Participation in the highly volatile and capital-intensive exploration and production (E&P) industry Moderate reserve size with a geographically diverse asset base Above-average profitability, despite somewhat high operating costs, due to high price realization for Alaskan gas Moderate debt leverage, and we expect Hilcorp to limit outspending cash flow during the commodity price down-cycle Track record of intense acquisition and divestiture activity, which could cause volatility in debt ratios The stable outlook on Hilcorp Energy I L.P. reflects Standard&Poor's Ratings Services' expectation that the partnership will maintain steady operating performance in its core regions while maintaining debt to EBITDA of 3x or less and funds from operations (FFO) to debt in excess of 30% on average. We could lower
