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EPL Announces Third Quarter and First Nine Months Results for 2013



EPL Announces Third Quarter and First Nine Months Results for 2013

    First Nine Months Record Oil Production Drives EBITDAX to $384 million

EPL to Acquire New 3D Seismic Covering 200 GOM Shelf Blocks (~1 million acres)

HOUSTON, Oct. 31, 2013 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. (EPL or the
Company) (NYSE:EPL) today reported financial and operational results for the
third quarter and first nine months of 2013.

Highlights

  * 3Q13 EBITDAX rose 144% versus 3Q12 to $127.5 million and adjusted non-GAAP
    net income rose 149% versus 3Q12 to $31.4 million, or $0.81 per diluted
    share (see reconciliation of EBITDAX and adjusted non-GAAP net income in
    the tables)
  * 3Q13 discretionary cash flow rose 135% versus 3Q12 to $112.7 million, or
    $2.92 per share (see reconciliation of discretionary cash flow in the
    tables)
  * 3Q13 oil production at 17,481 Bbls of oil per day, 96% higher than 3Q12
  * 3Q13 total production at 23,097 Bbls of oil equivalent per day, 113%
    higher than 3Q12
  * First nine months capital expenditures of $258.3 million; 32 successful
    projects to date (84% success rate)
  * Production levels expected in 4Q13 primarily impacted by reduced
    production rates post storm of certain high-rate wells in the West Delta
    field area shut-in during Tropical Storm Karen. Rig sourced and mobilizing
    to area in mid-December to begin production uplift. Impact to forecasted
    2013 oil production is approximately 7%
  * Projected 2013 EBITDAX of $475 million (66% increase over 2012)
  * Low leverage and ample liquidity: current net debt to projected 2013
    EBITDAX estimated at 1.3x; liquidity in the form of cash plus undrawn
    revolver availability estimated at $303 million
  * Efforts underway to unlock 3P resource potential: Recently signed seismic
    commitments totaling $45 million, including a multi-year commitment to
    acquire new 3D seismic covering 200 blocks (~1 million acres) within the
    shallow GOM. New 3D seismic acquisition to commence over core areas as
    early as 2Q14. The new 3D seismic combined with state of the art
    reprocessed datasets is expected to provide uplift necessary to exploit
    both the deep and shallow section of the Company's asset base

Financial Results 

Revenue for the third quarter and first nine months of 2013 was $184.0 million
and $550.4 million, respectively. Revenue for the third quarter and the first
nine months of 2013 increased 112% and 93% respectively versus prior periods,
driven by higher realized oil production from the Company's oil-weighted
acquisitions and organic exploitation projects.

For the third quarter of 2013, EPL reported a net loss to common stockholders
of $1.3 million, or $0.03 per diluted share, compared to a net loss of $2.2
million, or $0.06 per diluted share for the same period a year ago. The net
loss for the quarter included $26.5 million of non-cash unrealized losses on
derivative instruments and $24.9 million of costs primarily attributable to
loss on abandonment activities. These abandonment costs include $21.8 million
in abandonment costs related to four wellbores in our non-operated deepwater
properties, which are related to investments made prior to the Company's
reorganization in 2009. These increased deepwater abandonment costs are
primarily attributable to changes in regulatory interpretations and
enforcement by the federal regulators in the deepwater that increased the
required scope of work.  Excluding the impact of these items, EPL's adjusted
third quarter net income, a non-GAAP measure, would have been $31.4 million,
or $0.81 per diluted share, compared to $12.6 million, or $0.33 per diluted
share, for the same period a year ago.

For the nine months ended September 30, 2013, net income was $97.3 million, or
$2.48 per diluted share, compared to net income of $34.7 million, or $0.88 per
diluted share for the same period a year ago. Net income for the first nine
months of 2013 included $28.6 million total gains on sale of assets and $38.4
million of costs primarily attributable to loss on abandonment activities
(including the increased deepwater costs described above for the third
quarter). Excluding the impact of these items, EPL's adjusted net income for
the first nine months of 2013, a non-GAAP measure, would have been net income
of $103.6 million, or $2.64 per diluted share compared to $49.3 million, or
$1.26 per diluted share, for the same period a year ago.

For the third quarter of 2013, EBITDAX was $127.5 million and discretionary
cash flow was $112.7 million, or $2.92 per share (see reconciliation of
EBITDAX and discretionary cash flow in the tables). Cash flow from operating
activities in the third quarter of 2013 was $116.7 million, compared with cash
flow from operating activities of $54.4 million in the same quarter a year
ago. 

