2013 NAPTP Investor Conference May 22, 2013 Andrew J. Cozby www.memorialpp.com Vice President and CFO
Overview of Memorial Production Partners LP Upstream MLP headquartered in Houston, Texas; IPO in December 2011 Diverse portfolio of mature, long-lived producing properties Focus on acquiring, exploiting and developing oil and gas…
Safe, Diverse MLP Assets MEMP Asset Overview (1) MEMP Areas of Operation (1) Total MEMP East TX / North LA Upstream MLP headquartered in Houston, TX IPO in December 2011 Proved Reserves (Bcfe) 771 % Gas 63% East TX / North LA…
Recent Developments YTD 2013 On April 12, 2013, MEMP priced 300 million in senior unsecured notes at 7.625% Lowest priced senior notes offering in the upstream MLP sector for an inaugural issuer Net proceeds used to reduce debt under…
Strong Sponsor Ownership Interests Aligned Drop Down Potential 100% Ownership NGP Funds (1) 50% IDR Interest 28% LP Interest 50% IDR Interest Black Public MRD OpCo Classic BlueStone WildHorse Tanos MEMP GP Unitholders…
MRD Relationship Provides Exceptional Growth Opportunities Value Enhancing Relationship with MRD MRD Asset Overview Significant and diverse asset base with over 1.1 Total proved reserves: 1,116 Bcfe (1) (71% natural gas, Tcfe of proved…
MEMP Has Executed on All Acquisition Strategies 100% Ownership 72% Ownership 28% Ownership Public Unitholders Drop Downs from Third Party Joint Bid with Acquisitions from NGP Memorial Resource Acquisitions Memorial…
Acquisition Strategy Drives Growth & Diversification Acquisitions since IPO Proved Reserves Net Production Purchase Price Date Transaction Structure Location Bcfe ( 1) MMcfe/d ( 1) ( in millions) March 2013 Drop Down from MRD East Texas…
Ideal MLP Asset Base Total Proved Reserves (1) Asset Overview (1) Total MEMP East TX / North LA East TX / North LA Proved Reserves (Bcfe) 771 Proved Reserves (Bcfe) 516 11% % Gas 67% % Gas 63% Production (MMcfe/d) (2) 60.2 22%…
East TX / North LA Operating Area Asset Overview Asset Map Key Fields: Joaquin, Carthage, Willow Springs, Area Map East Henderson and the Terryville fields Primary Formations: Cotton Valley, Travis Peak Field Characteristics Fields…
South Texas Operating Area Asset Overview Area Map Key Fields: NE Thompsonville, Laredo and East Seven Sisters Primary Formations: Lobo, Wilcox Field Characteristics Fields discovered as early as 1959 Production depth ranges…
California Operating Area Asset Overview Area Map Los Angeles Located 11 miles offshore Port of Long Beach, Long Beach California 2 wellhead platforms each with a permanent drilling Ellen and Elly Huntington Beach rig; 1 processing…
Significant Remaining Original Oil in Place Overview Comparison to an Analogous Field (1) An independent third party reservoir consultant prepared Category Wilmington Field Beta Field an extensive reservoir model that estimates OOIP in…
Financial Strategy Safety, Growth and Cash Flows Liquidity provided by 505 million borrowing base Preserve Financial 2012 distribution coverage ratio of 1.27x Flexibility Expect to fund acquisitions on a conservative debt / equity…
Disciplined Hedging Strategy Protects Cash Flows Target 65-85% of targeted production hedged on a rolling 3-6 year basis Execute additional hedges with acquisitions to lock-in accretion 100% hedged to the appropriate basis…
Conservative Financing Strategy and Strong Access to Capital Financing Overview Capital Structure and Metrics MEMP has a highly supportive bank group (In millions except for reserve and production data) (1) consisting of 17 lenders…
2013 Updated Guidance 2013 Management Guidance Low High For Year Ended For Year Ended December 31, 2013 December 31, 2013 Annual Production (Bcfe) 37 39 Adjusted EBITDA (MM) 154 158 Distributable Cash Flow (MM) 92 96 DCF…
Safety, Growth and Returns High quality assets MLP appropriate asset profile Strong sponsorship with aligned interests Supportable and clear growth strategy Seasoned management team Cash flow visibility and security…
Appendix
Low Development Costs Maximize Margins Identified Production Replacement Project Types Pro Forma PDNP + PUDs Pro Forma PUDs Only Control and reduce costs through low-risk drilling, recompletions and 361.5 Bcfe Total 304.9 Bcfe…
Cash Margin Per Mcfe Three Months Ended 3/31/2013 Net production volumes Oil (MBbls) 176 NGLs (MBbls) 270 Natural gas (MMcf) 5,686 Total (MMcfe) 8,363 Average net production (MMcfe/d) 92.9 Average sales prices before hedges…
Natural Gas & NGL Hedging Details Natural Gas / NGLs Hedge Summary Year Ending December 31, 2013 2014 2015 2016 2017 2018 Natural Gas Derivative Contracts: Swap contracts: Volume (MMBtu) 12,736,548 18,625,500 16,993,340 16,959,300…
Adjusted EBITDA & Distributable Cash Flow Guidance Reconciliation Low High For Year Ended For Year Ended (In millions) December 31, 2013 December 31, 2013 Calculation of Adjusted EBITDA: Net income 80 84 Interest expense 16 16 Net…
Adjusted EBITDA Reconciliation Historical For the Year Ended December 31, (In thousands) 2011 2012 Calculation of Adjusted EBITDA: Net income (1) 117,623 29,917 Interest expense, net 6,987 11,339 Income tax expense (benefit) 2 231…
Loading...
