HOUSTON, April 6, 2015 /PRNewswire/ -- EV Energy Partners,
L.P. (NASDAQ: EVEP) today announced that it has signed a definitive
agreement to divest its entire 21 percent interest in Utica East
Ohio Midstream LLC (UEO), to Utica Gas Services, L.L.C., a
subsidiary of Williams Partners L.P. (NYSE: WPZ), for total cash
consideration of $575 million.
EVEP's net capital contribution to UEO has been approximately
$294 million. The agreement is
subject to customary purchase price adjustments and closing
conditions, including termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act.
EVEP expects the transaction to close by the middle of July
2015. Upon closing, EVEP intends to initially use the net
proceeds of the disposition to repay all amounts outstanding under
its revolving credit facility and to hold the remainder available
for future activities. Availability under the revolving
credit facility may be used to fund future activities, including
acquisitions of oil and natural gas properties.
"This transaction, along with the previous sale of our interest
in Cardinal Gas Services, reflects the completion of our
divestiture of midstream investments in the Utica Shale. We
are pleased with the returns we achieved and look forward to
participating in what we expect to be an attractive upstream
A&D market in the second half of the year," said Michael Mercer, President and CEO.
The other member of UEO has the right to agree to acquire EVEP's
interest in UEO for the same price. If the other member
exercises and closes on this right, the aggregate purchase price
received by EVEP would remain the same, and WPZ would acquire an
approximate 13 percent interest and the other member would acquire
an approximate 8 percent interest.
Jefferies LLC acted as EVEP's exclusive financial advisor in
connection with the pending divestiture.
EV Energy Partners, L.P. is a master limited partnership engaged
in acquiring, producing and developing oil and natural gas
properties. More information about EVEP is available on the
Internet at http://www.evenergypartners.com.
(code #: EVEP/G)
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This press release includes "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that the partnership expects, believes or anticipates
will or may occur in the future are forward-looking statements.
Statements regarding the ability to close and the timing of the
closing of the sale of the Partnership's interest in Utica East
Ohio, purchase price adjustments and the use of proceeds are
forward looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of EVEP, which may cause our actual results to
differ materially from those implied or expressed by the
forward-looking statements. These include risks relating to the
ability to obtain regulatory approval, arrange financing, ability
to satisfy closing conditions and requirements, and other important
factors that could cause actual results to differ materially from
those projected. Additional risks are described in the EVEP's
reports filed with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on
which such statement is made and EVEP undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
EV Energy Partners, L.P., Houston
Nicholas Bobrowski
713-651-1144
http://www.evenergypartners.com
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SOURCE EV Energy Partners, L.P.