Energy Partners shareholder seeks changes to board, senior management

By Lisa Kerner

Charlotte, N.C., Jan. 27 - Energy Partners, Ltd. investors led by Wexford Capital LLC urged the company's board of directors to promptly take action to address Energy Partners' "dismal financial performance."

According to Wexford, the board should:

• Terminate senior management and appoint a new chairman;

• Cancel the change-in-control severance agreements;

• Reduce selling, general and administrative expenses to $25 million or less;

• Restructure debt; and

• Restructure the board and reduce its size.

Wexford made the suggestions in a Monday letter to the board included in a schedule 13D/A filed with the Securities and Exchange Commission.

According to the filing, Wexford and its affiliated investment funds have an 8.4% stake in Energy Partners. They also hold "significant positions" in the company's 9¾% senior notes due 2014 and floating-rate senior notes due 2013.

Energy Partners is a New Orleans-based oil and natural gas exploration and production company.

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