Epl Oil & Gas 8-K Regulation FD Disclosure

1

Energy Partners, Ltd.

Company Overview

Energy Partners, Ltd.

Company Overview

Richard A. Bachmann

Chairman and CEO

Richard A. Bachmann

Chairman and CEO

March 27, 2007

March 27, 2007

Exhibit 99.2

2

The Strategic Alternatives Process

Strategic Companies

Financial Sponsors

Signed Confidentiality

Agreements

(1)

Management

Presentations

Contacts

Made

4

6

15

1

1

23

4

7

25

9

14

63

Domestic

International

After a comprehensive strategic alternatives process, EPL has concluded its process

Solicited a broad group of industry participants and private equity sources but did not receive a

definitive offer to purchase the Company

Proceeding with an equity self-tender and an anticipated sale of selected assets

(1) Allowed access to non public information

3

The Strategic Alternatives Process

Commodity Price Environment

$7.00

$7.20

$7.40

$7.60

$7.80

$8.00

$8.20

$8.40

$8.60

$8.80

8/25/06

9/8/06

9/22/06

10/6/06

10/20/06

11/3/06

11/17/06

12/1/06

12/15/06

12/29/06

1/12/07

1/26/07

2/9/07

2/23/07

$50.00

$55.00

$60.00

$65.00

$70.00

$75.00

Woodside offer

Management Presentations

Natural Gas

Crude Oil

NYMEX

Natural

Gas

&

Crude

Oil

Forward

Curve

Average

(1)

(1)

Average

price

of

the

NYMEX

forward

curve

for

both

natural

gas

and

crude

oil

for

each

daily

trade

in

the

period

represented

4

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

5/24/06

6/24/06

7/24/06

8/24/06

9/24/06

10/24/06

11/24/06

12/24/06

1/24/07

2/24/07

The Strategic Alternatives Process

Stock Market Environment

Woodside offer

Management

Presentations

EPL

Peer Group

Blended Strip (50% Oil/50% Gas)

EPL offer to

Purchase Stone

Note: Peer Group includes ATPG, THX, NFX, BDE, WTI, SGY, TMR, CPE, ME, PQ

EPL & Peer Group Stock Price Performance Since Stone Offer Announcement

5

Path Forward

The Board has authorized an equity self-tender, asset divestiture and a $300 Million

2007 Capital Budget

Pursue the Company’s existing extensive exploitation and exploration portfolio

Maintain track record of production growth and adding reserves

Strong management and technical teams remain in place

Asset

divestiture

proceeds

applied

to

repayment

of

the

revolving

credit

facility

Anticipated closing early Q3 2007

6

April

7

6

5

4

3

2

1

14

13

12

11

10

9

8

21

20

19

18

17

16

15

28

27

26

25

24

23

22

30

29

17

16

15

14

13

12

11

31

30

29

28

27

26

25

24

23

22

21

20

19

18

10

9

8

7

6

5

4

3

2

1

March

Concurrent Self-Tender and Debt Tender Offers

Commencement 

of self-tender

and debt tender

Scheduled

expiration of

self-tender and

debt tender

Board authorized self-tender offer for the

repurchase of up to 8,700,000 common shares

$23/share fixed price

Represents ~22% of the current outstanding shares if fully

subscribed

Assuming more than 8,700,000 shares are tendered, EPL

will purchase the shares tendered on a pro rata basis

Refinance 8 3/4% Senior Notes through a

concurrent debt tender and consent solicitation

Financing plan:

$300 Million

bank credit facility

(1)

$300 Million senior fixed rate notes

$150 Million senior floating rate notes

-

Callable after 2 years to allow for repayment flexibility

Financing commitment from Banc of America LLC

and affiliates

($ in millions)

SOURCES OF FUNDS

(3)

USES OF FUNDS

(3)

New Revolving Credit Facility

(1)

$50

Share Repurchase

$200

Senior Fixed Rate Notes

$300

Refinance Revolving Credit Facility

(2)

$130

Senior Fixed Rate Notes

$150

Refinance Senior Notes

$150

Tender Premium

$8

Fees & Expenses

$12

Total Sources of Funds

$500

Total Uses of Funds

$500

(1)

Initial borrowing base of $200 Million, increased to an initial availability of $225 Million pending asset sales (decreasing to $200 million at earlier of asset sale or 12 months from closing).

