SOURCE: EV Energy Partners, L.P.

EV Energy Partners, L.P.

March 16, 2010 18:21 ET

EV Energy Partners Announces Full Year and Fourth Quarter 2009 Results, 2009 Year-End Proved Reserves and 2010 Guidance

HOUSTON, TX--(Marketwire - March 16, 2010) - EV Energy Partners, L.P. (NASDAQ: EVEP) today announced results for the full year and fourth quarter 2009, its year-end 2009 proved reserves and the filing of its Form 10-K with the Securities and Exchange Commission. In addition, EVEP provided 2010 guidance and its commodity hedge positions presented in the Hedge Summary Table at the end of this release.

Full Year 2009 Results

Adjusted EBITDA and distributable cash flow for 2009 were $132.2 million and $75.5 million, increases of 11% and 20%, respectively, over 2008 primarily due to acquisitions made during the second half of 2008 and in 2009, partially offset by lower realized natural gas prices. Adjusted EBITDA and distributable cash flow are described in the attached table under "Non-GAAP Measures."

Production for 2009 was 16.5 Bcf of natural gas, 514 MBbls of crude oil and 768 MBbls of natural gas liquids, or 24.2 Bcfe. This was an 18% increase over 2008 production of 20.5 Bcfe, primarily due to acquisitions made during the second half of 2008 and in 2009.

For 2009, EVEP reported net income of $1.4 million. Included in net income was $51.7 million of non-cash net unrealized losses on commodity and interest rate derivatives and $3.7 million of non-cash costs contained in general and administrative expenses. For 2008, EVEP reported net income of $225.5 million. Included in 2008 net income was $164.9 million of non-cash net unrealized gains on commodity and interest rate derivatives and $1.2 million of non-cash costs contained in general and administrative expenses.

The $164.9 million non-cash net unrealized gains on commodity and interest rate derivatives for 2008 was primarily due to the significant decrease in future oil and natural gas prices that occurred from December 31, 2007 to December 31, 2008 and the effect of such decreased prices on the mark-to-market valuation of EVEP's outstanding derivatives.

Fourth Quarter 2009 Results

Adjusted EBITDA for the fourth quarter of 2009 was $34.5 million, an 8% increase over the fourth quarter of 2008 and a 3% increase over the third quarter of 2009. Distributable cash flow for the fourth quarter of 2009 was $21.2 million, a 42% increase over the fourth quarter of 2008 and a 9% increase over the third quarter of 2009.

For the fourth quarter of 2009, EVEP produced 4.29 Bcf of natural gas, 128 MBbls of crude oil and 188 MBbls of natural gas liquids, or 6.2 Bcfe. This is a 2% increase over fourth quarter 2008 production of 6.0 Bcfe, primarily from acquisitions made during the second half of 2008 and in 2009. Production increased by 1% from third quarter 2009 production of 6.1 Bcfe, primarily due to the acquisition made during the fourth quarter of 2009.

EVEP reported a net loss of $2.5 million for the fourth quarter of 2009. Included in net loss was $17.3 million of non-cash net unrealized losses on commodity and interest rate derivatives and $1.5 million of non-cash costs contained in general and administrative expenses. For the fourth quarter of 2008, EVEP reported a net income of $145.5 million which included $134.0 million of non-cash net unrealized gains on commodity and interest rate derivatives.

The $134.0 million non-cash net unrealized gains on commodity and interest rate derivatives for the fourth quarter of 2008 was primarily due to the significant decrease in future oil and natural gas prices that occurred from September 30, 2008 to December 31, 2008 and the effect of such decreased prices on the mark-to-market valuation of EVEP's outstanding derivatives.

John Walker, Chairman and CEO said, "We are very pleased with our results for 2009. We completed one Appalachian Basin and two Austin Chalk add-on acquisitions, as well as two successful equity offerings to finance the acquisitions and increase liquidity. During the year, we reduced our debt by $165 million. To date in 2010 we have announced a sizeable Appalachian Basin acquisition, which we expect to close by the end of March, and completed a 3.45 million common unit offering to finance the acquisition and provide capacity for additional acquisitions."

