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Exhibit 99.1

 

MOR-1    UNITED STATES BANKRUPTCY COURT

 

CASE NAME:  

Memorial Production Partners LP, et al.

CASE NUMBER:  

17-30262

PROPOSED PLAN DATE:  

TBD

  PETITION DATE:  

01/16/17

  DISTRICT OF TEXAS:  

Southern                

  DIVISION:  

Houston

 

 

MONTHLY OPERATING REPORT SUMMARY

 

(Amounts in Thousands)

   MEMP*  

MONTH

   Feb-17  

REVENUES (MOR-6)

   $ 26,052  

OPERATING INCOME (LOSS) (MOR-6)

   $ 5,478  

NET INCOME (LOSS) (MOR-6)

   $ 1,787  

PAYMENTS TO INSIDERS (MOR-9)

   $ 1,268  

PAYMENTS TO PROFESSIONALS (MOR-9)

   $ 1,085  

TOTAL DISBURSEMENTS (MOR-7)

   $ 23,944  

***The original of this document must be filed with the United States Bankruptcy Court and a copy must be sent to the United States Trustee***

 

REQUIRED INSURANCE
MAINTAINED AS OF SIGNATURE
DATE

     

Term

Directors’ & Officers’ Liability   ☑  YES  

6/1/16 - 6/1/17

Oil Pollution Act Liability   ☑  YES  

10/31/16 - 10/31/17

Workers’ Compensation/Employer’s Liability   ☑  YES  

6/1/16 - 6/1/17

Excess Liability   ☑  YES  

10/31/16 - 10/31/17

Other   ☑  YES              

Various

   

 

        CHECK ONE
Are all accounts receivable being collected within terms?   ☑Yes       ☐No
Are all post-petition liabilities, including taxes, being paid within terms?   ☑Yes   ☐No
Have all tax returns and other required government filings been timely paid?   ☑Yes   ☐No
Have any pre-petition liabilities been paid?   ☑Yes   ☐No

If so, describe

 

Payments made consistent with First Day Orders

   
Are all funds received being deposited into Debtor in Possession bank accounts?   ☑Yes   ☐No
Were any assets disposed of outside the normal course of business?   ☐Yes   ☑No

If so, describe

 

 

   
Are all U.S. Trustee Quarterly Fee Payments current?   ☑Yes   ☐No

 

What is the status of your Plan of Reorganization?  

Confirmation hearing date scheduled for 4/4/2017.

 
 
ATTORNEY NAME:  

Courtney K. Stone

FIRM NAME:  

Weil, Gotshal & Manges LLP

ADDRESS:  

700 Louisiana St, Suite 1700

      

 

CITY, STATE, ZIP:  

Houston, TX 77002-2755

TELEPHONE/FAX:    

713-546-5000 / 713-224-9511                

EMAIL:  

courtney.stone@weil.com

 

 

INITIALS         

 

DATE               

 

  UST USE ONLY

  I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct.
 

 

 SIGNED

 

 

/s/ Matthew J. Hoss        Vice President, Accounting

    (ORIGINAL SIGNATURE)   TITLE
   

 

Matthew J. Hoss

 

 

3/31/2017

    (PRINT NAME OF SIGNATORY)   DATE
 

 

MOR-1

 

* Memorial Production Partners LP, et al.

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, as applicable, are: Memorial Production Partners LP (6667); Memorial Production Partners GP LLC; MEMP Services LLC (1887); Memorial Production Operating LLC; Memorial Production Finance Corporation (3356); WHT Energy Partners LLC; WHT Carthage LLC; Memorial Midstream LLC; Beta Operating Company, LLC; Columbus Energy, LLC; Rise Energy Operating, LLC; Rise Energy Minerals, LLC; Rise Energy Beta, LLC; San Pedro Bay Pipeline Company (1234); and Memorial Energy Services LLC. The Debtors’ mailing address is 500 Dallas Street, Suite 1600, Houston, Texas 77002.

