EV Energy Partners Announces Third Quarter 2011 Results and Updated Fourth Quarter 2011 Guidance and Commodity Hedge Positions
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 11/08/11 -- EV Energy Partners, L.P. (NASDAQ: EVEP) today announced results for the third quarter 2011 and filed its Form 10-Q with the Securities and Exchange Commission. In addition, EVEP announced updated guidance for the fourth quarter of 2011 and provided a summary of commodity price hedges entered into since its second quarter 2011 earnings release.
Adjusted EBITDAX for the quarter was $52.2 million, a 40 percent increase over the third quarter of 2010 and a 5 percent decrease versus the second quarter of 2011. Distributable Cash Flow for the quarter was $30.8 million, a 28 percent increase over the third quarter of 2010 and a 7 percent decrease versus the second quarter of 2011. The changes in Adjusted EBITDAX and Distributable Cash Flow, which are described in the attached table under "Non-GAAP Measures," are primarily attributable to the decrease in crude oil sales volumes and an increase in lease operating expenses, partially offset by an increase in natural gas and natural gas liquids production.
For the quarter ended September 30, 2011, EVEP produced 7.1 Bcf of natural gas, 207 MBbls of crude oil and 285 MBbls of natural gas liquids, or 10.1 Bcfe. This represents a 45 percent increase from the third quarter 2010 production of 7.0 Bcfe, primarily due to acquisitions completed during the fourth of 2010, and is essentially flat to the 10.1 Bcfe produced in the second quarter 2011.
EVEP reported net income of $87.8 million, or $2.42 and $2.40 per basic and diluted weighted average limited partner unit outstanding, respectively, for the third quarter of 2011. Included in net income were $68.8 million of non-cash net unrealized gains on commodity and interest rate derivatives and $2.7 million of non-cash costs contained in general and administrative expenses. General and administrative expenses also included $0.2 million of acquisition-related due diligence and other related transaction costs. Also included in net income was a $1.3 million non-cash realized loss on derivatives related to derivatives acquired in conjunction with a 2010 property acquisition. For the third quarter of 2010, net income was $58.1 million, or $1.88 and $1.87 per basic and diluted weighted average limited partner unit outstanding, which included $4.1 million of non-cash net unrealized gains on commodity and interest rate derivatives and $1.3 million of non-cash costs contained in general and administrative expenses. Also included in net income was a $36.8 million gain on sale of certain unproved acreage. For the second quarter of 2011, net income was $39.2 million, or $1.03 per basic and diluted weighted average limited partner unit outstanding. Included in net income were $17.4 million of non-cash net unrealized gains on commodity and interest rate derivatives and $1.7 million of non-cash costs contained in general and administrative expenses. General and administrative expenses also included $0.2 million of acquisition-related due diligence and other related transaction costs. Also included in net income was a $5.1 million impairment charge relating to a divestiture of non-core oil and natural gas properties and a $3.3 million non-cash realized gain on derivatives related to term extensions on certain interest rate swaps and to derivatives acquired in conjunction with a 2010 property acquisition.
The $68.8 million non-cash net unrealized gain on derivatives for the third quarter of 2011 was primarily due to the decrease in future oil prices that occurred from June 30, 2011, to September 30, 2011, and the effect of such decreased prices on the mark-to-market valuation of EVEP's outstanding commodity derivatives.
John Walker, Chairman and CEO, said, "We are very pleased with the almost $500 million of accretive acquisitions that we recently announced in our core areas of operations. We are also pleased with the continuing positive developments in the Utica Shale and the steady performance in our existing asset base."
The following table presents updated guidance for the fourth quarter of 2011, including the previously announced Mid-Continent area, Ohio and Barnett Shale bolt-on acquisitions that were recently completed and the two Barnett Shale acquisitions that are expected to close prior to year-end 2011.
Since its second quarter earnings release dated August 10, 2011, EVEP has entered into the following additional natural gas and crude oil hedge positions.
EVEP's financial statements and related footnotes are available on our third quarter 2011 Form 10-Q, which was filed today and is available through the Investor Relations/SEC Filings section of the EVEP web site at .
As announced on November 2, 2011, EV Energy Partners, L.P. will host an investor conference call Wednesday, November 9, 2011 at 10 a.m. EST. Investors interested in participating in the call may dial 480-629-9866 (quote conference ID 4486338) at least five minutes prior to the start time, or may listen live over the Internet through the Investor Relations section of the EVEP web site at .
EV Energy Partners, L.P., is a master limited partnership engaged in acquiring, producing and developing oil and gas properties. More information about EVEP is available on the Internet at .
(code #: EVEP/G)
This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by EVEP based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of EVEP, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to financial performance and results, availability of sufficient cash flow to pay distributions and execute our business plan, prices and demand for natural gas and oil, our ability to replace reserves and efficiently develop our current reserves and other important factors that could cause actual results to differ materially from those projected as described in EVEP's reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made and EVEP undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
We define Adjusted EBITDAX as net income plus income tax provision, interest expense, net, realized losses on interest rate swaps, depreciation, depletion and amortization, asset retirement obligation accretion expense, non-cash realized losses (gains) on derivatives, non-cash unrealized gains on derivatives, non-cash equity compensation, impairment of oil and natural gas properties, gain on sale of oil and natural gas properties, write down of crude oil inventory, and dry hole and exploration costs. Distributable Cash Flow is defined as Adjusted EBITDAX less income tax provision, cash interest expense, net, realized losses on interest rate swaps and estimated maintenance capital expenditures.
Adjusted EBITDAX and Distributable Cash Flow are used by our management to provide additional information and statistics relative to the performance of our business, including (prior to the creation of any reserves) the cash available to pay distributions to our unitholders. These financial measures indicate to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Adjusted EBITDAX and Distributable Cash Flow are also quantitative standards used throughout the investment community with respect to performance of publicly-traded partnerships. Adjusted EBITDAX and Distributable Cash Flow should not be considered as alternatives to net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX and Distributable Cash Flow exclude some, but not all, items that affect net income and operating income and these measures may vary among companies. Therefore, our Adjusted EBITDAX and Distributable Cash Flow may not be comparable to similarly titled measures of other companies.
EV Energy Partners, L.P., Houston
Michael E. Mercer
713-651-1144
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Datum: 08.11.2011 - 17:23 Uhr
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