Year-End 2009 Estimated Net Proved Reserves

EVEP's year-end 2009 estimated net proved reserves were 365.6 billion cubic feet equivalents (Bcfe), a 2% increase over year-end 2008 estimated net proved reserves. Approximately 70% were natural gas, 18% were natural gas liquids and 12% were crude oil. In addition, 93% were categorized as proved developed. At December 31, 2009 the present value of future net pre-tax cash flows discounted at 10% was $352.8 million and the standardized measure of our estimated net proved reserves was $351.5 million. Standardized measure is the present value of estimated future net revenues to be generated from the production of proved reserves, determined in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC"), without giving effect to non-property related expenses such as certain general and administrative expenses, debt service and future federal income tax expenses or to depreciation, depletion and amortization and discounted using an annual discount rate of 10%. Our standardized measure includes future obligations under the Texas gross margin tax, but it does not include future federal income tax expenses because we are a partnership and are not subject to federal income taxes.

                            Natural   Crude            Natural Gas
                              Gas      Oil     NGL's   Equivalents
                            -------- -------- -------- ------------
                             (Bcf)   (MMBbls) (MMBbls)    (Bcfe)
Appalachian Basin             50.4      1.1        -        57.0
Michigan                      42.3        -        -        42.3
Monroe Field                  67.2        -        -        67.2
Central and East Texas        23.6      3.0      1.9        52.8
Permian Basin                 25.9      0.7      4.7        58.6
San Juan Basin                34.3      1.2      3.7        63.3
Mid-Continent area            13.6      1.4      0.4        24.4
                            -------- -------- -------- ------------
Total Proved Reserves        257.3      7.4     10.7       365.6

Proved Developed Reserves    245.0      6.8      9.1       340.4

The decrease in the natural gas price utilized in calculating our year-end 2009 proved reserves compared with prices used in calculating our year-end 2008 proved reserves had a significant negative impact on EVEP's estimated net proved reserves at December 31, 2009, partially offset by an increase in the calculated crude oil and natural gas liquids price. The prices used in determining our estimated net proved reserves at December 31, 2009 were $61.18 per Bbl of oil and $3.866 per MMBtu of natural gas as compared to $44.60 per Bbl of oil and $5.71 per MMBtu of natural gas at December 31, 2008. Had the commodity prices used in calculating year-end 2009 proved reserves been the same as those in effect at December 31, 2008, EVEP's estimated net proved reserves at December 31, 2009 would have been approximately 384.2 Bcfe (a 7% increase over year-end 2008 estimated net proved reserves), and the present value of future net pre-tax cash flows discounted at 10% at December 31, 2009 would have been approximately $442.4 million. In addition, if NYMEX strip prices in effect at December 31, 2009 had been used, year-end 2009 estimated proved reserves would have been approximately 440.5 Bcfe and the present value of future net pre-tax cash flows discounted at 10% at December 31, 2009 would have been approximately $756.7 million.

2010 Guidance

Guidance estimates for 2010 are presented in the table below.

                                   1st Qtr 2010        2nd-4th Qtrs 2010
                                ------------------    -------------------
Net Production:
 Natural Gas (MMcf)              4,000   -   4,300    14,250   -   15,750
 Crude Oil (MBbls)                 120   -     140       520   -      580
 Natural Gas Liquids
  (MBbls)                          170   -     190       520   -      580
Total Mmcfe                      5,740   -   6,280    20,490   -   22,710

Average Daily Production
 (Mmcfe/d)                        63.8   -    69.8      74.5   -     82.6

Average Price Differential
 vs NYMEX
 Natural Gas (% of NYMEX
  Natural Gas)                      97%  -     103%       96%  -      103%
 Crude Oil (% of NYMEX
  Crude Oil)                        91%  -      97%       90%  -       96%
 Natural Gas Liquids (% of
  NYMEX Crude Oil)                  56%  -      62%       54%  -       60%

 Transportation Margin ($
  thous) (a)                       325   -      375       975  -    1,125

Expenses:
Operating Expenses:
 LOE and other ($ thous)        10,000   -   11,000    34,000  -   37,000
 Production Taxes (as % of
  revenue)                         5.3%  -      5.7%      4.6% -      5.0%

General and administrative
 expense ($ thous) (b)           3,500   -    3,900    11,000  -   13,000

Capital Expenditure ($
 thous) (c)                      2,000   -    5,000    18,000  -   25,000

(a)  Represents estimated transportation and marketing-related revenues
     less cost of purchased natural gas.
(b)  Excludes non-cash general and administrative expense, of which
     non-cash unit based compensation is a part.
(c)  Represents estimates for drilling and related capital expenditures.
     Does not include any amounts for acquisitions of oil and gas
     properties.