 

Page 1 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

Notes to the Monthly Operating Report

INTRODUCTION:

This monthly operating report (“MOR”) is unaudited and does not purport to represent financial statements prepared in accordance with GAAP nor is it intended to fully reconcile to the consolidated financial statements prepared by the Debtors. Unlike the consolidated financial statements, the MOR reflects the assets and liabilities of each Debtor, except where otherwise indicated. Information contained in the MOR has been derived from the Debtors’ books and records. Therefore, in order to comply with their obligations to provide MORs during these Chapter 11 Cases, the Debtors have prepared this MOR using the best information presently available to them, which has been collected, maintained, and prepared in accordance with their historical accounting practices. This MOR is, thus, true and accurate to the best of the Debtors’ knowledge, information and belief based on currently available data. The results of operations and financial position contained herein are not necessarily indicative of results that may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

RESERVATION OF RIGHTS:

Given the complexity of the Debtors’ business, inadvertent errors or omissions may have occurred. Accordingly, the Debtors hereby reserve all of their rights to dispute the validity, status, enforceability, or executory nature of any claim amount, representation or other statement in this Monthly Operating Report and reserve the right to amend or supplement this Monthly Operating Report, if necessary, but shall be under no obligation to do so.

Notes to MOR-1 and MOR-2:

The income statement and balance sheet are represented on a consolidated basis at the Memorial Production Partners LP (“MEMP”) level. Intercompany balances have been eliminated for all MEMP debtors.

Notes to MOR-3:

Prepetition interest payable has been included in reported amounts for Debt.

 

Page 2 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

Notes to the Monthly Operating Report

Notes to MOR-4:

The Debtors have sought to allocate liabilities between the prepetition and postpetition periods based upon the information available at the time of, and research conducted in connection with, the preparation of this MOR. As additional information becomes available and further research is conducted, the Debtors’ allocation of liabilities between the prepetition and postpetition periods may change. The liability information, except as otherwise noted, is listed as of the close of business as of the end of the month. Accordingly, the Debtors reserve all rights to amend, supplement or otherwise modify this MOR as necessary and appropriate. Accrued liabilities have not been evaluated as liabilities subject to compromise and are subject to material change.

Notes to MOR-5:

The accounts payable and account receivable agings are presented on a consolidated basis at the MEMP level. Intercompany balances are excluded from the agings.

Notes to MOR-6:

The income statement is presented on a consolidated basis. Reorganization items, net primarily represents legal and other professional advisory fees directly associated with the Chapter 11 proceedings since the Petition Date.

Notes to MOR-7:

Although payment of prepetition claims is generally not permitted, the Bankruptcy Court has authorized the Debtors to pay certain prepetition claims in designated categories. This relief generally was designed to preserve the value of the Debtors’ business and assets. The Debtors have paid and continue to pay undisputed postpetition obligations in the ordinary course of business.

Intercompany receipts and disbursements are excluded from this report. Based on centralized cash management practices, almost all disbursements are made by Memorial Production Operating LLC and Beta Operating Company, LLC on behalf of all Debtors. To conform to U.S. Trustee disbursement reporting requests to track disbursements by Debtor, the Debtors have made a reasonable effort to assign these disbursements to the entity on whose behalf the payment was made, but this assignment may differ somewhat from the final intercompany accounting. The Debtors have added a second column (2) to show the corporate entity that made the disbursement.

Notes to MOR-8:

MOR-08 excludes restricted accounts related to decommissioning funds and collateral deposits totaling $155,987,756 as of February 28, 2017 and a lockbox the Debtors maintain. Any checks sent to the lockbox are deposited into account ending x3030 the same day.

Notes to MOR-9:

The list of insiders is consistent with public disclosures of Memorial Production Partners LP and other filings associated with this Chapter 11 case. Payments to ordinary course professionals or consultants are not included in MOR-9.

