IPAA 2004 Oil and Gas Investment Symposium

C O N T I N U I N G

EE LL

IPAA2004 Oil and Gas

Investment Symposium



April 2004April 2004

New York, NYNew York, NY

Richard A. BachmannFounder, Chairman, President and

CEO

Bruce R. SidnerExecutive Vice President -

Exploration


CEO


Exploration

Page 2

2003 Report Card

Reached record highs for revenue, net income, and discretionary cash flowReached record highs for revenue, net income, and discretionary cash flow

Replaced 130% of production, exclusively through the drill bitReplaced 130% of production, exclusively through the drill bit

Achieved $11.19/boe drill bit finding and development costAchieved $11.19/boe drill bit finding and development cost

Drilled 21 exploratory wells; 81% exploratory success rateDrilled 21 exploratory wells; 81% exploratory success rate

Lowered lease operating expense to $4.77/BoeLowered lease operating expense to $4.77/Boe

Strengthened balance sheetStrengthened balance sheet

Doubled public floatDoubled public float

Grew production 23% organicallyGrew production 23% organically

Page 3

2004: Continuing the Momentum

Increased capital budget 14% to $125 million

Planning 26 to 30 exploratory wells and 6 to 8 development wells

4 successful exploratory wells to date in 2004; 1 well drilling

High bid on 8 blocks at March 2004 Central Gulf Lease Sale

5% - 10% annual production growth guidance

$104 million in cash plus $60 million credit facility at year-end 2003

Increased capital budget 14% to $125 million

Planning 26 to 30 exploratory wells and 6 to 8 development wells

4 successful exploratory wells to date in 2004; 1 well drilling

High bid on 8 blocks at March 2004 Central Gulf Lease Sale

5% - 10% annual production growth guidance

$104 million in cash plus $60 million credit facility at year-end 2003

Page 4

NEW ORLEANSNEW ORLEANSNEW ORLEANSNEW ORLEANSHOUSTONHOUSTONHOUSTONHOUSTON

Gra

nd

Isle

Wes

t D

elta

South Pass

Green Canyon

Main Pass

Hig

h Is

lan

d

Garden Banks

EwingBank

Mississippi Canyon

East Breaks

Eu

gen

e Is

lan

d

S. M

arsh

Isla

nd

Ver

mili

on

Sh

ip S

ho

al

So

uth

Tim

bal

ier

Eas

t C

amer

on

Wes

t C

amer

on

Hig

h Is

lan

d E

ast

Atwater

LundWalker RidgeKeathly CanyonAlaminos Canyon

South PadreIsland

North PadreIsland

PortIsabel

CorpusChristi

MustangIsland

MatagordaIsland

Brazos

Gal

vest

on

Geographic Focus: Gulf of Mexico Shelf

EAST BAYGREATER BAY MARCHAND

EPL Interests

March 2004 Lease Sale High Bid (8 Blocks)

12/31/03 Reserves 49.8 Mmboe

12/31/03 Reserves/Production 6.5 years

12/31/03 % Gas Reserves 45%

2003 % Gas Production 62%

2004 Production Guidance 22,200 – 23,200 Boe/day

Page 5


Gra

nd

Isle

Wes

t D

elta

South Pass

Green Canyon

Main Pass

Hig

h Is

lan

d

Garden Banks

EwingBank

Mississippi Canyon

East Breaks

Eu

gen

e Is

lan

d

S. M

arsh

Isla

nd

Ver

mili

on

Sh

ip S

ho

al

So

uth

Tim

bal

ier

Eas

t C

amer

on

Wes

t C

amer

on

Hig

h Is

lan

d E

ast

Atwater


South PadreIsland

North PadreIsland

PortIsabel

CorpusChristi

MustangIsland

MatagordaIsland

Brazos

Gal

vest

on

2003 Exploratory Program: 81% Success Rate

EPL Interests

Blocks


Exploratory Wells

Successful Wells (17)

EB - Glacier50% WI

EC 37833% WI

ST 18580% WI

EC 28050% WI

BA 495S50% WI

EC 161100%

WI

BM2 - Eyeball44% WI

EC 44 #2100% WI

ST 26 - Mossy Creek

100% WI

SMI 109 #1

27% WI

SMI 109 #227% WI

HI 55L #435% WI

Mesa Verde E.

