EV Energy Partners, L.P (EVEP)
Q2 2012 Earnings Results Conference
August 10 2012 10:00 AM ET
John B. Walker - Executive Chairman
Mark A. Houser - CEO, President and Director
Michael E. Mercer - CFO and SVP
Ronald J. Gajdica - SVP, Acquisitions
John Ragozzino – RBC Capital Markets
Kevin Smith - Raymond James & Associates, Inc., Research Division
Praneeth Satish - Wells Fargo Securities, LLC
Ethan Bellamy - Robert W. Baird & Co. Incorporated, Research Division
Brett Reilly - Credit Suisse Securities (USA) LLC
Adam Lake – RBC Capital Markets
Brian Kuzma - Weiss Multi-Strategy Advisors
Good day, ladies and gentlemen. Thank you for standing by. Welcome to the EV Energy Partners Second Quarter Earnings Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. (Operator Instructions)
I’d now like to turn the conference over to Mr. John Walker, Executive Chairman. Please go ahead, sir.
John B. Walker
Thank you, and good morning. Welcome to EV Energy Partners second quarter earnings call. I’m in El Paso, while Mark Houser, who is having his birthday today. Mike Mercer and Ron Gajdica are in our Houston office.
This has been a very good quarter for EVEP. We exceeded the midpoint of guidance on production, LOE and distributable cash flow. G&A expenses were slightly above the expectations because of acquisition transition cost, which we do not include as part of our G&A guidance.
Obviously, natural gas and NGL prices hurt revenues for everyone this quarter. Our extensive hedge position however, particularly for natural gas and natural gas liquids provided the cash flow support we expected and needed this quarter and for the remainder of 2012. I’m particularly pleased with the $0.695 per gallon ethane swaps and the $1.028 per gallon propane swaps that we’ve put in place last December. And Mike Mercer will provide more financial information in a while.