HOUSTON, July 15, 2013 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (Nasdaq:MEMP) announced today that it has signed definitive agreements to acquire certain oil and gas properties in the Permian Basin, East Texas, and the Rockies, from its sponsor, Memorial Resource Development LLC, and affiliates of Natural Gas Partners for an aggregate purchase price of approximately $606 million, subject to customary purchase price adjustments. The transaction will have an effective date of July 1, 2013 and is expected to close in October 2013. 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.
The acquired properties consist of 973 gross (648.6 net) wells on 363,000 gross (136,000 net) acres in Texas, New Mexico, Wyoming and Colorado. MEMP will operate 94% of total proved reserves and 74% of the producing wells. MEMP will acquire approximately 275 Bcfe of proved reserves, which are located approximately 48% in the Permian Basin, 31% in East Texas and 21% in the Rockies. The acquisition will increase MEMP's proved reserves by 36% to over 1.0 Tcfe and average daily production for May by 42% to approximately 152 MMcfe/d.
- Expected to be immediately accretive to distributable cash flow and net asset value
- Properties have a stable, long-lived production profile with a projected average annual PDP decline rate of approximately 10%
- Estimated proved reserves of approximately 275 Bcfe (57% proved developed and 51% liquids)
- Estimated May net production of approximately 45.3 MMcfe/d (63% natural gas and 37% liquids)
- Proved reserve to production ratio of 16.7 years
- 370 low risk, low cost liquids weighted development opportunities
- Assets have high operating margins and moderate capital expenditure requirements
- Significant percentage of acquired production is hedged through 2018 with costless, fixed price swaps and collars
- Revising 2013 EBITDA guidance range to $202 - $206 million from the previously announced $154 - $158 million
- Revising 2013 Distributable Cash Flow guidance range to $129 - $133 million from the previously announced $92 - $96 million
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts