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Energy Partners, Ltd. at Collins Stewart 4th Annual Growth Conference - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

KIM PACANOVSKY, ANALYST, COLLINS STEWART: Good morning, everyone. My name is Kim Pacanovsky, and Richard Rossi and I cover the oil and gas space. I am pleased to announce -- to welcome Energy Partners to our conference, and Rick Bachmann who is the Chairman and Chief Executive Officer is going to speak.

RICK BACHMANN, CHAIRMAN & CEO, ENERGY PARTNERS: Kim, thank you, and thank you for the opportunity to present at Collins Stewart. Energy Partners is a company that was founded almost 10 years ago today. We celebrated our 10th anniversary last month. We founded the Company to explore for oil and gas in the water, so essentially, we are a water company. All of our geologists, geophysicists, engineers have webbed feet, so we keep them wet.

We have concentrated on the shelf. We are going to talk a lot about the Central Gulf of Mexico, which really goes from the Ship Shoal area basically to the mouth of the Mississippi River. A couple of years back, we went into the deepwater. Deepwater for us is 5000 feet of water. Why 5000 feet? Simply because when the majors moved through the deepwater, they left infrastructure behind in that 5000 foot range.

We wanted to go in an area that we could have a cycle time of two years or less from the point of exploratory discovery to the point of marketing that product. You can do that in 5000 feet of water. We will talk about that extensively.

We are located in the swamp, headquartered in New Orleans. We have got offices in Houston. One of the key points about this company is all of our reserves are fully engineered by Ryder Scott, Netherland, Sewell. Basically, what that says is our engineers, our geologists, turn over their maps, their logs to a third-party reservoir engineer and they tell us what to book. So in terms of the quality of reserves on the books, it really doesn't get any better than that.

Proved reserves, 45 million barrel of oil equivalents, 84% proved developed. PV-10, basically using year-end prices, which obviously are much higher today, $1.5 billion. That is a relevant number, particularly when you look at the market capitalization of the Company, which is about a third of that number.

For an oil and gas company, we are more oily than our peers with our proved reserves being 62% oil, 38% gas. Principally, that is because of the location of our reserves. The Central Gulf of Mexico tends to be a little more oily. Our major properties are at South Tim 26, 41, 42 in the East Bay field. Those are all principally oil fields.

Again, our reserves are skewed toward oil. Our production is skewed toward gas. Reserve life again is a little bit longer than our peers, because of this oil component.

The Company has three legs to its strategy. We talk a lot about exploration, exploitation and acquisitions. The whole intent of a three-legged stool is to reduce the risk in terms...

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