EV Energy Partners Close $345.6M Barnett Shale Acquisitions
EV Energy Partners announced Thursday that it, along with certain institutional partnerships managed by EnerVest, has closed both previously announced Barnett Shale acquisitions from two unrelated companies.
EVEP acquired an approximate 31.5 percent interest in the combined assets for an adjusted purchase price of $345.6 million, subject to customary post-closing adjustments.
The acquisitions were funded with borrowings under its revolving credit facility. The estimated proved reserves for these acquisitions as of Jan. 1, 2012 at SEC prices, net to EVEP, are 364.2 Bcfe.
The purchase price and estimated proved reserves were reduced from those contained in EVEP's Nov. 3, 2011 acquisition announcement because certain of the properties were not acquired, primarily due to remaining closing conditions for those properties. These property interests will be acquired if and when such remaining closing conditions are satisfied.
In conjunction with these acquisitions, EVEP has increased the borrowing base under its credit facility to $800 million. Debt currently outstanding under the facility, after funding of these acquisitions, is $660 million.
In addition, EVEP has recently added the following NYMEX crude oil, natural gas and natural gas liquids swaps:
|(MMBTU / BBLs)||Price|
|Natural Gas (NYMEX)|
|Crude Oil (NYMEX)|
|Ethane (Mt. Belvieu)|
|Propane (Mt. Belvieu)|
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