Utica Shale (EVEP)
Posted: Mon Mar 05, 2012 3:49 pm
Development in Utica Gaining Momentum
EVEP Management indicated that over 120 wells have been permitted in the Utica Shale, including 42 wells drilled by Chesapeake (7 on production and 35 awaiting completion). EnerVest entities have participated in 27 of the 42 wells, with 5 on line and producing. As it relates to the MLP, the expectation is still for the partnership to open a data room for prospective buyers in the late 2Q12. Notably, management indicated that it has fielded some interest from prospective Utica participants and that it expects a transaction to be finalized by year end. As previously discussed, in our opinion, the most likely scenario entails the partnership selling/monetizing/asset swap a portion of the Utica position combined with a JV on the remainder that would allow the MLP to benefit from potential upside through development without significant or no capital outlays.
EV Energy Parters LP (EVEP) is one of the upstream publicly traded partnerships on our MLP Watch List. - dan
EVEP Management indicated that over 120 wells have been permitted in the Utica Shale, including 42 wells drilled by Chesapeake (7 on production and 35 awaiting completion). EnerVest entities have participated in 27 of the 42 wells, with 5 on line and producing. As it relates to the MLP, the expectation is still for the partnership to open a data room for prospective buyers in the late 2Q12. Notably, management indicated that it has fielded some interest from prospective Utica participants and that it expects a transaction to be finalized by year end. As previously discussed, in our opinion, the most likely scenario entails the partnership selling/monetizing/asset swap a portion of the Utica position combined with a JV on the remainder that would allow the MLP to benefit from potential upside through development without significant or no capital outlays.
EV Energy Parters LP (EVEP) is one of the upstream publicly traded partnerships on our MLP Watch List. - dan