EV Energy Partners, L.P. (NASDAQ:EVEP) today announced results for
the third quarter of 2016 and the filing of its Form 10-Q with the
Securities and Exchange Commission. In addition, EVEP has
entered into additional commodity hedge positions.
Third Quarter 2016 Results
For the third quarter 2016, EVEP reported a net loss of $19.2
million, or $(0.38) 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 second quarter of 2016. Included in
net loss for the third quarter of 2016 were the following
items:
- $1.9 million of non-cash costs contained in general and
administrative expenses,
- $1.6 million of non-cash losses on commodity and interest rate
derivatives,
- $1.4 million income tax refund associated with one of our
partnerships,
- $0.7 million of impairment charges related to the write down of
certain oil and natural gas properties primarily due to a change in
development plans, and
- $0.3 million of dry hole and exploration costs.
For the third quarter of 2015, EVEP reported a net loss of $9.8
million, or $(0.20) per basic and diluted weighted average limited
partner unit outstanding.
Production for the third quarter of 2016 was 12.5 Bcf of natural
gas, 308 Mbbls of oil and 597 Mbbls of natural gas liquids, or
195.3 million cubic feet equivalent per day (Mmcfe/day). This
represents a three percent decrease from second quarter of 2016
production of 201.5 Mmcfe/day and a 27 percent increase over the
third quarter of 2015 production of 153.8 Mmcfe/day. The
decrease from the second quarter of 2016 was due to the reduction
in drilling activity, and the increase over the third quarter of
2015 was primarily due to the addition of producing properties
acquired on October 1, 2015.
Adjusted EBITDAX for the third quarter of 2016 was $26.0
million, a two percent decrease from the second quarter of 2016
Adjusted EBITDAX of $26.5 million and a 41 percent decrease from
the third quarter of 2015 Adjusted EBITDAX of $43.8 million.
Distributable Cash Flow for the third quarter of 2016 was $6.4
million compared to $5.5 million for the second quarter of 2016 and
$20.1 million for the third quarter of 2015. The increase in
Distributable Cash Flow from the second quarter of 2016 was
primarily attributable to a tax refund for one of the partnerships
we operate. The decreases in Adjusted EBITDAX and
Distributable Cash Flow from the third quarter of 2015 were
primarily attributable to lower realized hedge gains and lower
realized oil prices, partially offset by the addition of producing
properties acquired on October 1, 2015 and higher realized natural
gas and natural gas liquids prices. Adjusted EBITDAX and
Distributable Cash Flow are Non-GAAP financial measures and are
described in the attached table under “Non-GAAP Measures.”
“Reducing leverage and operating costs continues to be our
focus, and we are pleased with our progress this year. As
announced last week, we completed our fall borrowing base
redetermination and appreciate the continued support from our bank
group in reaffirming our borrowing base of $450 million. We
currently have $281 million drawn on our credit facility and have
over $177 million of liquidity between balance sheet cash and
available borrowing base capacity. We believe this is a
sufficient amount of capital to meet all of our near term needs,"
said Michael Mercer, President and CEO.
Additional Commodity Hedges
EVEP has recently entered into the following additional
commodity hedges since its press release on August 9, 2016.
EVEP's current hedge position, including these new hedges, is
presented at the end of this press release under Total Hedge
Position.
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Swap |
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Swap |
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Collar |
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Collar |
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Collar |
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Period |
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Index |
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Volume |
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Price |
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Volume |
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Floor |
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Ceiling |
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Crude (Mbbls) |
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Oct -
Dec 2016 |
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WTI |
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138 |
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$ |
49.90 |
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138 |
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$ |
45.00 |
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$ |
54.05 |
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2017 |
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WTI |
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365 |
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$ |
52.85 |
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Quarterly Report on Form 10-Q
EVEP’s financial statements and related footnotes are available
on our third quarter 2016 Form 10-Q, which was filed today and is
available through the Investor Relations/SEC Filings section of the
EVEP website at http://www.evenergypartners.com.
Conference Call
As announced on October 20, 2016, EV Energy Partners, L.P. will
host an investor conference call on November 9, 2016, at 9 a.m.
Eastern Time (8 a.m. Central). Investors interested in
participating in the call may dial 1-888-708-5690 (quote conference
ID 6002278) at least 5 minutes prior to the start time, or may
listen live over the Internet through the Investor Relations
section of the EVEP website at
http://www.evenergypartners.com.
