Is Memorial Production Partners Heading Towards Bankruptcy?

by San Antonio Attorney

Memorial Production Partners made an announcement on Nov. 1 that disclosed not only their financial status but also a bolt from the blue to many of its investors.

Memorial revealed that its financial outlook for the quarter was uncertain but not essentially bad.  For instance, despite the plummeting energy prices and lesser production of oil compared to 2015, the company generated more than $43 million in operating cash flow.  Minus the capital expenses amounting to $13.7 million, it has $29.5 million in free cash flow.

For a company with a market capital of $44 million and more than $100 million, experts are saying it is a good performance.  Moreover, the Memorial gave a report on its hedge portfolio that shows nothing has changed compared to the company’s second quarter in 2016, despite levels of production.

Memorial Production Partners is a natural gas and oil company based in North America.  It has up to $47.82 million market capital.  It is owned by its general partner and limited partners.   The general partner is in charge of managing all of the company’s activities.

Since January 2015, there have been around 105 oil and gas companies in North America that sough for bankruptcy protection.  Many of these companies filed for Chapter 11, Chapter 15 and Chapter 7 bankruptcies.

The substantial decrease in oil price is the main cause of the rush in bankruptcy filings by oil and gas companies.  Nonetheless, the majority of the struggling energy firms keep their operations going.  Many of them emerged from bankruptcy.

When considering filing for bankruptcy, there are various factors that must be taken into consideration.  During this difficult period, it is important to consult a San Antonio Bankruptcy attorney for proper guidance throughout the process.

Leave a Comment

Previous post:

Next post: