EV Energy Partners, L.P. Wells Fargo Energy Symposium December 9-10, 2014
Forward-Looking Statement Statements made in this presentation that are not historical facts are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include information about the sale of our Utica Shale and Eagle Ford assets, our midstream investments and expansion plans, future plans, our reserve quantities and the present value of our reserves, estimates of maintenance capital and other statements which include words such as anticipates, plans, projects, expects, intends, believes, should, and similar expressions of forward-looking information. Forward-looking statements are inherently uncertain and necessarily involve risks that may affect the business prospects and performance of EV Energy Partners, L.P. Actual results may differ materially from those discussed in this presentation. Such risks and uncertainties include, but are not limited to, changes in commodity prices, changes in reserve estimates, requirements and actions of purchasers of properties (including the Utica Shale and Eagle Ford assets), changes in the metrics and procedures used to value midstream assets, exploration and development activities in the Utica Shale and elsewhere, the availability and cost of financing, the returns on our capital investments and acquisition strategies, the availability of sufficient cash flow to pay distributions and execute our business plan and general economic conditions. Additional information on risks and uncertainties that could affect our business prospects and performance are provided in the most recent reports of EV Energy Partners with the Securities and Exchange Commission. All forward-looking statements included in this presentation are expressly qualified in their entirety by the foregoing cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made and EVEP undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise. 2
EVEP Overview Upstream MLP created in September 2006 Experienced General Partner (GP) Ownership EnerVest & Management (76.25%) EnerVest established in 1992 EnCap (23.75%) EnCap established in 1988 48.6 million outstanding units EVEP management and Board own ~ 9% $2.4 billion enterprise value Current yield of 12.1% Note: Current yield based on $0.774/unit 3Q14 distribution paid on November 14, 2014. Unit price as of December 5, 2014. Bank Debt at September 30, 2014. 3
Why Invest in EVEP? Solid, long-lived asset base Significant Utica Shale midstream and acreage upside High quality potential upside in other plays Hedging strategy reduces cash flow volatility Strong long-term performance and growth Synergistic relationship with EnerVest 4
A Unique Portfolio of Opportunities Utica Shale opportunities maturing Midstream ramp-up and increase in EBITDAX Midstream expansion increases wet gas window productivity Opportunistic acreage sales Increased volatile oil window drilling Ongoing organic drilling program Principally Barnett Shale and Austin Chalk Expect additional Eagle Ford Shale acreage monetizations Clinton oil and Mancos/Gallup horizontal drilling opportunities developing Recent asset sales at attractive values with combined proceeds of $192 million Cardinal Gas Services gathering business: $161 million Eagle Ford Shale rights in certain counties: $31 million Looking to redeploy proceeds in high PDP, long-lived assets Focus on restoring 1.0x distribution coverage 5
Relationship with EnerVest EnerVest Private Equity Funds Proved Reserves: 4.6 Tcfe (1) Daily Production: Over 675 Mmcfe (2) Advantages for EVEP Dropdown capability Along-side acquisitions Asset concentration EnerVest P.E. Funds EV Energy Partners (1) Estimated mid-year SEC proved reserves; includes Highmount acquisition and excludes Bakken divestiture. (2) Current daily production 6
