EV Energy Partners, LP Q1 2010 Earnings Call Transcript

EV Energy Partners, LP (EVP)

Q1 2010 Earnings Call

May 11, 2010 10:00 am ET

Executives

John B. Walker – Chairman of the Board & Chief Executive Officer of EV Management

Mark A. Houser – President, Chief Operating Officer & Director of EV Management

Michael E. Mercer – Chief Financial Officer & Senior Vice President

Frederick Dwyer – Controller of EV Management

Kenneth Mariani – General Manager Eastern Division

Kathryn S. MacAskie – Senior Vice President Acquisitions and Divestitures

Analysts

TJ Schultz – RBC Capital Markets

Richard Dearnley – Longport Partners

Presentation

Operator

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Previous Statements by EVEP
» EV Energy Partners, L.P. Q4 2009 Earnings Call Transcript
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» EV Energy Partners L.P. Q2 2009 Earnings Call Transcript

Welcome to the EV Energy Partners, LP first quarter 2010 earnings release conference call. During today’s presentation all parties will be in a listen only mode and following the presentation the conference will be opened for questions. (Operator Instructions) Now, I’d like to turn the conference over to Mr. John Walker, Chairman and CEO.

John B. Walker

In attendance here in Houston we have Mark Houser, Mike Mercer, Fred Dwyer, we’ve got Ken Mariani in from our Charlestown West Virginia Office where he runs our eastern division and for our last phone call we’ve got Kathy MacAskie here who is Senior VP. This is her last week, she’s done a terrific job for us and we wish her well in her future endeavors. I’m going to provide an overview and then Mike and Mark will provide more details on our financials and offer [inaudible] for the first quarter.

The big event of the quarter was the closing of Range’s Ohio properties and EVEP’s share was roughly $150 million. Although about 7% of that didn’t close because of a lack of consents and other issues. We hope that our support of Range’s work and its irresponsibility in this area that we will have these issues resolved so that we can get it closed on the full amount by either the third or fourth quarter. On February 12^th we issued 3.45 million common units and received $94.7 million to finance about 64% of the final acquisition. I want to point out that 31% of the reserves are oil and 35% of the cash flow is oil from this acquisition.

In the first quarter we received no production from the Range’s properties but have suffered the full dilatation of the incremental 3.45 million units and I think all of you understand that. In addition, the oil in the tanks at closing is treated strangely, at least by my terms by accounting by creating a non-recurring $240,000 hit to LOE in the first quarter and an anticipated $3 million onetime LOE increase in the second quarter and Mike will explain that.