Past year: ▼ 78%(11.5c – 80.0c USD)
Each one in plain English, with the numbers worked through for a shareholder.
4 Apr 2012material agreement● Neutral
On March 29, 2012 the partnership signed a Second Amendment to its credit agreement allowing it to invest up to $200 million in total at any time in Cardinal Gas Services LLC, Utica East Ohio Midstream LLC and related joint venture entities. The filing does not say why or whether any investment has been made; this loosens the revolver's investment limits for midstream ventures.
13 Mar 2012debt financing● NeutralMajor
On March 8, 2012 the partnership and EV Energy Finance Corp. sold an extra $200 million of 8.0% Senior Notes due 2019 at 103.0% of face value (yield to worst 7.281%). The press release says the offering was upsized from $100 million; the notes join the existing $300 million issue under the same indenture, and proceeds are to repay part of the revolving credit facility, whose lenders include affiliates of the underwriters. Total notes outstanding become $500 million, replacing part of the bank debt, which followed the February 2012 equity raise used for the same purpose.
15 Feb 2012material agreement● NeutralMajor
On February 10, 2012 the partnership sold 3,500,000 common units at $67.95 each in an underwritten public offering, and the underwriters took up their full 525,000-unit option (4,025,000 units in total). Net proceeds of about $268 million are to repay revolving credit facility debt, which was used to fund the December 2011 Barnett purchases. This adds to the number of units outstanding.
27 Dec 2011asset acquisition disposition● NeutralMajor
On December 21, 2011 the partnership closed the Encana Barnett Shale purchase, taking a 31.633% interest for an adjusted $269.85 million rather than the $300 million announced, because some properties were not acquired due to remaining closing conditions (they will be bought if those conditions are met). The press release says both Barnett deals closed for a combined adjusted $345.6 million, with 364.2 Bcfe of proved reserves net to the partnership. The credit facility's borrowing base was raised to up to $800 million, with $660 million outstanding after funding, and new swaps were added for 2012-2014. This resolves the November agreements in reduced form.
14 Dec 2011capital raising announcement● NeutralMajor
The general partner, which holds the incentive distribution rights, elected to reset them effective December 12, 2011, and was issued 3,873,357 Class B units. The minimum quarterly distribution rose from $0.40 to $0.7615 and the levels at which the incentive rights participate were reset higher. Class B units get the same distributions and votes as common units and become convertible into common units after one year, so this adds units that share in distributions; the general partner's 2% interest is unchanged and it makes no extra capital contribution.
8 Nov 2011material agreement● NeutralMajor
On November 2, 2011 the partnership, with EnerVest-managed partnerships, agreed to buy Barnett Shale properties from Encana Oil & Gas (USA) Inc.; the partnership's share is a 31% interest for $300 million cash, funded from its revolving credit facility. It also agreed to buy a ~31% interest in other Barnett assets from an unrelated, undisclosed private seller for $72.3 million, and said it closed three bolt-on deals (Mid-Continent, Ohio excluding Utica, and Barnett reversionary interests) for $116 million in total. The company calls the Encana deal its largest ever, adding to the Barnett position first built with the December 2010 Talon purchase; closing was expected by end of December 2011.
23 Sept 2011business combination● Neutral
The partnership and EV Energy Finance Corp. filed a registration statement offering to swap up to $300 million of new registered 8.0% Senior Notes due 2019 for the unregistered notes issued March 22, 2011. This fulfils the exchange-offer promise made with that issue; terms are substantially identical apart from the removal of transfer restrictions, and the partnership receives no proceeds. Offer expiry date and effective date are left blank in the filing.
29 Apr 2011debt financing▲ GoodMajor
On April 26, 2011 the partnership entered a second amended and restated five-year $1 billion secured revolving credit facility maturing April 26, 2016, with the initial borrowing base set at $600 million (redetermined every six months from Oct 1, 2011). It used initial borrowings to pay off the Oct 2007 facility; the press release shows $187.5 million outstanding and $412.5 million of borrowing capacity. The LIBOR margin is 1.75%-2.75% (0.25%-0.50% lower), and the maximum Total Debt to EBITDAX ratio was raised to 4.25x from 4.0x, with more hedging flexibility. This replaces the facility amended in the earlier records.