For the first nine months of 2013, EBITDAX was $384.0 million and
discretionary cash flow was $347.6 million, or $8.86 per share (see
reconciliation of EBITDAX and discretionary cash flow in the tables). Cash
flow from operating activities in the first nine months of 2013 was $309.2
million compared to $162.6 million for the same period a year ago.

Production and Price Realizations

Oil production for the third quarter of 2013 averaged 17,481 Barrels (Bbls)
per day. Oil production volumes were 96% higher than in the comparable quarter
last year, primarily as a result of organic oil production growth within EPL's
existing core fields and the Hilcorp acquisition of oil-weighted properties
that closed late last year. 

Natural gas production averaged 33.7 million cubic feet (Mmcf) per day in the
third quarter of 2013. Although EPL has continued its focus on oil development
opportunities that have higher revenue generation potential than natural gas,
with minimal expenditures, the Company has realized solid performance from its
natural gas assets during the first nine months of this year.  

Price realizations for the third quarter of 2013, all of which are stated
before the impact of derivative instruments, averaged $110.88 per barrel for
crude oil and $3.63 per thousand cubic feet (Mcf) of natural gas, compared to
$105.35 per barrel of crude oil and $3.00 per Mcf of natural gas in the same
quarter a year ago. The Company's crude oil is advantaged by receiving Heavy
Louisiana Sweet and Light Louisiana Sweet crude oil basis differentials. 

Oil production for the first nine months of 2013 averaged 17,554 Bbls per day,
which was 88% higher than the comparable period a year ago. Natural gas
production averaged 34.1 Mmcf per day in the first nine months of 2013. Price
realizations, all of which are stated before the impact of derivative
instruments, averaged $110.02 per barrel for crude oil and $3.78 per Mcf of
natural gas in the first nine months of 2013, compared to $110.25 per barrel
of crude oil and $2.55 per Mcf of natural gas in the same period a year ago. 

Operating Expenses

Lease operating expenses (LOE) for the third quarter of 2013 totaled $42.3
million, including approximately $2 million of non-routine workover expenses.
General and administrative (G&A) expenses were $6.4 million during the third
quarter of 2013. Reported expenses include non-cash stock based compensation
recorded during the quarter of $1.9 million.

LOE for the first nine months of 2013 totaled $126.7 million, while G&A
expenses were $20.9 million for the same period. Reported LOE and G&A
increased over the same periods a year ago mainly due to costs associated with
our expanded asset base. Reported expenses for the first nine months of 2013
include non-cash stock based compensation of $5.4 million.

Capital Expenditures and P&A Operations

During the first nine months of 2013, costs incurred for development and
exploration activities totaled approximately $255.0 million, which combined
with $3.3 million spent on seismic purchases, resulted in total expenditures
of $258.3 million. So far to date this year, the Company has conducted 38
operations, including 14 successful sidetracks and drillwells and 18
successful workover and well reactivations, with an overall 84% success rate.

The Company currently expects capital expenditures to total approximately $335
million in 2013. Development and infield exploration spending is budgeted
primarily in the West Delta, East Bay, South Timbalier, Ship Shoal, and South
Pass core field areas. The Company has continued its active drilling and
workover program with 5 rigs expected to be working within its core field
areas during the remainder of the year. In addition, EPL expects to spend
approximately $46 million for plugging and abandonment and other
decommissioning activities. The Company spent approximately $36.8 million in
the first nine months of 2013 on these activities.

EPL to Acquire New 3D Seismic Over Core Central GOM Shelf

EPL has recently signed 3D seismic commitments totaling approximately $45
million. These agreements include a commitment to acquire new 3D seismic using
wide azimuth acquisition techniques covering a minimum of 200 blocks (~1
million acres) within the shallow water GOM. This new seismic acquisition,
combined with state of the art 3D reprocessed datasets, are expected to
enhance clarity and de-risk vast resources in the deep and shallow section of
the Company's asset base. The new 3D Full Azimuth Nodal seismic data
acquisition to be conducted by Fairfieldnodal is expected to commence late
second quarter of 2014. During the fourth quarter of 2013, the Company expects
to incur approximately $8 million of exploration expenses related to these
seismic agreements.

