The ratings on Houston-based Hilcorp Energy I L.P. reflect the partnership's participation in the highly volatile and capital-intensive exploration and production (E&P) industry and the geographic concentration of its reserve and production base. The ratings also incorporate the partnership's operational strategy and success, and its adequate liquidity position. Standard&Poor's Ratings Services deems Hilcorp's business risk profile to be weak. Hilcorp is a private partnership that acquires, develops, and produces crude oil and natural gas. As of June 30, 2011, it had proved reserves of approximately 260 million barrels of oil equivalent (boe), 61% of which was developed and 53% of which was natural gas. Its reserve base is located primarily in onshore southern Louisiana and Texas and the
