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, 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
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, Feb. 2, 2:58 PM
- EV Energy Partners (EVEP +10.1%) is strongly higher despite its announcement earlier it was cutting its Q4 cash distribution to $0.50/unit from its $0.774 payout for Q3, and estimates a 2015 distribution coverage ratio of more than 1.15x.
- EVEP says coverage could improve if it is able to divest its midstream assets, Utica acreage or Eagle Ford acreage.
- EVEP also said it expects Q4 daily production to average ~171M cf/day, down 2.7% from Q3 levels, which lifted overall 2014 production to ~63.55B cf, up 3% Y/Y; EVEP foresees 59.34B-64.94B cf of natural gas during 2015.
- Reduces 2015 E&P capex plans to $55M-$65M vs. ~$100M for 2014.
Dec. 26, 2014, 4:23 PM
- Though most large-cap energy stocks closed the day with modest gains or losses, a slew of small-cap and mid-cap U.S. oil and gas plays sold off on a day that saw WTI crude once more fall below $55/barrel, and Henry Hub natural gas drop below $3/mmBtu for the first time since 2012, before bouncing a little.
- Decliners: EXXI -4.4%. SGY -4.5%. HK -4.1%. EVEP -2.3%. NFX -3.2%. SDR -3.3%. SN -5.2%. SD -5.9%. LGCY -2.2%. CHKR -3.3%.
Oct. 16, 2014, 5:37 PM
Oct. 10, 2014, 10:55 AM
- In what's looking like at least a short-term capitulation move, investors are bailing out of upstream MLPs.
- Linn Energy (LINE -7.1%), BreitBurn Energy (BBEP -8.8%), EV Energy (EVEP -7.8%), Eagle Rock Energy (EROC -4.7%), QR Energy (QRE -8.1%), Legacy Reserves (LGCY -6.5%), Vanguard Natural Resources (VNR -10.3%).
- The JPMorgan Alerian MLP ETN (AMJ -2.9%) is down 12.4% over the last month.
- ETFs: AMLP, AMJ, MLPL, MLPI, MLPA, MLPN, EMLP, MLPX, MLPS, AMU, ENFR, ATMP, MLPW, IMLP, AMZA, OSMS
- Previously: Breitburn Energy shelves $400M high-yield bond offering
Feb. 21, 2014, 11:57 AM
- EV Energy Partners (EVEP +5.2%) is upgraded to Buy from Hold with a $40 target price at Wunderlich, citing alleviating infrastructure constraints in the Utica which provides greater visibility towards production ramp-up in the basin and potentially benefiting EVEP's monetization plans of its Utica's assets.
- The start-up of the UEO processing plant, the de-ethanizer and the ATEX pipeline should create a positive ripple effect on EVEP's cash flow and its Utica valuation, the firm says.
- The firm thinks EVEP is now at an inflection point, presenting an attractive risk/reward opportunity.
Oct. 17, 2013, 4:24 PM
Aug. 9, 2013, 11:35 AM
- Along with its Q2 results, EV Energy (EVEP +2.6%) announces a $284M deal with an undisclosed buyer to sell ~22.5K acres in Ohio’s Utica shale play.
- The deal is the first Utica disposal by EVEP, which suggests further sales are ahead.
- Adjusted Q2 EBITDA was $52.6M, +9% Q/Q but -20% Y/Y; distributable cash flow of $26.1M +20% Q/Q but -24% Y/Y; production was 172.3M cfe/day, +4% Q/Q and +6% Y/Y.
- EVEP also is bringing onstream its 200M cf/day Utica East Ohio midstream gas processing facility, which is processing 85M cf/day and set to increase as more wells are hooked up.
Jul. 3, 2013, 10:37 AMIt's shaping up as another difficult day for Linn Energy (LINE -9.3%) and LinnCo (LNCO -8%) after yesterday's selloff. After a round of downgrades, Stifel Nicolaus today cut its price target on both to $33 from $48. Selling the put portfolio would not be a wise option, the firm says; Linn would shed some controversy but sacrifice possible future cash flow. Baird cautions broadly on upstream MLPs; BBEP -9%, ARP -7.1%, VNR -6.3%, QRE -6.2%, EVEP -3.2%. | Jul. 3, 2013, 10:37 AM | 14 Comments
Jul. 2, 2013, 3:21 PMCaught up in the Linn/LinnCo downdraft is BreitBurn Energy Partners (BBEP -8.2%), which Hedgeye slammed this morning as "Linn Energy junior" whose fair value is $2-$8/unit and whose distribution is "largely a mirage." EV Energy Partners (EVEP -0.7%) and QR Energy (QRE -3.2%) also are mentioned as companies that "may significantly understate maintenance capex, and as a result, overstate DCF." | Jul. 2, 2013, 3:21 PM | 15 Comments
May 20, 2013, 3:59 PMEV Energy (EVEP +3.2%) is initiated with a Buy rating and $46 price target at Ladenburg Thalmann. Although there have been delays and any potential Utica Shale acreage monetizations this year are likely to be significantly lower than originally expected, the firm still believes EVEP is likely to sell at least 20K net operated acres in the wet gas window of the play in 2013. | May 20, 2013, 3:59 PM | Comment!
May 13, 2013, 12:34 PMEV Energy Partners (EVEP -5.4%) is downgraded to Hold from Buy with a $54 price target (from $78) at Wunderlich based on uncertainty around its Utica properties. The firm has said Utica could add value to EVEP if the partnership could monetize the properties, but saw downside risk if significant return was not realized; given current uncertainty, it is more prudent to lower the value for the properties. | May 13, 2013, 12:34 PM | Comment!
Mar. 5, 2013, 9:51 AMEV Energy Partners (EVEP +2.3%) is upgraded to Outperform from Neutral at Credit Suisse, which expects completion of the Utica monetization and reinvestment in 2013 to result in meaningful accretion to unitholders. EVEP's high-multiple growth platform should drive sustainable, differentiated cash flow growth over the near-term and long-term, the firm says. | Mar. 5, 2013, 9:51 AM | Comment!
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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