EV Energy Partners, L.P. is a master limited partnership engaged
in acquiring, producing and developing oil and natural gas
properties. More information about EVEP is available on the
Internet at http://www.evenergypartners.com.
(code #: EVEP/G)
Forward Looking Statements
This press release may include statements that are not
historical facts which are "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. These statements include information about, future
plans, our reserve quantities and the present value of our
reserves, estimates of maintenance capital and production amounts
and other statements which include words such as "anticipates,"
"plans," "projects," "expects," "intends," "believes," "should,"
and similar expressions of forward-looking information.
Forward-looking statements are inherently uncertain and necessarily
involve risks that may affect the business prospects and
performance of EVEP. 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.
Actual results may differ materially from those contained in
the press release. Such risks and uncertainties include, but
are not limited to, changes in commodity prices, changes in reserve
estimates, requirements and actions of purchasers of properties,
exploration and development activities, the availability and cost
of financing, the returns on our capital investments and
acquisition strategies, the availability of sufficient cash flow to
execute our business plan and general economic conditions.
Additional information on risks and uncertainties that could affect
our business prospects and performance are provided in the most
recent reports of EVEP with the Securities and Exchange
Commission. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. All forward-looking statements
included in this press release are expressly qualified in their
entirety by the foregoing cautionary statements.
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.
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Operating
Statistics |
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Three Months EndedSeptember 30, |
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Nine Months EndedSeptember 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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Production data: |
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Oil (Mbbls) |
|
|
308 |
|
|
|
212 |
|
|
|
938 |
|
|
|
690 |
|
|
|
Natural gas liquids (Mbbls) |
|
|
597 |
|
|
|
526 |
|
|
|
1,784 |
|
|
|
1,671 |
|
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Natural gas (Mmcf) |
|
|
12,535 |
|
|
|
9,720 |
|
|
|
38,304 |
|
|
|
30,326 |
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Net production (Mmcfe) |
|
|
17,965 |
|
|
|
14,147 |
|
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|
54,637 |
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|
44,491 |
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|
Average sales price per
unit: (1) |
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Oil (Bbl) |
|
$ |
40.40 |
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$ |
41.27 |
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$ |
36.82 |
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$ |
46.19 |
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Natural gas liquids (Bbl) |
|
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14.23 |
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|
11.93 |
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|
14.09 |
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|
14.11 |
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Natural gas (Mcf) |
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2.38 |
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|
2.32 |
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|
1.86 |
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|
2.38 |
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Mcfe |
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2.82 |
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|
2.66 |
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|
2.39 |
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|
2.87 |
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Average unit cost per
Mcfe: |
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Production costs: |
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Lease operating expenses |
