EV Energy Partners, L.P. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2011
- Published: August 2011
The ratings on EV Energy Partners (EVEP) reflect a reserve base that is levered to low natural gas prices, a reserve replacement strategy relying heavily on acquisitions, a 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 pricing volatility, low geological risk associated with the company's high percentage of proved developed reserves, adequate liquidity, and a good cost structure. We classify EVEP's financial risk profile as aggressive. On June 30, 2011, the company had adjusted debt, inclusive of asset retirement obligations, of about $525 million. At our price deck in 2011, which for natural gas is $3.75/Mcfe and $80/Bbl for oil, we think that...
Companies mentioned in this report are: EV Energy Partners L.P.
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EV Energy Partners L.P.