Amplify Energy Corp.
Amplify Energy Corp (Form: 8-K, Received: 05/31/2017 17:07:00)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 31, 2017

 

 

AMPLIFY ENERGY CORP.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-35364   82-1326219

(State or other jurisdiction of

Incorporation or Organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

500 Dallas Street, Suite 1600

Houston, Texas

  77002
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (713) 490-8900

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01. Regulation FD Disclosure.

As previously disclosed, on January 16, 2017, Memorial Production Partners LP (“MEMP”) and certain of its subsidiaries (collectively with MEMP, the “Debtors”) filed voluntary petitions (the cases commenced thereby, the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”). On April 14, 2017, the Court entered an order approving the Second Amended Joint Plan of Reorganization of Memorial Production Partners LP and its affiliated Debtors, dated April 13, 2017 (as amended and supplemented, the “Plan”). On May 4, 2017, the Plan became effective pursuant to its terms and the Debtors emerged from the Chapter 11 Cases. In connection with the Chapter 11 Cases and the Plan, MEMP and certain Consenting Noteholders (as defined in the Plan) effectuated certain restructuring transactions, pursuant to which Amplify Energy Corp., a Delaware corporation (the “Company”), acquired all of the assets of MEMP, and in accordance with the Plan, MEMP was dissolved. As a result, the Company became the successor reporting company to MEMP pursuant to Rule 15d-5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

On May 31, 2017, the Reorganized Debtors filed their monthly operating report, which included financial information as of April 30, 2017 and for the period covering April 1, 2017 through April 30, 2017 (the “Monthly Operating Report”) with the Court. The Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

Cautionary Note Regarding the Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers limited time periods, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Court. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with U.S. generally accepted accounting principles, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. The Monthly Operating Report also contains information for a period which is shorter and otherwise different from those required in the Company’s periodic reports pursuant to the Exchange Act, and such information might not be indicative of the Company’s financial condition or operating results for a period that would be reflected in the Company’s financial statements or in its reports pursuant to the Exchange Act. Information set forth in the Monthly Operating Report should not be viewed as indicative of future results.

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K, including the exhibit hereto, includes “forward-looking statements.” All statements, other than statements of historical facts, included in this Current Report on Form 8-K that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “would,” “should,” “could,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about financial restructuring or strategic alternatives and the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements are based on certain assumptions made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances, but such assumptions may prove to be inaccurate. Such statements are also subject to a number of risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks and uncertainties relating to, among other things: the ability to improve the Company’s financial


results and profitability following its emergence from bankruptcy; the Company’s efforts to reduce leverage; the Company’s level of indebtedness, including its ability to satisfy its debt obligations; the Company’s ability to generate sufficient cash flow to make payments on its obligations and to execute its business plan; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties following its emergence from bankruptcy; continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness or otherwise; and changes in commodity prices and hedge positions and the risk that the Company’s hedging strategy may be ineffective or may reduce its income. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at http://investor.amplifyenergy.com/ or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Current Report on Form 8-K. All forward-looking statements in this Current Report on Form 8-K are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

  

Description

99.1    Monthly Operating Report as of April 30, 2017 and for the period covering April 1, 2017 through April 30, 2017, as filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division on May 31, 2017.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated:    May 31, 2017   AMPLIFY ENERGY CORP.
  By:  

/s/ Robert L. Stillwell, Jr.

    Name:   Robert L. Stillwell, Jr.
    Title:   Senior Vice President and Chief Financial Officer


EXHIBIT INDEX

 

Exhibit

Number

  

Description

99.1    Monthly Operating Report as of April 30, 2017 and for the period covering April 1, 2017 through April 30, 2017, as filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division on May 31, 2017.

Exhibit 99.1

 

MOR-1   UNITED STATES BANKRUPTCY COURT            

 

CASE NAME:  

Memorial Production Partners LP, et al.

