Memorial Production Partners LP
August 3, 2016

Memorial Production Partners LP Announces Second Quarter 2016 Results, Updated Hedges and Updated 2016 Guidance

HOUSTON, Aug. 03, 2016 (GLOBE NEWSWIRE) -- Memorial Production Partners LP (NASDAQ:MEMP) announced today its operating and financial results for the three months ended June 30, 2016.  In addition, MEMP provided an update of its commodity hedge positions along with updated 2016 guidance.

Key Highlights

"We are pleased to have delivered a strong operational quarter while also making material progress in meeting our goals of reducing MEMP's outstanding debt and generating free cash," said John Weinzierl, Chairman and Chief Executive Officer of MEMP GP.  "Our focus on operational efficiencies was reflected in a 30% year-over-year reduction in operating costs as measured by LOE/Mcfe, which is also reflected in MEMP's updated guidance for full year 2016.  Further, MEMP used free cash generated from operations and proceeds from its recently completed Permian and non-core Rockies divestitures to repurchase $84 million of its senior notes and to reduce its revolver balance by $113 million from year-end."

Review of Second Quarter 2016

     
  Q2 2016Q1 2016% Increase/(Decrease)
Oil (per Bbl) $38.73 $27.89  39 
Natural gas (per Mcf)  1.94  2.01  (3)
NGL (per Bbl)  13.45  10.94  23 
Total (per Mcfe) $ 3.22 $2.74  18 
     

Divestitures Update

MEMP recently closed non-core divestitures in the Permian and Rockies for aggregate proceeds of approximately $55.3 million, subject to customary post-closing adjustments.  Total proved reserves as of December 31, 2015 associated with these divestitures was 44.1 Bcfe (47% oil, 48% natural gas and 5% NGLs) and average net daily production was 17.9 MMcfe/d for the first three months of 2016.  Proceeds from these transactions were used to pay down a portion of the amount outstanding under MEMP's revolving credit facility. 

The Permian divestiture, which represented a complete exit of the basin for MEMP, closed on June 14, 2016 for approximately $37.2 million, subject to customary post-closing adjustments, and included assets with total proved reserves of 18.6 Bcfe (99% oil, 1% gas) and average net daily production of 7.3 MMcfe/d.  The Rockies divestitures closed in July 2016 for approximately $18.1 million, subject to customary post-closing adjustments, and included assets in Wyoming and Colorado with total proved reserves of 25.5 Bcfe (9% oil, 82% natural gas and 9% NGLs) and average net daily production of 10.6 MMcfe/d.

Hedging Update

Consistent with its hedging policy, MEMP has entered into natural gas, crude oil and NGL derivatives contracts covering the period from 2016 through December 2019.  MEMP's hedging policy is designed to reduce the impact to cash flows from commodity price and interest rate volatility. 

The following table reflects the volumes of MEMP's expected production covered by commodity derivative contracts and the average fixed or floor prices at which that production is hedged.  Targeted average net production estimate represents the mid-point of the annual production range in MEMP's updated 2016 full year guidance.

 
Hedge Summary (1)
    Year Ending December 31,
    2016 (2) 2017  2018  2019 
        
Natural Gas Derivative Contracts:    
Total weighted-average fixed/floor price$4.14 $4.06 $4.18 $4.31 
Percent of expected 2016 production hedged 99% 93% 85% 78%
        
Crude Oil Derivative Contracts(3):    
Total weighted-average fixed/floor price$65.85 $85.00 $83.74 $85.52 
Percent of expected 2016 production hedged 77% 96% 99% 51%
        
Natural Gas Liquids Derivative Contracts:   
Total weighted-average fixed/floor price$34.01 $37.55     
Percent of expected 2016 production hedged 97% 22%    
        
Total Derivative Contracts:     
Total weighted-average fixed/floor price$6.04 $7.54 $7.89 $6.84 
Percent of expected 2016 production hedged 92% 81% 74% 57%
(1) Updated hedge schedule as of August 3, 2016    
(2) Represents July to December 2016    
(3) 2016 price and volumes include $40 crude oil puts purchased on 60,000 bbls/month  with deferred premiums averaging $0.86 / bbl 
 

Since the last hedging update on May 5, 2016, MEMP has liquidated certain crude oil and NGL hedges for the period July 2016 — December 2016 and utilized the proceeds to buy back senior notes.  Subsequent to these transactions, MEMP partially re-hedged the oil volumes with swaps and puts for the period July 2016 — December 2016.  The swap contracts were executed at strip pricing and cover approximately 2,000 Bbls/d.  The put contracts are at a floor price of $40.00 and also cover approximately 2,000 Bbls/d. In addition, basis hedges related to the divested properties in 2016 and 2017 have been terminated and settled. 

