Included in net income was $1.6 million of non-cash gains on commodity derivatives and $0.4 million of non-cash unit based compensation costs contained in general and administrative expenses.
Production for the quarter was 2.828 billion cubic feet (bcf) of natural gas, 86 million barrels oil equivalent of (mbbls) of crude oil and 68mbbls of natural gas liquids, or 3.75 billion cubic feet equivalent (bcfe), a 60% increase over Q2 2007 production of 2.35bcfe. This increase was primarily due to the inclusion of the Anadarko acquisition, which closed on June 27, 2007, for all of the third quarter of 2007.
Lease operating expense for the quarter included $1.3 million, or $0.36 per million cubic feet equivalent (mcfe) of production, of payments made to third parties for natural gas liquids processing and natural gas gathering services related to production from the Central/East Texas assets acquired in the Anadarko acquisition.
John Walker, chairman and CEO of EV Energy, said: We are very pleased with our continued growth in production and cash flow as we had the benefit of the Anadarko acquisition for this full quarter, and we look forward to the fourth quarter as we integrate the Permian Basin acquisition, which closed on October 1, 2007 into our asset portfolio.
