Stockholders Report

By: Brett Hodges and Lendell Louis-Jacques

The two companies that we were given to research were, National

Grid(NGG) and Ev Energy Partners (EVEP.) The two companies are in the
Energy industry and we are comparing if one of these would be good to
invest in or sell what stock you have. We will be analyzing each company
very closely to predict if it is risky or safe to buy.
Yahoo finance states that, National Grid PLC is a
British multinational electricity and gas utility company headquartered in
Warwick, United Kingdom. Its principal activities are in the United Kingdom
and Northeastern United States. National Grid has a primary listing on
the London Stock Exchange and is a constituent of the FTSE 100 Index. It had
a market capitalization of approximately 40.4 billion on 23 September 2016,
the 20th-largest of any company with a primary listing on the London Stock
Exchange. It has a secondary listing on the New York Stock Exchange.
Yahoo finance states that, 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
Appalachian Basin; the San Juan Basin; Michigan; Central Texas; the Mid
Continent areas in Oklahoma, Texas, Arkansas, Kansas, and Louisiana; the
Monroe Field in Northern Louisiana; and the Permian Basin. As of December
31, 2015, the company had estimated net proved reserves of 22.0 million
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barrels of oil; 747.0 billion cubic feet of natural gas; and 36.3 million barrels
of natural gas liquids.
We were asked to gather information in regards to each companies
Income Statement, Balance Sheet and Cash Flow. The first company we
analyzed was NGG:

Balance Sheet

In this above table, it shows NGGs personal Income Statement,

Balance Sheet and Cash Flow for the past three years. The reason for
mapping the past three years is to see if each company is growing and
profiting off their success or are they declining and losing money and
about to go under. In the Income Statement the most important
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information we were looking was how much revenue they had. As we

see in Total Revenue, it shows NGG is declining in Total Revenue and
the cost to produce the revenue decreases as well. NGGs gross profit
fluctuated between 2014 and 2015 but started to increase in 2016. The
main reason for the balance sheet is to make sure that your Total
Assets outweighed the Total Liabilities. As we see in the above table it
shows that NGG had a positive Total amount of assets meaning they
did not owe anyway money. In the Cash Flow we are looking at the Net
Income wanting to see high numbers to provide us with the information
that they are doing well. In 2015 it shows a decrease in Net Income
which could be a variation of different things but the most important
example is that they could be investing in expanding which would
provide a less than normal number.
Our next table provides us information as stated above but this company
was different in size and success which shows below.
EVEP:

Balance Sheet

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2015

2014

2013

Total
Liabilities

925,043

1,180,048

1,133,050

Total Equity

Debt/Equity

N/A

N/A

N/A

This chart shows the downfall of EVEP because Stated in the Income
Statement the Total Revenue column for the past three years has
decreased tremendously between 2014 and 2015. The total Gross
Profit from 2014-2015 dropped $153,734.00. That is saying a lot
because they had a positive turnover from 2013-2014. As we
compared this companies Net Income to Gross Profit it was shocking
because we noticed that over the past year the total sales dropped
dramatically as well as the total Gross Profit.

Debt/Equity Ratio:
EVEP

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* Missing numbers (Total Equity) for this company. This means that looking at
debt to equity ratio is not possible right now.
2016

2015

2014

Total
Liabilities

64,224,000

64,023,000

64,475,000

Total Equity

19,483,000

17,758,000

19,858,000

Debt/Equity

3.30

3.73

3.25

NGG >

* For NGG, the ratio is quite high, the company is probably considered risky
to the eyes of creditors and investors
ROE
NGG 20.31%
EVEP N/A
In general, financial analysts consider return on equity ratios in the 1520% range as representing attractive levels of investment quality. By looking
at the numbers of our two stocks, NGG would be considered as an attractive
level of investment quality. On the other hand, EVEP does not have a
percentage linked to its Return on Equity. This is quite bad for a company.
ROA
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NGG 4.39%
EVEP N/A
Usually for return on assets, investment professionals like to see a
company's ROA come in at no less than 5%. NGG is pretty close to that 5
percent (4.39), which would still make them interesting to professionals in a
sense. There are still possibilities for it to go up. On the other hand, EVEP is
once again not looking too good. There is not percentage data related to this
ratio.
P/E
NGG
Trailing: 15.04

Forward: 14.21

EVEP
Trailing: -0.82 Forward: -1.88
In general, a high P/E suggests that investors are expecting higher
earnings growth in the future compared to companies with a lower P/E. This
means that investors would look at NGG rather than at EVEP. A low P/E can
indicate either that a company may currently be undervalued or that the
company is doing exceptionally well relative to its past trends.
PEG
NGG 5.94

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EVEP 0.04
For a Price/Earning to growth ratio, PEG ratios higher than 1 are
generally considered unfavorable, suggesting a stock is overvalued and
ratios lower than 1 are considered better, indicating a stock is undervalued.
In this case, NGG is really considered overvalued as it is close to 6. On the
other hand, the EVEP stock is really undervalued as it is really lower than 1.
Stock High
NGG 74.97
EVEP 6.44
The highest stock price for NGG is 74.97$. This is approximately 70$
more than the highest stock price for EVEP. This shows the big gap in the
value of those two stocks.
Stock Low
NGG 64.13
EVEP 1.60
The lowest stock price for NGG is 64.13$. This is slightly more than a
60$ difference with the lowest price (1.60$) for EVEP. This shows once again
the big gap in the value of those two stocks.
Current Price
NGG 64,27
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EVEP 2.27
Right now, NGG has a current price of 64.27$. Its price is seen as
overvalued. EVEP is currently at 2.27$ as its price is seen as really
undervalued. There is a difference of 62$ between those two stocks.
EPS
NGG 4.27
EVEP -2.78
Generally, companies with positive EPS are more highly valued than
companies with negative EPS. In this case, NGG has an EPS of 4.27 and EVEP
has an EPS of -2.78. This does not mean that EVEP is a company to be
avoided. Stocks similar to this one are extremely attractive to
contrarian/special events/distressed securities investors.

