IPAAs Oil & Gas Symposium San Francisco September 30, 2013
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 2.6 billion enterprise value Current yield of 8.3%…
Why Invest in EVEP Solid, long-lived asset base Synergistic relationship with EnerVest Significant Utica Shale upside Acreage, overriding royalty interests, and midstream Hedging strategy designed to reduce cash flow volatility…
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: 166 Mmcfe/d* 2012 Production: 6.5…
Reserves & Capital Spending Estimated Proved Reserves 2013 E&P Capital = 90 - 110 Million 6
Operational Performance Base business is performing well Austin Chalk Production: 13 Mmcfe/d Horizontal multistage reentries looking encouraging A-zone multi stage projects good results 2 wells drilled 3 additional wells planned…
Recent Developments in the Utica Overall Utica Activity * 870 wells permitted 526 wells drilled 125 wells producing CHK/EV/Total Joint Venture 9 rigs expected to run through end of year Completing wells with more stages,…
Our Position in the Utica Shale Black Oil Black Oil Volatile Oil EVEP and EnerVest combined Volatile Oil Wet Gas have one of the largest Wet Gas Dry Gas Dry Gas positions in Ohio EVEP WI Acreage 900,000 HBP acres CHK/EV/Total…
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…
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 Acreage Sale Overview EVEP Acreage Agreement signed for 22,535 net EnerVest acres in the southern Utica wet-gas window Includes 4,345 net EVEP acres EVEP will receive 56 million, subject to purchase price adjustments…
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…
Utica Midstream Activity 14
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…
UEO Harrison Hub June 2013 16 total loading racks (2) 200,000 barrel Rail cars on site (8 C3, 4 C4, 4 C5+) (20) 90,000 refrigerated C3 tanks gallon C3 & C4 (2) 125,000 barrel bullet tanks refrigerated C4 tanks 50,000 barrel…
Barnett Shale Acquisition Joint purchase with EnerVest Institutional Partnerships EVEP purchase price of 67.6 million for 31% of total assets purchased Qualifies for like-kind exchange toward recent Utica acreage sale Expected to…
Long-term Performance & Growth Average Daily Production (Mmcfe/d) Capital ( million) Adjusted EBITDAX ( million) Distribution Coverage Note: 2013E based on 1H13 actuals and midpoints of 3Q-4Q13 guidance. 20
Capital Structure ( millions) Bank Debt 6/30 520 Senior Notes Due 2019 500 Equity Market Capitalization 1,605 Enterprise Value 2,625 Note: Equity market capitalization based on unit price at September 24, 2013. 21
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…
Commodity Hedging: Natural Gas Gas Volume Hedged (MMbtu/d) Gas Prices Hedged (/MMbtu) Note: Estimated NYMEX Henry Hub equivalent with basis differentials of: Dominion Appalachia (0.50), MichCon Citygate 0.26, Houston Ship Channel…
Why Invest in EVEP Solid, long-lived asset base Synergistic relationship with EnerVest Significant Utica Shale upside Acreage, overriding royalty interests, and midstream Hedging strategy designed to reduce cash flow volatility…
IPAAs Oil & Gas Symposium San Francisco September 30, 2013
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