(2)

Based on balance of revolver at 2/23/07 of $195 million as disclosed in our 2006 10-K, net of insurance proceeds of $65 million anticipated to be collected.

(3)

As of 4/30/2007, assuming settlement on that date and does not reflect anticipated proceeds from contemplated asset sales

7

Asset Divestiture Summary

Divest non-strategic properties to reduce

debt

Comprised of Shelf and onshore south

Louisiana properties

Reserves: 63% Shelf, 37% Onshore, 87%

Gas

Composition:

Net production of ~4,000 Boe/d

76% Proved Developed

Component of probable and possible

reserves attached to proved reserves

Anticipate

3

rd

quarter

closing

Properties selected for divestiture

NEW ORLEANS

NEW ORLEANS

HOUSTON

HOUSTON

8

Hedging Program

.

Implement risk mitigation tool commensurate with additional financial leverage

Board authorized comprehensive hedging program to mitigate cash flow

commodity price risk

Protect cash flow for debt service and capital spending budget

Designed to hedge 60% -75% of forecasted production from proved reserves for 2

years beginning in July 2007, with significant upside participation

Addresses hurricane shut down risk

Contemplates discontinuing hedge accounting treatment

9

EPL Post Tender & Asset Divestiture

Production Volumes

Oil Sales (% of total volume)

Natural Gas Sales (% of total volume)

Barrel Equivalents (Boe/day)

Expenses

LOE ($/Boe)

Taxes, other than on earnings

G&A ($ Millions)

(1)

Exploration Expense ($ Millions)

DD&A  ($/Boe)

Interest Expense ($ Millions)

Tax Rate

(1)

Includes

non-cash

stock

based

compensation

expense

of

approximately

$2.6

Million

in

2007

(2)

Guidance

assumes

successful

completion

of

equity

self-tender,

debt

tender

and

refinancing

of

debt

as

summarized

in

the

Schedule

TO

as

filed

with

the

Securities

and

Exchange

Commission

on

3/26/2007,

and

divestiture

of

assets

as

profiled

on

the

preceding

slide,

all

of

which

are

subject

to

numerous

conditions.

2007 Average

25-35%

65-75%

24,000 –

26,000

$5.50-$6.50

3%-4%

$64-$72

$48 -$64

$19.00 -

$22.00

$40 -$48

36%-37%

2007 Full Year Guidance

(2)

Retain substantial financial flexibility

Maintain disciplined, conservative approach to

capital spending

Fund drilling program out of free cash flow

Commitment to reduce capital budget in a lower

commodity price environment, net of hedging

effects

Target return to lower leverage profile metrics

Target reduction of debt to total capital to 50%

or less

Cumulative excess cash flow supports pay-

down of $150 million senior floating rate notes

Target “dry powder”

for strategic             

acquisition opportunities after reducing leverage

10

EPL –

Strategy

Focus on generation and execution of exploratory

opportunities

Robust portfolio of 75 prospects representing opportunities

on the Shelf, onshore, and deepwater GOM

Execute a balanced drilling program

Concentration on moderate risk opportunities with

exposure to high potential reserves

Continue operations in deepwater GOM up to 5,000 feet

Joint venture with Noble Energy began early 2006

Shorter

cycle

times

to

1

st

production

through

use

of

existing infrastructure

1st production from Raton discovery to come on line late

2007/early 2008

Currently 10 additional prospects

Continue to maintain a high quality GOM and Gulf Coast

exploration and operations staff

Highly experienced teams in place

11

EPL -

Key Strengths

Moderate

Risk Capital

Spending

Plan

Conservative

Financial

Philosophy

Execute inventory of low-risk opportunities on existing asset base

Balanced drilling program focused on moderate risk exploration and exploitation

Substantial free cash flow to reinvest in core business

Board authorized hedging program, designed to support debt reduction and mitigate

cash flow commodity price risk, with hurricane shut down risk addressed

Liquidity of approximately $225 million projected post asset sale

Strong

Management

with Proven

Track Record

Track record of production and reserve growth

Extensive operational and technical experience

Disciplined and focused operating strategy

12

2007 Portfolio-

$300 Million Capital Budget

Rig Workovers

Completions

Platforms/Facilities

Leases

Seismic

Capital Expenditures by Type

Capital Expenditures by Region

Development & Other

Drilling (By Risk Profile)

