Mon, Aug. 24, 10:59 AM
- EV Energy (EVEP -6.2%) is downgraded to Underperform from Neutral with a $5 price target, cut from $13, at Baird, which notes that after selling its UEO assets for $575M, the company has yet to fill the cash flow gap required to maintain its already haircut distribution into 2016.
- With an onerous cost of equity, EVEP will be hard pressed to win an auction, and buying assets even at size may not do enough to hold off another distribution cut, the firm says.
Thu, Aug. 13, 12:45 PM
Mon, Aug. 10, 8:17 AM
Sun, Aug. 9, 5:30 PM
Thu, Jul. 30, 4:50 PM
Mon, Jun. 15, 12:30 PM
- Wunderlich analyst Jay Dobson finds a few worthwhile investments in an otherwise weak upstream energy exploration MLP sector that has too much debt on average and has suffered from the dramatic decline in oil, natural gas and natural gas liquids prices since late 2014.
- Also, a lack of hedging discipline has left the industry more exposed to the declining prices and, in some cases, with very limited financial flexibility, Dobson says.
- But four Buy-rated MLPs are best positioned for the current energy environment, sharing the attributes of solid liquidity, a runway for improvement, and aggressive action, Dobson says: Memorial Production Partners (MEMP +0.3%), Vanguard Natural Resources (VNR +1.8%), LRR Energy (LRE +3.5%) and Legacy Reserves (LGCY +0.4%).
- Rated Hold: ARP, BBEP, MCEP, NSLP, EVEP
Mon, May 11, 6:23 AM
Sun, May 10, 5:30 PM
Thu, Apr. 30, 5:43 PM
Wed, Apr. 15, 3:54 PM
- EV Energy (EVEP +9.7%) is upgraded to Outperform from Sector Perform with a $22 stock price target, raised from $20, at RBC Capital, which notes that EVEP's recently announced sale of its 21% stake in the Utica East Ohio UEO midstream project for $575M marks an attractive price.
- With re-determination risk passed and liquidity at a max, the firm believes the potential reinvestment of proceeds marks a visible catalyst and shifts EVEP's risk/reward profile for the better.
Mon, Apr. 6, 8:25 AM
- Williams Partners (WPZ, WMB) agrees to acquire additional interest in Utica East Ohio Midstream Partnership from a subsidiary of EV Energy Partners (NASDAQ:EVEP) for ~$575M.
- WPZ says the acquisition will increase its stake in the natural gas midstream business in the Utica Shale in eastern Ohio to 70%.
- EVEP says the deal marks the completion of its divestiture of midstream investments in the Utica Shale.
Mon, Mar. 2, 6:38 AM
Sun, Mar. 1, 5:30 PM
Tue, Feb. 24, 2:58 PM
- MLP performance YTD looks encouraging, but J.P. Morgan's Gabriel Daoud has a cautious outlook on the group, noting structural headwinds and the potential for more distribution cuts to come.
- Atlas Resource Partners (NYSE:ARP), Breitburn Energy Partners (NASDAQ:BBEP), EV Energy Partners (NASDAQ:EVEP), Linn Energy (NASDAQ:LINE) and Vanguard Natural Resources (NASDAQ:VNR) have significantly reduced distributions as the sub-sector enters preservation mode amid ongoing volatility in commodity prices, and Daoud sees more distribution cuts ahead; he believes Legacy Reserves (NASDAQ:LGCY) will cut its 2015 distribution by 51%, and thinks BBEP and LINE will suspend payouts in 2016 and 2017, respectively, absent a significant rebound in commodity prices.
- However, the analyst sees little chance of a distribution cut for Memorial Production Partners (NASDAQ:MEMP), given its strong hedge book and liquidity position, and he upgrades the stock to Overweight from Neutral with an $18 price target.
- Daoud also initiates coverage of BP Prudhoe Bay Royalty Trust (NYSE:BPT) with an Underweight rating and a $40 price target.
Tue, Feb. 17, 2:59 PM
- Upstream MLPs have outperformed to start 2015, generating average total returns of 10%, but yields have also come down from their peak to ~20% YTD, and Wunderlich analyst Abhishek Sinha thinks the average yield will continue to slip to 12%-14%, as more companies are forced to cut distributions.
- The analyst expects cuts to come from Vanguard Natural Resources (NASDAQ:VNR), Legacy Reserves (NASDAQ:LGCY) and LRR Energy (NYSE:LRE), following the likes of EV Energy Partners (NASDAQ:EVEP), Breitburn Energy Partners (NASDAQ:BBEP) and New Source Energy Partners (NYSE:NSLP).
- Sinha also says he is less concerned that Viper Energy Partners (NASDAQ:VNOM) could be hurt by rig count reductions after parent Diamondback Energy (NASDAQ:FANG) reaffirmed its intentions to continue to run its two-rig program on VNOM’s acreage.
Tue, Feb. 10, 4:31 PM
- EV Energy Partners (NASDAQ:EVEP) says President and CEO Mark Houser will resign at the end of this month, and will appoint Michael Mercer as its new President and CEO.
- Mercer has been Senior VP and CFO since EVEP's IPO in 2006, and had been an investment banker and a consultant to EnerVest.
- Houser will remain on EVEP's board.
EVEP vs. ETF Alternatives
EV Energy Partners LP is engaged in the acquisition, development and production of oil and natural gas properties. Its midstream segment is engaged in the construction and operation of natural gas processing and natural gas liquids fractionation.
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