Financial Update

As of July 29, 2016, MEMP had total debt of $1.8 billion, which included $1.1 billion of senior notes and $723 million under its revolving credit facility.  The borrowing base on the revolving credit facility is $925 million with available borrowing capacity of $200 million (including $2.1 million in letters of credit).

During the second quarter, MEMP retired approximately $84.2 million in aggregate principal amount of senior notes for total consideration of $41.5 million, which included $1.0 million of accrued interest, at a repurchase price of approximately 48% of par value.  This was partially funded by $1.6 million from sales of common units under MEMP's at-the-market program.  The balance of $39.8 million in senior notes repurchases was funded through the monetization of 2016 oil and NGL hedges.

MEMP's total debt outstanding as of each of the respective dates are as follows:  

       
(Amounts in $000s) 12/31/2015 6/30/2016 7/29/2016
       
Credit Facility due 2018 $  836,000  $  739,358  $  723,000 
7.625% Senior Notes due 2021    700,000     647,787     647,787 
6.875% Senior Notes due 2022    496,990     464,965      464,965 
Total Debt Outstanding $  2,032,990  $  1,852,110  $  1,835,752 
             

As of June 30, 2016, MEMP was in compliance with the financial covenants under its revolving credit facility.  These covenants include a first lien coverage test of 3.25x, an interest coverage ratio of 2.5x and a current ratio of 1.0x. 

Updated 2016 Guidance (1)

The updated 2016 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 2016 guidance is based on its current expectations regarding capital expenditure levels and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. It reflects the impact of forecasted capital spending as well as the impact of the oil and natural gas producing properties divested through today.  A summary of the guidance, assuming no additional divestitures or acquisitions, is presented below:

  
 2016 FY Guidance
 August 3, 2016
 Low High
    
Net Average Daily Production   
Oil (MBbls/d) 10.1 - 10.9 
NGL (MBbls/d) 6.4 - 6.9 
Natural Gas (MMcf/d) 116 - 124 
Total (MMcfe/d) 215 - 230 
    
Commodity Price Differential / Realizations (Unhedged)   
Crude Oil Differential ($ / Bbl)$6.00 -$6.75 
NGL Realized Price (% of WTI NYMEX) 32%- 36%
Natural Gas Realized Price (% of NYMEX to Henry Hub) 96%- 100%
    
Gathering, Processing and Transportation Costs   
Crude Oil ($ / Bbl)$0.20 -$0.25 
NGL ($ / Bbl)$3.05 -$3.20 
Natural Gas ($ / Mcf)$0.50 -$0.60 
    
Average Costs   
Lease Operating ($ / Mcfe)$1.55 -$1.65 
Taxes (% of Revenue) (2) 6.0%- 6.5%
Cash General and Administrative ($ / Mcfe)$0.45 -$0.50 
    
Net Cash Provided by Operating Activities (3)$202 
    
Adjusted EBITDA ($MM) (4)$305  -$320  
Cash Interest Expense ($MM)$108 -$113 
Capital Expenditures ($MM) (5)$55 -$65 
Distributable Cash Flow ($MM) (4) (5)$137  -$147  
        

(1) Guidance based on NYMEX strip pricing as of July 29, 2016; Average prices of $41.54 / Bbl for crude oil and $2.51 / Mcf for natural gas for 2016

(2) Includes production, ad valorem and franchise taxes

(3) Assumes no changes in working capital

(4) Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. Please see "Use of Non-GAAP Financial Measures" for a description of Adjusted EBITDA and Distributable Cash Flow and the reconciliation to the most comparable GAAP financial measure

(5) On June 1, 2016 MEMP acquired its general partner from Memorial Resource Development Corp. In connection with that acquisition, the MEMP general partner interest was converted into a non-economic interest and the MEMP incentive distribution rights ("IDRs") were cancelled. Prior to that acquisition, MEMP's calculation of quarterly distributions required the calculation of Operating Surplus under the MEMP partnership agreement, which required the use of "estimated maintenance capital expenditures" for such calculation. Accordingly, in previous periods MEMP used estimated maintenance capital expenditures to calculate Distributable Cash Flow for each period. Beginning with its acquisition of its general partner and cancellation of the IDRs, Operating Surplus is no longer relevant to the calculation of distributions. Accordingly, MEMP no longer uses estimated maintenance capital expenditures to calculate Distributable Cash Flow. In addition, in the current commodity price environment all of MEMP's capital expenditures are maintenance capital expenditures. Accordingly, MEMP presents Distributable Cash Flow as using capital expenditures rather than estimated maintenance capital expenditures in such calculation. Distributable Cash Flow has been recalculated for the historical periods presented in this press release for consistency.

