Thursday, December 18, 2014

Oops! Memorial Production Partners Reaffirms its Distribution

Well, a lot can happen in 24 hours. On December 16 Seeking Alpha published an article of mine on Memorial Production Partners where I speculated that the partnership would begin deleveraging and repaying its debt at some point.

For now, it looks like I was well off the mark. For now, not only will the dividend continue, but the partnership may also start buying back shares. We'll have to keep an eye on debt markets, as I still think BreitBurn Energy Partners' (BBEP) unsuccessful debt offering was a pretty big deal. Even still, Memorial has the cash flow and hedges to maintain its distribution.

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