Wells Fargo Starts Memorial Production Partners (MEMP) at Market Perform; Secure Distribution But High Gas Exposure Could Act As Headwind

Wells Fargo initiates coverage on Memorial Production Partners (NASDAQ: MEMP) with a Market Perform. PT range $19-$21.

Wells analyst says, "MEMP's attractive yield is relatively secure given the partnership's expansive hedging portfolio and visible drop-down potential from sponsor Natural Gas Partners. However, the partnership's natural gas weighted profile (88% of reserves) could act as a headwind and limit growth given the prospect of a weak natural gas pricing environment over the next several years, in our view."

For an analyst ratings summary and ratings history on Memorial Production Partners click here. For more ratings news on Memorial Production Partners click here.

Shares of Memorial Production Partners closed at $18.36 yesterday.

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