S&P: Energy Partners unaffected

Standard & Poor's announced Friday that the ratings on Energy Partners Ltd. (B+/stable/--) would remain unaffected by its announced agreement to acquire $150 million in properties in southern Louisiana (onshore). The transaction will be funded with available cash balances and availability under the company's credit facility.

Given Energy Partners' strong cash balances and relatively short reserve life, an acquisition of this size was expected and factored into the company's current rating, the agency said.

To provide some insulation against future commodity price volatility, Energy Partners plans to hedge the projected production relating to the proved properties acquired in the transaction through 2007 (using costless collars with floors between $4.50 and $5.00 per million BTUs).

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