Long-lived, Diverse Asset Base Total Proved Reserves: 1,192 Bcfe (1) Percent Developed: 68% Percent Gas: 69% 2013 Avg. Production: 169 Mmcfe/d Reserve-Life Index: 19 years Michigan Proved Reserves: 40.7 Bcfe 2013 Production: 6.2 Mmcfe/d San Juan Basin Proved Reserves: 50.1 Bcfe 2013 Production: 8.0 Mmcfe/d Mancos Shale Permian Basin Proved Reserves: 34.4 Bcfe 2013 Production: 5.6 Mmcfe/d Mid-Continent Proved Reserves: 65.4 Bcfe 2013 Production: 22.2 Mmcfe/d Utica Shale Appalachian Basin Proved Reserves: 111.1 Bcfe 2013 Production: 24.8 Mmcfe/d Monroe Field Proved Reserves: 56.2 Bcfe 2013 Production: 6.9 Mmcfe/d Barnett Shale Proved Reserves: 781.5 Bcfe 2013 Production: 80.9 Mmcfe/d Eagle Ford Shale Central and East Texas Proved Reserves: 52.2 Bcfe 2013 Production: 14.3 Mmcfe/d (1) Year-end 2013 SEC proved reserves 7
2013 Proved Reserves 2013 SEC Proved Reserves: 1,192 Bcfe Reported Price Neutral (1) Includes Acquisitions Reserves Replacement Ratio 565% 268% Reserves Replacement Cost (per Mcfe) $0.48 $1.01 Excludes Acquisitions Reserves Replacement Ratio 456% 156% Reserves Replacement Cost (per Mcfe) $0.36 $1.06 (1) Does not include reserves added as a result of SEC price revisions 8
($ Millions) 2014 Capital Spending Exploration & Production Capital $95 - $115 Million CapEx Guidance (Midpoint) Midstream Exploration & Production Note: Does not include incremental capital for recently announced UEO expansion 9
Barnett Shale (EVEP 31% Ownership) Top 5 producer with EnerVest institutional funds EVEP production: ~ 89 MMcfe/d Three rig program in 2H 2014 Avg. 5-6 well pad sites Increasing lateral lengths Drilled 19 wells in 3Q Brought 13 wells online in 3Q Expecting 80 wells drilled in 2014 EVEP Acreage Dry Gas Wet Gas Oil 10
Austin Chalk (EVEP ~ 14% Ownership) EV Chalk Acreage EV Chalk Wells D Zone well D Zone well A Zone well Along with EnerVest Largest Chalk producer 800,000 acres HBP Horizontal Chalk drilling Ongoing 1 rig program Recent A Zone well IP 900 Boe/d Offset wells identified Recent D Zone wells Combined IP on latest two wells 1,200 Boe/d Eagle Ford Shale upside 11
Eagle Ford Update 28 rigs running in area 7 in Lee and Fayette Counties Eagle Ford Wells Permitted Completed Sold Burleson, Brazos and Grimes Counties Eagle Ford formation rights to an undisclosed buyer $30.6MM net proceeds EVEP retains Eagle Ford rights in Fayette, Lee and Washington Counties ~14,000 net acres Venado Oil and Gas Leona Luecke Choked Back IP (514 Oil, 201 Gas) Venado Oil and Gas Faske-Bimbaum #2 HR Choked Back IP (481 Oil, 187 Gas) EnerVest Unger 1EF well EVEP Remaining Eagle Ford Rights Unger 1EF well (Lee Co.) drilled and completed by EnerVest Early results encouraging Drilling offsets Apache Corp. Fenn Ranch well Apache Corp. Lawnmower wells (3) 12
San Juan Basin Mancos Shale EVEP Acreage EnerVest Acreage Encana Wells WPX Wells Jicarilla Apache Nation Over 20,000 EVEP net acres may be prospective for Mancos/Gallup Shale Both oil and wet gas windows Nearby 2014 activity announced by other operators Over $500 million in capital Over 70 wells 700+ well inventory Current joint venture partner search 13
Clinton Horizontal Opportunity History of East Canton Oil Field 4,000 wells drilled since 1947 Est. 1.5 billion barrels oil in place in Clinton reservoir 7% recovered to date Drilling test results compelling 5 of 6 drilled wells turned in line Est. EUR s of 100-150 MBoe Est. 20% returns at $80 oil 70 drilling locations identified EVEP WI of 46% ~30,000 net acres held by production by EVEP EVEP Acreage Recent EV Wells 14
Drilling in the Utica Shale 95% of wells in the Utica have been drilled in the Wet Gas & Dry Gas Windows Black Oil Wells 7 Drilled 3 Producing 10 Total Wells Black Black Oil Volatile Oil Oil Volatile Oil Wet Gas Wet Gas Dry Gas Dry Gas EVEP WI Acreage CHK/Total/EV JV Wet Gas Wells 420 Drilled 543 Producing 963 - Total Wells Volatile Oil Wells: 27 Drilled 23 Producing 50 Total Wells Total Utica Wells: 576 Drilled * 614 Producing 1,190 Total Wells Dry Gas Wells 122 Drilled 45 Producing 167 - Total Wells Currently 39 active horizontal rigs in Utica (2 in Western PA) * Drilled includes all wells currently drilling, waiting on completion, or completed and waiting on pipeline Source: Ohio Department of Natural Resources (ODNR) as of 9/30/2014 15
