Memorial Production Partners acquires Eagle Ford properties for $173M

|About: Memorial Production Partner... (MEMP)|By:, SA News Editor

Memorial Production Partners (MEMP) agrees to acquire Eagle Ford oil and gas properties from Alta Mesa Holdings for $173M.

The acquired properties consist of 15,200 gross acres and interests in 117 wells currently producing ~1,650 boe/day (80% oil, 10% natural gas liquids, 10% natural gas) net to MEMP; Murphy Oil (MUR) is the primary operator of the acquired properties.

The deal is structured so that MEMP gradually will acquire the all of the seller's working and net revenue interest in the 117 producing wells over three years.

MEMP updates 2014 guidance for annual production of 67B-69B cfe, adjusted EBITDA $303M-$311M, distributable cash flow $158M$166M, DCF coverage 1.15x-1.25x, maintenance capex $81M, growth capex $50M-$80M.