The ratings on Houston-based Hilcorp Energy I L.P. reflect the private partnership's participation in the highly volatile and capital-intensive exploration and production (E&P) industry, the lack of a consistent asset profile due to the company's intense acquisition and divestiture activity, and its moderate exposure to weak natural gas prices. The ratings also incorporate the partnership's operational strategy and success, and its "adequate" liquidity position. Standard&Poor's Ratings Services views Hilcorp's business risk as "weak". As of Dec. 31, 2011, the company had proved reserves of approximately 323 million barrels of oil equivalent (boe), 61% of which was developed and 52% of which was natural gas. Its reserve base is located primarily in onshore southern Louisiana and Texas, and in
