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EV Energy Delineates Utica Position; Edits Midstream Guidance

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   |    Monday,November 10,2014

EV Energy Partners, L.P. announced results for the third quarter 2014.  EVEP also provided an update on midstream guidance for the remainder of 2014.

Third Quarter 2014 Results

Adjusted EBITDAX for the third quarter of 2014 was $61.9 million, a 15 percent increase over the third quarter of 2013, and a 14 percent increase over the second quarter of 2014.  Distributable Cash Flow for the third quarter of 2014 was $32.2 million, a 24 percent increase over the third quarter of 2013 and a 22 percent increase over the second quarter of 2014.  The quarter over quarter increase in adjusted EBITDAX and distributable cash flow is primarily attributable to an increase in midstream EBITDAX and increased crude oil and natural gas liquids production volumes. 

Production for the third quarter of 2014 was 11.0 Bcf of natural gas, 270 MBbls of oil and 593 MBbls of natural gas liquids, or 175.8 MMcfe/day.  This represents a 5 percent increase over third quarter 2013 production of 168.0 MMcfe/day and flat to second quarter 2014 production of 174.9 MMcfe/day. 

EVEP reported a net income of $42.6 million, or $0.85 per basic and diluted weighted average limited partner unit outstanding, for the third quarter of 2014.  Included in net income were the following items:

  • $34.2 million of non-cash gains on commodity and interest rate derivatives,
  • $4.3 million of non-cash costs contained in general and administrative expenses,
  • $4.0 million of dry hole and exploration costs, and
  • $0.9 million of non-cash leasehold impairment charges.

For the second quarter of 2014, EVEP reported a net loss of $9.0 million, or $(0.19) per basic and diluted weighted average limited partner unit outstanding.  For the third quarter of 2013, EVEP reported a net loss of $12.3 million, or $(0.29) per basic and diluted weighted average limited partner unit outstanding.

Mark Houser, President and CEO said, "We made significant progress on several fronts during the quarter.  Our base operations performed very steadily while we continued to delineate some of our acreage positions and continued to see increasing cash flow from our Utica East Ohio investment.  We are pleased to have completed the sales of our interest in Cardinal Gas Services and certain Eagle Ford Shale rights in October for a combined $192 million."

Updated Midstream Guidance

Due to the sale of our interest in the Cardinal Gas Services, LLC, in October 2014, we are adjusting fourth quarter guidance ranges for Utica Shale midstream and overriding royalty interest as follows: