The following table reflects the volumes of MEMP's production covered by commodity derivative contracts and the average fixed or floor prices at which production is hedged. Targeted average net production estimate represents the production required to reach the lower boundary of the annual production range in MEMP's 2013 updated full year guidance.
Hedge Summary Table
|Year Ending December 31,|
|Natural Gas Derivative Contracts:|
|Total weighted-average fixed/floor price||$4.55||$4.48||$4.42||$4.51||$4.33||$4.67|
|Percent of target production hedged||92%||87%||77%||71%||65%||61%|
|Crude Oil Derivative Contracts:|
|Total weighted-average fixed/floor price||$103.09||$98.09||$95.65||$93.31||$90.99||$90.66|
|Percent of target production hedged||79%||84%||78%||71%||66%||54%|
|Natural Gas Liquids Derivative Contracts:|
|Total weighted-average fixed/floor price||$41.37||$42.00||–||–||–||–|
|Percent of target production hedged||67%||56%||–||–||–||–|
|Wtd Avg Fixed/Floor Price Per Mcfe||$6.72||$6.73||$6.64||$6.63||$6.44||$6.46|
|Percent of Target Production Hedged||85%||80%||62%||57%||52%||48%|
As of May 1, 2013, MEMP has entered into the following interest rate derivative hedging transactions as it relates to its $118 million debt outstanding under its revolving credit facility which currently has a $505 million borrowing base:
- MEMP has hedged $110 million, or 93%, of its variable rate exposure on its $118.0 million debt outstanding under its revolving credit facility as of May 1, 2013 extending through October 2013 at a weighted average fixed annual LIBOR rate of 1.15%;
- MEMP has hedges of $265 million of variable rate notional amounts from November 2013 through April 2014 at a weighted average fixed annual LIBOR rate of 1.31%;
- MEMP has hedges of $225 million of variable rate notional amounts from May 2014 through October 2014 at a weighted average fixed annual LIBOR rate of 1.34%; and
- MEMP has hedges of $150 million of variable rate notional amounts from November 2014 through December 2016 at a weighted average fixed annual LIBOR rate of 1.19%.
Additional information regarding MEMP's hedging summary can be found on its website, www.memorialpp.com , under the Investor Relations section.Updated 2013 Guidance The updated 2013 guidance included in this press release is subject to the cautionary statements and limitations described under the "Forward-Looking Statements" caption at the end of this press release. MEMP's updated 2013 guidance is based on assumptions of capital expenditure levels, the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products and also reflects the impact of forecasted growth capital spending. A summary of the guidance, assuming no additional acquisitions, is presented below:
|Full Year 2013 Guidance|
|Annual Production (Bcfe)||37 – 39|
|Adjusted EBITDA ($MM) (2)||$154 – $158|
|Distributable Cash Flow ($MM) (2)||$92 – $96|
|DCF Coverage||1.0x – 1.1x|
|Maintenance Capex ($MM)||$37|
|Growth Capex ($MM)||$40 – $50|
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