Energy Partners to hold $23-per-share self-tender offer, property sale as part of strategic plan

By Lisa Kerner

Charlotte, N.C., March 12 - Energy Partners, Ltd.'s board of directors solicited 63 potential bidders for the company as part of its recently completed exploration of strategic alternatives, with no definitive offer made to purchase the company, according to a company news release.

As a result, the company will continue to execute its strategic plan, including a self-tender offer and sale of some $125 million worth of property.

Energy Partners' self-tender offer provides for the repurchase of up to 8.7 million issued and outstanding common shares for approximately $200 million at $23 per share. The offer is expected to begin within 10 business days. The offer is not subject to any minimum number of shares being tendered. If the offer is fully subscribed, the company would repurchase roughly 22% of its currently outstanding common shares.

Banc of America Securities LLC has committed funds to finance the self-tender offer, to refinance Energy Partners' bank credit facility and to refinance its 8¾% senior notes, according to the release.

The board authorized additional open market purchases of up to $50 million of its common shares for one year following the self-tender offer.

"It is important to note that the self-tender offer and authorization for additional open market purchases do not impact our 2007 capital budget of $300 million," chairman and chief executive officer Richard A. Bachmann said in the release.

"In fact, we have preserved the company's upside, which we continue to believe is significant, and at the same time provided additional liquidity for those desiring it. We will sharpen our focus on the prudent reinvestment of our significant cash flows through the continued exploration and exploitation of our existing asset base and portfolio and development of our discoveries yet to be brought on line on the Shelf and in the deepwater Gulf of Mexico."

Energy Partners is an independent oil and natural gas exploration and production company based in New Orleans.

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