22 Mar 2011debt financing● NeutralMajor
The partnership and EV Energy Finance Corp. sold $300 million of 8.0% senior notes due April 15, 2019 in a private placement (issued March 22, 2011), with interest paid April and October starting Oct 15, 2011. It used $291.5 million of net proceeds to repay credit facility debt, and as the December amendment required, the borrowing base fell automatically from $700 million to $610 million. The notes carry covenants limiting things like paying distributions and taking on more debt, and the issuers must offer to swap them for registered notes. This is the first senior notes issue in this record.
10 Mar 2011material agreement● NeutralMajor
The partnership sold 3,000,000 common units at $44.42 each (agreement March 4, closed March 9, 2011), and underwriters exercised their 450,000-unit option in full. Net proceeds were about $149.9 million for the 3,450,000 units, to be used to repay revolving credit facility debt. This is the first offering in this record that repays debt rather than funding a specific named deal, though it follows the debt-funded Barnett purchase (inference); it adds to units outstanding.
30 Dec 2010asset acquisition disposition● NeutralMajor
The Barnett Shale acquisition from Talon closed Dec 30, 2010: the partnership got a 31.02% interest for an adjusted $295.9 million (below the $300 million agreed), subject to post-closing adjustments, funded with $285 million of credit facility borrowings and available cash. Credit facility debt is now $619 million against a $700 million borrowing base (up from $334 million and $465 million). Financial statements for the acquisition are due within 75 days of closing. This resolves the October agreement.
22 Dec 2010debt financing● NeutralMajor
The partnership signed a Sixth Amendment to its credit agreement (Dec 17, 2010), effective when the Barnett Shale deal closes, raising the borrowing base up to $700 million from $465 million. It also brings back the rule that issuing senior debt between redeterminations cuts the borrowing base by 30% of the debt's principal, replacing the $200 million exception from the Fourth and Fifth Amendments. Separately, the EnerVest omnibus agreement was extended for 2011 at $916,666.67 per month (up from $666,666.67 in 2010), subject to adjustment for acquisitions or divestitures.
29 Oct 2010material agreement▲ GoodMajor
On Oct 25, 2010 the partnership, together with EnerVest institutional partnerships, agreed to buy Barnett Shale oil and gas properties (with related hedges) from Talon Oil & Gas LLC; the partnership's 31% interest costs $300 million, with closing expected by end of December 2010. Talon is sponsored by EnCap, whose partnerships own 23.75% of the general partner, and an EnCap founder sits on the board of EV Management, so the seller is a related party. The release says the partnership's share is ~328.5 Bcfe proved reserves (strip prices; 316 Bcfe at SEC prices) and ~27 MMcfe/d, to be funded initially from the credit facility. This is a new, much larger deal following the Sept 2010 Petrohawk closing.
6 Oct 2010asset acquisition disposition▲ GoodMajor
The Petrohawk Mid-Continent acquisition closed Sept 29, 2010 at an adjusted price of $119.9 million (below the $123 million agreed), subject to post-closing adjustments. Credit facility debt after closing was $334 million, and the borrowing base was reaffirmed at $465 million in a Fifth Amendment, which again allows up to $200 million of senior debt without a borrowing base cut until the next redetermination expected around April 1, 2011. Financial statements for the acquisition are due within 75 days of closing. This resolves the August deal; the Aug 2010 unit offering raised $114 million net.
16 Aug 2010material agreement● NeutralMajor
The partnership sold 3,000,000 common units at $33.97 each under an agreement dated Aug 11, 2010, closing Aug 16, with the 450,000-unit over-allotment option exercised in full. Expected net proceeds before the option were about $99.4 million, to fund part of the Petrohawk Mid-Continent purchase, with interim proceeds repaying the credit facility. This continues the pattern of funding acquisitions partly with new units, which adds to units outstanding.