Annual Report on Form 10-K and Unitholders' Schedule K-1

EVEP's financial statements and related footnotes are available on our 2009 Form 10-K, which was filed today and is available through the Investor Relations/SEC Filings section of the EVEP web site at http://www.evenergypartners.com.

Also available for download on our website are unitholders' Schedule K-1 for the tax year 2009. For any questions regarding their Schedule K-1, unitholders are invited to call the Tax Package Support helpline at 1 (800) 973-7551.

Conference Call

As announced on March 12, 2010, EV Energy Partners, L.P. will host an investor conference call Wednesday, March 17, 2010, at 10:00am (Eastern Daylight Time). Investors interested in participating in the call may dial (480)-629-9819 and ask for the EV Energy Partners call at least 5 minutes prior to the start time, or may listen live over the internet through the Investor Relations section of the EVEP web site at http://www.evenergypartners.com .

EV Energy Partners, L.P., is a master limited partnership engaged in acquiring, producing and developing oil and gas properties. More information about EVEP is available on the internet at http://www.evenergypartners.com .

(code #: EVEP/G)

This press release may include "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by EVEP based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of EVEP, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to financial performance and results, availability of sufficient cash flow to pay distributions and execute our business plan, prices and demand for natural gas and oil, our ability to replace reserves and efficiently develop our current reserves and other important factors that could cause actual results to differ materially from those projected as described in the EVEP's reports filed with the Securities and Exchange Commission. 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.

Operating Statistics

                                             Three Months    Twelve Months
                                                 Ended           Ended
                                              December 31,    December 31,
                                            --------------- ---------------
                                             2009    2008    2009    2008
                                            ------- ------- ------- -------
Production data:
Oil (MBbls)                                     128     136     514     437
Natural gas liquids (MBbls)                     188     157     768     543
Natural gas (MMcf)                            4,288   4,274  16,519  14,578
                                            ------- ------- ------- -------
Net production (MMcfe)                        6,184   6,034  24,210  20,457

Average sales price per unit (1):
Oil (Bbl)                                   $ 71.92 $ 58.01 $ 56.17 $ 94.76
Natural gas liquids (Bbl)                     41.09   28.07   31.08   54.75
Natural gas (Mcf)                              4.15    5.88    3.71    8.34
Mcfe                                           5.61    6.20    4.71    9.42

Average unit cost per Mcfe:
Production costs:
Lease operating expenses                    $  1.69 $  2.01 $  1.71 $  2.09
Production taxes                               0.30    0.31    0.25    0.44
                                            ------- ------- ------- -------
Total                                          1.99    2.32    1.96    2.53
Asset retirement obligations accretion
 expense                                       0.09    0.07    0.08    0.07
Depreciation, depletion and amortization       2.06    2.29    2.15    1.86
General and administrative expenses            0.92    0.63    0.77    0.67

(1) Prior to $16.0 and $10.9 million of net hedge gains for the three
months ended December 31, 2009 and December 31, 2008, respectively, and
prior to $77.3 and ($13.0) million of net realized hedge gains (losses) for
the twelve months ended December 31, 2009 and December 31, 2008,
respectively.




Consolidated Balance Sheets
(in $ thousands)


                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  ------------
                      ASSETS
Current assets:
 Cash and cash equivalents                        $    18,806  $     41,628
 Accounts receivable:
  Oil, natural gas and natural gas liquids
   revenues                                            14,599        17,588
  Related party                                         2,881         1,463
  Other                                                 1,034         3,278
 Derivative asset                                      26,733        50,121
 Prepaid expenses and other current assets                625         1,037
                                                  -----------  ------------
  Total current assets                                 64,678       115,115

