The ratings on Hilcorp Energy I LP reflect a weak business profile and aggressive financial leverage. Hilcorp is a small, privately held, petroleum limited partnership (LP) engaged in the acquisition, development, and production of crude oil and natural gas from onshore Texas and South Louisiana properties. The cyclical and capital-intensive nature of the petroleum industry contributes to Hilcorp's below-average business profile. While limited by the company's size and participation in the volatile oil and gas industry, Hilcorp's business profile quality reflects a history of low finding costs, a strong operational record, and operational control of nearly 90% of its net production. The company's strategy to acquire properties and then augment production through workovers and downhole and surface facility enhancement creates
