GHS 100 Energy Conference Investor Presentation June 25, 2012 Andrew J. Cozby www.memorialpp.com Vice President and CFO
Overview of Memorial Production Partners LP Upstream publicly-traded partnership headquartered in Houston, Texas Initial public offering December 2011 9.6 million units sold at 19.00(1) Units traded on NASDAQ under the ticker MEMP…
Why Memorial Production Partners Memorial Resource Development LLC (MRD) provides operating and A&D leverage and scale Proven track record in acquisitions 1B acquisitions / 20+ transactions in the last 4 years Multiple acquisition…
Key Investment Considerations Highly synergistic relationships Access to sizeable oil and natural gas inventory (evidenced by recent Unique Sponsorship acquisitions) Proprietary deal flow Broadened access to third-party acquisitions…
Strategic Relationships Provide Growth Opportunities Over 10 billion of capital commitments under Overlapping asset base 1+ Tcfe Proved management since inception in 1988 Reserves 12 upstream focused funds Experienced operating…
Sponsor Provides Unique Industry Structure Strong support from Memorial Resource Development LLC Established as unique private owner Created with an infinite life No PE fund expiration date or limited life Ability to acquire, develop…
Strong Sponsor Ownership Interests Aligned NGP Funds(1) 56.9% Limited Partner Interest Public Black MEMP GP Unitholders Classic BlueStone WildHorse Tanos Diamond 0.1% General 43% Limited Partner Interest Partner…
MRD Provides Exceptional Growth Opportunities Value-Added Sponsor MRD Asset Overview Significant and diverse asset base with over 1 Tcfe of proved reserves Total proved reserves 1,036 Bcfe (1) 81% natural gas Drop-down source: 34%…
First Acquisition Closed 4/2/12 Total Proved Asset Overview Area Map Key Fields: Willow Springs Zones: Cotton Valley, Travis Peak Acquisition Properties Estimated Risked Net Proved Reserves: 20.0 Bcfe Current Production: 2.3…
Second Acquisition Closed 5/1/12 Total Proved Asset Overview Area Map Key Fields: Double A Field, Hico-Knowles/Terryville Field Zones: Cotton Valley, Woodbine, Austin Chalk, Wilcox Acquisition Properties Estimated Risked Net Proved…
Third Acquisition Closed 5/14/12 Assets are located in East Texas, in close proximity to MEMPs current operations in the area. On a pro forma basis and after giving effect to MEMPs recently completed acquisitions, 55% of MEMPs proved…
Safe, Diverse MLP Assets (1) Asset Overview Focused Operations Memorial Production Asset Overview Concentrated in mature basins with operations Total proved reserves 390 Bcfe dating to the 1930s 85% natural gas 76% proved…
East TX / North LA Operating Area Asset Overview Asset Map Key Fields: Carthage & Joaquin Field Characteristics Fields discovered as early as 1936 Production depth ranges between 6,000 9,000 feet Produced over 13.7 Tcfe since…
South Texas Operating Area Asset Overview Asset Map Key Fields: NE Thompsonville, Laredo, Hubberd, East Seven Sisters Field Characteristics Fields discovered as early as 1959 Production depth ranges between 6,500 15,000 feet…
Financial Strategy Safety, Growth and Returns Ability to fund maintenance requirements from existing cash flow Re-investment Maintenance capital of 10.5 million to sustain production Strategy Capital projects characterized by…
MEMP Hedging Overview: Q2-2012 thru 2016 MEMP has added additional natural gas and oil hedges to lock-in the value of our legacy production and recent acquisitions For hedging purposes, MEMPs targeted average net production estimates…
2012 Guidance (1) 2012 Guidance Low High For Year Ended For Year Ended December 31, 2012 December 31, 2012 Annual Production (Bcfe) 19 20 Adjusted EBITDA (MM) 67 69 Distributable Cash Flow (MM) 52 54 DCF Coverage 1.2x 1.3x…
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
Management and Board Experience and Depth Partnership Executive Team Years Name / Title Experience Previous Experience John A. Weinzierl Natural Gas Partners; Enron Corp.; Conoco, Inc.; Eagle Rock G&P President, CEO and 21 (Director)…
Natural Gas Hedging Summary: 2012-2016 Natural Gas Hedges Year Ending December 31, 2012 2013 2014 2015 2016 Natural Gas Derivative Contracts: Swap contracts: Volume (MMBtu/d) 19,729 34,526 38,248 35,434 32,566 Weighted-average…
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures: This presentation includes the non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow. The accompanying schedules provide a reconciliation of these…
Adjusted EBITDA & Distributable Cash Flow Reconciliations Adjusted EBITDA & Distributable Cash Flow Reconciliations Low Low For Year Ended For Year Ended December 31, 2012 December 31, 2012 (in millions) Calculation of Adjusted…
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