 

Page 3 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT

MOR-2 - COMPARATIVE BALANCE SHEETS

 

PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    As of February 28, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP (*)     MEMP (*)  

ASSETS

   MONTH
Jan-17
    MONTH
Feb-17
 

Current assets:

    

Cash and cash equivalents

   $ 49,147     $ 65,807  

Accounts receivable

     35,164       31,319  

Short-term derivative instruments

     39,598       43,300  

Prepaid expenses and other current assets

     11,903       9,719  
  

 

 

   

 

 

 

Total current assets

     135,812       150,146  
  

 

 

   

 

 

 

Property and equipment, at cost:

    

Oil and natural gas properties

     3,116,032       3,118,152  

Support equipment and facilities

     199,121       199,061  

Other PP&E

     15,394       15,394  

Accumulated depreciation, depletion and impairment

     (1,768,946     (1,771,049
  

 

 

   

 

 

 

Property and equipment, net

     1,561,602       1,561,557  

Long-term derivative instruments

     37,061       35,968  

Restricted investments

     155,783       155,838  

Other long-term assets

     2,060       2,016  
  

 

 

   

 

 

 

Total assets

   $ 1,892,318     $ 1,905,525  
  

 

 

   

 

 

 

 

* See MOR Notes

MOR-2

 

Page 4 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT

MOR-3 - COMPARATIVE BALANCE SHEETS

 

PETITION DATE:

   01/16/17   

DISTRICT OF TEXAS:

   Southern   

PERIOD:

   As of February 28, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP  

LIABILITIES

   MONTH
Jan-17
     MONTH
Feb-17
 

Liabilities:

     

Post-petition liabilities (MOR-4)

   $ 178,894      $ 183,243  

LIabilities subject to compromise (LSTC):

     

Accounts payable

     3,033        2,345  

Revenues payable

     25,453        23,437  

Debt (*)

     1,612,454        1,612,403  
  

 

 

    

 

 

 

Total liabilities subject to compromise

     1,640,941        1,638,185  
  

 

 

    

 

 

 

Total liabilities

     1,819,834        1,821,428  
  

 

 

    

 

 

 

Equity:

     

Partners’ equity

     72,483        84,097  
  

 

 

    

 

 

 

Total partners’ equity

     72,483        84,097  
  

 

 

    

 

 

 

Total liabilities and equity

   $ 1,892,318      $ 1,905,525  
  

 

 

    

 

 

 

 

* See MOR Notes

MOR-3

 

Page 5 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT

MOR-4 - SCHEDULE OF POST-PETITION LIABILITIES

 

PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    As of February 28, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP  
     MONTH
Jan-17
     MONTH
Feb-17
 

Current liabilities:

     

Accounts payable

   $ 281      $ 2,484  

Revenues payable

     0        0  

Accrued liabilities

     17,857        19,206  

Short-term derivative instruments

     0        0  

Current portion of long-term debt

     0        0  

Accrued interest payable

     0        0  

Other accrued liabilities

     0        0  
  

 

 

    

 

 

 

Total current liabilities

     18,138        21,690  
  

 

 

    

 

 

 

Noncurrent liabilities:

     

Long-term derivative instruments

     0        0  

Long-term debt

     0        0  

Asset retirement obligations

     155,740        156,567  

Other long-term liabilities

     5,016        4,986  
  

 

 

    

 

 

 

Total noncurrent liabilities

     160,755        161,553  
  

 

 

    

 

 

 

TOTAL POST-PETITION LIABILITIES (*) (MOR-3)

   $ 178,894      $ 183,243  
  

 

 

    

 

 

 

 

* See MOR Notes

MOR-4

 

Page 6 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT
MOR-5 - POST-PETITION AP/AR AGING
PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    As of February 28, 2017   