20%

80%

$300 million

2007 Capital Budget

50%

50%

MEDIUM

RISK

80%

LOW

RISK

15%

5 high &

16 moderate

potential

exploratory

wells

HIGH

RISK

5%

2 high

potential

exploratory

wells

5 development

wells

Drilling approach

23 Exploratory prospects

(1)

(7 high

potential

(2)

)

–

Amplitudes support moderate risk on

5 high potential prospects

Concentrated in legacy assets and

recent focus areas

Onshore

Onshore

7%

7%

Deepwater

Deepwater

6%

6%

Shelf

Shelf

87%

87%

(1)  Last board approved budget

(2)  Includes the ST46 #3 deep, in which the ST46 #3 wellbore was counted as a 2006 discovery well based on 2006 exploratory finds 

13

2007 Exploration Prospects

NEW ORLEANS

NEW ORLEANS

HOUSTON

HOUSTON

EI 312 #2

Exploratory Wells

ST26 #F-30

Louisville

ST 46 #3 Deep

La Posada

Apache #18-1

Goldfish

Barracuda

Longhorn

Tiger Bait

SP-38 Apollo

EI 311 #1

ST-41 #B-3

Cap Rock

ST-26 #2

Chimney Rock

ST-214 #1

SMI-79 #E2

VR-72 #1

SMI-247

WC-312

EI-17

EI-19

WC 252 #1

SMI-79 #2

SMI-79 #E3

Scheduled (16)

Successful

(1)

Unsuccessful

(1)

1

st

Qtr

Wells

(5)

High Potential

14

ST  46 Development and Exploration Sands

100% Working interest

ST46 is an extension of the ST 41 discovery

1

st

discovery

in

2004

–

ST

46

#2

ST46 #3 Development/Exploratory Well

Found better than predicted development sands

and new sand discoveries in shallow sections 

Deepened well and found additional pay

–

Testing planned for 3Q07

Currently

drilling

ST46

#4

acceleration

well

1

st

production

expected

prior

to

mid

year

~20-25

Gross

Mmcfe/d

(plan

rate)

Additional exploratory prospects shallow      

and deep

ST46 Development Plans

South Timbalier 46 Area –Extending the Success at ST41

Gas Production On-Line

Testing (Deep Oil Potential)

4Q07

3Q07

2Q07

1Q07

ST46 #3

ST46 #4

Acceleration

Drill & Complete, Set Facilities

2004 Discovery

2006 Exploration

2004

Discovery

2007

Exploration

2nd Well

ST-46 #3

3rd Well

ST-46 #4

1st Well

ST 46 #2

TD: 20,395’

10 Sands discovered

250 ft of net gas pay

4 Sands

100 ft of potential pay

(testing 3Q07)

Deeper potential below current TD

15

Extensive

Multi-Year

Shelf

&

Onshore

Inventory

–

Beyond

2007

Identified Portfolio of 42 Shelf & Onshore Prospects

Identified Portfolio of 42 Shelf & Onshore Prospects

Moderate

Moderate

22 Prospects

22 Prospects

65%

65%

High

High

18 Prospects

18 Prospects

29%

29%

Low

Low

2 Prospects

2 Prospects

6%

6%

Risk Profile

16

Deep Water Development & Exploration Inventory

EPL approach to deepwater

Exploit increasing availability of attractive

leases in water depths <5000 feet

Leverage significant infrastucture and

transportation logistics

Apply well-established drilling technology

and understanding of geologic formations

Entered deepwater in early 2006 through

JV with Noble Energy, a proven deepwater

operator

Acquired 25% working interest, operated

by Noble

24 leases

Currently 10 identified prospects

Raton-

Expecting

1

st

production

by

late

2007/early 2008 from a gas interval

discovered

Redrock

& Raton South

Evaluating development of hydrocarbon

bearing sands found

NEW ORLEANS

NEW ORLEANS

NEW ORLEANS

Exploratory Wells

EPL Interests

Redrock

Successful Wells (1)