Utica Shale Activity Update Increase in volatile oil window drilling CHK operated Parker well (superfrac) completed in oil window Best volatile oil window well EV has participated in to date All partners encouraged by results CHK planning 3-5 additional volatile oil window test wells in next 6 months EVEP/EnerVest current drilling in Tuscarawas County Increase in wet gas window productivity and production in 2014 Should help clarify type curves and potentially enhance technical understanding EVEP/EnerVest continues to drill with CHK JV and other operators Position in wet gas window becoming more traditional producing asset Midstream constraints being addressed 16
EVEP Utica Shale Position Acreage position 173,000 net working interest acres Overriding royalty interests 880,000 gross acres EVEP/EnerVest participation in CHK/Total/EV joint venture Mostly wet gas window to date Over 500 wells drilled Expanding oil window activity Meaningful expansion of activity outside of JV Planning to market certain acreage in 2015 Black Oil Black Oil Volatile Oil Volatile Oil Wet Gas Wet Gas Dry Gas Dry Gas EVEP WI Acreage CHK/Total/EV JV CHK/EV/TOT Joint Venture Chevron Drilled EnerVest Nettle 3H - Drilled Carrizo Brown 1H - Drilling Equitable Clark Pad - Producing PDC Energy Grove Pad - Permitted PDC Energy Garvin Pad - Producing Stewart Winland Triad Hunter - Producing EnerVest Lennington 1H - Producing Hilcorp Completing Chevron Kinsey Pad - Producing Chevron Gooding Pad - Permitted Chesapeake Parker - Producing Rex Carroll Co. - Drilling Chevron E Clark South Pad - Permitted 17
Utica East Ohio (EVEP 21% Ownership) Gather, process and fractionate wet gas from CHK/Total/EV JV production 800 MMcf/d of processing at Kensington and Leesville 600 MMcf/d in service 200 MMcf/d currently starting up 135 MBbl/d of fractionation 90 MBbl/d in service 45 MBbl/d currently starting up Onsite working storage of ~ 870 MBbls of purity components ~ 1 million dedicated working interest acres Upside potential as development drilling expands 18
Processing (Mmcf/d) UEO Midstream - Significant Utica Growth Current processing level over 650 MMcf/d Fractionation (Mbbl/d) Nameplate Processing Capacity Actual Processing Capacity Fractionation Processing Level 19
UEO Expansion Base Proc & Frac AMI Expansion Proc & Frac AMI AEP - Utica AMI Additional acreage commitment from CHK JV (CHK/Total/EV) American Energy Partners Utica acreage commitment 145,000 acre area of mutual interest (AMI) Expansion plans Additional 200 MMcf/d processing train at Leesville facility Extension of high pressure pipeline from Harrison Hub to Cardinal compression facility Downstream liquids interconnect and expanded propane and butane storage at Harrison Hub Provide gathering, compression and dehydration services to American Energy Partners Utica 20
Capital Structure ($ millions) Bank Debt @ 9/30 * $ 652 Senior Notes Due 2019 $ 500 Equity Market Capitalization $ 1,264 Enterprise Value $ 2,416 Note: Equity market capitalization based on unit price at December 5, 2014. Bank debt at September 30, 2014. * Prior to closing and collection of proceeds of ~$192MM from Cardinal Gas Services and Eagle Ford formation rights sales. 21
Commodity Hedging Gas Volume Hedged (MMcf/d) Oil Volume Hedged (Bbl/d) 120,000 100,000 80,000 60,000 40,000 20,000 0 $4.46 $4.86 108.8 108.5 $4.07 50.0 4Q14 2015 2016 5,000 4,000 3,000 2,000 1,000 0 $93.73 $90.28 4,100 3,500 $90.14 1,000 4Q14 2015 2016 22
Strategy Going Forward Continue to manage and enhance base business Planning to monetize UEO in 2015 Throughput and EBITDA will continue to grow Further realize value of Utica acreage Pursuing acquisition opportunities to redeploy recent asset sale proceeds Focus in existing high PDP areas Future undeveloped acreage sale opportunities Eagle Ford formation rights Mancos/Gallup 23
EV Energy Partners, L.P. Wells Fargo Energy Symposium December 9-10, 2014