AGING OF POST-PETITION PAYABLES

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP  

DAYS

   Jan-17      Feb-17  

0-30

   $ 281      $ 2,467  

31-60

     0        17  

61-90

     0        0  

91+

     0        0  
  

 

 

    

 

 

 

TOTAL

   $ 281      $ 2,484  
  

 

 

    

 

 

 

AGING OF ACCOUNTS RECEIVABLES

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP  

DAYS

   Jan-17      Feb-17  

0-30

   $ 34,582      $ 30,861  

31-60

     238        236  

61-90

     13        36  

91+

     331        186  
  

 

 

    

 

 

 

TOTAL

   $ 35,164      $ 31,319  
  

 

 

    

 

 

 

 

MOR-5

 

Page 7 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT
MOR-6 - CONSOLIDATED STATEMENTS OF OPERATIONS
PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    February 1, 2017 - February 28, 2017   

Consolidated Statements of Operations

(Amounts in Thousands)

 

Unaudited

   MEMP     MEMP  
     17-Jan to
31-Jan
    1-Feb to
28-Feb
 

Revenues and other:

    

Oil & natural gas sales

   $ 14,635     $ 26,052  

Other revenues

     53       0  
  

 

 

   

 

 

 

Total revenues

     14,688       26,052  

Costs and expenses:

    

Lease operating

     4,479       8,130  

Gathering, processing, and transportation

     1,407       2,340  

Exploration

     7       0  

Taxes other than income

     1,052       937  

Depreciation, depletion and amortization

     5,425       10,063  

Impairment of proved oil and natural gas properties

     0       0  

General and administrative

     2,270       4,235  

Accretion of asset retirement obligations

     400       827  

(Gain) loss on commodity derivative instruments

     (596     (5,961

(Gain) loss on sale of properties

     0       0  

Other, net

     0       3  
  

 

 

   

 

 

 

Total costs and expenses

     14,444       20,574  

Other income (expense):

    

Interest expense, net

     (831     (1,492

Other, net

     0       3  
  

 

 

   

 

 

 

Total other income (expense)

     (831     (1,489

Reorganization items, net (*)

     (4,370     (2,202
  

 

 

   

 

 

 

Income (loss) before income taxes

     (4,957     1,787  

Income tax benefit

     0       0  
  

 

 

   

 

 

 

Net Income (loss)

   $ (4,957   $ 1,787  
  

 

 

   

 

 

 

 

* See MOR Notes

MOR-6

 

Page 8 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT
MOR-7 - CASH RECEIPTS AND DISBURSEMENTS
PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    February 1, 2017 - February 28, 2017   

Cash Receipts and Disbursements

 

(Amounts in Thousands)

                           

Company Name

   Case Number      Cash Receipts      Cash
Disbursements1
     Cash
Disbursements2
 

Memorial Production Partners LP

     17-30262      $ 0      $ 0      $ 0  

Memorial Production Finance Corporation

     17-30248        0        0        0  

San Pedro Bay Pipeline Company

     17-30249        0        91        91  

Rise Energy Beta, LLC

     17-30250        0        1,660        0  

Rise Energy Minerals, LLC

     17-30251        0        0        0  

Rise Energy Operating, LLC

     17-30252        0        0        0  

Beta Operating Company, LLC

     17-30253        6,462        801        2,461  

Columbus Energy, LLC

     17-30254        0        1,177        0  

WHT Carthage LLC

     17-30255        0        0        0  

WHT Energy Partners LLC

     17-30256        0        491        0  

Memorial Energy Services LLC

     17-30257        0        0        0  

Memorial Midstream LLC

     17-30258        0        0        0  

Memorial Production Operating LLC

     17-30259        34,142        14,776        16,445  

MEMP Services LLC

     17-30260        0        4,948        4,948  

Memorial Production Partners GP LLC

     17-30261        0        0        0  
     

 

 

    

 

 

    

 

 

 

Total

      $ 40,604      $ 23,944      $ 23,944  
     

 

 

    

 

 

    

 

 

 

 

1  See MOR Notes. Reflects estimated disbursements made on behalf of the respective debtor and subject to US Trustee Quarterly Fees.
2  See MOR Notes. Reflects disbursements made from the cash accounts of the respective debtor.

