EVEP Selling More Ohio Utica Acreage in 2015

When you’ve been writing about the Marcellus and Utica since 2009, you notice some stories that just keep repeating–year after year. EV Energy Partners selling (more of) their Utica acreage is one of those stories. EVEP is still one of, if not the, largest acreage holder in the Ohio Utica Shale. The company is a master limited partnership, or “MLP”, which means it’s organized to distribute all profits to shareholders (or unit holders) instead of plowing profits back into investments and large projects. MLPs don’t make good exploration and production companies. The way MLPs are structured makes them more suited for mature, already-drilled wells and businesses like pipelines. They want less risk and more long-term revenue potential. So it’s no surprise that EVEP has, since 2012, tried to sell large swaths of their massive holdings (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). Over time they’ve sold some of that acreage, but they still hold hundreds of thousands of acres. On an analyst phone call Monday, EVEP President & CEO Mark Houser once again said “next year” the company will sell more Utica acreage. How much acreage, and where?…

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