Gary C. Hanna, the Company's Chairman, President and CEO, stated, "We have
taken a measured step forward on our regional seismic and reprocessing efforts
by becoming a major underwriter in new seismic acquisitions in the central GOM
shelf.  This new multi-year seismic commitment, covering a minimum of one
million acres, will blanket our core areas and employ state of the art
technology designed to image the deeper section while continuing to enhance
the shallow. Additionally, we will also continue to utilize ever-improving
reprocessing techniques, such as reverse time migration and inversion, to
further drive our exploration and acquisition efforts both in the known
producing pays and in the deeper, largely untested section."

Liquidity and Capital Resources

As of September 30, 2013, the Company had cash on hand of $2.9 million and
long-term restricted cash of $6.0 million. EPL has a $750 million senior
secured credit facility, with a current borrowing base of $425 million. As
previously announced in April, 2013, we sold our Bay Marchand interests to the
property operator for $51.5 million in cash and the buyer's assumption of
liabilities recorded on our balance sheet of $11.3 million resulting in total
consideration of $62.8 million, subject to customary adjustments to reflect
the January 1, 2013 economic effective date.  The cash proceeds from this sale
of assets were deposited with a qualified intermediary in contemplation of a
potential tax-deferred exchange of properties and classified as restricted
cash at June 30, 2013. On September 26, 2013, $16.5 million of the proceeds
were used to fund an acquisition of 100% of the working interest of certain
Gulf of Mexico shelf oil and natural gas interests within the West Delta 29
field. On September 29, 2013, the underlying escrow agreement expired, and the
remaining amount of the deposit became unrestricted.   As a result, as of
September 30, 2013, EPL had reduced its borrowings under its credit facility
to $125 million, a reduction of $40 million since the prior quarter end.

EPL's current liquidity, in the form of cash plus undrawn revolver
availability is approximately $303 million. Based on the solid performance of
its assets, EPL's current leverage remains low, estimated at 1.3x net debt to
projected 2013 EBITDAX using the midpoint of the guidance. (See the guidance
section contained in this press release and the discussion of EBITDAX in the
tables). 

2013 and 2014 Hedge Position

The Company has layered in downside protection to protect its cash flow,
mainly in the form of Louisiana Light Sweet (LLS) and Brent oil swaps. For the
fourth quarter of 2013, EPL has a total of 8,045 Bbls of oil per day hedged,
the majority of which is hedged using Brent swaps at a fixed price averaging
$104.45 per Bbl. For full year 2014, EPL has a total of 10,996 Bbls of oil per
day hedged, all of which is hedged using LLS and Brent swaps at a fixed price
averaging $99.54 per Bbl. For the fourth quarter of 2013, EPL has a total of
7,332 Mcf per day of gas hedged, all of which is hedged using swaps at a fixed
price averaging $3.68 per Mcf. For full year 2014, EPL has a total of 5,000
Mcf per day of gas hedged, all of which is hedged using swaps at a fixed price
averaging $4.01 per Mcf.

Fourth Quarter and Full Year 2013 Guidance

Hanna concluded, "We are seeing some disruptions within this quarter, namely a
week or so of downtime from tropical storm Karen and ongoing curtailed
production from a third party pipeline shut-in that began last week.
Additionally following the storm, as we worked to restore production, we have
seen a significant performance drop off isolated to three high rate oil wells
within our West Delta area shut-in during the event. Despite the drop, the
wells are still highly economic, with production already exceeding our proved
reserves to date and behind pipe opportunities we can recomplete to once the
current zones deplete.

We have sourced a new rig to add to our active drilling program that is now
set to mobilize to the West Delta field area as early as mid-December to begin
executing projects within this prospect rich area. We are confident that this
effort and our ongoing operations elsewhere will act to uplift our oil
production. However, our fourth quarter oil production averages will suffer
from this event and the other disruptions. Therefore, we are decreasing our
2013 annual forecasted oil production by roughly 7% to approximately 17,000
Bbls of oil per day, and we are forecasting our exit rate to be around 17,500
Bbls of oil per day. Despite this change and the recent decrease in oil
prices, our projected 2013 EBITDAX remains high at approximately $475 million,
up 66% from last year."

