition, MEMP provided an update of its commodity hedge positions presented in the Hedge Summary Table below along with updated 2013 guidance.

Key First Quarter 2013 Highlights:

  • Average daily production increased 13% to 92.9 MMcfe for the first quarter 2013, compared to 82.4 MMcfe for the first quarter 2012 (1).  
  • Adjusted EBITDA (2) was $30.0 million for the first quarter 2013, compared to $31.9 million for the first quarter 2012.  
  • First quarter cash distribution of $0.5125 per unit, or $2.05 per unit on an annualized basis, represents a 7.9% increase over the annualized minimum quarterly distribution of $1.90 per unit, providing a distribution coverage ratio of 0.82x.  
  • Completed sixth acquisition since IPO for $200 million, which added approximately 162 Bcfe of net proved reserves.  
  • Closed a public offering of 9,975,000 common units at $18.35 per unit for net proceeds of approximately $172.6 million.  
  • Increased borrowing base to $580.0 million from $460.0 million under its $1.0 billion revolving credit facility. Upon MEMP's issuance of $300 million of senior unsecured notes in April, the borrowing base was automatically decreased to $505.0 million.  
  • Strengthened commodity hedge portfolio, with 92% of current expected natural gas production hedged through year-end 2013 and approximately 82% hedged in 2014 and 2015 (75% hedged through 2018) and 79% of crude oil production hedged through year-end 2013 and approximately 81% hedged in 2014 and 2015 (72% hedged through 2018).

"We had an active quarter although our results were impacted by the previously announced temporary downtime on our California assets for maintenance and inspection services. Given our high quality assets, we expect to steadily increase our distribution coverage throughout the year," said John Weinzierl, Chairman, President and Chief Executive Officer of Memorial Production Partners GP LLC, the general partner of MEMP. "We completed a $200 million drop down acquisition from our sponsor, Memorial Resource Development LLC, raised approximately $173 million in net proceeds from an equity offering and announced our fourth distribution increase since our IPO in December 2011. In April, we completed our first bond offering, with $300 million in senior unsecured notes issued through a private placement. As a result of these capital market transactions, we have significantly strengthened our balance sheet. As we look forward to the rest of the year, we are very excited about both the potential to continue to make accretive acquisitions as well as our ability to deliver strong results operationally and ultimately deliver superior returns to our unitholders," Weinzierl added.

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