Raymond James 35th Annual Institutional Investor Conference March 3, 2014
EVEP Overview Upstream MLP created in September 2006 Experienced GP Ownership EnerVest & Management (76.25%) EnerVest established in 1992 EnCap (23.75%) EnCap established in 1988 48.6 million outstanding units EVEP management…
Why Invest in EVEP Solid, long-lived asset base Potential upside in Barnett, Eagle Ford, and Mancos Shales Significant Utica Shale upside potential Utica acreage Midstream investments Overriding royalty interests Hedging…
Relationship with EnerVest EnerVest Private Equity Funds Total SEC Proved Reserves: 3.3 Tcfe (1) Daily Production: Over 500 Mmcfe (2) Advantages for EVEP Dropdown capability Along-side acquisitions Asset concentration EnerVest…
Outlook for 2014 Utica opportunities Midstream ramp-up and increase in EBITDA Midstream expansion increases wet gas window productivity Continued opportunistic acreage sales Increased volatile oil window drilling Ongoing organic…
Long-lived, Diverse Asset Base Total Proved Reserves: 1,192 Bcfe (1) Percent Developed: 68% Percent Gas: 69% Michigan 2013 Avg. Production: 169 Mmcfe/d Proved Reserves: 40.7 Bcfe Reserve-Life Index: 19 years 2013 Production: 6.2…
Austin Chalk (EVEP 14% Ownership) HALCON Austin Chalk horizon Ongoing horizontal multi-stage ANADARKO drilling program Horizontal multi-stage re-entry CLAYTON program WILLIAMS Eagle Ford Shale potential 400K gross acres 50/50…
Barnett Shale (EVEP 31% Ownership) Top 5 producer with EnerVest institutional funds EVEP production: 88 MMcfe/d Add-on acquisitions recently completed Ongoing two rig program Potential ramp-up to three rigs later in 2014…
San Juan Basin Mancos Shale Core position in both oil and wet gas window Over 20,000 EVEP net acres may be prospective for Mancos Shale Sidewall cores taken in well drilled on EVEP acreage in 2013 Plan to launch JV partner…
EVEP Utica Shale Position Black Oil Black Oil Volatile Oil Acreage Position Volatile Oil Wet Gas Wet Gas 173,000 net working interest Dry Gas Dry Gas acres EVEP WI Acreage CHK/EV/Total JV Overriding Royalty Interests…
Utica Working Interest Acreage Black Oil Black Oil Volatile Oil EVEP Net Acres Volatile Oil Wet Gas (In thousands) Wet Gas Dry Gas Wet Gas Vol. Oil Other Total Dry Gas EVEP WI Acreage Total OH 41 79 38 158 CHK/EV/Total JV…
Utica Acreage Overriding Royalty Interest 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…
Utica Midstream Activity Midstream bottleneck disappearing Planned midstream investment in Ohio estimated at 12 billion* Utica East Ohio 400 MMcf/d processing in operation 400 MMcf/d processing under construction Ethane began…
Cardinal Gas Services (EVEP 9% Ownership) Production & Capacity Low-pressure gathering and compression of wet gas from JV production into Utica East Ohio infrastructure JV firm drilling schedule calls for 540 wells by year end…
Utica East Ohio (EVEP 21% Ownership) Gather, process and fractionate wet gas from CHK/EV/Total JV production 800 MMcf/d of processing at Kensington and Leesville 400 MMcf/d in service 400 MMcf/d expected to start-up 2nd and 3rd…
UEO Midstream Capacity Expect processing constraints for CHK JV wells to end in 2Q 2014 UEO de-ethanizer & ATEX pipeline online Processing Fractionation 18
Midstream Capital & EBITDAX Stable, long-term cash flow stream UEO has fee structure defined by contract Fees for gathering, compression, processing, NGL transport, fractionation and storage CGS has cost-of-services arrangement…
Utica De-bottlenecking Processing and fractionation constraints being addressed Gathering and compression constraints being addressed Ethane (high-BTU) constraints being addressed ATEX pipeline in service Harrison Hub de-ethanizer…
Capital Structure ( millions) Bank Debt 12/31 480 Senior Notes Due 2019 500 Equity Market Capitalization 1,758 Enterprise Value 2,738 Note: Equity market capitalization based on unit price at February 24, 2014. Bank debt at…
Commodity Hedging Recently added natural gas hedges of 13 MMcf/d for 2014 2015 at 4.10/Mcf and 30 MMcf/d for 2016 at 4.17/Mcf Gas Volume Hedged (MMcf/d) Oil Volume Hedged (Bbl/d) 4.70 4.94 91.19 90.09 108.8 99.5 4,158 4.17…
2014 Guidance 2014 Guidance ( in Millions) 1st Qtr 2014 2nd - 4th Qtr 2014 Full Year 2014 Net Production: Natural Gas (MMcf) 10,500 - 10,900 31,500 - 34,400 42,000 - 45,300 Crude Oil (MBbls) 250 - 260 770 - 840 1,020 - 1,100…
2014 Capital Spending Exploration & Production Capital CapEx Guidance (Midpoint) 95 - 115 Million 180 160 ( Millions) 140 120 100 80 60 40 20 0 1Q 2Q-4Q Midstream E&P 26
Strategy Going Forward Continue to manage and enhance base business Continue to build out UEO midstream infrastructure Growth in production and EBITDA will increase strategic optionality Further realize value of Utica acreage…
Raymond James 35th Annual Institutional Investor Conference March 3, 2014
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