Critical Review: EV Energy Partners, L.P. (EVEP) vs. Cimarex Energy (XEC)
EV Energy Partners, L.P. (NASDAQ: EVEP) and Cimarex Energy (NYSE:XEC) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Volatility & Risk
EV Energy Partners, L.P. has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Cimarex Energy has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Cimarex Energy pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. EV Energy Partners, L.P. does not pay a dividend. Cimarex Energy pays out 12.0% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for EV Energy Partners, L.P. and Cimarex Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EV Energy Partners, L.P.||1||1||0||0||1.50|
EV Energy Partners, L.P. currently has a consensus target price of $1.00, suggesting a potential upside of 74.37%. Cimarex Energy has a consensus target price of $136.53, suggesting a potential upside of 27.96%. Given EV Energy Partners, L.P.’s higher possible upside, research analysts clearly believe EV Energy Partners, L.P. is more favorable than Cimarex Energy.
Valuation & Earnings
This table compares EV Energy Partners, L.P. and Cimarex Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EV Energy Partners, L.P.||N/A||N/A||N/A||($5.20)||-0.11|
|Cimarex Energy||$1.62 billion||6.15||$1.02 billion||$2.66||40.11|
Cimarex Energy has higher revenue and earnings than EV Energy Partners, L.P.. EV Energy Partners, L.P. is trading at a lower price-to-earnings ratio than Cimarex Energy, indicating that it is currently the more affordable of the two stocks.
This table compares EV Energy Partners, L.P. and Cimarex Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EV Energy Partners, L.P.||-120.31%||-7.43%||-3.56%|
Insider and Institutional Ownership
8.6% of EV Energy Partners, L.P. shares are held by institutional investors. Comparatively, 91.3% of Cimarex Energy shares are held by institutional investors. 10.2% of EV Energy Partners, L.P. shares are held by insiders. Comparatively, 1.7% of Cimarex Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Cimarex Energy beats EV Energy Partners, L.P. on 9 of the 13 factors compared between the two stocks.
EV Energy Partners, L.P. Company Profile
EV Energy Partners, L.P. is engaged in the acquisition, development and production of oil and natural gas properties and all of its operations are located in the United States. The Company’s oil and natural gas properties are located in the Appalachian Basin, which includes the Utica Shale; the San Juan Basin; Michigan; Central Texas, which includes the Austin Chalk area; the Mid-Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana; the Monroe Field in Northern Louisiana, and the Permian Basin. Its activities are concentrated in the Ohio and West Virginia areas of the Appalachian Basin. Its properties are located in Rio Arriba County, New Mexico and La Plata County in Colorado. It owns Eagle Ford oil and natural gas properties in Karnes County, including Eagle Ford and Austin Chalk reserves. It holds interest in approximately 9,150 acres in Karnes County. Its properties are located in the Antrim Shale reservoir in Otsego and Montmorency counties in northern Michigan.
Cimarex Energy Company Profile
Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company operates in exploration and production (E&P) segment. Its operations are located in Oklahoma, Texas and New Mexico. Its E&P activities take place primarily in two areas: the Permian Basin and the Mid-Continent region. Its Permian Basin region encompasses west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. As of fiscal year ended December 31, 2016 (fiscal 2016), its activities in the Mid-Continent were focused in the Woodford shale and the Meramec horizon, both in Oklahoma. During fiscal 2016, production from the Mid-Continent averaged 457 millions of cubic feet equivalent (MMcfe) per day, or 47% of total company production. All of the Company’s oil and gas assets are located in the United States. As of December 31, 2016, 63% of its total proved reserves were located in the Mid-Continent region and 37% were in the Permian Basin.
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