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$ |
1.42 |
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$ |
1.59 |
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$ |
1.47 |
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$ |
1.57 |
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|
|
Production taxes |
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|
0.12 |
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|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.11 |
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Total |
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|
1.54 |
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|
|
1.69 |
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|
|
1.57 |
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|
|
1.68 |
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Depreciation, depletion
and amortization |
|
|
1.76 |
|
|
|
1.66 |
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|
|
1.67 |
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|
|
1.68 |
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|
General and administrative
expenses |
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|
0.47 |
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|
0.61 |
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|
0.46 |
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|
0.66 |
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(1) Prior to $10.1 million and $35.9 million of net hedge
gains on settlements of commodityderivatives for the three months
ended September 30, 2016 and September 30, 2015,respectively, and
$49.1 million and $100.1 million for the nine months ended
September 30,2016 and September 30, 2015, respectively. |
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Condensed
Consolidated Balance Sheets |
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(In $
thousands, except number of units) |
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(Unaudited) |
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September 30, 2016 |
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December 31, 2015 |
|
ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
5,981 |
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$ |
20,415 |
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Accounts receivable: |
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Oil, natural gas and natural gas
liquids revenues |
|
|
37,803 |
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|
|
24,285 |
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Other |
|
|
2,216 |
|
|
|
7,137 |
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Derivative asset |
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|
10,043 |
|
|
|
60,662 |
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Other current assets |
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|
3,226 |
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|
|
3,057 |
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Total current assets |
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|
59,269 |
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|
|
115,556 |
|
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|
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Oil and natural gas
properties, net of accumulated |
|
|
|
|
|
depreciation, depletion and
amortization; September 30, |
|
|
|
|
|
2016, $1,062,990; December
31, 2015, $971,499 |
|
|
1,701,279 |
|
|
|
1,790,455 |
|
|
Other property, net of
accumulated depreciation |
|
|
|
|
|
and amortization; September 30,
2016, $994; |
|
|
|
|
|
December 31, 2015, $970 |
|
|
1,010 |
|
|
|
1,019 |
|
|
Long–term derivative
asset |
|
|
464 |
|
|
|
10,741 |
|
|
Other assets |
|
|
4,354 |
|
|
|
5,831 |
|
|
Total assets |
|
$ |
1,766,376 |
|
|
$ |
1,923,602 |
|
|
|
|
|
|
|
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|
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|
|
LIABILITIES AND OWNERS’ EQUITY |
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|
|
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|
|
|
|
Current liabilities: |
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|
|
|
|
Accounts payable and accrued
liabilities: |
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|
|
|
|
Third party |
|
$ |
40,278 |
|
|
$ |
43,135 |
|
|
Related party |
|
|
5,224 |
|
|
|
5,952 |
|
|
Income taxes |
|
|
- |
|
|
|
11,657 |
|
|
