Houston partnership boosting acreage in Permian Basin, Rockies

A Houston-based oil and gas partnership is building out its portfolio with properties in the Permian Basin, East Texas and the Rockies that it is buying for roughly $600 million.

Memorial Production Partners said Monday it has signed deals to acquire the properties from from its sponsor, Memorial Resource Development, and affiliates of Natural Gas Partners.

The deal is expected to close in October.

The properties include wells and acreage in Texas, New Mexico, Wyoming and Colorado. The acquisition will boost the partnership’s proved reserves by 36 percent to over 1 trillion cubic feet equivalent and average daily production, based on the month of May, by 42 percent to roughly 152 million cubic feet equivalent per day.

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Memorial Production Partners was created to acquire oil and natural gas properties in North America to generate cash for investors, which is paid through periodic distributions. It already has properties in Texas, Louisiana and California.

It was formed as a master limited partnership, which has certain tax benefits. MLPs are common among companies that engage in petroleum and natural gas activities.

“We are excited to announce our largest acquisition to date with meaningful entries in the Permian Basin and the Rockies as well as adding scale in our core area of East Texas,” CEO John A. Weinzierl said in a statement.