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

May 10, 2010 | About:
10qk

10qk

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EV Energy Partners L.P. (EVEP) filed Quarterly Report for the period ended 2010-03-31.

Ev Energy Partners L.p. has a market cap of $821.54 million; its shares were traded at around $30.36 with a P/E ratio of 13.86 and P/S ratio of 6.74. The dividend yield of Ev Energy Partners L.p. stocks is 9.96%.EVEP is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net income for the three months ended March 31, 2010 was $46.1 million, an increase of $7.7 million compared with the three months ended March 31, 2009. This increase was primarily the result of $10.9 million of higher revenues due to increased prices for oil, natural gas and natural gas liquids and $6.0 million of increased non–cash changes in the value of our derivatives partially offset by $9.8 million of decreased realized gains on our derivatives.

Lease operating expenses for the three months ended March 31, 2010 increased $0.3 million compared with the three months ended March 31, 2009 primarily as the result of $1.0 million related to the oil and natural gas properties that we acquired in 2009 offset by a decrease of $0.7 million related to the oil and natural gas properties that we acquired prior to 2009. Lease operating expenses for the three months ended March 31, 2010 were $1.96 per Mcfe compared with $1.85 in the three months ended March 31, 2009.

Production taxes for the three months ended March 31, 2010 increased $0.7 million compared with the three months ended March 31, 2009 primarily as the result of an increase of $0.6 million in production taxes associated with our increased oil, natural gas and natural gas liquids revenues and an increase of $0.1 million in production taxes associated with the oil and natural gas properties that we acquired in 2009. Production taxes for the three months ended March 31, 2010 were $0.36 per Mcfe compared with $0.24 per Mcfe for the three months ended March 31, 2009.

Depreciation, depletion and amortization for the three months ended March 31, 2010 decreased $1.5 million compared with the three months ended March 31, 2009 primarily due to a decrease of $2.6 million related to the oil and natural gas properties that we acquired prior to 2009 offset by $1.1 million related to the oil and natural gas properties that we acquired in 2009. The decrease in depreciation, depletion and amortization for the oil and natural gas properties that we acquired prior to 2009 reflects to a lower depreciation, depletion and amortization rate for the three months ended March 31, 2010 compared with the three months ended March 31, 2009 due to increased reserves primarily due to higher oil and natural gas liquids prices at December 31, 2009 compared with December 31, 2008. Depreciation, depletion and amortization for the three months ended March 31, 2010 was $2.07 per Mcfe compared with $2.27 per Mcfe for the three months ended March 31, 2009.

General and administrative expenses include the costs of administrative employees and related benefits, management fees paid to EnerVest, professional fees and other costs not directly associated with field operations. General and administrative expenses for the three months ended March 31, 2010 totaled $4.7 million, an increase of $0.4 million compared with the three months ended March 31, 2009. This increase is primarily attributable to higher compensation costs related to our phantom units and performance units. General and administrative expenses were $0.81 per Mcfe in the three months ended March 31, 2010 compared with $0.71 per Mcfe in the three months ended March 31, 2009.

During the three months ended March 31, 2010, we received net proceeds of $92.7 million from our public equity offering in February 2010, and we received contributions of $2.0 million from our general partner in order to maintain its 2% interest in us. We borrowed $138.0 million under our credit facility to finance our acquisition of oil and natural gas properties in March 2010 and we repaid $95.0 million of borrowings outstanding under our credit facility with proceeds from our public equity offering and cash flows from operations. In addition, we paid distributions of $20.2 million to holders of our common units and our general partner.

Read the The complete Report

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