Derivative liability |
|
|
2,362 |
|
|
|
- |
|
|
Total current liabilities |
|
|
47,864 |
|
|
|
60,744 |
|
|
|
|
|
|
|
|
Asset retirement
obligations |
|
|
178,058 |
|
|
|
174,003 |
|
|
Long–term debt, net |
|
|
613,799 |
|
|
|
688,614 |
|
|
Long–term derivative
liability |
|
|
3,056 |
|
|
|
- |
|
|
Other long–term
liabilities |
|
|
1,278 |
|
|
|
1,682 |
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|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Owners’ equity: |
|
|
|
|
|
Common unitholders - 49,055,214
units and |
|
|
|
|
|
48,871,399 units issued and
outstanding as of |
|
|
|
|
|
September 30, 2016 and December 31,
2015, respectively |
|
|
936,793 |
|
|
|
1,011,509 |
|
|
General partner interest |
|
|
(14,472 |
) |
|
|
(12,950 |
) |
|
Total owners' equity |
|
|
922,321 |
|
|
|
998,559 |
|
|
Total liabilities and
owners' equity |
|
$ |
1,766,376 |
|
|
$ |
1,923,602 |
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
(In $
thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
EndedSeptember 30, |
|
Nine Months
EndedSeptember 30, |
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Oil, natural gas and natural gas
liquids revenues |
|
$ |
50,750 |
|
|
$ |
37,587 |
|
|
$ |
130,854 |
|
|
$ |
127,734 |
|
|
Transportation and
marketing–related revenues |
|
|
622 |
|
|
|
734 |
|
|
|
1,599 |
|
|
|
2,285 |
|
|
Total revenues |
|
|
51,372 |
|
|
|
38,321 |
|
|
|
132,453 |
|
|
|
130,019 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
25,571 |
|
|
|
22,509 |
|
|
|
80,532 |
|
|
|
69,833 |
|
|
Cost of purchased natural gas |
|
|
435 |
|
|
|
510 |
|
|
|
1,076 |
|
|
|
1,588 |
|
|
Dry hole and exploration costs |
|
|
294 |
|
|
|
1,034 |
|
|
|
1,195 |
|
|
|
1,720 |
|
|
Production taxes |
|
|
2,126 |
|
|
|
1,357 |
|
|
|
5,501 |
|
|
|
4,708 |
|
|
Accretion expense on
obligations |
|
|
2,057 |
|
|
|
1,134 |
|
|
|
6,146 |
|
|
|
3,548 |
|
|
Depreciation, depletion and
amortization |
|
|
31,639 |
|
|
|
23,485 |
|
|
|
91,492 |
|
|
|
74,718 |
|
|
General and administrative
expenses |
|
|
8,514 |
|
|
|
8,609 |
|
|
|
24,862 |
|
|
|
28,968 |
|
|
Impairment of oil and natural gas
properties |
|
|
687 |
|
|
|
15,787 |
|
|
|
3,371 |
|
|
|
122,244 |
|
|
Gain on settlement of contract |
|
|
- |
|
|
|
- |
|
|
|
(3,185 |
) |
|
|
- |
|
|
Gain on sales of oil and natural
gas properties |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(531 |
) |
|
Total operating costs and
expenses |
|
|
71,323 |
|
|
|
74,425 |
|
|
|
210,990 |
|
|
|
306,796 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(19,951 |
) |
|
|
(36,104 |
) |
|
|
(78,537 |
) |
|
|
(176,777 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
|
Gain (loss) on derivatives,
net |
|
|
8,559 |
|
|
|
37,042 |
|
|
|
(17,192 |
) |
|
|
51,406 |
|
|
Interest expense |
|
|
(9,889 |
) |
|
|
(11,043 |
) |
|
|
(32,554 |
) |
|
|
(38,279 |
) |
|
Gain on early extinguishment of
debt |
|
|
- |
|
|
|
- |
|
|
|
47,695 |
|
|
|
- |
|
|
Other income, net |
|
|
622 |
|
|
|
206 |
|
|
|
1,586 |
|
|
|
51 |
|
|
Total other income (expense),
net |
|
|
(708 |
) |
|
|
26,205 |
|
|
|
(465 |
) |
|
|
13,178 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes |
|
|
(20,659 |
) |
|
|
(9,899 |
) |
|
|
(79,002 |
) |
|
|
(163,599 |
) |
|
Income taxes |
|
|
1,429 |
|
|
|
61 |
|
|
|
1,779 |
|
|
|
684 |
|
|
Loss from continuing
operations |
|
|
(19,230 |
) |
|
|
(9,838 |
) |
|
|
(77,223 |
) |
|
|
(162,915 |
) |
|
Income from
discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
255,512 |
|
|
Net income (loss) |
|
$ |
(19,230 |
) |
|
$ |
(9,838 |
) |
|
$ |
(77,223 |
) |
|
$ |
92,597 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per limited partner unit: |
|
|
|
|
|
|
|
|
|
Loss from continuing
operations |
|
$ |
(0.38 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.54 |
) |
|
$ |
(3.29 |
) |
|
Income from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.12 |
|
|
Net income (loss) |
|
$ |
(0.38 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.54 |
) |
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding (basic and diluted) |
|
|
49,055 |
|
|
|
48,871 |
|
|
|
49,046 |
|
|
|
48,846 |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared
per unit |
|
$ |
- |
|
|
$ |
0.50 |
|
|
$ |
- |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
|
(In $
thousands) |
|
|
|
|
|
(Unaudited) |
|
Nine Months
EndedSeptember 30, |
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Cash flows from operating
activities: |
|
|
|
|
