• SELECT SITE CURRENCY
Select a currency for use throughout the site
Summary: EV Energy Partners, L.P. Mar 11
Standard & Poors, March 2011
The ratings on EVEP reflect a reserve base that is levered to low natural gas prices, a reserve replacement strategy relying heavily on acquisitions, its high dividend payout to shareholders, and aggressive leverage. The ratings also reflect a decent hedge book over the next several years that should mitigate hydrocarbon volatility, low geological risk associated with the company's high percentage of proved developed reserves, adequate liquidity, and a good cost structure. We characterize EVEP's business risk profile as vulnerable. EVEP had a modest reserve base of 817 Bcfe at year-end 2010, 70% of which was natural gas. To sustain its dividend and eliminate exploration risk, the company mostly acquires mature, proved producing reserves with long reserve lives. Its proved developed...
Companies mentioned in this report are: EV Energy Partners, L.P.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
EV Energy Partners, L.P.