Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8KA - Harvest Oil & Gas Corp. | v301496_8ka.htm |
| EX-2.2 - EXHIBIT 2.2 - Harvest Oil & Gas Corp. | v301496_ex2-2.htm |
| EX-2.1 - EXHIBIT 2.1 - Harvest Oil & Gas Corp. | v301496_ex2-1.htm |
| EX-99.1 - EXHIBIT 99.1 - Harvest Oil & Gas Corp. | v301496_ex99-1.htm |
| EX-23.2 - EXHIBIT 23.2 - Harvest Oil & Gas Corp. | v301496_ex23-2.htm |
Exhibit 99.2
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2011
(In thousands)
| Historical Consolidated | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 17,334 | $ | — | $ | 17,334 | ||||||
| Accounts receivable: | ||||||||||||
| Oil, natural gas and natural gas liquids sales | 34,383 | 34,383 | ||||||||||
| Related party | 3,718 | 79 | 3,797 | |||||||||
| Other | 852 | — | 852 | |||||||||
| Derivative asset | 80,285 | — | 80,285 | |||||||||
| Other current assets | 1,468 | 1,582 | 3,050 | |||||||||
| Total current assets | 138,040 | 1,661 | 139,701 | |||||||||
| Oil and natural gas properties, net of accumulated depreciation, depletion and amortization | 1,342,636 | 305,913 | 1,648,549 | |||||||||
| Other property, net of accumulated depreciation and amortization | 1,381 | — | 1,381 | |||||||||
| Long–term derivative asset | 57,280 | — | 57,280 | |||||||||
| Other assets | 15,035 | — | 15,035 | |||||||||
| Total assets | $ | 1,554,372 | $ | 307,574 | $ | 1,861,946 | ||||||
| LIABILITIES AND OWNERS’ EQUITY | ||||||||||||
| Current liabilities – Accounts payable and accrued liabilities | $ | 38,981 | $ | — | $ | 38,981 | ||||||
| Asset retirement obligations | 70,715 | 7,486 | 78,201 | |||||||||
| Long–term debt | 505,351 | 300,088 | 805,439 | |||||||||
| Long–term liabilities | 2,058 | — | 2,058 | |||||||||
| Commitments and contingencies | ||||||||||||
| Owners’ equity | 937,267 | — | 937,267 | |||||||||
| Total liabilities and owners’ equity | $ | 1,554,372 | $ | 307,574 | $ | 1,861,946 | ||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 2011
(In thousands, except per unit data)
| Historical Consolidated | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||
| Revenues: | ||||||||||||
| Oil, natural gas and natural gas liquids revenues | $ | 190,691 | $ | 60,272 | $ | 250,963 | ||||||
| Transportation and marketing–related revenues | 4,313 | — | 4,313 | |||||||||
| Total revenues | 195,004 | 60,272 | 255,276 | |||||||||
| Operating costs and expenses: | ||||||||||||
| Lease operating expenses | 54,595 | 27,678 | 82,273 | |||||||||
| Cost of purchased natural gas | 3,242 | — | 3,242 | |||||||||
| Dry hole and exploration costs | 1,612 | — | 1,612 | |||||||||
| Production taxes | 8,415 | 1,697 | 10,112 | |||||||||
| Asset retirement obligations accretion expense | 2,856 | 253 | 3,109 | |||||||||
| Depreciation, depletion and amortization | 54,232 | 9,009 | 63,241 | |||||||||
| General and administrative expenses | 23,851 | — | 23,851 | |||||||||
| Impairment of oil and natural gas properties | 6,618 | — | 6,618 | |||||||||
| Total operating costs and expenses | 155,421 | 38,637 | 194,058 | |||||||||
| Operating income | 39,583 | 21,635 | 61,218 | |||||||||
| Other income (expense), net | 53,563 | (6,197 | ) | 47,366 | ||||||||
| Income before income taxes | 93,146 | 15,438 | 108,584 | |||||||||
| Income taxes | (164 | ) | — | (164 | ) | |||||||
| Net income | $ | 92,982 | $ | 15,438 | $ | 108,420 | ||||||
| General partner’s interest in net income, including incentive distribution rights | $ | 10,693 | $ | 11,001 | ||||||||
| Limited partners’ interest in net income | $ | 82,289 | $ | 97,419 | ||||||||
| Net income per limited partner unit: | ||||||||||||
| Basic | $ | 2.46 | $ | 2.91 | ||||||||
| Diluted | $ | 2.44 | $ | 2.89 | ||||||||
| Weighted average limited partner units outstanding: | ||||||||||||
| Basic | 33,445 | 33,445 | ||||||||||
| Diluted | 33,710 | 33,710 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
EV Energy Partners, L.P.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
1. BASIS OF PRESENTATION
EV Energy Partners, L.P. (“we,” “our” or “us”) is a publicly held limited partnership that engages in the acquisition, development and production of oil and natural gas properties. Our general partner is EV Energy GP, L.P., a Delaware limited partnership, and the general partner of our general partner is EV Management, LLC, a Delaware limited liability company.