|
Net income (loss) |
|
$ |
(77,223 |
) |
|
$ |
92,597 |
|
|
Adjustments to reconcile net income
(loss) to net cash flows provided by operating activities: |
|
|
|
|
|
Income from discontinued
operations |
|
|
- |
|
|
|
(255,512 |
) |
|
Amortization of volumetric
production payment liability |
|
|
(3,070 |
) |
|
|
- |
|
|
Accretion expense on
obligations |
|
|
6,146 |
|
|
|
3,548 |
|
|
Depreciation, depletion and
amortization |
|
|
91,492 |
|
|
|
74,718 |
|
|
Equity–based compensation cost |
|
|
4,853 |
|
|
|
9,635 |
|
|
Impairment of oil and natural gas
properties |
|
|
3,371 |
|
|
|
122,244 |
|
|
Gain on sales of oil and natural
gas properties |
|
|
- |
|
|
|
(531 |
) |
|
Loss (gain) on derivatives,
net |
|
|
17,192 |
|
|
|
(51,406 |
) |
|
Cash settlements of matured
derivative contracts |
|
|
46,299 |
|
|
|
98,368 |
|
|
Gain on early extinguishment of
debt |
|
|
(47,695 |
) |
|
|
- |
|
|
Other |
|
|
1,822 |
|
|
|
288 |
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
(8,597 |
) |
|
|
13,864 |
|
|
Other current assets |
|
|
(291 |
) |
|
|
894 |
|
|
Accounts payable and accrued
liabilities |
|
|
4,158 |
|
|
|
10,610 |
|
|
Income taxes |
|
|
(11,657 |
) |
|
|
- |
|
|
Other, net |
|
|
(277 |
) |
|
|
(120 |
) |
|
Net cash flows provided by
operating activities from continuing operations |
|
|
26,523 |
|
|
|
119,197 |
|
|
Net cash flows used in
operating activities from discontinued operations |
|
|
- |
|
|
|
(372 |
) |
|
Net cash flows provided by
operating activities |
|
|
26,523 |
|
|
|
118,825 |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
Additions to oil and natural gas
properties |
|
|
(14,266 |
) |
|
|
(58,687 |
) |
|
Deposit on acquisition of oil and
natural gas properties |
|
|
- |
|
|
|
(25,900 |
) |
|
Proceeds from sale of oil and
natural gas properties |
|
|
2,420 |
|
|
|
1,439 |
|
|
Cash settlements from acquired
derivative contracts |
|
|
2,823 |
|
|
|
- |
|
|
Restricted cash |
|
|
- |
|
|
|
33,768 |
|
|
Other |
|
|
33 |
|
|
|
48 |
|
|
Net cash flows used in
investing activities from continuing operations |
|
|
(8,990 |
) |
|
|
(49,332 |
) |
|
Net cash flows provided by
investing activities from discontinued operations |
|
|
- |
|
|
|
572,160 |
|
|
Net cash flows (used in)
provided by investing activities |
|
|
(8,990 |
) |
|
|
522,828 |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
Repayment of long-term debt
borrowings |
|
|
(41,000 |
) |
|
|
(561,000 |
) |
|
Long-term debt borrowings |
|
|
48,000 |
|
|
|
30,000 |
|
|
Redemption of Senior Notes due
2019 |
|
|
(34,978 |
) |
|
|
- |
|
|
Loan costs incurred |
|
|
(121 |
) |
|
|
(3,400 |
) |
|
Contributions from general
partner |
|
|
- |
|
|
|
91 |
|
|
Distributions paid |
|
|
(3,868 |
) |
|
|
(75,738 |
) |
|
Net cash flows used in
financing activities |
|
|
(31,967 |
) |
|
|
(610,047 |
) |
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents |
|
|
(14,434 |
) |
|
|
31,606 |
|
|
Cash and cash equivalents
– beginning of period |
|
|
20,415 |
|
|
|
8,255 |
|
|
Cash and cash equivalents
– end of period |
|
$ |
5,981 |
|
|
$ |
39,861 |
|
|
|
|
|
|
|
|
Non-GAAP Measures
We define Adjusted EBITDAX as net income (loss) plus income from
discontinued operations, EBITDAX from discontinued operations,
income taxes, interest expense, net, cash settlements of matured
interest rate swaps, depreciation, depletion and amortization,
accretion expense on obligations, amortization of volumetric
production payment (VPP), (gain) loss on derivatives, net, cash
settlements of matured derivative contracts, non-cash equity-based
compensation, impairment of oil and natural gas properties,
non-cash inventory write down expense, dry hole and
exploration costs, gain on sales of oil and natural gas properties,
gain on settlement of contract, gain on early extinguishment of
debt, and (gain) loss on sale of investment, contained in Other
income, net. Distributable Cash Flow is defined as Adjusted
EBITDAX less cash income taxes, 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. We believe these financial
measures may indicate to investors whether or not we are generating
cash flow at a level that can sustain or support quarterly
distributions. 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.
Reconciliation of Net Income (Loss) to Adjusted EBITDAX and
Distributable Cash Flow |
|
|
|
|
|
(In $
thousands) |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
|
Sep 30, 2016 |
|
Sep 30, 2015 |
|
Jun 30, 2016 |