MOR-7

 

Page 9 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT
MOR-8 - CASH RECONCILIATION

 

PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    As of February 28, 2017   

Bank Account Information (*)

(Amounts in Thousands)

 

BANK NAME

  

COMPANY NAME

  ACCOUNT NUMBER
ENDING
    BANK BALANCE     ENDING CASH -
PER BOOKS
 

Wells Fargo

  

Memorial Production Operating LLC

    3030     $ 70,899     $ 70,899  

Wells Fargo

  

Memorial Production Operating LLC

    2164       0       (760

Wells Fargo

  

Memorial Production Operating LLC

    2179       0       (4,068

Wells Fargo

  

Beta Operating LLC

    1869       0       (0

Wells Fargo

  

Beta Operating LLC

    0759       0       (252

Wells Fargo

  

MEMP Services LLC

    0902       0       0  

Wells Fargo

  

MEMP Services LLC

    0910       0       0  

Wells Fargo

  

MEMP Services LLC

    1926       0       (0

Wells Fargo

  

San Pedro Bay Pipeline Company

    4044       0       0  

Wells Fargo

  

San Pedro Bay Pipeline Company

    0767       0       (11
      

 

 

   

 

 

 

Total

       $ 70,899     $ 65,807  
      

 

 

   

 

 

 

 

* See MOR Notes

MOR-8

 

Page 10 of 11


CASE NAME:  

Memorial Production Partners LP, et al.

 
CASE NUMBER:  

17-30262

 

 

UNITED STATES BANKRUPTCY COURT
MOR - 9 - PAYMENTS TO INSIDERS AND PROFESSIONALS

 

PETITION DATE:    01/16/17   
DISTRICT OF TEXAS:    Southern   
PERIOD:    February 1, 2017 - February 28, 2017   

PAYMENTS TO INSIDERS AND PROFESSIONALS (*)

(Amounts in Thousands)

Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals.

Also, for insiders, identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary).

 

     PERIOD      PERIOD  

INSIDERS: NAME/COMP TYPE

   1/17/2017 - 1/31/2017      2/1/2017 - 2/28/2017  

1. William J. Scarff/Salary; Exp Reimb; Benefits

   $ 29      $ 415  

2. Christopher S. Cooper/Salary; Exp Reimb; Benefits

     22        258  

3. Robert L. Stillwell, Jr./Salary; Exp Reimb; Benefits

     21        251  

4. Jason M. Childress/Salary; Exp Reimb; Benefits

     17        242  

5. Matthew J. Hoss/Salary; Exp Reimb; Benefits

     12        102  

6. Jonathan M. Clarkson/Director’s Fees

     0        0  

7. P. Michael Highum/Director’s Fees

     0        0  

8. W. Donald Brunson/Director’s Fees

     0        0  

9. John A. Weinzierl/Director’s Fees

     0        0  
  

 

 

    

 

 

 

TOTAL INSIDERS (MOR-1)

   $ 101      $ 1,268  
  

 

 

    

 

 

 
     PERIOD      PERIOD  

PROFESSIONALS

   1/17/2017 - 1/31/2017      2/1/2017 - 2/28/2017  

1. Linklaters LLP

   $ 0      $ 503  

2. David Polk & Wardwell LLP

     0        320  

3. Miller Buckfire & Co LLC

     0        156  

4. Opportune

     0        67  

5. Vinson & Elkins

     0        38  
  

 

 

    

 

 

 

TOTAL PROFESSIONALS (MOR-1)

   $ 0      $ 1,085  
  

 

 

    

 

 

 

 

* See MOR Notes

MOR-9

 

Page 11 of 11