The accompanying unaudited pro forma condensed consolidated financial statements give effect to our acquisition of oil and natural gas properties from Encana Oil and Gas (USA) Inc., a subsidiary of Encana Corporation (the “Encana acquisition”). We purchased these properties on December 20, 2011 for $271.4 million, followed by a second closing on February 7, 2012 for $28.7 million. The purchase price amounts are subject to customary purchase price adjustments.
These unaudited pro forma condensed consolidated financial statements are not necessarily indicative of the results of operations that would have occurred had the acquisition been effected on the assumed dates. Additionally, future results may vary significantly from the results reflected in the unaudited pro forma consolidated statement of operations due to normal production declines, changes in prices, future transactions, the exclusion of various operating expenses and other factors.
These unaudited pro forma condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10–K for the year ended December 31, 2010, our Quarterly Report on Form 10–Q for the quarter ended September 30, 2011 and the Statement of Revenues and Direct Operating Expenses for the nine months ended September 30, 2011 (Audited).
EV Energy Partners, L.P.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements (continued)
| 2. | UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET ADJUSTMENTS |
The following table summarizes unaudited pro forma condensed consolidated balance sheet adjustments:
| (a) | (b) | Pro Forma Adjustments | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | — | $ | — | $ | — | ||||||
| Accounts receivable: | ||||||||||||
| Oil, natural gas and natural gas liquids sales | — | — | — | |||||||||
| Related party | — | — | — | |||||||||
| Other | 79 | — | 79 | |||||||||
| Derivative asset | — | — | — | |||||||||
| Other current assets | 1,582 | — | 1,582 | |||||||||
| Total current assets | 1,661 | — | 1,661 | |||||||||
| Oil and natural gas properties, net of accumulated depreciation, depletion and amortization | 298,427 | 7,486 | 305,913 | |||||||||
| Other property, net of accumulated depreciation and amortization | — | — | — | |||||||||
| Long–term derivative asset | — | — | — | |||||||||
| Other assets | — | — | ||||||||||
| Total assets | $ | 300,088 | $ | 7,486 | $ | 307,574 | ||||||
| LIABILITIES AND OWNERS’ EQUITY | ||||||||||||
| Current liabilities – Accounts payable and accrued liabilities | $ | — | $ | — | $ | — | ||||||
| Asset retirement obligations | — | 7,486 | 7,486 | |||||||||
| Long–term debt | 300,088 | — | 300,088 | |||||||||
| Long–term liabilities | — | — | — | |||||||||
| Commitments and contingencies | ||||||||||||
| Owners’ equity | — | — | — | |||||||||
| Total liabilities and owners’ equity | $ | 300,088 | $ | 7,486 | $ | 307,574 | ||||||
| (a) | Reflects the effects of the Encana acquisition as of September 30, 2011. |
| (b) | Reflects the asset retirement obligations assumed at the time of purchase relative to the Encana acquisition. |
EV Energy Partners, L.P.
Notes to Unaudited Pro Forma Condensed Combined Statement of Operations (continued)
| 3. | UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS ADJUSTMENTS |
The following table summarizes unaudited pro forma condensed consolidated statement of operations adjustments:
| (a) | (b) | (c) | Pro Forma Adjustments | |||||||||||||
| Revenues: | ||||||||||||||||
| Oil and natural gas revenues | $ | 60,272 | $ | — | $ | — | $ | 60,272 | ||||||||
| Transportation and marketing–related revenues | — | — | — | — | ||||||||||||
| Total revenues | 60,272 | — | — | 60,272 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Lease operating expenses | 27,678 | — | — | 27,678 | ||||||||||||
| Cost of purchased natural gas | — | — | — | — | ||||||||||||
| Dry hole and exploration costs | — | — | — | — | ||||||||||||
| Production taxes | 1,697 | — | — | 1,697 | ||||||||||||
| Asset retirement obligations accretion expense | — | 253 | — | 253 | ||||||||||||
| Depreciation, depletion and amortization | — | 9,009 | — | 9,009 | ||||||||||||
| General and administrative expenses | — | — | — | — | ||||||||||||
| Impairment of oil and natural gas properties | — | — | — | — | ||||||||||||
| Total operating costs and expenses | 29,375 | 9,262 | — | 38,637 | ||||||||||||
| Operating income | 30,897 | (9,262 | ) | — | 21,635 | |||||||||||
| Other income (expense), net | — | — | (6,197 | ) | (6,197 | ) | ||||||||||
| Income before income taxes | 30,897 | (9,262 | ) | (6,197 | ) | 15,438 | ||||||||||
| Income taxes | — | — | — | — | ||||||||||||
| Net income | $ | 30,897 | $ | (9,262 | ) | $ | (6,197 | ) | $ | 15,438 | ||||||
| (a) | Reflects the revenues and direct operating expenses of the Encana acquisition for the nine months ended September 30, 2011. |
| (b) | Reflects incremental depletion expense and accretion expense related to the Encana acquisition. |
| (c) | Reflects incremental interest expense incurred on the credit facility borrowing to finance the Encana acquisition. |