EV Energy Partners Filing for Chapter 11 Bankruptcy in Next 2 Wks

Private equity firm EnerVest owns a lot of acreage and wells (most of them conventional) in the Marcellus/Utica region. In addition to investing in land and wells, EnerVest also has its own upstream (i.e. drilling) subsidiary, EV Energy Partners (EVEP), with operations and assets in Ohio, Pennsylvania and West Virginia. EVEP is an MLP–a master limited partnership. While EVEP is joined at the hip with EnerVest, they are (on paper) two different companies. EnerVest has vast holdings and is in the top 25 oil & gas companies in the nation. Last July the Wall Street Journal ran a story that said EnerVest was worth nothing on paper (see EnerVest Goes Bust, from $2 Billion to $0 – Impact in M-U). EnerVest pushed back on that story saying it wasn’t true–at least not completely true (see EnerVest Pushes Back Against WSJ “Bust” Story). EnerVest chief administrative officer, Ron Whitmire, said the company’s vast holdings are structured as more than a dozen companies. Although some of EnerVest’s companies are in trouble, the entire pie, according to Whitmire, is not in danger of bankruptcy. Conversely, Whitmire’s comment also means at least one or more of the EnerVest companies were/are in danger of bankruptcy. EVEP is one of them. On Wednesday, EVEP announced it has brokered a deal with debt holders to file for Chapter 11 bankruptcy within the next few weeks…

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