MEMP 6.875s

Memorial Production Partners LP

Energy


Presented:02/04/2015
Price:$16.80
Cap:$1.46B
Current Price:$0.13
Cap:$0.00B

Presented

Date02/04/2015
Price$16.80
Market Cap$1.46B
Ent Value$2.95B
P/E RatioN/A
Book Value$11.19
Div Yield12.5%
Shares O/S86.68M
Ave Daily Vol1,630,000
Short Int3.51%

Current

Price$0.13
Market Cap$0.00B
Memorial Production Partners LP, through its subsidiary, is engaged in the acquisition, development, exploitation, and production of oil and natural gas properties. Its properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, and working interests in identified producing wells principally located in Texas, Louisiana, Colorado, Wyoming, New Mexico, and offshore Southern California. As of December 31, 2013, its total estimated proved reserves were approximately 1,015 billion cubic feet of natural gas equivalent. Memorial Production Partners GP LLC serves as the general partner of Memorial Production Partners LP. The company was founded in 2011 and is headquartered in Houston, Texas.

Publicly traded companies mentioned herein: Linn Energy LLC (LINE), Memorial Production Partners LP (MEMP), Sanchez Energy Corporation (SN)

Highlights

Despite the recent decline in the price of oil, the presenter is bullish on Memorial Production Partners’ (MEMP) corporate debentures (the 2022s, in particular). The company is an E&P MLP, not a traditional shale E&P, and seems more likely to be able to weather the storm than its competitors. And, given MEMP’s hedges in place the management team “looks like a group of geniuses,” said the presenter. He thinks the risk/ reward is favorable with the bonds trading in the mid-80s (a 9.5% yield), and explained his bullish thesis as follows:

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Idea Discussion

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