10 Aug 2010material agreement▲ GoodMajor
On Aug 9, 2010 the partnership agreed to buy Petrohawk's interest in Mid-Continent oil and gas properties (Anadarko, Arkoma and East Texas) for $123 million, expected to close by end of September 2010. The release says the Appalachian acquisitions have been integrated (the Appalachian Basin deal closed March 30, 2010), and reports Q2 2010 net income of $16.3 million versus a $31.6 million loss in Q2 2009, with production of 6.83 Bcfe. Properties carry ~74.5 Bcfe proved reserves and ~15.5 MMcfe/d net production.
30 Apr 2010debt financing● Neutral
The partnership signed a Fourth Amendment to its credit agreement, effective April 26, 2010. Until the next scheduled redetermination (expected around Oct 1, 2010), it may issue up to $200 million of senior debt without the borrowing base being cut by 30% of that debt, and the borrowing base was reaffirmed at $465 million. The $465M level is unchanged from the April 2009 cut.
12 Feb 2010material agreement● NeutralMajor
The partnership sold 3,000,000 new common units at $28.08 each in an offering that closed Feb 12, 2010, and the underwriters' option for 450,000 more units was exercised in full. Expected net proceeds before the option were about $82.2 million, meant to fund part of the Range Resources Appalachian purchase announced Feb 8, with any interim proceeds going to repay the credit facility. This is a continuation of the Range deal; it adds more units outstanding for existing holders (the 2009 offerings were similar).
8 Feb 2010material agreement▲ GoodMajor
The partnership agreed to buy a 46.15% interest in Appalachian Basin oil and gas properties from a subsidiary of Range Resources for $151.8 million, alongside EnerVest institutional partnerships. The effective date is January 1, 2010, with closing expected by the end of March 2010. The properties are mainly in Ohio, with about 78.8 Bcfe of proved reserves net to the partnership and current net production of about 11.3 MMcfe/d. The CEO called it the second Appalachian acquisition in six months. The related Sept 2009 Appalachian agreement's terms are not shown in the earlier filing. The release adds new 2010-2011 hedges.
14 Dec 2009material agreement● NeutralMajor
The partnership and EnerVest, Ltd. extended the Omnibus Agreement for 2010, with the Conflicts Committee approving the terms. The monthly fee payable to EnerVest, Ltd. rises to $666,666.67 from $625,000 in 2009, subject to adjustment for acquisitions or sales. Separately, the partnership and EnerVest signed a farmout with PetroEdge Energy on about 9,500 net acres of Marcellus Shale in West Virginia (the partnership contributing about 7,760 net acres). PetroEdge earns a 75% working interest in the acreage by drilling, and the farmout is tied to about $33 million of spending over four years. The partnership keeps the remaining 25% share and about 27,000 other net Marcellus-potential acres.
30 Sept 2009material agreement● NeutralMajor
The partnership sold 2,800,000 new common units at $22.83 each (underwriters have an option for 420,000 more), expecting about $62.3 million of net proceeds with closing around September 30, 2009. Proceeds are for general purposes including possible acquisitions, and meanwhile to repay credit facility debt. It also announced an agreement to acquire Appalachian Basin properties; the filing text shown does not give the price or terms. This is a second unit sale after June 2009 and further increases the unit count.
15 June 2009material agreement● NeutralMajor
The partnership sold 3,500,000 new common units to the public at $20.40 each (underwriters have an option for 525,000 more), with closing expected around June 16, 2009. Proceeds are meant to reduce borrowings under the credit facility and fund the purchase price of a newly announced Austin Chalk acquisition. In that deal it will pay $12.2 million for a 15.15% interest in 276 wells in Central Texas, alongside EnerVest institutional partnerships; it already owns an interest in 84% of those wells and about 9 Bcfe of proved reserves are net to it. Closing is expected by July 1, 2009. New units dilute existing holders' share, but the debt reduction addresses the $440 million borrowed in April. The release also lists new gas hedges for 2009-2012.