CASE NUMBER:  

17-30262

PROPOSED PLAN DATE:  

N/A - POR confirmed

  PETITION DATE:  

01/16/17

  DISTRICT OF TEXAS:  

Southern                

  DIVISION:  

Houston

 

 

MONTHLY OPERATING REPORT SUMMARY

 

(Amounts in Thousands)

   MEMP*  

MONTH

   Apr-17  

REVENUES (MOR-6)

   $ 24,937  

OPERATING INCOME (LOSS) (MOR-6)

   $ 334  

NET INCOME (LOSS) (MOR-6)

   $ (37,194

PAYMENTS TO INSIDERS (MOR-9)

   $ 313  

PAYMENTS TO PROFESSIONALS (MOR-9)

   $ 2,093  

TOTAL DISBURSEMENTS (MOR-7)

   $ 32,719  

***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  

6/1/16-5/4/23

Oil Pollution Act Liability   ☑  YES  

10/31/16-10/31/17

Workers’ Compensation/Employer’s Liability   ☑  YES  

6/1/16-10/31/17

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?  

Plan of Reorganization effective on 5/4/17.

 
 
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

 

 

5/31/2017

    (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 or Reorganized 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 Reorganized 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 Reorganized 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 Reorganized Debtors in the future.

RESERVATION OF RIGHTS:

Given the complexity of the Debtors’ and Reorganized Debtors’ business, inadvertent errors or omissions may have occurred. Accordingly, the Reorganized 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 Reorganized 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 Reorganized 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 Reorganized 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 fees, other professional advisory fees, and other expenses 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 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 Reorganized 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 Reorganized 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 $155,942,542 as of April 30, 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.

Payments to insiders in February, 2017 include $1.025 million in payments under the Key Employee Incentive Plan. These payments were funded by a nondebtor entity, MEMP S-1 Inc. The funds flowed from MEMP S-1 Inc. through the main operating account of Memorial Production Operating LLC to MEMP Services LLC, the entity that processes employee payroll, for processing and disbursement.

 

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 April 30, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP (*)     MEMP (*)     MEMP (*)     MEMP (*)  

ASSETS

   MONTH
Jan-17
    MONTH
Feb-17
    MONTH
Mar-17
    MONTH
Apr-17
 

Current assets:

        

Cash and cash equivalents

   $ 49,147     $ 65,807     $ 73,154     $ 75,127  

Accounts receivable

     35,164       31,319       30,823       31,048  

Short-term derivative instruments

     39,598       43,300       42,567       44,344  

Prepaid expenses and other current assets

     11,903       9,719       7,512       10,229  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

     135,812       150,146       154,055       160,748  
  

 

 

   

 

 

   

 

 

   

 

 

 

Property and equipment, at cost:

        

Oil and natural gas properties

     3,116,032       3,118,152       3,119,878       3,124,137  

Support equipment and facilities

     199,121       199,061       199,304       199,463  

Other PP&E

     15,394       15,394       15,394       15,420  

Accumulated depreciation, depletion and impairment

     (1,768,946     (1,771,049     (1,777,671     (1,786,487
  

 

 

   

 

 

   

 

 

   

 

 

 

Property and equipment, net

     1,561,602       1,561,557       1,556,905       1,552,533  

Long-term derivative instruments

     37,061       35,968       34,797       31,437  

Restricted investments

     155,783       155,838       155,888       155,943  

Other long-term assets

     2,060       2,016       1,973       1,929  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 1,892,318     $ 1,905,525     $ 1,903,617     $ 1,902,590  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* 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 April 30, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP      MEMP      MEMP  

LIABILITIES

   MONTH
Jan-17
     MONTH
Feb-17
     MONTH
Mar-17
     MONTH
Apr-17
 

Liabilities:

           

Post-petition liabilities (MOR-4)

   $ 633,692      $ 638,041      $ 664,783      $ 700,349  

Liabilities subject to compromise (LSTC):

           

Accounts payable

     3,033        2,345        1,257        1,389  

Revenues payable

     25,453        23,437        0        0  

Debt (*)

     1,157,656        1,157,605        1,161,048        1,161,156  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities subject to compromise

     1,186,142        1,183,387        1,162,305        1,162,545  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     1,819,834        1,821,428        1,827,089        1,862,894  
  

 

 

    

 

 

    

 

 

    

 

 

 

Equity:

           

Partners’ equity

     72,483        84,097        76,528        39,696  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total partners’ equity

     72,483        84,097        76,528        39,696  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities and equity

   $ 1,892,318      $ 1,905,525      $ 1,903,617      $ 1,902,590  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* 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 April 30, 2017   

