Citi Removes EV Energy Partners from Top Picks Live! After 85.8% Return

Citi published an article reporting that it reiterates a buy rating for EV Energy Partners, L.P. EVEP, but will remove it from its Top Picks Live! (TPL) after nearly three and a half months on the list. EVEP was initially added on 10/22/2009 based on Citi's strong convictions in a recovering market, EVEP's ability to execute growth through acquisitions, and EVEP's attractive yield due to its aggressive hedging strategy. Since its inception on the TPL, EVEP generated a total return of 85.8% compared to the S&P 500's 22.7%, with a year-to-date return of 11.4% compared to 4.1%. Citi notes that possible catalysts seem to have already been priced into the current prices, therefore removing it from TPL. Nevertheless, Citi affirms that many of the factors that led to the recent performance still remain. Citi reiterates its Buy rating for EVEP with a 12-month price target of $52. However, Citi notes that cash flow volatility and its growth through acquisitions strategy pose risks for EVEP's valuation. In addition, a significant decrease in crude oil and natural gas prices and prolonged economic slowdowns remain considerable risk factors that may prevent EVEP from realizing its $52 12-month price target. EVEP is currently trading at $42.87.