EV Energy Partners plans several acquisitions, expects 2012 closings

By Sahara Marte

New York, Aug. 10 - EV Energy Partners, LP plans to close several acquisition by the end of the year, Michael Mercer, senior vice president and chief financial officer, said during the company's second quarter earnings conference call.

EV Energy Partners is taking part in competitive negotiations for acquisitions that are intended to boost company revenues, added Mercer. Details on the negotiations will not be revealed until the transaction is complete.

Describing the company's performance, he added: "2012 is continuing as expected. If natural gas prices stay low, we'll still be very focused on rate of returns of our capital drilling and we're looking forward to the next several months as we should see a lot of additional shelf production."

For the second quarter, the company's net income was $15 million and it reported $66.1 million of adjusted EBITDA.

Adjusted EBITDA increased 3% from the first quarter and 20% from the second quarter of 2011. The company attributed the steady increase to the acquisitions completed in 2011.

EV Energy Partners generated $34.5 million in distributable cash flow for the second quarter. Despite declining commodity prices, the company maintained that figure at the same level as the first quarter, which was a 4% increase from the second quarter of 2011.

"Our extensive hedge position, particularly for natural gas and natural gas liquids, provided the cash flow support we expected for the quarter and the remainder of 2012," Mercer stated.

EV Energy is a Houston-based acquirer, producer and developer of oil and gas properties.

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