Memorial Production Partners LP Announces Sale of Non-Core Properties in the Permian and Rockies
20 Junio 2016 - 4:15PM
Memorial Production Partners LP (NASDAQ:MEMP) (“MEMP”) announced
today that it closed a transaction to sell certain assets located
in the Permian Basin for cash consideration of approximately $37.4
million, subject to customary post-closing adjustments. In
addition, MEMP also announced today that it entered into a
definitive agreement to sell certain of its non-core Rockies assets
in Colorado and Wyoming for cash consideration of approximately
$19.1 million, subject to customary purchase price
adjustments. The Rockies transaction is expected to close
during the third quarter 2016 with an effective date of April 1,
2016. Proceeds from the transactions will be used to reduce
borrowings under MEMP's revolving credit facility.
“Driving down costs, generating positive free
cash flow and managing MEMP’s balance sheet is our key focus this
year,” said John A. Weinzierl, Chairman and Chief Executive
Officer. “The divestiture of non-core properties in the
Permian and Rockies is in line with our expectations and consistent
with our strategy for 2016. We also expect that the
divestiture will enhance cash flow, improve operating efficiencies
and better focus the partnership on our remaining core areas.”
The Permian Basin properties consisted of 285
gross (238 net) producing wells and produced approximately 1.2
MBoe/d during the first three months of 2016. As of December
31, 2015, these assets contained estimated proved reserves of 3.1
MMBoe, or approximately 1% of the Partnership's total estimated
proved reserves of 1,268 Bcfe.
The Rockies properties consisted of 606 gross
(188 net) producing wells and produced approximately 10.0 MMcfe/d
during the first three months of 2016. As of December 31,
2015, these assets contained estimated proved reserves of 25.5
Bcfe, or approximately 2% of the Partnership's total estimated
proved reserves of 1,268 Bcfe.
About Memorial Production Partners
LP
Memorial Production Partners LP is a publicly
traded partnership engaged in the acquisition, production and
development of oil and natural gas properties in the United
States. MEMP’s properties consist of mature, legacy oil and
natural gas fields. MEMP is headquartered in Houston,
Texas. For more information, visit www.memorialpp.com.
Forward-Looking Statements
This press release includes “forward-looking
statements.” All statements, other than statements of historical
facts, included in this press release that address activities,
events or developments that MEMP expects, believes or anticipates
will or may occur in the future are forward-looking statements.
Terminology such as “will,” “would,” “should,” “could,” “expect,”
“anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,”
“target,” “continue,” “potential,” the negative of such terms or
other comparable terminology are intended to identify
forward-looking statements. These statements include, but are
not limited to, statements about MEMP’s expectations regarding the
transactions described in this press release. These statements are
based on certain assumptions made by MEMP based on its experience
and perception of historical trends, current conditions, expected
future developments, including closing the transaction described in
this press release, and other factors it believes are appropriate
in the circumstances, but such assumptions may prove to be
inaccurate. Such statements are also subject to a number of risks
and uncertainties, many of which are beyond the control of MEMP,
which may cause MEMP’s actual results to differ materially from
those implied or expressed by the forward-looking statements.
These include risks and uncertainties relating to, among other
things, the uncertainty inherent in the development and production
of oil, natural gas and natural gas liquids and in estimating
reserves; drilling activities; volatility in the prices for, oil,
natural gas and natural gas liquids, including a further or
extended decline in commodity prices; potential difficulties in the
marketing of oil, natural gas and natural gas liquids; competition
in the oil and natural gas industry; potential failure or shortages
of, or increased costs for, drilling and production equipment and
supply materials for production; risks related to acquisitions,
including MEMP’s ability to integrate acquired properties; risks
related to MEMP’s ability to generate sufficient cash flow to pay
distributions, to make payments on its notes and to execute its
business plan; MEMP’s ability to access funds on acceptable terms,
if at all, because of the terms and conditions governing MEMP’s
indebtedness or otherwise; and the risk that MEMP’s hedging
strategy may be ineffective or may reduce its income. Please read
MEMP’s filings with the Securities and Exchange Commission,
including “Risk Factors” in MEMP’s Annual Report on Form 10-K, and
if applicable, MEMP’s Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, for a discussion of risks and uncertainties
that could cause actual results to differ from those in such
forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements in this press release are qualified in their entirety by
these cautionary statements. Except as required by law, MEMP
undertakes no obligation and does not intend to update or revise
any forward-looking statements, whether as a result of new
information, future results or otherwise.
Contacts
Memorial Production Partners LP
Bobby Stillwell – Chief Financial Officer
(713) 588-8347
ir@memorialpp.com
Memorial Production Partners LP
Martyn Willsher – Treasurer
(713) 588-8346
ir@memorialpp.com
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