Casey Hoerth
Long only, long-term horizon, growth at reasonable price, dividend investing

Memorial Production Partners: Unit Offering A Sign To Buy

Last week Memorial Production Partners (NASDAQ:MEMP) announced it would offer 8.3 million additional units of common equity in an attempt to raise over $193 million, which would be used to pay off debt acquired in a major acquisition announced a few months ago. Earlier this week Memorial announced a successful offering and issuance of an additional 1.29 million common units. Overall, Memorial is raising $222.5 million in its latest unit offering.

The initial result of Memorial's share offering was a 7% drop in units of MEMP. While equity offerings are rarely ideal for investors, the best time to buy upstream MLPs is often right after the announcement of a share offering, provided that the upstream MLP in question...

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