EVEP’s John Walker: NatGas Demand & Prices Heading Higher in 2016

EV Energy Partners (EVEP) is a master limited partnership, or MLP, which distributes profits to “unit holders” instead of plowing profits into more projects. They like to invest in mature, already drilled wells and pipeline companies–things that act like an annuity throwing off profit with very little risk. Over the years EVEP amassed a huge amount of acreage in Ohio–before the Utica was known–mostly for conventional (vertical only) wells. That acreage is held by production and can also be drilled for unconventional/Utica Shale wells. Since 2009 EVEP has been trying to sell some/most of their Utica acreage. Seems like every year we hear “this is the year” from EVEP. Will 2015 be that year? Possibly. EVEP Chairman John Walker, in wide-ranging remarks during a quarterly earnings analyst conference call on Monday hints that new deals are coming, both third party and “drop down” deals where they sell things to themselves on paper. Most interesting to MDN were Walker’s remarks that he believes demand for natural gas will begin to really take off in 2016, and along with it, prices will go higher (more demand than supply)…

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