ESTIMATED PRODUCTION & SWAP HEDGE VOLUMES
Note: 4Q13/Full Yr 2013 production guidance impacted by the following: the
downtime associated with fields shut-in during TS Karen, reduced rates post TS
Karen isolated to the West Delta area, and 3rd party pipeline intregrity
testing late Oct/early Nov affecting West Delta and South Pass field areas. 
                                                                       
Net
Production                   4Q 2013                  Full Year 2013 
(per day)
Oil,
including                    14,750   -       15,750  16,850   -       17,100
NGLs (Bbls)
Natural gas                  24,000   -       30,000  31,500   -       33,000
(Mcf)
Boe                          18,750   -       20,750  22,100   -       22,600
% Oil, including
NGLs (using                          77%                      76%      
midpoint of
guidance)
                                                                       
Swap
Contracted                                                             
Volume
Oil (barrels)                        7,045                    10,157   
% of Oil swap                        46%             60%       -      59%
contracted
% of Boe swap                        36%             46%       -      45%
contracted
Average Swap                         $103.63                  $104.62  
Price Level
                                                                       
ESTIMATED EXPENSES (in Millions,                                       
unless otherwise noted)
                                                                       
Lease
Operating
(including                   $ 41.0   -       $ 44.0  $ 168    -       $ 171
energy
insurance)
General &
Administrative               $ 7.0    -       $ 7.5   $ 28     -       $ 29
(cash and non-cash)
Taxes, other
than on                      $ 2.5    -       $ 3.5   $ 11     -       $ 12
earnings
Exploration                  $ 11     -       $ 13    $ 21     -       $ 23
Expense
DD&A ($/Boe),                                 $
excluding                    $ 25.50  -      27.00    $ 25.50  -       $ 27.00
accretion
DD&A ($/Boe),                                 $
including                    $ 28.50  -      30.00    $ 28.50  -       $ 30.00
accretion
Interest Expense (including
amortization of discount     $ 12.5   -       $ 13.5  $ 51     -       $ 53
and deferred financing
costs)
                                                                       
ESTIMATED     $475  Million                                            
EBITDAX:
                                                                       
ESTIMATED
FREE CASH     $55   Million                                            
FLOW:

Conference Call Information

EPL has scheduled a conference call for today, October 31, 2013, at 9:30 A.M.
Central Time/10:30 A.M. Eastern Time to review results for the third quarter
2013 and to discuss its outlook for the remainder of the year. To participate
in the EPL conference call, callers in the United States and Canada can dial
(866) 845-8624 and international callers can dial (706) 634-0487. The
Conference I.D. for callers is 88223861.

The call will be available for replay beginning two hours after the call is
completed through midnight of November 14, 2013. For callers in the United
States and Canada, the toll-free number for the replay is (855) 859-2056. For
international callers the number is (404) 537-3406. The Conference I.D. for
all callers to access the replay is 88223861.

The conference call will be webcast live as well as for on-demand listening at
the Company's website, www.eplweb.com. Listeners may access the call through
the "Events and Webcasts" link in the Investor Relations section of the site.

Description of the Company

Founded in 1998, EPL is an independent oil and natural gas exploration and
production company headquartered in Houston, Texas with an office in New
Orleans, Louisiana. The Company's operations are concentrated in the U.S. Gulf
of Mexico shelf, focusing on the state and federal waters offshore
Louisiana. For more information, please visit www.eplweb.com.

Forward-Looking Statements

This press release may contain forward-looking information and statements
regarding EPL. Any statements included in this press release that address
activities, events or developments that EPL "expects," "believes," "plans,"
"projects," "estimates" or "anticipates" will or may occur in the future are
forward-looking statements. We believe these judgments are reasonable, but
actual results may differ materially due to a variety of important
factors. Among other items, such factors might include: hurricane and other
weather-related interference with business operations; the effects of delays
in completion of, or shut-ins of, gas gathering systems, pipelines and
processing facilities; stock market conditions; the trading price of EPL's
common stock; cash demands caused by planned and unplanned capital
expenditures; changes in general economic conditions; uncertainties in reserve
and production estimates, particularly with respect to internal estimates that
are not prepared by independent reserve engineers; unanticipated recovery or
production problems; changes in legislative and regulatory requirements
concerning safety and the environment as they relate to operations and to
abandonment of wells and production facilities; oil and natural gas prices and
competition; the impact of derivative positions; production expenses and
expense estimates; cash flow and cash flow estimates; future financial
performance; drilling and operating risks; our ability to replace oil and gas
reserves; risks and liabilities associated with properties acquired in
acquisitions; integration of acquired assets; volatility in the financial and
credit markets or in oil and natural gas prices; and other matters that are
discussed in EPL's filings with the Securities and Exchange Commission.
(http://www.sec.gov/)