High Potential Wells

2006 Lease Sale Awards (2)

Evaluating (2)

Raton

Raton South

Future Exploratory Wells (10)

Ike

Sable

Red Tack

Pecos

Gull Wing

Chama

Livingston

Gipper

Alta North

Alta

1st Deepwater Production Anticipated Late 2007/Early 2008 from Raton Gas Discovery

17

Investment Strengths

Conservative and disciplined financial policies support commitment to debt reduction

Asset sale process initiated to reduce indebtedness following equity self-tender and

debt tender offers

Board authorized hedging program, designed to support debt reduction and mitigate

cash flow commodity price risk

Proven management team with extensive operational and technical expertise

Disciplined capital spending focused on executing a portfolio with balanced risk

profile and significant exposure to upside reserve potential

Organic

growth

from

an

extensive

prospect

inventory

and

numerous

work-over

opportunities

18

Corporate Information

Richard A. Bachmann

Chairman and

Chief Executive Officer

Phillip A. Gobe

President and

Chief Operating Officer

Timothy R. Woodall

Executive Vice President and

Chief Financial Officer

John H. Peper

Executive Vice President

General Counsel and

Corporate Secretary

Principal Corporate Office

201 St. Charles Ave.

Suite 3400

New Orleans, LA  70170

Phone: (504) 569-1875

Web:    www.eplweb.com

Investor Relations Contacts

T.J. Thom

tthom@eplweb.com

Al Petrie

alpetrie@eplweb.com

19

Forward-Looking Statements & Other Information

Forward Looking Statements

This

presentation

contains

forward-looking

information

regarding

EPL

that

is

intended

to

be

covered

by

the

safe

harbor

"forward-looking

statements"

provided

by

the

Private

Securities

Litigation

Reform

Act

of

1995.

All

statements

included

in

this

presentation

that

address

activities,

events

or

developments

that

EPL

expects,

believes

or

anticipates

will

or

may

occur

in

the

future

are

forward-looking

statements.

These

include

statements

regarding:

reserve

and

production

estimates,

oil

and

gas

prices,

the

impact

of

derivative

positions,

production

expense

estimates,

cash

flow

estimates,

future

financial

performance,

planned

capital

expenditures,

EPL’s

ability

to

secure

funds

necessary

to

finance

and

to

consummate

the

equity

self-tender

offer,

and

the

refinancing

of

its

revolving

credit

facility

and

senior

notes;

and

other

matters

that

are

discussed

in

EPL's

filings

with

the

Securities

and

Exchange

Commission

(SEC).

These

statements

are

based

on

current

expectations

and

projections

about

future

events

and

involve

known

and

unknown

risks,

uncertainties,

and

other

factors

that

may

cause

actual

results

and

performance

to

be

materially

different

from

any

future

results

or

performance

expressed

or

implied

by

these

forward-looking

statements.

Please

refer

to

EPL's

filings

with

the

SEC,

including

our

Form

10-K

for

the

year

ended

December

31,

2006,

for

a

discussion

of

these

risks.

Please

also

refer

to

the

Offer

to

Purchase

filed

by

EPL

with

the

SEC

in

connection

with

the

equity

self-tender

for

additional

information

regarding

such

risks,

uncertainties

and

contingencies.

Reserve Information

In

its

filings

with

the

SEC,

EPL

is

generally

permitted

to

disclose

only

proved

reserves,

which

are

reserve

estimates

that

geological

and

engineering

data

demonstrate

with

reasonable

certainty

to

be

recoverable

in

future

years

from

known

reservoirs

under

existing

economic

and

operating

conditions.

