Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

A Transformational Acquisition Sets Memorial Production Partners Up For Future Gains

With its Q2 2013 earnings coming up in a few days, Memorial Production Partners (NASDAQ:MEMP) has several major positives which could potentially send the stock higher. Memorial is likely to report a strong quarter as energy prices remained mostly elevated in Q2 2013. In addition, Memorial recently announced a major asset dropdown from its sponsor. This acquisition would be the largest in Memorial's history. It would significantly boost Memorial's DCF and add large amounts of hedged, low-decline production. Memorial currently offers a $0.5125 per unit quarterly distribution and yields about 9.80%.

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Asset Dropdown Overview

On July 15, Memorial announced that it was acquiring certain oil and gas properties from its sponsor, Memorial Resource Development, for...

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