Citigroup Expects Acquisitions For EV Energy Parters In 2011

Citigroup has published a research report on EV Energy Partners (NASDAQ: EVEP) and believes that acquisitions are likely for the company in 2011.

In the report, Citigroup writes "EVEP reported adjusted EBITDA of $39.3 million, compared to adjusted EBITDA of $34.6 million in the same period last year and our estimate of $43.4 million for 4Q10. The year-over-year rise in adjusted EBITDA (i.e. ~15% increase) primarily reflects the benefit of acquisitions completed throughout 2010 partially offset by lower average realized prices. In addition, the variance between our estimates and the partnership's 4Q10 result can be attributed to higher-than-forecast operating and SG&A expenses as well as lower than anticipated crude oil and natural gas realizations."

Citigroup maintains its Buy rating and $52 price target.

EV Energy Partners closed yesterday at $45.28.