EV Energy Partners' Weak Coverage Ratio Remains A Concern
Albert Alfonso • 11 Comments
Albert Alfonso • 11 Comments
EV Energy Partners: The Price Is Finally Right
Douglas E. Johnston • 27 Comments
Douglas E. Johnston • 27 Comments
Wed, Jul. 6, 12:29 PM
- Energy MLPs had one of the strongest quarters ever in Q2, with the Alerian MLP Infrastructure Index surging 18.1% in a major recovery since the losses seen early in the year, and the index is now up 8% YTD.
- DA Davidson’s Poe Fratt sees tempered MLP growth “on full display,” and remains positive on crude oil prices through 2017 despite recent weakness, believing that non-OPEC production finally is declining and lower capex has set the stage for better supply demand.
- Fratt’s best current ideas include Enterprise Products Partners (NYSE:EPD), Genesis Energy (NYSE:GEL), Magellan Midstream Partners (NYSE:MMP), and Spectra Energy Partners (NYSE:SEP), all of which he rates Buy.
- But Citi's Faisel Khan says investors should stay cautious given that the group faces tight liquidity and stretched balance sheets; he considers Legacy Reserves (NASDAQ:LGCY), Vanguard Natural Resources (NASDAQ:VNR) and EV Energy Partners (NASDAQ:EVEP) among the higher risk names, and that Atlas Resources Partners (NYSE:ARP) is "running out of options" and could be forced into bankruptcy.
- ETFs: AMLP, AMJ, KYN, TYG, KYE, SRV, CEM, MLPI, NML, FEN, NTG, KMF, MLPA, EMLP, FMO, AMZA, FEI, JMF, SRF, CBA, MLPN, GMZ, MLPX, GER, EMO, TTP, CTR, MLPS
Tue, May 10, 6:23 AM
Mon, May 9, 5:30 PM| Mon, May 9, 5:30 PM | 1 Comment
Thu, Apr. 28, 9:16 AM| Thu, Apr. 28, 9:16 AM
Wed, Apr. 27, 4:59 PM
- EV Energy Partners (NASDAQ:EVEP) -3.8% AH on news it is suspending cash distributions while electing to repurchase up to $35M in outstanding senior notes.
- EVEP says the repurchase of the notes at a substantial discount to par will create more long-term value for the company; it says repurchases of a total $147M of senior notes YTD 2016 and in Q4 2015 for $80M have reduced debt by $66.8M and cut annual interest expense by $9M.
- Now read EV Energy Partners should be OK until 2018
Thu, Apr. 21, 12:48 PM
Mon, Mar. 21, 3:16 PM
- Upstream MLPs likely will continue to face “an extremely challenging 2016" with low liquidity and high levels of debt, CIti analyst Faisel Khan says, expecting the group to exit Q1 with an average of ~80% drawn on their bank credit facilities.
- Khan downgrades Atlas Resource Partners (ARP -5.9%) to Sell from Neutral with a $0.25 price target, slashed from $3, saying ARP seems to be “running out of options to address leverage and liquidity concerns” and likely will be forced to file for Chapter 11 “either after the next round of borrowing base redetermination or post a potential breach of its debt covenants early next year."
- Cut to Neutral from Buy are EV Energy (EVEP -6.8%), which Faisel says has sufficient liquidity to survive the next round of borrowing base redetermination and has a strong sponsor that may come to its rescue but sees a potential breach of debt covenants next year, and Memorial Production Partners (MEMP -9%), which is drawn more than 70% on its credit facility and a potential borrowing base cut could "wipe out the entire liquidity."
Mon, Feb. 29, 6:41 AM
Sun, Feb. 28, 5:30 PM
Thu, Feb. 18, 11:48 AM
- Wells Fargo cuts its rating on all upstream MLPs in its coverage to Underperform, the firm's equivalent to a Sell rating, and downgrades its sector rating to Underweight, citing the MLPs' high default risk and its belief that many "could have zero equity value" when their hedges expire over the next 1-2 years.
- The upstream MLP's could have "very high" debt-to-EBITDA ratios over the next 12-24 months, and all could default on their debt payments during that time frame, according to Wells analyst Praneeth Satish.
- Satish says Mid-Con Energy (MCEP -1.9%), Linn Energy (LINE -14.9%) and Atlas Resource Partners (ARP -2.6%) have the greatest risk of default in the near-term, while Breitburn Energy (BBEP +2.4%), EV Energy (EVEP -6.9%), Legacy Reserves (LGCY -7.9%), Memorial Production Partners (MEMP -6.4%), LINE and MCEP have the greatest risk of default in the medium term.
