Transcript GENESIS CRUDE OIL, L.P.

EV Energy Partners, L.P.
The Public/Private Two-Step
EnerVest Management Partners/EVEP
John B. Walker, Chairman & CEO
January 18, 2007
Risks and Forward-Looking Statements
Some of the information in this presentation is considered to be a forward-looking
statement within the meaning of federal securities laws. All statements other than
statements of historical fact, that address future events or the future financial
performance of EV Energy Partners, L.P., including the drilling of wells, reserve
estimates, future oil and gas prices, future production of oil and gas, future cash
flows, the company's financial position, business strategy, plans and objectives of
management are forward looking statements. We wish to caution you that these
statements are only expressions of EV Energy Partners, L.P.'s expectations at the
time such statements were initially made and that actual events or results may differ
materially from those expectations. We refer you to the documents that EV Energy
Partners, L.P. files from time to time with the Securities and Exchange
Commission. These documents contain and identify important factors that could
cause the actual results to differ materially from those contained in EV Energy
Partners, L.P.'s projections or forward-looking statements.
EV Energy Partners, L.P. undertakes no obligation to update any forward-looking
statements, whether as a result of new or future events.
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Company Overview

Consistently Generate Superior Returns Across Cycles
▼
9 Fully Invested Funds with a Projected 32% IRR After
Management Fees, Carried Interests and Hedge Payments

Experienced Management Team

Acquired $900 Million of Oil and Gas Reserves in 2005,
$251 Million in 2006; Divested $300 Million in 2005

$1 Billion Fund XI with First Close 12-8-06, Final Closing
1Q07

370 Employees
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EnerVest – Significant Operations
Current Operations
Historical Operations
~ $2 billion value
 800 BCFE reserves
 125 MMCFDE production
■ 11,000 wells in 11 states

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Track Record/Performance History
FUND
#
I
II
III
IV
V
VI
VII
VIII
IX
X
INSTITUTIONAL
Year
Year
FUND
Formed Exited
South Lake Arthur, L.P.
1994
1998
1995
EnerVest Acquisition - II, L.P.
1995
1996
EnerVest East, L.P.
1995
2003
EnerVest Texoma, L.P.
1996
1998
EnerVest San Juan, L.P.
1996
2001
EnerVest Monroe, L.P.
1998
Specified Appalachian Investments:
EnerVest Appalachia, L.P.
1999
EnerVest WV, L.P.
2003
2006
EnerVest Olanta, L.P.
2004
2005
EnerVest Energy, L.P.
1998
2005
EnerVest Energy Fund IX, L.P.
2001
EnerVest Fund X, L.P.
2005
Composite IRR (All Funds)
SIZE
($MM)
54.5
12.7
24.6
60.9
85.6
67.3
ACTUAL/
Projected IRR*
9.8%
27.7%
25.8%
33.9%
38.1%
18.9%
48.6
9.0
14.1
194.1
215.2
550.0
1,336.6
20.2%
35.3%
29.3%
14.0%
58.2%
FUND
STATUS
Exited
Exited
Exited
Exited
Exited
Preparing for Exit
Preparing for Exit
Exited
Exited
Exited
Developing Fields
Investing Capital
32.5%
* Returns are net to the LP investors after carried interests, management fees and commodity hedge payments.
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Oil and Gas Industry Risk Spectrum
Target IRR
6% - 8%
Target IRR
20%
Target IRR
50+%
EnerVest Actual Return
Bank
Loan
EnerVest Target Return
Wildcat
Funding
Fund Investments
PDP
Reserves
PDNP
PUD
Proved
Reserves
Primarily Engineering Risk
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Probable Possible
Exploration
Increased Geological Risk
Why Create an MLP?