EPL OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
                         Three Months Ended         Nine Months Ended
                         September 30,              September 30,
                         2013          2012         2013          2012
Revenue:                                                           
Oil and natural gas       $ 183,114     86,645       $ 547,099     284,666
Other                     878           23           3,329         68
                          183,992       86,668       550,428       284,734
                                                                   
Costs and expenses:                                                
Lease operating           42,291        24,995       126,663       62,067
Transportation            974           160          2,317         410
Exploration expenditures  5,146         966          13,609        17,862
and dry hole costs
Impairments               12            498          2,183         6,206
Depreciation, depletion   53,989        27,106       153,847       78,932
and amortization
Accretion of liability
for asset retirement      6,266         3,472        18,464        10,031
obligations
General and               6,426         5,995        20,927        16,993
administrative
Taxes, other than on      3,285         3,189        8,884         9,834
earnings
Gain on sale of assets    (1,745)       -            (28,601)      -
Other                     26,534        998          33,077        4,616
Total costs and expenses  143,178       67,379       351,370       206,951
                                                                   
Income from operations    40,814        19,289       199,058       77,783
                                                                   
Other income (expense):                                            
Interest income           64            40           91            128
Interest expense          (13,177)      (5,114)      (39,370)      (15,081)
Loss on derivative        (30,012)      (22,108)     (7,033)       (11,865)
instruments
                          (43,125)      (27,182)     (46,312)      (26,818)
                                                                   
Income (loss) before      (2,311)       (7,893)      152,746       50,965
income taxes
Provision for Income                                               
taxes:
Current                   (25)          126          (175)         (174)
Deferred                  1,052         5,520        (55,239)      (16,134)
Total provision for       1,027         5,646        (55,414)      (16,308)
income taxes
                                                                   
Net income (loss)        $ (1,284)      (2,247)      $ 97,332      34,657
                                                                   
Net income (loss), as    $ (1,284)      (2,247)      $ 97,332      34,657
reported
Add back:                                                          
Unrealized loss (gain)
due to the change in      26,478        22,010       (822)         8,052
fair value of derivative
instruments
Gain on sale of assets    (1,745)       -            (28,601)      -
Dry hole costs            73            (76)         3,764         4,097
Impairments               12            498          2,183         6,206
Loss on abandonment       22,562        4            27,982        3,405
activities
Amortization of weather   4,022         1,029        5,333         1,371
derivative premium
Deduct:                                                            
Income tax adjustment     (18,710)      (8,588)      (3,581)       (8,466)
for above items
                                                                   
Adjusted Non-GAAP net     $ 31,408      12,630       $ 103,590     49,322
income
                                                                   
EBITDAX Reconciliation:                                            
                                                                   
Net income (loss), as    $ (1,284)      (2,247)      $ 97,332      34,657
reported
Add back:                                                          
Income taxes              (1,027)       (5,646)      55,414        16,308
Net interest expense      13,113        5,074        39,279        14,953
Depreciation, depletion,
amortization and          60,255        30,578       172,311       88,963
accretion
Impairments               12            498          2,183         6,206
Exploration expenditures  5,146         966          13,609        17,862
and dry hole costs
Loss on abandonment       22,562        4            27,982        3,405
activities
Amortization of weather   4,022         1,029        5,333         1,371
derivative premium
Gain on sale of assets    (1,745)       -            (28,601)      -
Less impact of:                                                    
Unrealized loss (gain)
due to the change in      26,478        22,010       (822)         8,052
fair value of derivative
instruments
                                                                   
EBITDAX                   $ 127,532     52,266       $ 384,020     191,777
                                                                   
Weighted average
dilutive common shares    38,589        38,743       39,256        39,056
outstanding
                                                                   
                                                                   
EBITDAX is defined as net income (loss) before income taxes, net interest
expense, depreciation, depletion, amortization and accretion, impairments,
exploration expenditures and dry hole costs, loss on abandonment activities,
amortization of weather derivative premium, and gain on sale of assets, and
further deducts the unrealized gain or loss on our derivative instruments. We
have reported EBITDAX because we believe EBITDAX is a measure commonly
reported and widely used in our industry as an indicator of a company's
ability to internally fund exploration and development activities and incur
and service debt. EBITDAX is not a calculation based on generally accepted
accounting principles (GAAP) in the United States and should not be considered
in isolation from or as a substitute for net income, as an indication of
operating performance or cash flows from operating activities or as a measure
of liquidity. Investors should carefully consider the specific items included
in our computation of EBITDAX. Investors should be cautioned that EBITDAX as
reported by us may not be comparable in all instances to EBITDAX as reported
by other companies. In addition, EBITDAX does not represent funds available
for discretionary use.

