Energy Partners planning to repay revolver by year-end

By Jennifer Lanning Drey

Portland, Ore., July 9 - Energy Partners, Ltd. is focused on debt reduction in 2008 and expects to have repaid the balance on its revolving credit facility by the end of the year, Richard A. Bachmann, chief executive officer of Energy Partners, said Wednesday during a presentation at the Collins Stewart Growth Conference in New York.

The company had $20 million outstanding under the facility at March 31, according to its most recently filed 10-Q with the Securities and Exchange Commission.

Energy Partners also targeted a 20% reduction of cash operating costs in 2008, a goal which the company has met and plans to expand upon during the balance of the year.

"We've got a commitment to reducing costs and for the most part, this commitment is already in hand with more to come," Bachmann said.

The company expects its cash flow to be more than $300 million in 2008, with capital expenditures totaling $200 million.

In addition to targeting its cash flow for debt repayment, the company is pursuing several acquisitions in the Gulf of Mexico and may look to drill one or two wells, he said.

"We've got a nice portfolio of opportunities that we will start exploring in the third and fourth quarter, all within the cash flow of the company," Bachmann said.

Energy Partners' business strategy is based on evenly dividing its cash investments between exploration, exploitation and acquisitions of assets.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.