EV Energy Partners L.P. Reports Operating Results (10-Q)

Author's Avatar
Aug 09, 2012
EV Energy Partners L.P. (EVEP, Financial) filed Quarterly Report for the period ended 2012-06-30.

Ev Energy Partners, L.p. has a market cap of $2.09 billion; its shares were traded at around $55.03 with a P/E ratio of 24.6 and P/S ratio of 8. The dividend yield of Ev Energy Partners, L.p. stocks is 5.6%. Ev Energy Partners, L.p. had an annual average earning growth of 18.3% over the past 5 years.

Highlight of Business Operations:

Net income for the three months ended June 30, 2012 was $15.0 million compared with $39.2 million for the three months ended June 30, 2011. This change reflects (i) $6.0 million in lower revenues, (ii) $20.1 million in increased operating expenses, (iii) $11.2 million in higher impairment charges, (iv) $1.9 million in decreased non–cash changes in the fair value of our derivatives and (v) $4.5 million in higher interest expense, partially offset by $20.4 million in increased realized gains from our derivatives.

Lease operating expenses for the three months ended June 30, 2012 increased $6.9 million compared with the three months ended June 30, 2011 as the result of $7.8 million related to our 2011 acquisitions and our expanded development drilling program and $0.5 million ($0.04 per Mcfe) associated with the sales of oil in tanks acquired in certain of our 2011 acquisitions offset by $1.4 million due to a lower unit cost per Mcfe for our acquisitions of oil and natural gas properties in the Barnett Shale. Lease operating expenses per Mcfe were $1.68 in the three months ended June 30, 2012 compared with $1.78 in the three months ended June 30, 2011.

Net income for the six months ended June 30, 2012 was $43.5 million compared with $5.2 million for the six months ended June 30, 2011. This change reflects (i) $10.7 million in higher revenues, (ii) $31.0 million in increased realized gains on our derivatives and (iii) $62.8 million in increased non–cash changes in the fair value of our derivatives partially offset by (iv) $44.2 million of increased operating expenses, (v) $10.2 million of higher impairment charges and (vi) $10.4 million in higher interest expense.

Lease operating expenses for the six months ended June 30, 2012 increased $18.1 million compared with the six months ended June 30, 2011 as the result of $16.5 million related to our 2011 acquisitions and our expanded development drilling program and $1.7 million ($0.06 per Mcfe) associated with the sales of oil in tanks acquired in certain of our 2011 acquisitions offset by $0.1 million due to a lower unit cost per Mcfe for our acquisitions of oil and natural gas properties in the Barnett Shale. Lease operating expenses per Mcfe were $1.82 in the six months ended June 30, 2012 compared with $1.77 in the six months ended June 30, 2011.

Production taxes, which are generally based on a percentage of our oil, natural gas and natural gas liquids revenues, were $5.8 million for both the six months ended June 30, 2012 and 2011 as the result of $1.8 million from lower average realized prices offset by $1.8 million from increased production. Production taxes for the six months ended June 30, 2012 were $0.20 per Mcfe compared with $0.29 per Mcfe for the six months ended June 30, 2011.

Read the The complete Report