The ratings on Hilcorp Energy I L.P. reflect a weak business risk profile and aggressive financial leverage. Hilcorp is a small, privately held limited partnership engaged in the acquisition, development, and production of crude oil and natural gas, mainly from onshore Texas and South Louisiana properties. The company's business risk profile incorporates the highly competitive, cyclical and capital-intensive nature of the oil and gas exploration and production industry. Standard&Poor's Ratings Services revised the outlook on Hilcorp to negative from stable following the company's acquisition of oil-and-gas-producing properties in the Rockies. The transaction is a departure for the company, in terms of geography and cost. Until now, the company has focused operations entirely in the Texas and Louisiana Gulf
