Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update | Capital Markets | Private Equity Activity
EV Energy Sees Tough 2Q; Records Net Loss
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EV Energy Partners, L.P. has reported results for the second quarter 2014. EVEP also provided an update on midstream guidance for the remainder of 2014 and an update on its commodity hedge positions.
Second Quarter 2014 Results
Adjusted EBITDAX for the second quarter of 2014 was $54.4 million, a 3 percent increase over the second quarter of 2013, and a 3 percent decrease from the first quarter of 2014. Distributable Cash Flow for the second quarter of 2014 was $26.4 million, a 1 percent increase over the second quarter of 2013 and an 8 percent decrease from the first quarter of 2014. The quarter over quarter decrease in adjusted EBITDAX and distributable cash flow is primarily attributable to lower realized NGL and natural gas prices, partially offset by an increase in midstream EBITDAX and a decrease in cash general and administrative expenses.
Production for the second quarter of 2014 was 11.0 Bcf of natural gas, 255 MBbls of oil and 571 MBbls of natural gas liquids, or 174.9 MMcfe/day. This represents a 2 percent increase over second quarter 2013 production of 172.3 MMcfe/day and flat to first quarter 2014 production of 174.7 MMcfe/day.
EVEP reported a net loss of $9.0 million, or $(0.19) per basic and diluted weighted average limited partner unit outstanding, for the second quarter of 2014. Included in net loss were the following items:
- $12.4 million of non-cash losses on commodity and interest rate derivatives,
- $6.6 million of non-cash costs contained in general and administrative expenses,
- $1.1 million of non-cash leasehold impairment charges, and
- $1.7 million of dry hole and exploration costs.
For the first quarter of 2014, EVEP reported a net loss of $6.3 million, or $(0.14) per basic and diluted weighted average limited partner unit outstanding. For the second quarter of 2013, EVEP reported a net income of $32.9 million, or $0.74 per basic and diluted weighted average limited partner unit outstanding.
Updated Midstream Guidance
Due to the timing of connection of volumes into the Cardinal Gas Services gathering system and the related throughput volumes into the Utica East Ohio processing and fractionation facilities, we are adjusting third and fourth quarter guidance ranges for Utica Shale midstream and overriding royalty interest EBITDAX as follows:
