OREANDA-NEWS. EV Energy Partners, L.P. today announced results for the second quarter of 2016 and the filing of its Form 10-Q with the Securities and Exchange Commission. 

Second Quarter 2016 Results

For the second quarter 2016, EVEP reported a net loss of $29.0 million, or $(0.58) per basic and diluted weighted average limited partner unit outstanding compared to a net loss of $29.0 million, or $(0.58) per basic and diluted weighted average limited partner unit outstanding for the first quarter of 2016.  Included in net loss for the second quarter of 2016 were the following items:

  • $54.8 million of non-cash losses on commodity and interest rate derivatives,
  • $47.7 million of gain on early extinguishment of debt related to repurchases of Senior Notes at a discount to par,
  • $2.0 million of impairment charges related to the write down of certain oil and natural gas properties primarily due to a change in development plans,
  • $1.4 million of non-cash costs contained in general and administrative expenses, and
  • $0.8 million of dry hole and exploration costs.

For the second quarter of 2015, EVEP reported net income of $164.1 million, or $3.25 per basic and diluted weighted average limited partner unit outstanding.  Net income for the second quarter of 2015 included a $246.7 million gain related to the sale of its interest in Utica East Ohio, which was partially offset by $48.3 million of impairment charges.

Production for the second quarter of 2016 was 13.0 Bcf of natural gas, 313 Mbbls of oil and 585 Mbbls of natural gas liquids, or 201.5 million cubic feet equivalent per day (Mmcfe/day). This represents flat production versus the first quarter of 2016 production of 201.4 Mmcfe/day and a 24 percent increase over the second quarter of 2015 production of 162.8 Mmcfe/day.  The increase over the second quarter of 2015 was primarily due to the addition of producing properties acquired on October 1, 2015. 

Adjusted EBITDAX for the second quarter of 2016 was $26.5 million, a 31 percent increase over the first quarter of 2016 Adjusted EBITDAX of $20.2 million and a 50 percent decrease from the second quarter of 2015 Adjusted EBITDAX of $53.4 million.  EVEP reported Distributable Cash Flow of $5.5 million for the second quarter of 2016, compared to $(1.2) million for the first quarter of 2016 and $26.2 million for the second quarter of 2015.  The increases in Adjusted EBITDAX and Distributable Cash Flow over the first quarter of 2016 were primarily attributable to lower operating expenses and higher realized oil and natural gas liquids prices, partially offset by lower realized natural gas prices.  The decreases in Adjusted EBITDAX and Distributable Cash Flow from the second quarter of 2015 were primarily attributable to lower realized oil and natural gas prices, lower realized hedge gains and the sale of EVEP's interest in Utica East Ohio in the second quarter of 2015, partially offset by the addition of producing properties acquired on October 1, 2015. Adjusted EBITDAX and Distributable Cash Flow are Non-GAAP financial measures and are described in the attached table under “Non-GAAP Measures.”

“We continue to focus on reducing leverage and operating costs.  We recently completed our Senior Note repurchase program, increasing our total repurchases for 2016 to $82.7 million of Senior Notes for $35.0 million of cash.  At the end of the second quarter our total debt was $623 million, and we had over $170 million of liquidity between balance sheet cash and available borrowing base capacity," said Michael Mercer, President and CEO.