Dividend Rate
NGG
Trailing: 0.54

Forward: 3.18

EVEP

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Trailing: 0.57

Forward: N/A

Companies that pay dividends often prefer to maintain or slowly grow

their dividend rates as a demonstration of stability and as a means of
rewarding shareholders. NGG has a growth of 3 in its dividend rate. It is not a
lot of dividends to pay, but it still shows that it could keep growing. On the
other hand, EVEP is lacking the information needed for forward dividend rate.
Dividend Yield
NGG 5.12
EVEP 19.40
Investors looking for income from dividend stocks should concentrate
on stocks that have at least a 3% dividend yield. Both of our companies are
quite over that 3% line. Especially EVEP, its dividend yield is 16% over.
However, most stocks with a dividend yield of 10% or higher are very risky,
since a dividend cut is likely in store.

Economic and Market Reports:

NGG
According to NGGs annual market report (2015/2016), National Grid
has remained focused on greenhouse gas emissions reduction programmers

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to achieve the corporate commitment targets of 45% and 80% reduction in

Scope 1 and 2 emissions by 2020 and 2050 respectively from the 1990
baseline.
It continues to look for innovations and efficiencies that will help us
achieve targets. National Grid measures and reports its greenhouse gas
emissions in accordance with the World resources institute (WRI)/World
business council for sustainable development (WBCSD) Greenhouse Gas
Protocol: Corporate Accounting and Reporting Standard (Revised Edition) for
all six Kyoto gases using the operational control approach for emissions
accounting. Those Scope 1 and 2 emissions are independently assured
against the international standard ISO 14064-3 Greenhouse Gas assurance
protocol.
EVEP
According to EVEPs 8-k form, on August 30, 2016, the common
unitholders of EV Energy Partners, L.P. (the "Partnership") approved the EV
Energy Partners, L.P. 2016 Long Term Incentive Plan (the "2016 LTIP"), which
provides for the issuance of up to 5,000,000 Units. The 2016 LTIP became
effective by its terms on the date of approval by the unitholders. Capitalized
terms used herein and not defined shall have the meanings set forth in the
2016 LTIP.
The 2016 LTIP is intended to promote the interests of the Partnership
and EV Management, LLC, a Delaware limited liability company, the general
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partner of EV Energy GP, L.P., a Delaware limited partnership, which is the

general partner of the Partnership, by providing to Employees, Consultants
and Directors incentive compensation awards for superior performance that
are based on Units.
The Plan is also contemplated to enhance the ability of the Company,
the Partnership and their Affiliates to attract and retain the services of
individuals who are essential for the growth and profitability of the
Partnership and to encourage them to devote their best efforts to advancing
the business of the Partnership.
After reviewing the information given throughout our analyst we
recommend to either buy or hold on NGG due to the fact that they are
gaining money and sales through the years in a time of recession in the
energy industry. We would sell and stay away from EVEP because they have
lost a tremendous amount of money due to the recession and we think it
would be risky to buy stock at such a low level because we dont think we
would see a return on our investment.

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References

"National Grid Plc (ADR)." : NYSE:NGG Quotes & News. N.p., n.d. Web. 25 Oct. 2016.

In, By Or Used. "EVEP Profile | EV Energy Partners, L.P. Repre Stock - Yahoo
Finance." EVEP Profile | EV Energy Partners, L.P. Repre Stock - Yahoo Finance. N.p.,
n.d. Web. 25 Oct. 2016.

"How To Use The P/E Ratio And PEG To Tell A Stock's Future" Investopedia.

LLC., n.d.
Web. 25 Oct. 2016.
"Price-Earnings Ratio - P/E Ratio." Investopedia. LLC., n.d. Web. 25 Oct.

2016.
"Return On Equity - ROE" Investopedia. LLC., n.d. Web. 25 Oct. 2016.
"Return On Assets - ROA." Investopedia. LLC., n.d. Web. 25 Oct. 2016.
Services, Institutional Shareholder. "EVEP Profile | EV Energy Partners, L.P.
Repre Stock - Yahoo Finance." EVEP Profile | EV Energy Partners, L.P. Repre

Stock - Yahoo Finance.

N.p., n.d. Web. 25 Oct. 2016.
N.p., n.d. Web. 25 Oct. 2016.
Services, Institutional Shareholder. "NGG Profile | National Grid Transco,
PLC Nati Stock - Yahoo Finance." NGG Profile | National Grid Transco, PLC

Nati Stock - Yahoo Finance.

"2016 Annual Report (pdf) - National Grid." National Gris PLC, n.d. Web.
25 Oct. 2016.

"Summary of EV ENERGY PARTNERS, LP - Yahoo! Finance." Summary of

EV ENERGY PARTNERS, LP - Yahoo! Finance. EDGAR Online Inc, n.d.
Web. 25 Oct. 2016.

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