Memorial Production Partners LP (MEMP)

[dan_s]

An updated forecast, based on the MLPs detailed guidance for 2016, has been posted to the EPG website.

The company says DCF will be $105 to $125 million in 2016.

[mkarpoff]

Your latest analysis presents a company whose stock price seems to be a "too good to be true," if we were interested in buying. Are you pretty comfortable that they can sustain the distribution?

[dan_s]

Yes, MEMP's 2016 Cash Flow From Operations should be ~$170 million (locked in by their hedges). That compares to Maintenance Capital Expenditures forecast at $70 million.

DCF = Cash Flow From Operations - Maintenance CapEx

Read their January 27th press release. The company says DCF is estimated at $105 - $125 million.

Common units outstanding are 82.974 million, $0.10/quarter distributions = $33.2 million for the year.