Critical Review: Midstates Petroleum (MPO) & EV Energy Partners (EVEP)

Midstates Petroleum (NYSE:MPO) and EV Energy Partners (NASDAQ:EVEP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Midstates Petroleum and EV Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midstates Petroleum -59.15% 2.00% 1.51%
EV Energy Partners -59.46% -13.03% -5.88%

Analyst Ratings

This is a summary of current ratings and recommmendations for Midstates Petroleum and EV Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midstates Petroleum 0 1 0 0 2.00
EV Energy Partners 0 0 0 0 N/A

Volatility & Risk

Midstates Petroleum has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, EV Energy Partners has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500.

Earnings and Valuation

This table compares Midstates Petroleum and EV Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midstates Petroleum $228.75 million 0.91 -$85.07 million N/A N/A
EV Energy Partners $225.69 million 0.03 -$134.20 million N/A N/A

Midstates Petroleum has higher revenue and earnings than EV Energy Partners.

Institutional and Insider Ownership

98.2% of Midstates Petroleum shares are held by institutional investors. Comparatively, 8.9% of EV Energy Partners shares are held by institutional investors. 1.8% of Midstates Petroleum shares are held by insiders. Comparatively, 10.2% of EV Energy Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Midstates Petroleum beats EV Energy Partners on 7 of the 9 factors compared between the two stocks.

About Midstates Petroleum

Midstates Petroleum Co., Inc. is an exploration and production company, which engages in the application of modern drilling and completion techniques in oil and liquids-rich basins. It focuses on its operations in the Mississippian Lime and the Anadarko Basin. The company was founded in 1993 and is headquartered in Houston, TX.

About EV Energy Partners

EV Energy Partners, L.P. engages in the acquisition, development, and production of oil and natural gas properties in the United States. Its properties are located in the Barnett Shale; the San Juan Basin; the Appalachian Basin; Michigan; Central Texas; the Monroe Field in Northern Louisiana; the Mid?Continent areas in Oklahoma, Texas, Arkansas, Kansas, and Louisiana; and the Permian Basin. As of December 31, 2016, the company had estimated net proved reserves of 12.6 million barrels of oil; 575.3 billion cubic feet of natural gas; and 33.4 million barrels of natural gas liquids. EV Energy GP, L.P. serves as the general partner of EV Energy Partners, L.P. EV Energy Partners, L.P. was founded in 2006 and is based in Houston, Texas. On April 2, 2018, EV Energy Partners, L.P., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

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