EV Energy Closes Permian Basin Acquisition
EV Energy announced final acquisition of oil and gas properties in the Permian Basin from Plantation Operating for a purchase price of $155.8 million. The agreement is subject to customary post-closing adjustments.
EVEP also announced that its credit facility has been adjusted to a maximum borrowing availability of $500 million, subject to an initial borrowing base of $275 million. The acquisition was funded through amended borrowings and restated credit facility. EVEP's outstanding debt was $230 million at the closing.
EVEP also announced expansion of its commodity hedge program. EVEP utilizes derivative instruments, such as price swaps and collars, to minimize the variability of its forecasted cash flows due to price movements in natural gas and crude oil. The hedges entered into since the company’s last update (June 27, 2007 and August 14, 2007) are in the table below :
Hedge Summary Table Swap Swap Volume Price -------- --------- (MBbls)
Crude Oil (NYMEX) 10/2007 - 12/2007 9.2 $77.28 2008 36.6 $73.75 2009 109.5 $71.55 2010 182.5 $70.27
EV Energy Partners, L.P., is a Houston- Based limited partnership that engages in acquiring, producing and developing oil and gas properties.
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