                                                                    
EPL OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF NET CASH PROVIDED BY
OPERATING ACTIVITIES
(In thousands)
(Unaudited)
                                                                    
                                                                    
                          Three Months Ended          Nine Months Ended
                          September 30,               September 30,
                          2013            2012        2013         2012
Cash flows from operating                                           
activities:
Net income (loss)         $ (1,284)        (2,247)     97,332       34,657
Adjustments to reconcile net income
(loss) to net cash provided by operating                            
activities:
Depreciation, depletion    53,989          27,106      153,847      78,932
and amortization
Accretion of liability
for asset retirement       6,266           3,472       18,464       10,031
obligations
Unrealized loss (gain) on  26,478          22,010      (822)        8,052
derivative contracts
Non-cash compensation      1,910           1,175       5,358        3,493
Deferred income taxes      (1,052)         (5,520)     55,239       16,134
Exploration expenditures   73              (76)        3,764        4,097
Impairments                12              498         2,183        6,206
Amortization of deferred
financing costs and        1,361           512         4,016        1,516
discount on debt
Gain on sale of assets     (1,745)         -           (28,601)     - 
Other                      22,562          4           27,982       3,405
Changes in operating                                                
assets and liabilities:
Trade accounts receivable  8,542           4,270       (1,718)      5,171
Prepaid expenses           549             2,242       (5,308)      4,062
Other assets               (1,361)         440         (1,077)      362
Accounts payable and       10,457          8,852       15,345       14,149
accrued expenses
Asset retirement           (10,072)        (8,301)     (36,843)     (27,647)
obligation settlements
                                                                    
Net cash provided by       $ 116,685       54,437      309,161      162,620
operating activities
                                                                    
Reconciliation of                                                   
discretionary cash flow:
Net cash provided by       116,685         54,437      309,161      162,620
operating activities
Changes in working         (8,115)         (7,503)     29,601       3,903
capital
Non-cash exploration
expenditures and           (85)            (422)       (5,947)      (10,303)
impairments
Total exploration
expenditures, dry hole     4,200           1,464       14,834       24,068
costs and impairments
Discretionary cash flow    $ 112,685       47,976      347,649      180,288
                                                                    
                                                                    
The table above reconciles discretionary cash flow to net cash provided by or
used in operating activities. Discretionary cash flow is defined as cash flow
from operations before changes in working capital and exploration
expenditures. Discretionary cash flow is widely accepted as a financial
indicator of an oil and natural gas company's ability to generate cash which
is used to internally fund exploration and development activities, pay
dividends and service debt. Discretionary cash flow is presented based on
management's belief that this non-GAAP financial measure is useful information
to investors because it is widely used by professional research analysts in
the valuation, comparison, rating and investment recommendations of companies
within the oil and natural gas exploration and production industry. Many
investors use the published research of these analysts in making their
investment decisions. Discretionary cash flow is not a measure of financial
performance under GAAP and should not be considered as an alternative to cash
flows from operating activities, as defined by GAAP, or as a measure of
liquidity, or an alternative to net income. Investors should be cautioned that
discretionary cash flow as reported by the Company may not be comparable in
all instances to discretionary cash flow as reported by other companies.

                                                                    
EPL OIL & GAS, INC
SELECTED PRODUCTION, PRICING AND OPERATIONAL STATISTICS
(Unaudited)
                                                                    
                                                                    
                            Three Months Ended       Nine Months Ended
                            September 30,            September 30,
                            2013          2012       2013          2012
                                                                    
PRODUCTION AND PRICING                                              
Net Production (per day):                                           
                                                                    
