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

August 10, 2009 | About:
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EV Energy Partners L.P. (EVEP) filed Quarterly Report for the period ended 2009-06-30.

EV Energy Partners is an upstream Master Limited Partnership focused on acquiring and operating oil and gas properties within the continental United States. Its current properties are located in the Appalachian Basin primarily in Ohio and West Virginia and in the Monroe Field in Northern Louisiana. EVEP was formed by EnerVest Management Partners Ltd. one of the largest and most successful managers of oil and gas assets for institutional investors and which has a proven fourteen year track record of successfully acquiring and operating oil and gas properties in a variety of basins. EV Energy Partners L.P. has a market cap of $351.4 million; its shares were traded at around $21.13 with a P/E ratio of 8.1 and P/S ratio of 1.7. The dividend yield of EV Energy Partners L.P. stocks is 14.3%.

Highlight of Business Operations:

Production taxes for the three months ended June 30, 2009 decreased $1.4 million compared with the three months ended June 30, 2008 primarily as the result of a decrease of $1.8 million in production taxes associated with our decreased oil, natural gas and natural gas liquids revenues offset by an increase of $0.4 million ($0.36 per Mcfe) in production taxes associated with the oil and natural gas properties that we acquired in 2008. Production taxes for the three months ended June 30, 2009 were $0.21 per Mcfe compared with $0.54 per Mcfe for the three months ended June 30, 2008.

Depreciation, depletion and amortization for the three months ended June 30, 2009 increased $4.9 million compared with the three months ended June 30, 2008 primarily due to $2.3 million related to the oil and natural gas properties that we acquired in 2008 and $2.6 million related to the oil and natural gas properties that we acquired prior to 2008. The increase in depreciation, depletion and amortization for the oil and natural gas properties that we acquired prior to 2008 is related to lower reserves at December 31, 2008 compared with December 31, 2007 due to falling prices. Depreciation, depletion and amortization for the three months ended June 30, 2009 was $2.16 per Mcfe compared with $1.63 per Mcfe for the three months ended June 30, 2008.

General and administrative expenses for the three months ended June 30, 2009 totaled $4.1 million, an increase of $0.5 million compared with the three months ended June 30, 2008. This increase is primarily the result of an increase of $0.6 million of fees paid to EnerVest under the omnibus agreement due to our acquisitions of oil and natural gas properties in 2008. General and administrative expenses were $0.69 per Mcfe in the three months ended June 30, 2009 compared with $0.74 per Mcfe in the three months ended June 30, 2008.

Production taxes for the six months ended June 30, 2009 decreased $2.0 million compared with the six months ended June 30, 2008 primarily as the result of a decrease of $2.9 million in production taxes associated with our decreased oil, natural gas and natural gas liquids revenues offset by an increase of $0.9 million ($0.38 per Mcfe) in production taxes associated with the oil and natural gas properties that we acquired in 2008. Production taxes for the six months ended June 30, 2009 were $0.22 per Mcfe compared with $0.48 per Mcfe for the six months ended June 30, 2008.

Depreciation, depletion and amortization for the six months ended June 30, 2009 increased $10.0 million compared with the six months ended June 30, 2008 primarily due to $4.9 million related to the oil and natural gas properties that we acquired in 2008 and $5.1 million related to the oil and natural gas properties that we acquired prior to 2008. The increase in depreciation, depletion and amortization for the oil and natural gas properties that we acquired prior to 2008 is related to lower reserves at December 31, 2008 compared with December 31, 2007 due to falling prices. Depreciation, depletion and amortization for the six months ended June 30, 2009 was $2.22 per Mcfe compared with $1.68 per Mcfe for the six months ended June 30, 2008.

General and administrative expenses for the six months ended June 30, 2009 totaled $8.4 million, an increase of $1.3 million compared with the six months ended June 30, 2008. This increase is primarily the result of an increase of $1.3 million of fees paid to EnerVest under the omnibus agreement due to our acquisitions of oil and natural gas properties in 2008. General and administrative expenses were $0.70 per Mcfe in the six months ended June 30, 2009 compared with $0.72 per Mcfe in the six months ended June 30, 2008.

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Rating: 3.7/5 (6 votes)

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