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 views Hilcorp's business risk as "weak". Hilcorp is a private partnership that acquires, develops, and produces crude oil and natural gas. As of Dec. 31, 2011, it 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 the shallow-water Gulf
