EV Energy Partners, L.P. (NASDAQ:EVEP) shares traded 21.07% higher to $3.17 after the company announced a suspension of cash distribution payments to unit owners.
EV Energy Partners, L.P. (NASDAQ:EVEP) announced its decision to suspend distributions to unit holders effective immediately. This is part of the amendment to its senior secured credit facility signed earlier this month, which enables partners to use up to $35 million of balance sheet cash or available borrowing base capacity to repurchase its outstanding notes.
In addition, this amendment also authorizes a dollar for dollar reduction in the amount for any distribution paid out for the remainder of 2016. Since then, the company has repurchased $72.9 million of outstanding Senior Notes for $30.1 million in cash plus accrued interest.
EV Energy Partners, L.P. (NASDAQ:EVEP) is scheduled to release its financial earnings report on May 10. The company currently has $285 million outstanding under its credit facility and a borrowing base of $450 million, with total debt outstanding at $638 million.
The stock has enjoyed stronger than usual volume yesterday as 225,538 shares were traded on April 27, which is 5.68 times the average daily volume. Still, share prices are down 0.4% year-to-date and is rated as a “sell” by The Street Quant Ratings because of its underperformance in the oil, gas, and mining industry.
In particular, net income is down 169.6% compared to the same quarter last year while other financial metrics have also been deteriorating. This has been a trend observed in the oil industry and related companies, especially since crude oil has a long way to go before recovering from its slump.
EV Energy Partners, L.P. (NASDAQ:EVEP) is engaged in the acquisition, operation, and development of oil and gas properties. It has investments in Utica East Ohio Midstream and its properties are located in the Barnett Shale, the Appalachian Basin, the Mid Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.