EVEP Overview Upstream MLP delivering solid returns since IPO September 2006 GP Ownership EnerVest & Management (76.25%) Encap (23.75%) 42.6 million outstanding units 2.4 billion enterprise value 1.5 billion equity market cap…
Why Invest in EVEP Strong long-term performance and growth Solid, long-lived asset base Hedging strategy designed to reduce cash flow volatility Synergistic relationship with EnerVest Significant Utica Shale upside Acreage,…
Long-term Performance & Growth Average Daily Production (Mmcfe/d) Capital ( million) Adjusted EBITDAX ( million) Distribution Coverage Note: 2013E based on 1Q13 actuals and midpoints of 2Q-4Q13 guidance. 5
Active Commodity Hedging Strategy Hedges used to reduce the effects of commodity price volatility and support initial acquisition economics Hedged approximately 90% for 2013, 80% for 2014 and 70% for 2015 Note: Percentage hedged…
Long-lived, Diverse Asset Base Total Proved Reserves: 905 Bcfe Percent Developed: 76% Percent Gas: 67% Michigan Reserve-Life Index: 15 years Proved Reserves: 24.4 Bcfe 2013E Avg. Production: 163 MMcfe/d* 2012 Production: 6.5…
Reserves & Capital Spending Estimated Proved Reserves 2013 E&P Capital = 90 - 110 Million 8
Operational Performance Base business is performing well Barnett Shale Production: 77 Mmcfe/d Reached peak production rates since asset purchases Initial production rates 11% higher Dropped from 3 to 2 rigs with same expected exit…
EVEPs Appalachian Evolution Pre-Utica Appalachia Current Appalachia Conventional Production Cardinal Gas Services Utica East Ohio Midstream Midstream Overriding Royalty Interest Conventional Production Working Interest…
Our Position in the Utica Shale Black Oil Black Oil Volatile Oil EVEP and EnerVest combined Volatile Oil Wet Gas Wet Gas have one of the largest Dry Gas Dry Gas positions in Ohio EVEP WI Acreage 8,000 wells operated…
Recent Developments in the Utica Overall Utica Activity * 747 wells permitted 359 wells drilled 102 wells producing CHK/EV/Total Joint Venture Currently 12-16 rigs running 65 producing wells 54 wells waiting on pipeline…
Wet Gas and Volatile Oil Windows Black Oil Black Oil Volatile Oil Volatile Oil Wet Gas Wet Gas Window Wet Gas Dry Gas Dry Gas Majority of drilling has EVEP WI Acreage helped to de-risk play CHK/EV/Total JV Play expanding…
Utica Acreage Strategy EVEP and EnerVest began Utica acreage marketing process in 2012 with focus on sale of operated acreage Over 330,000 total EnerVest net working interest acres (100,000 net EVEP Acres) In second quarter of…
Utica Working Interest Acreage Black Oil Black Oil EVEP Net Acres Volatile Oil Volatile Oil (In thousands) Wet Gas Wet Gas County Wet Gas Vol. Oil Other Total Dry Gas Dry Gas ASHTABULA 21 21 EVEP WI Acreage CARROLL 11 11…
Utica Overriding Royalty Interest Acreage Overriding Royalty Interest (ORRI) acreage is mostly in wet gas and oil windows 880,000 gross acres Average 2.7% ORRI on 415,000 operated gross acres Average 1.3% ORRI on 465,000…
Midstream Activity Ramping Up 2.6 BCF/d proposed processing projects 4Q12-YE14 Mariner West Deliver Ethane from SUNOCO to SARNIA NiSource/Hilcorp Design: 65 MBbl/d Processing: 200 MMcf/d Residue: TETCO, REX, NiSource In Service:…
Utica Midstream Investments Utica East Ohio Midstream EVEP owns 21% Gather, process and fractionate wet gas from CHK/EV/Total JV production 800 MMcf/d of processing & 135 MBbls/d of fractionation capacity Onsite working storage of…
Utica Midstream Capital and EBITDAX Capital investment of 335-395 million, net to EVEP, over 5 years Stable, long-term cash flow stream UEO has fee structure defined by contract Fees for gathering, compression, processing, NGL…
Why Invest in EVEP Strong long-term performance and growth Solid, long-lived asset base Hedging strategy designed to reduce cash flow volatility Synergistic relationship with EnerVest Significant Utica Shale upside Acreage,…
Investor Presentation June 2013
APPENDIX
EnerVest & EVEP EnerVest, Ltd. 100% Membership Interest EV Management, LLC EnerVest (General Partner) EV Investors EnCap (Limited Partners) Directors & Officers of Public Unitholders EV Management EV Energy GP,…
A Strong Strategic Partnership with EnerVest EnerVest is recognized as one of the largest and most successful managers of oil and gas assets for institutional investors Sizeable EnerVest operating base 3.1 Tcfe of Proved Reserves…
Source: Ohio Department of Natural Resources 2012 Shale Production 26
Reported Utica Test Results (54 Total Wells) Mahoning Co., OH Crawford Co., PA CNX (1) Range (1) Stark Co., OH Forest Co., PA EnerVest (1) Seneca (1) Carroll Co., OH Venango Co., PA Chesapeake (11) CNX (1) EnerVest (1) Rex…
Capital Structure ( millions) Bank Debt 3/31 445 Senior Notes Due 2019 500 Equity Market Capitalization 1,485 Enterprise Value 2,430 Note: Equity market capitalization based on unit price at June 19, 2013. 28
Historical Financing Strategy Since 2006, completed 1.9 billion of acquisitions, approximately 60% of which were financed with equity and free cash flow Capital Activity (1) Acquisition Financing Since IPO Equity 1,027 53% Free…
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