Oil and natural gas properties, net of
 accumulated depreciation, depletion and
 amortization; December 31, 2009, $121,970;
 December 31, 2008, $69,958                           771,752       765,243
Other property, net of accumulated depreciation
 and amortization; December 31, 2009, $319;
 December 31, 2008, $284                                  742           180
Long-term derivative asset                             68,549        96,720
Other assets                                            1,984         2,737
                                                  -----------  ------------
Total assets                                      $   907,705  $    979,995
                                                  ===========  ============


          LIABILITIES AND OWNERS' EQUITY
Current liabilities:
 Accounts payable and accrued liabilities         $    10,310  $     14,063
 Deferred revenues                                                    4,120
 Derivative liability                                   1,543         2,115
                                                  -----------  ------------
  Total current liabilities                            11,853        20,298

Asset retirement obligations                           42,533        33,787
Long-term debt                                        302,000       467,000
Other long-term liabilities                             3,212         1,426
Long-term derivative liability                            676

Commitments and contingencies

Owners' equity
 Common unitholders                                   548,160       432,031
 Subordinated unitholders                                            21,618
 General partner interest                                (729)        3,835
  Total owners' equity                                547,431       457,484
                                                  -----------  ------------
Total liabilities and owners' equity              $   907,705  $    979,995
                                                  ===========  ============





Consolidated Statements of Operations
(in $ thousands, except per unit data)

                                Three Months Ended   Twelve Months Ended
                                   December 31,          December 31,

                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenues:
 Oil, natural gas and natural
  gas liquids revenues          $  34,705  $  37,421  $ 114,066  $ 192,757
 Gain on derivatives, net               -        372          -      1,597
 Transportation and
  marketing-related revenues        1,445      3,310      7,846     12,959
                                ---------  ---------  ---------  ---------
  Total revenues                   36,150     41,103    121,912    207,313
                                ---------  ---------  ---------  ---------

Operating costs and expenses:
 Lease operating expenses          10,420     12,139     41,495     42,681
 Cost of purchased natural gas      1,078      1,983      4,509      9,849
 Production taxes                   1,840      1,867      5,983      9,088
 Asset retirement obligations
  accretion expense                   527        447      2,035      1,434
 Depreciation, depletion and
  amortization                     12,744     13,845     52,048     38,032
 General and administrative
  expenses                          5,686      3,786     18,556     13,653
                                ---------  ---------  ---------  ---------
  Total operating costs and
   expenses                        32,295     34,067    124,626    114,737
                                ---------  ---------  ---------  ---------

Operating income (loss)             3,855      7,036     (2,714)    92,576

Other (expense) income, net:
 Realized gains (losses) on
  mark-to-market derivatives,
  net                              13,783     10,210     68,984    (14,557)
 Unrealized (losses) gains on
  mark-to-market derivatives,
  net                             (17,261)   133,584    (51,665)   163,270
 Interest expense                  (2,412)    (5,565)   (12,321)   (16,128)
 Other (expense) income, net         (309)       307       (626)       559
                                ---------  ---------  ---------  ---------
Total other (expense) income,
 net                               (6,199)   138,536      4,372    133,144
                                ---------  ---------  ---------  ---------

(Loss) income before income
 taxes                             (2,344)   145,572      1,658    225,720
Income taxes                         (127)       (30)      (248)      (235)
                                ---------  ---------  ---------  ---------
Net (loss) income              ($   2,471) $ 145,542  $   1,410  $ 225,485
                                =========  =========  =========  =========
General partner's interest in
 net income, including
 incentive distribution rights  $   1,941  $   4,259  $   7,040  $   8,847
                                =========  =========  =========  =========
Limited partners' interest in
 net (loss) income             ($   4,412) $ 141,283 ($   5,630) $ 216,638
                                =========  =========  =========  =========

Net (loss) income per limited
 partner unit (basic and
 diluted):                     ($    0.19) $    8.76 ($    0.29) $   14.12
Weighted average limited
 partner units outstanding
 (basic and diluted):
Common units                       21,892     13,027     16,524     12,240
Subordinated units                  1,584      3,100      2,718      3,100
Performance units                     107                    60




Consolidated Statements of Cash Flows
(in $ thousands)

                                                   Twelve        Twelve
                                                Months Ended  Months Ended
                                                December 31,  December 31,
                                                    2009          2008
                                                ------------  ------------

Cash flows from operating activities:
 Net income                                     $      1,410  $    225,485
 Adjustments to reconcile net income to net
  cash flows provided by operating activities:

