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Memorial Production Partners LP Announces Fourth Quarter And Full Year 2013 Results And Updated Commodity Hedge Positions

Stocks in this article: MEMP

HOUSTON, March 5, 2014 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (Nasdaq:MEMP) announced today its operating and financial results for the three and twelve months ended December 31, 2013. In addition, MEMP provided an update of its commodity hedge positions presented in the Hedge Summary Table below.

Key Fourth Quarter and Full Year 2013 Highlights:

  • Average daily production increased 33% to 167.7 MMcfe for the fourth quarter 2013, compared to 125.7 MMcfe for the fourth quarter 2012; and 30% to 154.3 MMcfe for the full year 2013, compared to 118.4 MMcfe in 2012.  
  • Adjusted EBITDA (1) increased 49% to $65.0 million for the fourth quarter 2013, compared to $43.6 million for the fourth quarter 2012; and 24% to $222.2 million for the full year 2013, compared to $179.3 million in 2012.  
  • Fourth quarter 2013 distribution coverage ratio of 1.02x and full year 2013 distribution coverage ratio of 1.03x.  
  • Fourth quarter cash distribution of $0.55 per unit, or $2.20 per unit on an annualized basis, represents a 16% increase over the annualized minimum quarterly distribution of $1.90 per unit.  
  • In the fourth quarter, completed largest acquisition since IPO for $603 million, which provided a strategic entrance into the Permian Basin and the Rockies and added scale in core area of East Texas.  
  • Closed a public offering of 16,675,000 common units at $19.90 per unit in the fourth quarter. MEMP received net proceeds of approximately $319 million, which were used to repay a portion of the outstanding borrowings under its revolving credit facility and for general partnership purposes.  
  • In conjunction with the fourth quarter equity offering, issued $300 million of 7.625% senior unsecured notes; proceeds were used to repay a portion of the outstanding borrowings under MEMP's revolving credit facility and for general partnership purposes.  
  • Amended revolving credit facility and increased master note to $2.0 billion from $1.0 billion and increased borrowing base to $845.0 million from $480.0 million.  
  • Strengthened commodity hedge portfolio, with 92% of current expected natural gas production hedged through year-end 2014 and approximately 83% hedged in 2015 and 2016 (75% hedged through 2019) and 91% of crude oil production hedged through year-end 2014 and approximately 89% hedged in 2015 and 2016 (73% hedged through 2019).

"2013 was a successful year for MEMP. We completed $832 million in acquisitions, which added scale to our current operations and brought us into new basins in the Permian and Rockies. We now operate in five different regions and have an asset portfolio that is more diverse and balanced. In conjunction with these acquisitions, we went to the equity and debt capital markets multiple times to ensure a conservative and flexible capital structure. We also announced two distribution increases throughout the year, resulting in year over year distribution growth of over 8%," said John Weinzierl, Chairman and Chief Executive Officer of Memorial Production Partners GP LLC, the general partner of MEMP. "Operationally, we are focused on the continued successful integration of our acquisitions and financially, we have over $700 million of availability under our revolver. We believe MEMP is well positioned in 2014 to execute its capital program and growth through acquisitions strategy."

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