|
Sep 30, 2016 |
|
Sep 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(19,230 |
) |
|
$ |
(9,838 |
) |
|
$ |
(28,993 |
) |
|
$ |
(77,223 |
) |
|
$ |
92,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(255,512 |
) |
|
EBITDAX from discontinued
operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,941 |
|
|
Income taxes |
|
|
(1,429 |
) |
|
|
(61 |
) |
|
|
(191 |
) |
|
|
(1,779 |
) |
|
|
(684 |
) |
|
Interest expense, net |
|
|
9,889 |
|
|
|
11,032 |
|
|
|
11,840 |
|
|
|
32,544 |
|
|
|
38,264 |
|
|
Cash settlements of
matured interest rate swaps |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,736 |
|
|
Depreciation, depletion
and amortization |
|
|
31,639 |
|
|
|
23,485 |
|
|
|
31,648 |
|
|
|
91,492 |
|
|
|
74,718 |
|
|
Accretion expense on
obligations |
|
|
2,057 |
|
|
|
1,134 |
|
|
|
2,049 |
|
|
|
6,146 |
|
|
|
3,548 |
|
|
Amortization of VPP |
|
|
(1,027 |
) |
|
|
- |
|
|
|
(1,023 |
) |
|
|
(3,070 |
) |
|
|
- |
|
|
(Gain) loss on
derivatives, net |
|
|
(8,559 |
) |
|
|
(37,042 |
) |
|
|
35,585 |
|
|
|
17,192 |
|
|
|
(51,406 |
) |
|
Cash settlements of
matured derivative contracts |
|
|
10,117 |
|
|
|
35,891 |
|
|
|
19,180 |
|
|
|
49,122 |
|
|
|
98,368 |
|
|
Non-cash equity-based
compensation |
|
|
1,889 |
|
|
|
2,341 |
|
|
|
1,364 |
|
|
|
4,853 |
|
|
|
9,635 |
|
|
Impairment of oil and
natural gas properties |
|
|
687 |
|
|
|
15,787 |
|
|
|
1,997 |
|
|
|
3,371 |
|
|
|
122,244 |
|
|
Non-cash inventory write
down expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
123 |
|
|
|
149 |
|
|
Dry hole and exploration
costs |
|
|
294 |
|
|
|
1,034 |
|
|
|
771 |
|
|
|
1,195 |
|
|
|
1,720 |
|
|
Gain on sales of oil and
natural gas properties |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(531 |
) |
|
Gain on settlement of
contract |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,185 |
) |
|
|
- |
|
|
Gain on early
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
(47,695 |
) |
|
|
(47,695 |
) |
|
|
- |
|
|
(Gain) loss on sale of
investment, contained in Other income, net |
|
|
(309 |
) |
|
|
- |
|
|
|
- |
|
|
|
(309 |
) |
|
|
358 |
|
|
Adjusted EBITDAX |
|
$ |
26,018 |
|
|
$ |
43,763 |
|
|
$ |
26,532 |
|
|
$ |
72,777 |
|
|
$ |
151,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Cash income taxes |
|
|
(933 |
) |
|
|
- |
|
|
|
- |
|
|
|
(933 |
) |
|
|
- |
|
|
Cash interest expense,
net |
|
|
9,566 |
|
|
|
10,631 |
|
|
|
9,984 |
|
|
|
29,950 |
|
|
|
37,240 |
|
|
Realized losses on
interest rate swaps |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,736 |
|
|
Estimated maintenance
capital expenditures (1) |
|
|
11,000 |
|
|
|
13,000 |
|
|
|
11,000 |
|
|
|
33,000 |
|
|
|
39,797 |
|
|
Distributable Cash
Flow |
|
$ |
6,385 |
|
|
$ |
20,132 |
|
|
$ |
5,548 |
|
|
$ |
10,760 |
|
|
$ |
72,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Estimated maintenance capital expenditures are those
expenditures estimated to be necessary to maintain the production
levels ofour oil and gas properties over the long term and the
operating capacity of our other assets over the long term. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Hedge Position
EV Energy Partners’ total hedge position as of November 9, 2016,
including the recent additional hedges mentioned above, is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swap |
|
Swap |
|
Collar |
|
Collar |
|
Collar |
|
|
Period |
Index |
Volume |
|
Price |
|
Volume |
|
Floor |
|
Ceiling |
|
|
Natural Gas (Mmmbtus) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct -
Dec 2016 |
NYMEX |
11,316 |
|
$ |
3.42 |
|
|
|
|
|
|
|
|
|
|
2017 |
NYMEX |
32,850 |
|
$ |
3.07 |
|
10,950 |
|
$ |
2.75 |
|
$ |
3.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude (Mbbls) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct -
Dec 2016 |
WTI |
230 |
|
$ |
65.99 |
|
138 |
|
$ |
45.00 |
|
$ |
54.05 |
|
|
2017 |
WTI |
365 |
|
$ |
52.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethane (Mbbls) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct -
Dec 2016 |
Mt Belvieu |
0.9 |
|
$ |
9.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional
Amount |
|
Fixed Rate |
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Agreements |
($
mill) |
|
|
|
|
|
|
|
|
|
|
|
|
Jan 2017
- Dec 2017 |
|
100 |
|
|
1.039 |
% |
|
|
|
|
|
|
|
|
|
|
Jan 2018
- Sep 2020 |
|
100 |
|
|
1.795 |
% |
|
|
|
|
|
|
|
|
|
EV Energy Partners, L.P., Houston
Nicholas Bobrowski
713-651-1144
http://www.evenergypartners.com