  Asset retirement obligations accretion
   expense                                             2,035         1,434
  Depreciation, depletion and amortization            52,048        38,032
  Equity-based compensation                            3,659         1,241
  Amortization of deferred loan costs                    799           370
  Unrealized loss (gain) on mark-to-market
   derivatives                                        51,665      (164,867)
  Other                                                  544             -
  Changes in operating assets and liabilities:
   Accounts receivable                                 3,955           327
   Prepaid expenses and other current assets             214          (151)
   Accounts payable and accrued liabilities           (2,126)         (233)
   Deferred revenues                                  (4,120)        2,998
   Other, net                                           (558)         (265)
                                                ------------  ------------
Net cash flows provided by operating activities      109,525       104,371
                                                ------------  ------------

Cash flows from investing activities:
 Acquisitions of oil and natural gas
  properties, net of cash acquired                   (39,646)     (176,992)
 Development of oil and natural gas properties       (14,271)      (33,017)
                                                ------------  ------------
Net cash flows used in investing activities          (53,917)     (210,009)
                                                ------------  ------------

Cash flows from financing activities:
 Long-term debt borrowings                            20,000       197,000
 Repayments of long-term debt borrowings            (185,000)            -

 Proceeds from equity offerings                      149,038             -

 Offering costs                                         (484)            -

 Distributions related to acquisitions                     -       (13,918)
 Loan costs incurred                                     (44)       (1,331)
 Contributions by partners                             3,077           601
 Distributions to partners and dividends paid        (65,017)      (45,306)
                                                ------------  ------------
Net cash flows (used in) provided by financing
 activities                                          (78,430)      137,046
                                                ------------  ------------

(Decrease) increase in cash and cash
 equivalents                                         (22,822)       31,408
Cash and cash equivalents - beginning of period       41,628        10,220
                                                ------------  ------------
Cash and cash equivalents - end of period       $     18,806  $     41,628
                                                ============  ============

Non GAAP Measures

We define Adjusted EBITDA as net income (loss) plus income tax provision, interest expense, net, realized (gains) losses on interest rate swaps, depreciation, depletion and amortization, asset retirement obligation accretion expense, non-cash (gains) losses on derivatives, amortization of upfront premiums paid to enter into commodity price hedge agreements and non-cash equity compensation. Distributable Cash Flow is defined as Adjusted EBITDA less income tax provision, interest expense, net, realized (gains) losses on interest rate swaps, amortization of upfront premiums paid to enter into commodity price hedge agreements and estimated maintenance capital expenditures.

Adjusted EBITDA and Distributable Cash Flow are used by our management to provide additional information and metrics relative to the performance of our business, including (prior to the creation of any reserves) the cash available to pay distributions to our unitholders. These financial measures indicate to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Adjusted EBITDA and Distributable Cash Flow are also quantitative standards used throughout the investment community with respect to performance of publicly-traded partnerships. Adjusted EBITDA and Distributable Cash Flow should not be considered as alternatives to net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and Distributable Cash Flow exclude some, but not all, items that effect net income and operating income and these measures may vary among companies. Therefore, our Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of other companies.

Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow
(in $ thousands)

                                 Three Months Ended   Twelve Months Ended
                                    December 31,          December 31,

                                  2009       2008        2009      2008
                                ---------  ---------  ---------- ---------

Net (loss) income              ($   2,471) $ 145,542  $    1,410 $ 225,485
Add:
Income taxes                          127         30         248       235
Interest expense, net               2,405      5,434      12,189    15,756
Realized (gains) losses on
 interest rate swaps                2,200        742       8,351     1,598
Depreciation, depletion and
 amortization                      12,744     13,845      52,048    38,032
Asset retirement obligation
 accretion expense                    527        447       2,035     1,434
(Gains) on settlement of asset
 retirement obligations                         (182)                 (182)
Non-cash losses (gains) on
 derivatives                       17,261   (133,956)     51,665  (164,867)
Amortization of premiums on
 derivatives                          209          -         608         -
Non-cash equity compensation
 expense                            1,462         33       3,659     1,241
                                ---------  ---------  ---------- ---------
Adjusted EBITDA                    34,464     31,935     132,213   118,732

