Each one in plain English, with the numbers worked through for a shareholder.
4 Oct 2007asset acquisition disposition● NeutralMajor
On October 1, 2007 the Permian Basin purchase from Plantation Operating, an EnCap-sponsored company, closed at an adjusted $155.8 million (the agreed price was $160 million), paid with borrowings. The credit facility was amended and restated to allow up to $500 million, with an initial borrowing base of $275 million, replacing the $150 million facility from 2006. Debt outstanding after the deal is $230.0 million, up from $75 million after the June deal, so the June equity raise's debt paydown has been followed by new borrowing. New oil hedges for 2007-2010 were also announced.
On July 17, 2007 the partnership's wholly owned subsidiary EV Properties agreed to buy oil and gas properties in the Permian Basin (New Mexico and Texas) from Plantation Operating for $160 million, with closing expected by the end of September 2007. The release says the seller is an EnCap-sponsored company (EnCap funds own part of the partnership's general partner), that the deal will first be funded under an amended and restated credit facility, and that management expects to recommend another distribution increase starting with Q4 2007.
3 July 2007asset acquisition disposition▲ GoodMajor
On June 27, 2007 the Central/East Texas purchase from Anadarko closed. The total price was $728 million, subject to adjustments, of which the partnership's share was $97 million (the April agreement had said $100 million for its interest). It was paid with $75 million of credit facility borrowings plus the June private placement proceeds, leaving $75 million outstanding. Management again says it expects to recommend a further distribution increase starting with Q3 2007, and the company updated its gas and oil hedges through 2010.
4 June 2007capital raising announcement● NeutralMajor
On June 1, 2007 the partnership privately sold 3,408,696 common units at $34.50 each for $117.6 million net, led by Zimmer Lucas Partners, and its general partner added $2.4 million to keep its 2% interest. Proceeds are to repay all revolver borrowings from the Monroe purchase and fund about $25 million of the $100 million Central/East Texas deal. This is the second equity raise of the year (the February sale was at $24.90), and the new units dilute existing holders (inference); the partnership also agreed to register the units for resale.
What it means for a shareholder
3.4m new shares at US$34.50 to raise about US$118m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On April 13, 2007 the partnership, together with EnerVest-managed institutional partnerships, agreed to buy oil and gas properties in Central and East Texas from Anadarko Petroleum; the partnership's interest costs $100 million, with closing expected by the end of June 2007. It plans to fund this with bank borrowings first and to refinance part through new equity in Q2 or Q3 2007, and management expects to recommend another distribution increase starting with Q3 2007 (no figure given). The release says the deal was too large for the partnership to do alone, which is why EnerVest-managed partnerships joined.
On March 29, 2007 the partnership closed the Monroe Field (Louisiana) purchase from EnerVest Monroe Limited Partnership for $95.3 million (the March 7 agreement said $96 million), funded by credit facility borrowings that left $92.5 million outstanding. A contract amendment changed the deal to buy certain gathering and marketing subsidiaries rather than their assets. The release says management expects to recommend raising the quarterly distribution by $0.04 to $0.50 per unit for Q2 2007. The filing also furnishes Q4 2006 results: net income of $3.367 million ($0.43 per unit), its first quarter since the IPO, on production of 734 Mmcfe.
On March 7, 2007 the partnership agreed to buy natural gas properties and related assets in the Monroe Field in Louisiana for $96 million from EnerVest-affiliated sellers, with closing expected by mid-April 2007 and initial funding from its credit facility. Management also said it expects to recommend a higher quarterly distribution starting with the second quarter of 2007, without giving a figure. It announced an expanded hedging program, with larger natural gas hedges through 2009. This follows the earlier equity raise that repaid the credit facility, and the facility is being drawn on again.
28 Feb 2007capital raising announcement● NeutralMajor
On February 27, 2007 the partnership privately sold 3,935,743 common units at $24.90 each to institutional investors for about $98 million net, and its general partner added $2.0 million to keep its 2% interest. The press release says substantially all proceeds will repay the $99.5 million credit-facility borrowings used for the December 2006 and January 2007 acquisitions. This is the equity refinancing the January release anticipated. It adds new units, so existing unitholders' share of the partnership is diluted (inference from the new units being issued), and the partnership agreed to register the units for resale.
What it means for a shareholder
3.9m new shares at US$24.90 to raise about US$98.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
6 Feb 2007asset acquisition disposition● NeutralMajor
The $71.6 million Michigan purchase from EnerVest-managed Fund IX closed on January 31, 2007, funded by credit-facility borrowing that left $99.5 million outstanding. The conflicts committee also approved raising the monthly fee paid to EnerVest Management Partners under the omnibus agreement from $90,000 to $165,000, tied to this deal and the December 2006 acquisitions. EnerVest and affiliates own 71.25% of the general partner. The filing also notes the CFO would speak at an investor symposium on February 7.
On January 9, 2007 the partnership agreed to buy Michigan natural gas properties and related price hedges for $71.6 million from EnerVest Energy Institutional Fund IX, funds managed by its sponsor EnerVest. Closing was expected by January 31, 2007. The press release says management expects to recommend raising the quarterly distribution by $0.06 to $0.46 per unit if the deal closes, and plans to borrow initially and refinance part with new equity in the first half of 2007.
19 Dec 2006asset acquisition disposition▲ GoodMajor
On December 15, 2006 the partnership closed its acquisition of oil and gas properties in North Louisiana, East Texas, Western Oklahoma and West Texas from Five States Energy Company, LLC for $27.8 million after initial adjustments, funded by borrowing under its existing credit agreement. This is the first acquisition after the IPO and was paid for with debt.
5 Oct 2006asset acquisition disposition● NeutralMajor
The filing is by EV Energy Partners, L.P. (the entity behind the earlier insider filings under the Harvest Oil & Gas name). It closed a 3,900,000-unit public offering on September 29, 2006 that raised about $72.9 million net of underwriting discounts. The money went to pay $60.19 million to EnerVest, CGAS and the EnCap funds for assets contributed at the IPO, repay about $10.35 million of debt, and cover about $2.0 million of expenses. The partnership also signed an omnibus agreement and operating agreements with EnerVest affiliates (which operate its wells and charge it fees and expenses), a $150 million five-year revolving credit facility with JPMorgan Chase as agent, a long-term incentive plan covering up to 775,000 units, and employment agreements with Mercer and MacAskie.
