Memorial Production Partners to Acquire Oil and Gas Properties from Goodrich Petroleum for $95M
Memorial Production Partners (NASDAQ: MEMP) announced today that it has signed a definitive agreement to acquire certain oil and natural gas properties in East Texas from Goodrich Petroleum (NYSE: GDP)for a purchase price of $95 million, subject to customary purchase price adjustments. The transaction is expected to close on or about September 28, 2012, subject to customary approvals and closing conditions, and will be financed with borrowings under MEMP's existing credit facility. The effective date for this transaction is July 1, 2012. These properties are located in the South Henderson field of Rusk County, Texas.
The acquisition is expected to be immediately accretive to both distributable cash flow per unit and net asset value per unit while improving MEMP's operating margin. Management will evaluate the impact of the acquisition on current distribution levels as it integrates these acquired assets. Additionally, MEMP will provide updated 2012 production and financial guidance in conjunction with the closing of the transaction.