Houston, TX-based Memorial Production Partners LP (MEMP) has closed on the acquisition of oil and natural gas properties in East Texas from Goodrich Petroleum Corp. for $93.2 million.
The sale, announced in early August, includes certain properties Goodrich Petroleum deems 'non-core' in the South Henderson field in Rusk County, Texas and closed on September 28, 2012. At year-end 2011, the Goodrich Petroleum had booked 39 bcfe of proved reserves for the assets.
Goodrich Petroleum spoke to OGFJ about the assets in February 2011. Read the full interview here.
The acquisition was funded with borrowings under MEMP's existing credit facility.
"We are pleased to announce our second distribution increase which represents a 4.2% increase over the annualized minimum quarterly distribution of $1.90 per unit," said John A. Weinzierl, Chairman, president and CEO of the general partner of MEMP.
"This increase is a reflection of the $178 million of assets we have acquired so far this year that provide MEMP with a long-lived, predictable production profile and an inventory of low risk development projects that will supplement our production in the years to come."
Consistent with its hedging policy, MEMP executed additional commodity price hedges for a significant portion of its expected oil and natural gas production acquired in this transaction in order to reduce the impact to cash flows from commodity price fluctuations.
Memorial Production Partners LP is a Delaware limited partnership that was formed to own and acquire oil and natural gas properties in North America. MEMP's properties are located in South Texas and East Texas/North Louisiana and consist of mature, legacy onshore oil and natural gas reservoirs.