Advantages
▼
Complementary to EnerVest’s Institutional Business
▼
Allows EnerVest to Create Basin Dominance
▼
Access to Relatively Low-Cost Capital
▼
Early Stages of MLP’s Taking 20-25% of U.S. Upstream Market
Challenges
▼
Getting Support from Institutional Investors
▼
Time and Cost to Create MLP
▼
Public Reporting and Attendant Liabilities
▼
Dealing With “Know-It-All” Investors
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Complementary Business Lines
Institutional Business
MLP Business
• Focus on Reserves with
Upside
• Focus on Mostly Producing
Reserves
• >80% PDP
• 50% PDP/50%
Upside
• Buy and Hold
• Acquire/Exploit/Sell
Model
• Yield Focus
• Logical Alternative Buyer
for Certain Assets from
Institutional Business
• Shorter Hold Times
• More IRR Focused
Combined
• Ability to Maintain Large Presence in Key Basins Over the Long
Term
• Economies of Scale
• Drilling Services, Marketing
• Scale to Maintain Employee Base More Effectively
• Maintain Basin Expertise
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EnerVest Structure
ENERVEST MANAGEMENT PARTNERS
MLP Business
(EV Energy
Partners)
Institutional Business
(Fund IX, Fund X
Fund XI, etc.)
OPERATIONS
(“OPCO”)
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U.S. Oil and Gas Wells
74 % of U.S. wells are stripper wells
600,000
500,000
400,000
300,000
200,000
100,000
0
Gas wells
Oil wells
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Total
Stripper
Offering Summary
Ticker/Exchange:
EVEP/NASDAQ
Securities Offered:
3,900,000 common units
(4,335,000 with over-allotment)
Price:
$20.00 per unit
Quarterly Distribution:
$0.40 ($1.60 annualized)
Yield:
8.00%
9/30/07 EBITDA
to Distribution Coverage:
1.7x total units (2.8x common units)
Sole Bookrunner:
Joint Lead Manager:
A.G. Edwards
Raymond James
Co-Managers:
Wachovia Securities
Oppenheimer & Co.
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Benefits of the EVEP MLP Structure

Provides an Attractive, Tax-Deferred Yield to Investors

Tax-Efficient Vehicle for Owning Long-Life, Mature Assets with
Significant “Free” Cash Flow

Yield-Based Valuation Results in a Cost of Capital Advantage
Over Traditional E&P Companies in Making Acquisitions

EVEP Will Have No Debt Pro Forma the IPO and the Financial
Flexibility to Pursue Accretive Acquisitions

Subordinated Units Provide Distribution Priority to Common
Unitholders

GP Incentive Distribution Rights Have Been Highly Successful
in MLPs
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Business Strategy
Provide Stability and Growth in Cash Distributions
Per Unit Over Time

Increase Reserves and Production Over Long Term Through Accretive
Acquisitions

Maintain Low Debt Levels to Reduce Risk and Facilitate Acquisitions

Reduce Exposure to Commodity Price Risk Through Hedging

Keep Inventory of Proved Undeveloped Drilling Locations Sufficient to
Maintain Production

Retain Operational Control

Focus on Controlling Costs
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Post-IPO Ownership
Units
%
Common Units
Public
Sponsors
Total Common Units
4,335,000
160,000
4,495,000
56%
2%
58%
Subordinated Units
3,100,000
40%
155,000
2%
7,750,000
100%
Implied G.P. Units
MLP Total
Subordinated
Units
40%
General
Partner
Interest
2%
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Sponsor
Common
Units
2%
Public
Common
Units
56%
EVEP Areas of Operations
EVEP Assets
Current Operations
Historical Operations
Pro-forma with Michigan
Estimated Reserves ~ 121.7 Bcfe
Production: ~17.4 mmcfde
Natural Gas: 90%
PDP: 90%
136 Booked PUDS
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Profile of EVEP Today
Proved Reserves
140
30%
44%
120
12%
100
14%
80
60
Total Proved Reserves 121.7 BCFE
40
20
0
Appalachia
Oct-06
Dec-06
Monroe
Jan-07
N. LA-Mid-Con*
Michigan**
*Acquired 12-15-06
**Closing on 1-31-07
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Distributable Cash vs. MQD at Offering
$25,000
$20,000
$2.65 per Unit
EBITDA
(in thousands)
Estimated
Maintenance
Capital
$1.96 per Unit
$15,000
Excess
"Cushion"
$1.60 per Unit
MQD
Subordinated
Units
$10,000
$5,000
Common
Units
$0
1
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EV Energy Partners, L.P.
The Public/Private Two-Step
EnerVest Management Partners/EVEP
John B. Walker, Chairman & CEO
January 18, 2007