EV Energy Partners (
Q4 2011 Earnings Call
February 29, 2012 5:00 p.m. ET
John Walker - Executive Chairman
Mark Houser - President and CEO
Michael Mercer - SVP and CFO
Kevin Smith – Raymond James
Ethan Bellamy – Robert W. Baird
[Tony Langham - Corey Partnerships]
Adam Leight – RBC Capital
Good day ladies and gentlemen. Thank you for standing by. Welcome to the EV Energy Partners fourth quarter and full year 2011 earnings conference call. [Operator instructions.] I would now like to turn the conference over to Mr. John Walker, executive chairman. Please go ahead sir.
Thank you. I’m calling from Houston’s Intercontinental Airport while the rest of our team is in EVEP’s offices in Houston. Mike Mercer will elaborate on our financial results, but results were generally in line with guidance except for G&A expense, and I want to explain that.
On approximately $450 million of acquisitions in the fourth quarter, we recognized $2.3 million of due diligence and transaction related costs that flowed through to both EBITDA as well as distributable income.
Also, we recognized roughly a $4 million impairment charge on some noncore Austin properties that are going to be sold later this quarter. And that’s offset by the $4 million we received from Total and [unintelligible] from the sale of the assets in the Point Pleasant Utica NGL window.
Also, based upon successful efforts accounting, we had $9 million in dry hole costs, and that was primarily from the two horizontal wells that we drilled in the San Juan Basin. We continue to do a very good job of dropping our per-unit LOE costs. In 2010 these were $1.92 per Mcf equivalent, and we dropped those to $1.81 in 2011 and for the fourth quarter it was $1.78. We continue to expect to drive down costs in 2012. Our replacement costs were $1.43 last year and our acquisition costs were $1.21 per Mcf equivalent.