EV Energy Partners LP (EVEP) turned in another quarter of red ink and management said Tuesday that distributions won’t be reinstated this year. However, progress on debt reduction was made.

The company is active/has assets in the San Juan Basin, the Austin Chalk, Barnett Shale, and the Utica Shale. While second quarter production was flat with the first quarter, EVEP grew production from the year-ago period.

Production during the second quarter was 13 Bcf of natural gas, 313,000 bbl of oil and 585,000 bbl of natural gas liquids, or 201.5 MMcfe/d. This represents flat production versus the first quarter production of 201.4 MMcfe/d and a 24% increase over second quarter 2015 production of 162.8 MMcfe/d. The increase over the second quarter of 2015 was primarily due to the addition of producing properties acquired on October 1, 2015.

“We continue to focus on reducing leverage and operating costs. We recently completed our senior note repurchase program, increasing our total repurchases for 2016 to $82.7 million of senior notes for $35 million of cash. At the end of the second quarter our total debt was $623 million, and we had over $170 million of liquidity between balance sheet cash and available borrowing base capacity,” said CEO Michael Mercer.

During a conference call, executives said they could not yet provide insight into drilling plans for next year as the budgeting process had not yet begun. More information should be available during the third quarter earnings conference call. Mercer said management is monitoring the acquisition and divestiture market and hopes to participate once cash flow provides sufficient support.

For the second quarter EVEP reported a net loss of $29 million (minus 58 cents/unit) compared to an identical net loss of $29 million (58 cents/unit) for the first quarter of 2016 and net income of $164.1 million ($3.25/unit) for the second quarter of 2015.

EVEP reported distributable cash flow (DCF) of $5.5 million for the second quarter, compared to negative $1.2 million for the first quarter and $26.2 million for the second quarter of 2015. The increase in DCF over the first quarter was primarily attributable to lower operating expenses and higher realized oil and natural gas liquids prices, partially offset by lower realized natural gas prices.

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