These estimates reflect management's best judgment based on current expectations about the future and anticipated market conditions based upon both stated and unstated assumptions and other factors.  Although management believes such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks that are beyond MEMP's control.  Actual conditions and assumptions may change over the course of the year.

Second Quarter 2016 Cash Distribution

As announced on July 27, 2016, the board of directors of MEMP's general partner approved and declared a cash distribution of $0.03 per unit for the second quarter of 2016.  This distribution represents an annualized amount of $0.12 per unit and will be paid on August 12, 2016 to unitholders of record as of the close of business on August 5, 2016.

Quarterly Report on Form 10-Q

MEMP's financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, which MEMP expects to file with the SEC on or before August 9, 2016.

Conference Call

MEMP will host an investor conference call today at 10:00 a.m. Central Time to discuss these operating and financial results.  Interested parties may join the webcast by visiting MEMP's website www.memorialpp.com and clicking on the webcast link or by dialing (844) 735-9435 at least 15 minutes before the call begins and providing the Conference ID: 52712193.  The webcast and a telephonic replay will be available for seven days following the call and may be accessed by visiting MEMP's website www.memorialpp.com or by dialing (855) 859-2056 and providing the Conference ID: 52712193.

A presentation containing supplemental information regarding full year 2016 guidance and current developments has been posted to MEMP's website www.memorialpp.com

(1) Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. Please see the reconciliation to the most comparable measure calculated in accordance with GAAP in the "Use of Non-GAAP Financial Measures" section of this press release.

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 future capital expenditures (including the amount and nature thereof), expectations regarding cash flows, distributions and distribution rates, and expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated financial and operating results of MEMP, including as to production, lease operating expenses, hedging activities, commodity price realizations, capital expenditure levels and other guidance.  These statements are based on certain assumptions made by MEMP based on its experience and perception of historical trends, current conditions, expected future developments 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 debt obligations 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 ("SEC"), 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, which are available on MEMP's Investor Relations website at http://investor.memorialpp.com/sec.cfm or on the SEC's website at http://www.sec.gov, 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.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. MEMP's non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. MEMP's non-GAAP financial measures may not be comparable to similarly-titled measures of other companies because they may not calculate such measures in the same manner as MEMP does.

Adjusted EBITDA. MEMP defines Adjusted EBITDA as net income or loss, plus interest expense; income tax expense; depreciation, depletion and amortization; impairment of goodwill and long-lived assets; accretion of asset retirement obligations; losses on commodity derivative instruments; cash settlements received on expired commodity derivative instruments; losses on sale of assets; unit-based compensation expenses; exploration costs; acquisition and divestiture related costs; bad debt expense; and other non-routine items, less interest income; gain on extinguishment of debt; income tax benefit; gains on commodity derivative instruments; cash settlements paid on expired commodity derivative instruments; gains on sale of assets and other, net; and other non-routine items. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of MEMP's financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies and partnerships in MEMP's industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest, support MEMP's indebtedness and make distributions on its units; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash provided by operating activities.

Distributable Cash Flow.  MEMP defines distributable cash flow as Adjusted EBITDA, less cash income taxes; cash interest expense; and total capital expenditures.  Management compares the distributable cash flow MEMP generates to the cash distributions it expects to pay MEMP's partners. Using this metric, management computes MEMP's distribution coverage ratio. Distributable cash flow is an important non-GAAP financial measure for MEMP's limited partners since it serves as an indicator of MEMP's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not MEMP is generating cash flows at a level that can sustain or support an increase in its quarterly cash distributions. Distributable cash flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The GAAP measure most directly comparable to distributable cash flow is net cash provided by operating activities. On June 1, 2016 MEMP acquired its general partner from Memorial Resource Development Corp. In connection with that acquisition, the MEMP general partner interest was converted into a non-economic interest and the MEMP incentive distribution rights ("IDRs") were cancelled. Prior to that acquisition, MEMP's calculation of quarterly distributions required the calculation of Operating Surplus under the MEMP partnership agreement, which required the use of "estimated maintenance capital expenditures" for such calculation. Accordingly, in previous periods MEMP used estimated maintenance capital expenditures to calculate Distributable Cash Flow for each period. Beginning with its acquisition of its general partner and cancellation of the IDRs, Operating Surplus is no longer relevant to the calculation of distributions. Accordingly, MEMP no longer uses estimated maintenance capital expenditures to calculate Distributable Cash Flow. In addition, in the current commodity price environment all of MEMP's capital expenditures are maintenance capital expenditures. Accordingly, MEMP presents Distributable Cash Flow as using capital expenditures rather than estimated maintenance capital expenditures in such calculation. Distributable Cash Flow has been recalculated for the historical periods presented in this press release for consistency.