67% WI

EB - Grizzly63% WI

EC 44 #133% WIUnsuccessful Wells (4)

HI 55L #635% WI

SMI 109 #327% WI

GI 2094% WI

EI 145 33% WI

ST 41 – Rock Creek

60% WI

EI 14217% WI

Production Timing8 Currently Producing3 Expected 1H20046 Expected 2H2004

Page 6

$0

$5

$10

$15

$20

$25

$30

$35

0%

40%

80%

120%

160%

Track Record of Drill-Bit Success

*Gulf of Mexico peer group includes COG, NFX, REM, SGY, SKE, THX , WRC

EPL

2003 Drill-Bit: 130%

Drill-Bit since inception: 134%

2003 Drill-Bit: $11.19

Drill-Bit since inception: $11.57

2003: EPL vs. GOM Peers*2003: EPL vs. GOM Peers*

2003: EPL vs. GOM Peers*2003: EPL vs. GOM Peers*

EPL

Reserve ReplacementReserve Replacement

Cost per BoeCost per Boe

Average 112%

Average $16.49

Page 7

$0

$5

$10

$15

$20

0%

100%

200%

300%

400%

500%

All-In Reserve Replacement and Cost

*Gulf of Mexico peer group includes COG, NFX, REM, SGY, SKE, THX , WRC

EPL

4 Year Average: EPL vs. GOM Peers*4 Year Average: EPL vs. GOM Peers*

4 Year Average: EPL vs. GOM Peers*4 Year Average: EPL vs. GOM Peers*

EPL

All-in 4 year average: 309%

All-in since inception: 327%

All-in 4 year average: $8.13

All-in since inception: $7.97

Reserve ReplacementReserve Replacement

Cost per BoeCost per Boe

Average 225%

Average $11.54

Page 8

Capital Deployment – Drilling and Acquisitions

Development Exploration

$44.8$55.9

$39.1$45.7

$75.0

$18.3

$47.6

$29.0

$66.2

$50.0

0

20

40

60

80

100

120

$140

2000 2001 2002 2003 2004E

Acquisitions

$119.9$124.0

Total $183.0 $103.5 $192.1 $111.9 $125.0

(MM)

Page 9

2004 Capital Budget

High Potential Exploration

Moderate RiskExploration

Low RiskExploitation/Development

2004 Risk Profile2004 Risk Profile

60%

25%15%

Development

Platforms/Facilities

LeaseBonus G&G

2004 Budget2004 Budget

Exploration

$50.0

$40.0

$25.0

$5.0 $5.0

2004 Total - $125 million2004 Total - $125 million

C O N T I N U I N G

EE LL


Exploration


Exploration

Page 11


Gra

nd

Isle

Wes

t D

elta

South Pass

Green Canyon

Main Pass

Hig

h Is

lan

d

Garden Banks

EwingBank

Mississippi Canyon

East Breaks

Eu

gen

e Is

lan

d

S. M

arsh

Isla

nd

Ver

mili

on

Sh

ip S

ho

al

So

uth

Tim

bal

ier

Eas

t C

amer

on

Wes

t C

amer

on

Hig

h Is

lan

d E

ast

Atwater


South PadreIsland

North PadreIsland

PortIsabel

CorpusChristi

MustangIsland

MatagordaIsland

Brazos

Gal

vest

on

2004 Expanded Exploratory Program

NEW ORLEANSNEW ORLEANSNEW ORLEANSNEW ORLEANS

HOUSTONHOUSTONHOUSTONHOUSTON


Total program gross unrisked reserve potential > 600 Bcfe

EC 111 #150% WI

EI 248 #1100% WI

East Buck Point

25% WI

WD 51 #1

100% WI

EI 277 #A-1

50% WI

ST 41 #2

60% WI

ST 46 #1

100% WI

EC 43 #1

100% WI

SMI 109 #A-4

27% WI

HI 87 #1

100% WI

EC 161 #A-3

100% WI

HI A-6 #13

17% WI

WD 53 #1

100% WI

ST 41 #3

60% WI

EI 277 #2

50% WI

MI 639 #1

100% WI

EC 378 #3 ST5

33% WI

WC 145 #1

43% WI

VM 237 #1

100% WI

WC 242 #1

75% WI

SM2

100% WI

Exploratory Wells Successful Wells (4)

HI 55L #5

35% WI

SP27 #98ST

100% WI

ST 180 #A-7

100% WI

EI 277 #A-3 ST

50% WI

West White Lake

50% WI

Currently Drilling (1)

ST 42 #1

60% WI

Scheduled (23)

SM1

100% WI

Page 12

O4

S NWORKING INTEREST DRILL TO EARN

HIGH BID ACREAGE

49

38

BM 3 BM 2

21 ST 22 ST 23 ST 24

GI 37

45

28 ST 27 25ST 26

GI 26

ST 40 42

50

61

20

29

42

6

38 39

47 45 44

48

39

51

60ST 46

GI 27

GI 36

ST 41

ST 41 ST 42

(High bid OCS Lease SaleMarch 17, 2004)

• EPL WI – 60% - 100%

• Operator – EPL

• Water depth – 60’

• 4 exploratory wells in 2004

South Timbalier 41, 42 & 46

#1

Rock Creek

EPL #2 Location

EPL #3 Location

ST 42

GREATER BAY MARCHAND

Page 14

Eugene Island 277

BN-9 SandBN-9 Sand

BN-2 SandBN-2 Sand

BN-10 SandBN-10 Sand

Bul I-1 SandBul I-1 Sand

EPL A-3

BN-2

BN-7

BN-9

BN-10

Bul-I1

A-2A-1

A-1ST

A-3

BN-7 SandBN-7 Sand

• EPL WI – 50%

• Operator – EPL

• Water depth – 160’