COMPARATIVE BALANCE SHEETS

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP      MEMP      MEMP  
     MONTH      MONTH      MONTH      MONTH  
     Jan-17      Feb-17      Mar-17      Apr-17  

Current liabilities:

           

Accounts payable

   $ 281      $ 2,484      $ 2,483      $ 1,501  

Revenues payable

     0        0        22,678        22,747  

Accrued liabilities

     17,857        19,206        22,601        58,314  

Short-term derivative instruments

     0        0        0        0  

Current portion of long-term debt

     454,799        454,799        454,799        454,799  

Accrued interest payable

     0        0        0        0  

Other accrued liabilities

     0        0        0        0  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total current liabilities

     472,937        476,489        502,561        537,361  
  

 

 

    

 

 

    

 

 

    

 

 

 

Noncurrent liabilities:

           

Long-term derivative instruments

     0        0        0        0  

Long-term debt

     0        0        0        0  

Asset retirement obligations

     155,740        156,567        157,390        158,196  

Other long-term liabilities

     5,016        4,986        4,832        4,792  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noncurrent liabilities

     160,755        161,553        162,223        162,988  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

   $ 633,692      $ 638,041      $ 664,783      $ 700,349  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* 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 April 30, 2017   

AGING OF POST-PETITION PAYABLES

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP      MEMP      MEMP  

DAYS

   Jan-17      Feb-17      Mar-17      Apr-17  

0-30

   $ 281      $ 2,467      $ 2,482      $ 1,500  

31-60

     0        17        1        1  

61-90

     0        0        0        0  

91+

     0        0        0        0  
  

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL

   $ 281      $ 2,484      $ 2,483      $ 1,501  
  

 

 

    

 

 

    

 

 

    

 

 

 

AGING OF ACCOUNTS RECEIVABLES

(Amounts in Thousands)

 

Unaudited

   MEMP      MEMP      MEMP      MEMP  

DAYS

   Jan-17      Feb-17      Mar-17      Apr-17  

0-30

   $ 34,582      $ 30,861      $ 29,956      $ 30,319  

31-60

     238        236        120        173  

61-90

     13        36        19        70  

91+

     331        186        728        486  
  

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL

   $ 35,164      $ 31,319      $ 30,823      $ 31,048  
  

 

 

    

 

 

    

 

 

    

 

 

 

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:    April 1, 2017 - April 30, 2017   

Consolidated Statements of Operations

(Amounts in Thousands)

 

Unaudited

   MEMP     MEMP     MEMP     MEMP  
     17-Jan to     1-Feb to     1-Mar to     1-Apr to  
     31-Jan     28-Feb     31-Mar     30-Apr  

Revenues and other:

        

Oil & natural gas sales

   $ 14,635     $ 26,052     $ 24,986     $ 24,811  

Other revenues

     53       0       0       126  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     14,688       26,052       24,986       24,937  
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Lease operating

     4,479       8,130       8,601       8,455  

Gathering, processing, and transportation

     1,407       2,340       2,788       2,459  

Exploration

     7       0       3       5  

Taxes other than income

     1,052       937       1,155       775  

Depreciation, depletion and amortization

     5,425       10,063       6,608       8,802  

Impairment of proved oil and natural gas properties

     0       0       0       0  

General and administrative

     2,270       4,235       9,782       5,653  

Accretion of asset retirement obligations

     400       827       841       842  

(Gain) loss on commodity derivative instruments

     (596     (5,961     (3,048     (2,431

(Gain) loss on sale of properties

     0       0       0       0  

Other, net

     0       3       2       44  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     14,444       20,574       26,731       24,604  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

        

Interest expense, net

     (831     (1,492     (1,695     (1,661

Other, net

     0       3       4       2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

     (831     (1,489     (1,691     (1,659
  

 

 

   

 

 

   

 

 

   

 

 

 

Reorganization items, net (*)

     (4,370     (2,202     (1,082     (35,868
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     (4,957     1,787       (4,517     (37,194

Income tax benefit

     0       0       (91     0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

   $ (4,957   $ 1,787     $ (4,426   $ (37,194
  

 

 

   

 

 

   

 

 

   

 

 

 

 

* 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:    April 1, 2017 - April 30, 2017   

Cash Receipts and Disbursements

 

