EV Energy Partners to sell stake in Utica gas system to Williams

EV Energy Partners (EVEP) will sell its 21% stake in a system of natural gas gathering and compression facilities in eastern Ohio for $575 MM. 

EVEP’s stake in the project, known as Utica East Ohio Midstream, will be purchased by a subsidiary of Williams Partners for cash.

EVEP has assets throughout the country, including the Utica Shale, Barnett Shale, Permian Basin and elsewhere, and is the MLP affiliated with EnerVest.

The other members of the Ohio project, M3 Midstream and Access Midstream Partners, have the right to agree to acquire EVEP’s interest in the project for the same price. In a statement, EVEP said it has spent $294 MM on the project, so far.

The deal will likely close in mid-July, EVEP said. It will use the proceeds of the deal to repay outstanding debts from its revolving credit facility, saving the remainder for future activities that it did not disclose.

Last year, EVEP sold its stake in another set of midstream assets, Cardinal Gas Services LLC, for $162 MM.

In October 2014, EnerVest CEO and EVEP executive chairman John Walker told the Houston Business Journal that he expected EVEP to complete $500 MM–$1 B in acquisitions in the near future.

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