16 Apr 2009debt financing▼ BadMajor
The credit facility's borrowing base was set at $465 million in the semi-annual review, down from the $525 million set after the September 2008 acquisitions. Fees and interest margins were reset in a Third Amendment (commitment fee 0.50%; margins 2.25%-3.00% on Eurodollar loans, 1.25%-2.00% on alternate base rate loans). The press release says $440 million was outstanding and over $26 million of cash was held, so little borrowing room remained under the new limit (inference from those two figures). The next redetermination is scheduled for October 2009.
23 Dec 2008material agreement● Neutral
The partnership and EnerVest, Ltd. (the sponsor) approved a one-year extension of their Omnibus Agreement, with the Conflicts Committee approving the terms. EnerVest, Ltd. will be paid $625,000 per month from January 1 to December 31, 2009, subject to adjustment for any property acquisitions or sales.
12 Sept 2008asset acquisition disposition● NeutralMajor
On September 8, 2008 the four acquisitions announced August 11 (San Juan Basin, Mid-Continent, Eastland County and West Virginia) closed for $173.5 million in cash plus 1,145,123 new common units issued to EnerVest, Ltd. The cash came from credit facility borrowings, and the new units add to the unit count, diluting other holders (inference). The press release says the borrowing base was increased to $525 million, within a $700 million maximum.
4 Sept 2008debt financing● NeutralMajor
On August 28, 2008 the partnership amended its credit facility to allow up to $700 million of borrowing, with a borrowing base initially $415 million, rising to $525 million once the San Juan Basin, Eastland County and Mid-Continent acquisitions announced August 11 close. This enlarges the October 2007 facility (max $500 million, base $275 million) and provides the financing for those deals.
15 Aug 2008material agreement● NeutralMajor
On August 11, 2008 the partnership agreed to buy San Juan Basin (Colorado/New Mexico) properties for $142.1 million from EnerVest-managed Fund IX, as part of four agreements totalling $202.7 million (the others are Mid-Continent, Eastland County Texas and West Virginia). They are to be funded first with credit facility borrowings, and EnerVest is to receive about $35 million of its proceeds in new common units if its investors consent (otherwise only about $5 million in units, the rest in cash). The filing also reports a Q2 2008 net loss of $99.5 million, which includes $118.1 million of non-cash unrealized derivative losses, and a planned distribution increase to $0.75 per unit for Q3 2008 with a further increase expected for Q4.
16 May 2008asset acquisition disposition● NeutralMajor
On May 16, 2008 the partnership closed a $17.8 million purchase of oil properties in South Central Texas (Atascosa County), paid with cash and $17 million of borrowings, taking credit facility debt to $287 million. The filing also carries Q1 2008 results: a net loss of $24.7 million, which includes $40.3 million of non-cash unrealized losses on commodity derivatives, production of 4.92 Bcfe, and Adjusted EBITDA of $28.7 million. Management plans to recommend raising the quarterly distribution by $0.08 to $0.70 per unit for Q2 2008, the distribution increase flagged in earlier filings now with a figure.
21 Dec 2007asset acquisition disposition● NeutralMajor
On December 21, 2007 the West Virginia gas property purchase announced in November closed at $59.5 million, bought from an EnerVest-managed institutional partnership; EnerVest affiliates own 71.25% of the general partner, and the Conflicts Committee approved the deal. It was paid with cash and $40 million of credit facility borrowings, bringing total borrowings to $270 million (up from $230 million after the Permian deal in October).
20 Nov 2007material agreement▲ GoodMajor
On November 16, 2007 the partnership agreed to buy natural gas properties in West Virginia for $59.5 million from EnerVest Appalachia, L.P., an affiliate of EnerVest (the sponsor that controls the partnership's general partner); closing is expected around the end of 2007. The same filing carries the Q3 2007 results: net income $13.7 million ($0.80 per unit), production of 3.75 Bcfe (60% above Q2, mainly from a full quarter of the Anadarko assets), and updated hedges. Long-term debt was $91.0 million at September 30, before the Permian purchase that closed October 1.
