Production Capability Above Pre-Storm Levels

Energy Partners, Ltd. (“EPL” or the “Company”) (NYSE:EPL) today provided an update on its production operations and preliminary information on its 2008 results.

Production Update

The Company reported its current daily production is 16,500 barrels of oil equivalent (“Boe”) per day, with an additional 2,000 Boe per day temporarily curtailed and set to resume production this weekend. EPL’s current production capability of 18,500 Boe per day is above the level immediately prior to the hurricanes last summer of approximately 16,500 Boe per day, and above the average production reported in the first half of 2008 of 15,794 Boe per day. Both the Bluewater and Discovery third-party operated pipelines have been repaired and began accepting EPL’s volumes late January, which led to the majority of the recent volume increment. The Company has approximately 1,750 Boe per day of primarily non-operated shut-in production that is partner dependent; the exact timing of restoration of these volumes is not yet certain. However, based on current estimates by the operators of these fields, the majority of this production is expected to ramp up within the first half of 2009. Based on the latest information available, the Company said it expects first quarter 2009 production to average between 15,000 and 16,000 Boe per day.

Richard A. Bachmann, EPL’s Chairman and CEO commented, “The restoration of production volumes to levels that now exceed pre-storm amounts is a significant milestone for us. Our operations group did an excellent job of preparing our production facilities to be immediately ready when the third-party pipelines were repaired.”

Financial Results

EPL expects its Lease Operating Expenses (LOE) for calendar year 2008 to total approximately $68 million, which is below 2007 LOE of $69.9 million despite the incurrence of hurricane repair expenses. EPL estimates, absent the hurricane disruptions to production and operations, its ongoing LOE for calendar year 2008 would have been approximately $57 million. General and administrative expenses (G&A) are expected to total approximately $45 million. Included in G&A is approximately $11 million of insurance premium costs, of which approximately $9 million is related to property on developed leases, as well as approximately $5 million in non-cash stock based compensation. LOE and G&A, the largest components of cash operating expenses, are estimated to have fallen approximately $21 million in 2008, excluding the impact of the hurricanes in 2008 and $9.4 million of 2007 legal and financial advisory fees not present in 2008. This decline in expenses is in line with the Company’s goal to reduce its ongoing LOE and G&A costs by a total of $20 million in 2008. In 2009, EPL is currently targeting to reduce its combined ongoing LOE and G&A costs by at least $5 million as compared to 2008.

EPL said it expects to record approximately $125 to $150 million of pre-tax, non-cash impairment charges associated with its oil and natural gas properties in the fourth quarter of 2008.