Memorial Production Partners LP (NASDAQ: MEMP) announced Dec. 18 that the board of directors of its general partner authorized the repurchase of up to $150 million of the Houston company's common units.
The buyback program reflects the board's and management's commitment to increasing unitholder value, said John A. Weinzierl, chairman and CEO, in a statement.
"We believe that at recent trading levels, repurchasing MEMP's common units is a prudent investment, and given our strong balance sheet, we can implement this program and still have sufficient liquidity to grow the partnership through accretive acquisitions and the development of our assets," he said.
Further, despite the recent commodity price volatility, the company remains confident in its ability to maintain distributions based on its strong asset base and best in class hedging program, he said.
Under the program's terms, units may be repurchased from time to time at Memorial's discretion on the open market, through block trades or otherwise and are subject to market conditions, applicable legal requirements and other considerations.
The authorization is effective immediately. The repurchase program does not obligate the company to repurchase any dollar amount or specific number of units and may be discontinued at any time.
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