Why EV Energy Partners' Shares Dropped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of oil and gas company EV Energy Partners (NASDAQ: EVEP ) dropped as much as 10% today after the company reported earnings.

So what: Revenue was up 13% from a year ago, to $75.5 million, but analysts expected $85.3 million on the top line. Earnings per share after one-time items were break-even and, with expectations at $0.47 per share, investors were not happy.

Now what: Revenue is rising, but the company is burning through cash, which isn't good when investors are expecting distributions. Earnings have been falling for the past year and, until the company can get back to a strong bottom line number, I'd be worried about the stock. I'll pass for today and stick with higher-quality dividend payers.

Interested in more info on EV Energy Partners? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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