EPL

uses

certain

terms

in

this

presentation,

such

as

“potential”,

“probable”,

and

“possible”

in

relation

to

reserves.

Estimates

of

“potential”,

“probable”

and

“possible”

reserves

which

may

potentially

be

recoverable

through

additional

drilling

or

recovery

techniques

are

by

their

nature

more

uncertain

than

estimates

of

proved

reserves

and

accordingly

are

subject

to

substantially

greater

risk

of

not

actually

being

realized

by

the

Company.

Investors

are

urged

to

consider

closely

EPL’s

disclosure

of

its

proved

reserves,

along

with

certain

risk

factors

and

uncertainties

inherent

in

its

business

set

forth

in

its

Form

10-K

and

other

filings

with

the

SEC.

Oil

and

gas

exploration

is

inherently

risky.

There

is

no

assurance

that

the

Company

can

realize

any

of

this

potential.

No Offer or Solicitation.

This

presentation

does

not

constitute

an

offer

or

invitation

to

purchase

nor

a

solicitation

of

an

offer

to

purchase

or

sell

any

securities

of

EPL.

Any

offers

to

purchase

or

solicitation

of

offers

to

sell

will

be

made

only

pursuant

to

the

tender

offer

statement

(including

an

offer

to

purchase,

a

letter

of

transmittal

and

other

offer

documents)

filed

by

EPL

(“EPL’s

Tender

Offer

Statement”)

with

the

SEC.

EPL’s

shareholders

are

advised

to

read

EPL’s

tender

offer

statement

and

any

other

documents

relating

to

the

tender

offer

that

are

filed

with

the

SEC

carefully

and

in

their

entirety

when

they

become

available

because

they

will

contain

important

information. 

This

release

is

not

an

offer

to

purchase,

a

solicitation

of

an

offer

to

purchase

or

a

solicitation

of

consent

of

any

senior

notes.

The

tender

offer

and

the

consent

solicitation

will

be

made

solely

by

an

Offer

to

Purchase

and

Consent

Solicitation

Statement.

EPL’s

shareholders

are

advised

to

read

EPL’s

offer

to

purchase

and

consent

soliciation

statement

and

any

other

documents

relating

to

the

tender

Offer

carefully

and

in

their

entirety

when

they

are

distributed

because

they

will

contain

important

information. 

20

Forward-Looking Statements & Other Information

Additional Information and Where to Find It.

Investors

and

security

holders

may

obtain

a

free

copy

of

EPL’s

Tender

Offer

Statement

and

other

documents

filed

by

EPL

with

the

SEC

at

the

SEC's

website

at

http://www.sec.gov.

In

addition,

investors

and

security

holders

may

obtain

a

free

copy

of

EPL’s

Tender

Offer

Statement,

as

well

as

EPL’s

related

filings

with

the

SEC,

from

EPL's

website

at

www.eplweb.com

or

by

directing

a

request

to:

Energy

Partners,

Ltd.

201

St.

Charles

Avenue,

Suite

3400,

New

Orleans,

Louisiana

70170,

Attn:

Secretary,

(504)

569-1875

or

from

MacKenzie

Partners,

Inc.

by

calling

1-800-322-2885

toll

free

or

at

1-212-929-5500

collect

or

by

e-mail

at

EPL@mackenziepartners.com.

Noteholders

may

obtain

information

regarding

the

Company

from

EPL's

website

at

www.eplweb.com,

from

the

SEC’s

website

at

www.sec.gov,

or

by

directing

a

request

to:

Energy

Partners,

Ltd.

201

St.

Charles

Avenue,

Suite

3400,

New

Orleans,

Louisiana

70170,

Attn:

Secretary,

(504)

569-1875

or

from

MacKenzie

Partners,

Inc.

by

calling

1-800-322-2885

toll

free

or

at

1-212-929-5500

collect

or

by

e-mail

at

EPL@mackenziepartners.com.

201 St. Charles Avenue, Suite 3400

New Orleans, Louisiana 70170

(504) 569-1875

www.eplweb.com