EV Energy Partners divests interest in Utica East Ohio

EV Energy Partners, LP (EVEP) recently announced that is has agreed to divest its 21 percent interest in Utica East Ohio, LLC to Utica Gas Services, LLC (a branch of Williams Partners, LP) for approximately $575 million.

EVEP’s net contribution to Utica East Ohio amounts to approximately $294 million. According to the agreement, EVEP is subject to customary closing conditions and purchase price adjustments. These conditions include the waiting period that is listed under the Hart-Scott-Rodino Antitrust Improvements Act.

Leaders at EVEP expect that the transaction will close by mid-July. When this transaction is complete, EVEP will use the net proceeds to repay its revolving credit facility’s outstanding amounts. The remaining funds will be set aside for future activities, like acquiring natural gas and oil properties.

"This transaction, along with the previous sale of our interest in Cardinal Gas Services, reflects the completion of our divestiture of midstream investments in the Utica Shale,” EVEP President and CEO Michael Mercer said. “We are pleased with the returns we achieved and look forward to participating in what we expect to be an attractive upstream A&D market in the second half of the year.”