Less:
Income taxes                          127         30         248       235
Interest expense, net               2,405      5,434      12,189    15,756
Realized losses on interest
 rate swaps                         2,200        742       8,351     1,598
Amortization of premiums on
 derivatives                          209          -         608         -
Estimated maintenance capital
 expenditures (1)                   8,348     10,800      35,360    38,205
                                ---------  ---------  ---------- ---------
Distributable Cash Flow            21,175     14,929      75,457    62,938

(1) Estimated maintenance capital expenditures are those expenditures
estimated to be necessary to maintain the production levels of our oil and
gas properties over the long term and the operating capacity of our other
assets over the long term.



Hedge Summary Table (as of 12/31/2009)

                           Swap         Swap      Collar   Collar   Collar
                          Volume       Price      Volume   Floor    Ceiling
                        -----------  ---------  --------- -------- --------
                          (Mmmbtu/               (Mmmbtu/
                           Mbbls)                 Mbbls)
Natural Gas

1Q 2010
NYMEX                         1,845  $    7.53        135 $   7.50 $  10.00
Dominion Appalachia             601  $    8.19
El Paso Permian                 225  $    7.68
Houston Ship Channel            136  $    5.78        315 $   7.25 $   9.55
MichCon Citygate                450  $    8.34
Appalachia Columbia              27  $    5.75

2Q 2010
NYMEX                         1,775  $    7.62        137 $   7.50 $  10.00
Dominion Appalachia             608  $    8.19
El Paso Permian                 228  $    7.68
Houston Ship Channel            138  $    5.78        319 $   7.25 $   9.55
MichCon Citygate                455  $    8.34
Appalachia Columbia              27  $    5.75

3Q 2010
NYMEX                         1,702  $    7.74        138 $   7.50 $  10.00
Dominion Appalachia             614  $    8.19
El Paso Permian                 230  $    7.68
Houston Ship Channel            139  $    5.78        322 $   7.25 $   9.55
MichCon Citygate                460  $    8.34
Appalachia Columbia              28  $    5.75

4Q 2010
NYMEX                         1,610  $    7.88        138 $   7.50 $  10.00
Dominion Appalachia             614  $    8.19
El Paso Permian                 230  $    7.68
Houston Ship Channel            139  $    5.78        322 $   7.25 $   9.55
MichCon Citygate                460  $    8.34
Appalachia Columbia              28  $    5.75

2011
NYMEX                         5,585  $    8.18        441 $   5.85 $   7.55
Dominion Appalachia             913  $    8.69      1,095 $   9.00 $  12.15
El Paso Permian                 913  $    9.30
Houston Ship Channel                                1,278 $   8.25 $  11.65
MichCon Citygate                                    1,643 $   8.70 $  11.85

2012
NYMEX                         5,527  $    8.63
Dominion Appalachia                                 1,830 $   8.95 $  11.45
El Paso Permian                 732  $    9.21
Houston Ship Channel                                1,098 $   8.25 $  11.10
MichCon Citygate                                    1,647 $   8.75 $  11.05

2013
NYMEX                         3,285  $    7.23
El Paso Permian               1,095  $    6.77
El Paso San Juan              1,095  $    6.66

Through 8/31/2014
NYMEX                         1,215  $    7.06

Crude Oil
 (NYMEX)
2010                          688.0  $   89.81
2011                          219.0  $  103.66      401.5 $ 110.00 $ 166.45
2012                          205.0  $  104.05      366.0 $ 110.00 $ 170.85
2013                          511.0  $   78.64
Through 07/31/2014            106.0  $   84.60
Through 8/31/2014             194.4  $   82.28

Basis Swaps to NYMEX:

2010
El Paso Permian                 365 ($  0.2750)
PEPL TX/OK                      730 ($  0.3000)
El Paso San Juan              1,643 ($  0.3400)

2011
Dominion Appalachia             346  $  0.1975
Appalachia Columbia              95  $  0.1500

Interest Rate Swap
 Agreements:
                          Notional      Fixed    Floating
                           Amount        Rate      Rate
                        (in $ mill)
Through July 2012       $       200      4.163% 1mo LIBOR
Through Sept 2012       $        40      2.145% 1mo LIBOR

Contact Information