EV Energy Partners LP (NASDAQ: EVEP) has closed the sale of its entire 21% interest in Utica East Ohio Midstream LLC (UEO), to Utica Gas Services LLC, a subsidiary of Williams Partners LP (NYSE: WPZ), and M3 Ohio Gathering LLC, for total cash consideration of $575 million. EVEP's net capital contribution to UEO was approximately $294 million.
EVEP intends to initially use the net proceeds of the disposition to repay all amounts outstanding under its revolving credit facility and to hold the remainder available for future activities. Availability under the revolving credit facility may be used to fund future activities, including acquisitions of oil and natural gas properties.
Jefferies LLC acted as EVEP's exclusive financial advisor in connection with the divestiture.