EV Energy Partners reports profit

Boosted by selling its share of Utica Shale processing plants, EV Energy Partners on Monday reported a profit of $164.1 million for the second quarter.

That’s in contrast to losses of $61.7 million in the first quarter and $9 million a year ago.

EV Energy Partners is a Texas-based master limited partnership controlled by EnerVest.

EnerVest has 29,000 wells in 15 states and is a joint-venture partner with Chesapeake Energy in the Utica Shale.

EVEP’s production was 162.8 million cubic feet of natural gas equivalent per day for the quarter, down six percent from the first quarter and a drop of seven percent from a year ago.

The production included 10 billion cubic feet of natural gas, 237,000 barrels of oil and 563,000 barrels of natural gas liquids.

In June, EVEP finalized the sale of its 21 percent interest in the Utica East Ohio natural gas processing system for $572.2 million. That translated to $250.4 million in income.

The company also lost $48.3 million due to changes in its plan for developing the Utica Shale’s volatile-oil window, which underlies parts of Stark, Tuscarawas and Holmes counties. Details of those changes were not immediately available.

With the crash in natural gas and oil prices, second quarter revenue from oil, natural gas and related liquids was $43.7 million, down 50 percent from a year ago.

Commenting on low commodity prices, EVEP Executive Chairman John B. Walker said he expects natural gas demand to start growing faster than supply in 2016. 

Demand will be pushed by exports, gas-burning power plants, industrial growth and residential and commercial users, Walker predicted.

He said he thinks oil prices also will swing rapidly upward in the future.

Reach Shane at 330-580-8338 or shane.hoover@cantonrep.com.

On Twitter: @shooverREP