Zeev's Turnips Patch-No Politics (ZEEV)

[ItsAllCyclical]

I wouldn't call EP's books clean. Have you gone through their 10Q's are tried to understand it all? The still have plenty on the books in terms of mark-to-market transactions. Cash flow doesn't cover debt. S&P downgrade of 5 notches should be a wake up call that EP's survival isn't so cut-and-dry.

EP probably has greater exposure to CA litigation than any IPP or utility.

I think at some level it will be an ok bounce play, but not touching it yet. And I'm surely not going to build a long term FA position on it.

Timing of CEO departure is also a little curious.

EP can probably survive or at least buy a few years by selling E&P assets, but that's the heart of the company and it's cash flow.

Tred carefully.