Selected Operating and Financial Data (Tables)

Selected Operating and Financial Data (Tables)   
       
Memorial Production Partners LP    
Selected Financial Data - Unaudited    
Statements of Operations Data    
       
    For the Three Months Ended
 (Amounts in $000s, except per unit data) 6/30/2016 3/31/2016
       
 Revenues:    
  Oil & natural gas sales $  67,780  $  60,623 
  Pipeline tariff income and other    286     243 
    Total revenues    68,066     60,866 
       
 Costs and Expenses:    
  Lease operating    29,354     35,696 
  Gathering, processing & transportation     8,823     9,209 
  Exploration    15     122 
  Taxes other than income    3,485     4,008 
  Depreciation, depletion and amortization    44,413     44,429 
  Impairment of proved oil and natural gas properties    -      8,342 
  General and administrative    15,246     13,524 
  Accretion of asset retirement obligations    2,712     2,707 
  (Gain) loss on commodity derivative instruments    124,580     (51,745)
  Gain on sale of properties    (3,539)    (96)
  Other, net    (52)    119 
    Total costs and expenses    225,037     66,315 
       
    Operating income (loss)    (156,971)    (5,449)
       
 Other Income (Expense):    
  Interest expense, net    (32,143)    (32,552)
  Other income (expense)    -      -  
  Gain on extinguishment of debt    41,664     -  
  Total other income (expense)    9,521     (32,552)
       
  Income (loss) before income taxes    (147,450)    (38,001)
 Income tax benefit (expense)    (100)    (96)
  Net income (loss) $  (147,550) $  (38,097)
  Net income (loss) attributable to noncontrolling interest $  -   $  -  
  Net income (loss) attributable to Memorial Production Partners LP $  (147,550) $  (38,097)
       
 Allocation of Net Income (Loss) to:    
  Net income (loss) attributable to Memorial Production Partners LP    (147,550)    (38,097)
  Net (income) loss allocated to general partner    128     40 
  Limited partners' interest in net income (loss)  $  (147,422) $  (38,057)
       
 Earnings per unit:    
  Basic and diluted earnings per limited partner unit $  (1.78) $  (0.46)
       
 Cash distribution declared per unit $  0.03  $  0.03 
       
 Weighted average number of limited partner units outstanding    83,007     82,935 
       
       
 Oil and natural gas revenue:    
  Oil sales $  36,973  $  29,777 
  NGL sales    7,928     7,255 
  Natural gas sales    22,879     23,591 
    Total oil and natural gas revenue $  67,780  $  60,623 
       
 Production volumes:    
  Oil (MBbls)    954     1,068 
  NGLs (MBbls)    590     663 
  Natural gas (MMcf)    11,799     11,753 
    Total (MMcfe)    21,063     22,138 
    Average net production (MMcfe)  231.5   243.3 
       
 Average sales price (excluding commodity derivatives):    
  Oil (per Bbl) $  38.73  $  27.89 
  NGL (per Bbl) $  13.45  $  10.94 
  Natural gas (per Mcf) $  1.94  $  2.01 
    Total (per Mcfe) $  3.22  $  2.74 
       
 Average unit costs per Mcfe:    
  Lease operating expense $  1.39  $  1.61 
  Gathering, processing and transportation $  0.42  $  0.42 
  Taxes other than income $  0.17  $  0.18 
  General and administrative expenses $  0.72  $  0.61 
  Depletion, depreciation, and amortization $  2.11  $  2.01 
       
Selected Financial Data - Unaudited    
Balance Sheet Data    
       
    June 30, 2016
  Total current assets $  198,619   
  Oil and natural gas properties, net    1,820,243   
  Total assets    2,540,083   
  Total current liabilities    90,869   
  Long-term debt    1,824,604   
  Total liabilities    2,085,840   
  Total partners' equity    454,243   
       
