HOUSTON, June 20, 2016 (GLOBE NEWSWIRE) — 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.