EVEP Planning to Sell Off Utica Acreage and Its Interest in Processing Facilities
Update on Utica East Ohio and Utica and Eagle Ford AcreageIn December, UEO completed and brought on line its fourth processing train and third fractionation facility, both of which were on time and on budget. Volumes continue to increase and there is a significant inventory of drilled and completed wells scheduled to be turned inline.
On the third quarter earnings call, the Partnership stated plans to monetize its 21 percent interest in UEO during 2015. EVEP is accelerating that process and would expect to utilize proceeds from a sale to reinvest in long-life, producing oil and gas properties. Management believes that such a sale and reinvestment would result in a significant increase to EBITDAX, borrowing base and liquidity.
EVEP had also communicated plans to market portions of its Utica acreage and Eagle Ford formation rights beginning in early 2015. Given the current commodity price environment, that process will likely be delayed. However, EVEP is exploring alternative structures with third parties to provide additional capital to drill undeveloped acreage and increase cash flow.You can read the entire release by clicking here.
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