Crude Oil (Bbls)             16,563        8,466      16,785        8,923
Natural Gas Liquids (Bbls)   918           435        769           427
Oil (Bbls)                   17,481        8,901      17,554        9,350
Natural gas (Mcf)            33,696        11,558     34,130        14,378
Total (Boe)                  23,097        10,827     23,242        11,746
Average Sales Prices:                                               
Crude Oil (per Bbl)          $ 110.88      105.35     $ 110.02      110.25
Natural Gas Liquids (per     34.23         35.03      36.65         43.27
Bbl)
Oil (per Bbl)                106.85        101.91     106.81        107.19
Natural gas (per Mcf)        3.63          3.00       3.78          2.55
Average (per Boe)            86.17         86.98      86.22         88.44
Oil and Natural Gas                                                 
Revenues (in thousands):
Crude Oil                    $ 168,956     82,051     $ 504,160     269,568
Natural Gas Liquids          2,891         1,402      7,690         5,061
Oil                          171,847       83,453     511,850       274,629
Natural gas                  11,267        3,192      35,249        10,037
Total                        183,114       86,645     547,099       284,666
                                                                    
Impact of derivative
instruments settled during                                          
the period^(1):
Oil (per Bbl)                $ (2.18)      (0.11)     $ (1.53)      (1.49)
Natural gas (per Mcf)        (0.01)        (0.01)     (0.05)        - 
                                                                    
OPERATIONAL STATISTICS                                              
Average Costs (per Boe):                                            
Lease operating expense      $ 19.90       25.09      $ 19.96       19.28
Depreciation, depletion and  25.41         27.21      24.25         24.52
amortization
Accretion expense            2.95          3.49       2.91          3.12
Taxes, other than on         1.55          3.20       1.40          3.06
earnings
General and administrative   3.02          6.02       3.30          5.28
                                                                    
^(1)The derivative amounts represent the realized portion of gains or losses
on derivative instruments settled during the period which are included in
Other income (expense) in the consolidated statements of operations.

                                                              
EPL OIL & GAS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
                                          September 30,      December 31,
                                          2013               2012
                                                              
ASSETS                                                        
Current assets:                                               
Cash and cash equivalents                  $ 2,939            $ 1,521
Trade accounts receivable - net            68,748             67,991
Fair value of commodity derivative         972                3,302
instruments
Deferred tax asset                         4,414              3,322
Prepaid expenses                           14,454             9,873
Total current assets                       91,527             86,009
                                                              
Property and equipment                     2,299,323          2,025,647
Less accumulated depreciation, depletion,  (569,124)          (427,580)
amortization and impairments
Net property and equipment                 1,730,199          1,598,067
                                                              
Restricted cash                            6,023              6,023
Fair value of commodity derivative         675                211
instruments
Deferred financing costs --- net of        10,851             12,386
accumulated amortization
Other assets                               4,023              2,931
                                           $ 1,843,298        $ 1,705,627
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                          
Current liabilities:                                          
Accounts payable                           $ 55,410           $ 34,772
Accrued expenses                           103,160            117,372
Asset retirement obligations^(1)           47,482             30,179
Fair value of commodity derivative         10,694             10,026
instruments
Deferred tax liabilities                   -                  -
Total current liabilities                  216,746            192,349
                                                              
Long-term debt                             621,723            689,911
Asset retirement obligations^(1)           240,288            204,931
Deferred tax liabilities                   124,025            67,694
Fair value of commodity derivative         281                3,637
instruments
Other                                      1,158              1,132
                                           1,204,221          1,159,654
                                                              
Commitments and contingencies                                 
                                                              
Stockholders' equity:                                         
Preferred stock, $0.001 par value per
share. Authorized 1,000,000 shares; no     -                  -
shares issued and outstanding at
September 30, 2013 and December 31, 2012
Common stock, $0.001 par value per share.
Authorized 75,000,000 shares; shares
issued 40,948,737 and 40,601,887 at
September 30, 2013 and December 31, 2012,  40                 40
respectively; shares outstanding
39,083,424 and 39,103,203 at September
30, 2013 and December 31, 2012,
respectively
Additional paid-in capital                 516,690            510,469
Treasury stock, at cost, 1,865,313 and
1,498,684 shares at September 30, 2013     (30,926)           (20,477)
and December 31, 2012, respectively
Retained earnings                          153,273            55,941
Total stockholders' equity                 639,077            545,973
                                           $ 1,843,298        $ 1,705,627
 
^(1)We revise our estimates of ARO as information about material changes to
the liability becomes known. During the three months ended September 30, 2013,
we recorded revisions to our ARO liability related to our shallower-water
assets of $31.0 million. This does not affect current results of operations,
but increases the carrying amount of the related assets and will result in
higher DD&A including accretion expense in future periods.

CONTACT: Investors/Media

         T.J. Thom, Chief Financial Officer
         713-228-0711
         tthom@eplweb.com

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