Press Release<< Back
HOUSTON, Jan 30, 2007 (BUSINESS WIRE) -- EV Energy Partners, L.P. (Nasdaq:EVEP) today announced guidance for the fiscal year ending December 31, 2007 and year-end 2006 proved reserves, pro forma for the recently announced Michigan acquisition. In addition, EVEP will place today on its website at www.evenergypartners.com an updated investor presentation.
Guidance for 2007
Guidance estimates for 2007 are presented in the table below. These estimates, including capital expenditure plans, are meant to provide guidance only and are subject to revision as EVEP's operating environment changes. These estimates are pro forma for the recently announced acquisition of oil and gas properties in Michigan, which is expected to close on January 31, 2007.
Pro Forma Proved Reserves
As previously announced, EVEP expects to close its acquisition of oil and gas properties and related hedges in Michigan on January 31, 2007, subject to customary closing conditions. Assuming EVEP acquires all of the properties contemplated under the purchase and sale agreement, its pro forma proved reserves as of December 31, 2006 would total 118.2 Bcfe, representing a 131% increase over 2005 year-end proved reserves for the partnership properties, as follows:
MMBbls Bcf Bcfe --------------------------- Appalachia 1.04 26.2 32.4 Monroe Field 0.00 14.8 14.8 Mid-Continent, East Texas, North Louisiana 0.98 8.9 14.8 Michigan 0.00 56.3 56.3 --------------------------- Pro Forma Proved Reserves 2.02 106.2 118.2 Pro Forma Proved Developed Reserves 1.92 96.5 108.0
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 www.evenergypartners.com.
(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 the partnership 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 the partnership, 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 the Company'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.
Guidance for 2007 (a) FY 2007E --------- Net Production (b): Natural Gas (MMcf) 5,200 - 5,550 Oil (MBbls) 122 - 132 Total (Mmcfe) 5,932 - 6,342 Average daily production (Mcfe/d) 16,252 - 17,375 Transportation margin, net (c): ($ thous) 350 - 400 Average Price Differential vs NYMEX: Natural Gas ($ / Mcf) (0.10) - 0.10 Oil ($ / Bbl) (2.50) - (3.50) Expenses ($ thousands) Operating expenses: LOE and other 9,000 - 9,600 Production taxes 1,500 - 1,700 Total operating expenses 10,500 - 11,300 General and administrative expense (d) 5,000 - 5,400 Interest expense (e) 6,300 - 6,600 Capital expenditures (f) 6,500 - 7,000 Estimated maintenance capital (g) 10,000 - 11,000 Natural Gas Hedging Summary Swaps: Dominion Appalachia Volume (MMMBtu) 1,132 Price ($/MMBtu) $10.265 NYMEX Volume (MMMBtu) 1,064 Price ($/MMBtu) $9.107 MichCon Citygate Volume (MMMBtu) 668 Price ($/MMBtu) $10.255 Collars: MichCon Citygate Volume (MMMBtu) 1,002 Price ($/MMBtu) $8.000 - $9.270 Oil Hedging summary Swaps Volume (MBbls) 91.3 Price ($/Bbl) $71.350 Notes to Guidance Table: (a) Pro forma for closing of Michigan acquisition at January 31, 2007. (b) Includes production for Michigan acquisition beginning January 31, 2007. (c) Represents estimated transportation and marketing-related revenues less purchased gas cost. (d) Excludes unit-based compensation, which represents a non- cash charge based on equity-related compensation, the amount of which cannot be estimated at this time. (e) Interest expense excludes amortization of deferred financing costs. Amounts reflect estimated borrowings to fund 100% of the purchase price of the Michigan acquisition on January, 31, 2007, which would increase total borrowings under the credit facility to approximately $100 million (f) Represents estimates for drilling and related capital expenditures. Does not include any amounts for acquisitions of oil and gas properties. (g) Represents an estimate of the amount of capital that would be required to maintain production levels of our oil and gas properties over the long term, and the operating capacity of our other assets over the long term.
SOURCE: EV Energy Partners, L.P.
EV Energy Partners, L.P., Houston Michael E. Mercer, 713-651-1144 http://www.evenergypartners.com
Copyright Business Wire 2007
News Provided by COMTEX