Selected Financial Data - Unaudited    
Statements of Cash Flows Data    
       
    For the Three Months Ended
    6/30/20163/31/2016
  Net cash provided by operating activities $  78,966  $  77,006 
  Net cash provided by (used in) investing activities    14,301     (24,443)
  Net cash provided by (used in) financing activities    (94,103)    (52,326)
       
       
Selected Operating and Financial Data (Tables)    
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
Adjusted EBITDA    
       
    For the Three Months Ended
    6/30/20163/31/2016
       
 Reconciliation of Adjusted EBITDA to Net Income (Loss):    
  Net income (loss) $  (147,550) $  (38,097)
  Interest expense, net    32,143     32,552 
  Gain on extinguishment of debt    (41,664)    -  
  Income tax expense (benefit)    100     96 
  Depreciation, depletion and amortization    44,413     44,429 
  Impairment of oil and gas properties    -      8,342 
  Accretion of asset retirement obligations    2,712     2,707 
  (Gains) losses on commodity derivative instruments    124,580     (51,745)
  Cash settlements received (paid) on expired commodity derivatives    67,638     80,221 
  Acquisition and divestiture related expenses    927     86 
  Unit-based compensation expense    2,731     2,568 
  Exploration     15     122 
  Gain on sale of properties    (3,539)    (96)
  (Gain) loss on settlement of AROs    (52)    121 
  Bad debt expense    1,601     -  
       
  Adjusted EBITDA $  84,055  $  81,306 
       
       
 Reconciliation of Adjusted EBITDA and Distributable Cash Flow to     
 Net Cash Provided by Operating Activities:    
       
  Net cash provided by operating activities $  78,966  $  77,006 
  Changes in working capital    14,341     (24,268)
  Interest expense, net    32,143     32,552 
  Gain (loss) on interest rate swaps    (1,844)    (3,682)
  Cash settlements paid (received) on interest rate swaps    513     530 
  Cash settlements received on terminated derivatives    (39,299)    -  
  Amortization of deferred financing fees    (1,348)    (1,202)
  Accretion of senior notes discount    (596)    (605)
  Acquisition and divestiture related expenses    927     86 
  Exploration     15     122 
  Plugging and abandonment costs    201     736 
  Current income tax expense (benefit) - current portion    36     31 
  Adjusted EBITDA $  84,055  $  81,306 
       
       
       
Selected Operating and Financial Data (Tables)    
Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures 
Distributable Cash Flow    
       
    For the Three Months Ended
    6/30/2016 3/31/2016
  Net income (loss) $  (147,550) $  (38,097)
  Interest expense, net    32,143     32,552 
  Gain on extinguishment of debt    (41,664)    -  
  Income tax expense (benefit)    100     96 
  Depreciation, depletion and amortization    44,413     44,429 
  Impairment of oil and gas properties    -      8,342 
  Accretion of asset retirement obligations    2,712     2,707 
  (Gains) losses on commodity derivative instruments    124,580     (51,745)
  Cash settlements received (paid) on expired commodity derivatives    67,638     80,221 
  Acquisition and divestiture related expenses    927     86 
  Unit-based compensation expense    2,731     2,568 
  Exploration    15     122 
  Gain on sale of properties    (3,539)    (96)
  (Gain) loss on  settlement of AROs    (52)    121 
  Bad debt expense    1,601     -  
  Adjusted EBITDA $  84,055  $  81,306 
  Less:  Cash interest expense    28,726     27,775 
  Less:  Capital expenditures    10,406     24,467 
  Total Distributable cash flow $  44,923  $  29,064 
  Less: Distribution to GP    -      3 
  Distributable cash flow available to Limited Partners $  44,923  $  29,061 
       
  Cash distribution to limited partners $  2,505  $  2,487 
       
  Distribution coverage ratio   17.94x   11.69x
       

 

 2016 Adjusted EBITDA and Distributable Cash Flow Guidance Reconciliation Table
  Mid-Point
  For Year Ended
 (in millions)12/31/2016
   
 Calculation of Adjusted EBITDA: 
 Net income$30 
 Interest expense 111 
 Depletion, depreciation, and amortization 172 
 Adjusted EBITDA$313 
   
 Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA: 
 Net cash provided by operating activities$202 
 Changes in working capital - 
 Interest expense 111 
 Adjusted EBITDA$313 
   
 Reconciliation of Adjusted EBITDA to Distributable Cash Flow: 
 Adjusted EBITDA$313 
 Cash Interest Expense (111)
 Capital expenditures (60)
 Distributable Cash Flow$142 
 

 

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