• Partners – Cabot, Palace

C O N T I N U I N G

EE LL


CEO


CEO

Page 17

$0

$50

$100

$150

$200

2000 2001 2002 2003

Financial Performance

$100.9$144.1 $134.1

$229.7

$0

$50

$100

$150

$200

$250

2000 2001 2002 2003

-$8.8

$33.3

$12.0

-$18.7

-$40

-$20

$0

$20

$40

2000 2001 2002 2003

$6.46 $6.21 $5.49 $4.77

$0.00

$2.00

$4.00

$6.00

$8.00

2000 2001 2002 2003

Net IncomeNet Income

LOE/BoeLOE/Boe

$55.7$83.1 $60.0

$150.2

RevenuesRevenues(1)(1)

Discretionary Cash FlowDiscretionary Cash Flow(2)(2)

(1) Oil and natural gas revenues(2) See reconciliation in appendix

Page 18

Flexible Capital Structure

(1)(1) Moody’s Rating B2; S&P Rating B+ Moody’s Rating B2; S&P Rating B+ (2)(2) Net debt equals total debt less cash Net debt equals total debt less cash (3)(3) See EBITDAX reconciliation in appendixSee EBITDAX reconciliation in appendix

($ in millions)($ in millions)

CashCash $104.4$104.4

Revolver ($60 million borrowing Revolver ($60 million borrowing base)base)

0.10.1

8.75% Senior Notes due 20108.75% Senior Notes due 2010 150.0150.0

Other DebtOther Debt 0.30.3

Total DebtTotal Debt $150.4$150.4

Stockholders’ EquityStockholders’ Equity 261.5261.5

Total CapitalizationTotal Capitalization $411.9$411.9

Debt/Total CapitalizationDebt/Total Capitalization 37%37%

Net Debt/Total CapitalizationNet Debt/Total Capitalization 11%11%

Net Debt/Proved Reserves Net Debt/Proved Reserves ($/Boe)($/Boe)

$0.92$0.92

Debt/LTM EBITDAXDebt/LTM EBITDAX 0.950.95

(1)(1)

December 31, 2003December 31, 2003

(2)(2)

(2)(2)

(3)(3)

Page 19

Creating Value: Reserve and Production Growth

ReservesReserves ProductionProduction

OilNatural Gas

(Boe per day)

2000 2001 2002 2003 2004E

74%

64%26%

36%53%

47%

17,20016,100

10,250

62%

38%

21,100

22,200 -23,200

2000 2001 2002 2003 2004E

Oil

Natural Gas

(Mmboe)

45%

55%

47.5

35.835.7

77%

45%

55%

29%

71%

49.8

23%

?

Page 20

Focus on Gulf of Mexico Shelf

Excellent drilling track record

Experienced management team

26+ exploratory wells planned for 2004

Demonstrated value creation through acquisitions

Multi-year inventory of drilling opportunities

Strong balance sheet; capacity for acquisitions

Focus on Gulf of Mexico Shelf

Excellent drilling track record

Experienced management team

26+ exploratory wells planned for 2004

Demonstrated value creation through acquisitions

Multi-year inventory of drilling opportunities

Strong balance sheet; capacity for acquisitions

Investment Highlights

Page 21

The information contained in our presentation and materials is our sole property and any use or copying shall be with our permission.

Any statements made in our presentation or materials, other than those of historical fact, about an action, event or development, which we believe or anticipate, may or will occur in the future, are “forward-looking statements” under the US securities laws. Such statements are subject to various assumptions, risks and uncertainties, which are specifically described in our annual report on Form 10-K for fiscal year ended December 31, 2003 filed with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance or an assurance that the Company’s current assumptions and projections are valid. Actual results may differ materially from those projected.

Forward-Looking StatementsRichard A. BachmannFounder, Chairman, PresidentAnd Chief Executive Officer

Suzanne V. BaerExecutive Vice PresidentChief Financial Officer

John H. PeperExecutive Vice PresidentGeneral Counsel and Corporate Secretary

Bruce R. SidnerExecutive Vice PresidentExploration

Principal Corporate Office201 St. Charles AvenueSuite 3400New Orleans, LA 70170

Phone (504) 569-1875Fax (504) 569-1874Web www.eplweb.com

Investor Relations ContactsAl Petrie

(504) [email protected]

Charles Meade(504) 799-4814

[email protected]

Corporate Information

C O N T I N U I N G

EE LLApril 2004April 2004





New York, NYNew York, NY


CEO


Exploration


CEO


Exploration

Documents

IPAA 2004 Oil and Gas Investment Symposium