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Another Win for MEMP

Memorial Production PartnersI’ve mentioned before that one of my favorite energy MLPs is Memorial Production Partners LP (MEMP), and I was very impressed with its second-quarter results.

This oil and gas small-cap rallied strongly after reporting that average daily production increased by 23%, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) coming in at $73.8 million, a 32% gain from $55.7 million in the second quarter of 2013. MEMP’s second-quarter cash distribution of $0.55 per unit is 16% higher than the minimum quarterly distribution of $0.47.

In addition, during the quarter, Memorial announced its largest acquisition since its IPO: a $915 million purchase of properties in Wyoming that closed on July 1. The company conducted an 8.6-million-share secondary offering on July 10 at $22.50 per share; today the stock trades about a point below its all-time high of $24.76 set back in late June.

The current yield stands at a very attractive 9.3%, considerably more than you can get from Kinder Morgan or most of the other “big kahunas” in the energy MLP world. Consider buying MEMP on the next dip.

Article printed from InvestorPlace Media,

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