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 with the company to remain cash flow positive Track record of intense acquisition and divestiture activity, which could cause volatility in debt ratios. S&P Global Ratings' stable outlook on Hilcorp Energy I L.P. reflects our expectation 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 ratings if Hilcorp's FFO to debt fell below 30%