(Amounts in Thousands)

                           

Company Name

   Case Number      Cash Receipts      Cash
Disbursements 1
     Cash
Disbursements 2
 

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        128        128  

Rise Energy Beta, LLC

     17-30250        0        2,654        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        6,108        757        3,411  

Columbus Energy, LLC

     17-30254        0        1,123        0  

WHT Carthage LLC

     17-30255        0        0        0  

WHT Energy Partners LLC

     17-30256        0        640        0  

Memorial Energy Services LLC

     17-30257        0        0        0  

Memorial Midstream LLC

     17-30258        0        0        0  

Memorial Production Operating LLC

     17-30259        28,583        24,073        25,836  

MEMP Services LLC

     17-30260        1        3,344        3,344  

Memorial Production Partners GP LLC

     17-30261        0        0        0  
     

 

 

    

 

 

    

 

 

 

Total

      $ 34,692      $ 32,719      $ 32,719  
     

 

 

    

 

 

    

 

 

 

 

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 April 30, 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      $ 83,147      $ 83,147  

Wells Fargo

  

Memorial Production Operating LLC

     2164        0        (2,276

Wells Fargo

  

Memorial Production Operating LLC

     2179        0        (3,894

Wells Fargo

  

Beta Operating LLC

     1869        0        (0

Wells Fargo

  

Beta Operating LLC

     0759        0        (1,568

Wells Fargo

  

MEMP Services LLC

     0902        0        0  

Wells Fargo

  

MEMP Services LLC

     0910        0        0  

Wells Fargo

  

MEMP Services LLC

     1926        0        (210

Wells Fargo

  

San Pedro Bay Pipeline Company

     4044        0        0  

Wells Fargo

  

San Pedro Bay Pipeline Company

     0767        0        (72
        

 

 

    

 

 

 

Total

         $ 83,147      $ 75,127  
        

 

 

    

 

 

 

 

* 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:    April 1, 2017 - April 30, 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      MONTH      MONTH  

INSIDERS: NAME/COMP TYPE

   1/17/2017 -
1/31/2017
     2/1/2017 -
2/28/2017
     3/1/2017 -
3/31/2017
     4/1/2017 -
4/30/2017
 

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

   $ 29      $ 415      $ 51      $ 51  

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

     22        258        39        41  

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

     21        251        37        41  

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

     17        242        30        30  

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

     12        102        22        22  

6. Jonathan M. Clarkson/Director’s Fees

     0        0        0        41  

7. P. Michael Highum/Director’s Fees

     0        0        0        29  

8. W. Donald Brunson/Director’s Fees

     0        0        0        29  

9. John A. Weinzierl/Director’s Fees

     0        0        0        29  
  

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL INSIDERS (MOR-1)

   $ 101      $ 1,268      $ 179      $ 313  
  

 

 

    

 

 

    

 

 

    

 

 

 

PROFESSIONALS

   PERIOD
1/17/2017 -
1/31/2017
     PERIOD
2/1/2017 -
2/28/2017
     MONTH
3/1/2017 -
3/31/2017
     MONTH
4/1/2017 -
4/30/2017
 

1. Linklaters LLP

   $ 0      $ 503        265        500  

2. Davis Polk & Wardwell LLP

     0        320        605        1,195  

3. Miller Buckfire & Co LLC

     0        156        151        150  

4. Opportune

     0        67        39        58  

5. Vinson & Elkins

     0        38        22        0  

6. Perella Weinberg Partners LP

     0        0        153        147  

7. Haynes and Boone, LLP

     0        0        38        21  

8. Norton Rose Fulbright LLP

     0        0        38        22  

9. Joele Frank, Wilkinson Brimmer Katcher

     0        0        16        0  
  

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL PROFESSIONALS (MOR-1)

   $ 0      $ 1,085      $ 1,326      $ 2,093  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* See MOR Notes
** Payments to insiders in February, 2017 include $1.025 million in payments under the Key Employee Incentive Plan. These payments were funded by a non-debtor entity, MEMP S-1 Inc. The funds flowed from MEMP S-1 Inc. through the main operating account of Memorial Production Operating LLC to MEMP Services LLC, the entity that processes employee payroll, for processing and disbursement.

MOR-9

 

Page 11 of 11