The Romanian Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016
- Published: June 2012
- Region: Romania
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.
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EV Energy Partners, L.P.