HOUSTON, TX--(Marketwire - 04/27/10) - EV Energy Partners, L.P. (NASDAQ:EVEP - News) today announced a cash distribution attributable to the first quarter of 2010 of $0.756 per unit for all of its outstanding units. The distribution will be payable on May 14, 2010, to unit holders of record at the close of business on May 7, 2010.
I assume the ex-dividend date is May 5th, so you would need to buy by May 4th to get the distribution.
true line is hedged at 6.50 vs 8 and change on nat gas side. fair pt, but granite wash is the offset given its ramping from 0 and costs are very low. read last transcript. basically even if nat gas stays here, the cash flow generation is offset by granite wash. any upside in the price adds to cash flow.
oil side they are hedged 2013 etc at levels above here, so think oil side its a wash.
all in, i think the distribution is safe if they do nothing and goes up if they do accretive acq and upside from granite wash
I was the one who wrote LINE is heavily hedging more than other E&Ps precisely in an effort to maintain the high distribution. LINE's deft hedging in the past allows for a superior distribution.. the trick now is whether thru acquisitions they can maintain that distribution level knowing that pricing for oil and NG will not be anywhere near their past hedging activities. In other words its going to take increased volume, acquisitions, and hedging activities to maintain their distribution.
I'd like to agree with you (who doesn't like higher distributions?) but it already has a yield over 9%, and there are only a couple O&G Drilling MLPs out there that are still in the 9%+ range. It appears that investors need to catch up to EVEP, not the other way around. IMHO.