- The analyst cuts his rating on all the above companies, plus LinnCo (LNCO -10.7%), to Underperform from Market Perform.
Tue, Feb. 9, 5:21 PM
- Standard & Poor's downgrades the junk ratings of 25 oil and gas companies on expectations of deteriorating credit quality due to low commodities prices and reduced production.
- The ratings firm, which also affirmed the ratings of an additional 20 speculative-grade E&P companies, says the ratings actions follow a revision of its price assumptions for crude oil and natural gas.
- Among companies receiving downgrades: AREX, BBG, BCEI, BBEP, CWEI, DNR, EPE, EVEP, GST, KOS, LGCY, MEMP, NOG, OAS, REN, SM, SGY, TPLM, UNT, WTI, WLL
- Last week, S&P cut the ratings of 10 U.S. oil and gas E&P companies, including investment-grade Chevron, and placed Exxon's AAA corporate rating on watch for a possible downgrade.
Mon, Jan. 25, 4:57 PM
- EV Energy Partners (NASDAQ:EVEP) declares $0.075/share quarterly dividend, -85% decrease from prior dividend of $0.50.
- Forward yield 14.15%
- Payable Feb. 12; for shareholders of record Feb. 5; ex-div Feb. 3.
Wed, Jan. 6, 12:47 PM
- J.P. Morgan says it expects the harsh oil and gas market conditions will force distribution cuts in 2016 from EV Energy Partners (EVEP -3%), Memorial Production Partners (MEMP -4.6%) and Legacy Reserves (LGCY -5.9%).
- "The market has come to the realization that supportive yield-based valuation metrics remain inadequate as distributions appear unsustainable against liquidity and balance sheet concerns,” JPM analyst Gabriel Daoud writes.
- The firm also downgrades Vanguard Natural Resources (VNR +0.4%) to Neutral from Overweight with a $5 price target, cut in half from $10, and lowers its price target for BP Prudhoe Bay Royalty Trust (BPT -6.1%) to $11 from $18.
Dec. 30, 2015, 5:38 PM
Dec. 30, 2015, 12:46 PM
- Hit hard two days ago as oil fell below $37/barrel, oil/gas industry names are seeing more pain today after the EIA reported U.S. crude inventories rose by 2.6M barrels last week - expectations were for a decline. The report comes shortly after the API estimated U.S. crude inventories rose by 2.9M barrels during the most recent weekly period.
- After rising yesterday, WTI crude is down 3.1% to $36.71/barrel. Brent crude is down 2.9% to $36.69/barrel. Nymex natural gas is down 7.3% to $2.20/MMBtu.
- The biggest decliners include Chesapeake Energy (CHK -4.1%), Petrobras (PBR -4.1%), Linn Energy (LINE -7.5%), Gulfport Energy (GPOR -5.2%), SeaDrill (SDRL -5.5%), MV Oil Trust (MVO -4.5%), EV Energy Partners (EVEP -6.7%), and Southwestern Energy (SWN -5.7%).
- Other notable decliners include Hercules Offshore (HERO -5.2%), Marathon Oil (MRO -4%), Devon Energy (DVN -4.4%), Encana (ECA -4.1%), Range Resources (RRC -4.7%), Sandridge Mississippian Trust (SDR -4%), Newfield Exploration (NFX -3.8%), BP Prudhoe Bay Royalty Trust (BPT -3.1%), Enerplus (ERF -3.9%), and ONEOK Partners (OKS -2.5%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Nov. 9, 2015, 3:48 PM
- EV Energy Partners (EVEP -26.1%) sinks by more than 25% after reporting a 54% Y/Y drop in Q3 revenue, falling gar short of expectations, and warning distributable cash flow likely will fall below levels needed to maintain its $0.50/share quarterly distribution.
- "Over the next several months, as the budgeting process for 2016 is completed, EVEP will address its future quarterly distribution levels and policies to align future distributions with projected distributable cash flow," the company says.
- Q3 production was 9.7 Bcf of natural gas, 212 Mbbl of oil and 526 Mbbl of natural gas liquids, or ~153M cfe/day, a 13% Y/Y decrease and 6% lower Q/Q.
EV Energy Partners LP operates as a master limited partnership, which is engaged in acquiring, producing and developing oil and natural gas properties. The company operates through two segments: Exploration and Production and Midstream. The Exploration and Production segment is responsible for... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
Other News & PR