EV Energy Partners LP (NASDAQ: EVEP) has signed an agreement to divest its 9% interest in Cardinal Gas Services LLC (CGS) to E1 and a Korean consortium led by Samchully for $162 million, which includes estimated purchase price adjustments of about $18 million.

EVEP had highlighted the need to lighten its balance sheet and identified Cardinal as a possible target, said Sunil Sibal, senior analyst, Global Hunter Securities, in a June 30 report.

The Sept. 23 sale is being made in conjunction with France’s Total SA (NYSE TOT), which has also agreed to divest its 25% interest in CGS for $450 million. It removes what EVEP had touted as an important player in the company’s Utica operations.

In May, Cardinal announced it secured a $200 million equity commitment from EnCap Flatrock Midstream, of San Antonio, to support the continued growth and development of the company’s core business.

The transaction is expected to close in mid-October and is subject to regulatory approval, tag-along rights and approval of the other member of CGS, as well as customary closing conditions and purchase price adjustments.

Upon closing, EVEP, a MLP, intends to use the net proceeds of the disposition to repay amounts outstanding under its revolving credit facility. Availability under the revolving credit facility may be used to fund future activities, including acquisitions of oil and natural gas properties.

EVEP said in June it was working alongside EnerVest Ltd. and Chesapeake Energy Corp. (NYSE: CHK) in joint venture (JV) in the Utica. EVEP was conceived in 2006 by EnerVest. It formed the JV with Chesapeake and Total in 2012. The JV’s wells make up more than 50% of all wells drilled in the Utica.

Cardinal was part of a plan to drill 540 wells by year-end 2014. It plans for an eventual 4,600 gross wells during the next 18 years. Production average about 500 million cubic feet per day in May.

Samchully bills itself South Korea’s leading city gas company and has previously been backed by Macquarie.

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