EPL Announces Year-End Results for 2013

EPL Announces Year-End Results for 2013

                     2013 Oil Production Up 63% Over 2012

                       148% Organic Reserve Replacement

             Recent EI Acquisition Drives 1P Reserves to 84 Mmboe

     Proved + Probable Reserves Estimated at 114 Mmboe, $3.2 Billion PV10

           Additional Drilling Inventory Increases 54% to 100 Mmboe

 Deep Oil Sand Discovery in Ship Shoal Set to Production Test at End of 1Q14

HOUSTON, Feb. 27, 2014 (GLOBE NEWSWIRE) -- EPL Oil & Gas, Inc. (EPL or the
Company) (NYSE:EPL) today reported financial and operational results for the
fourth quarter and full year 2013.

Highlights

  o2013 EBITDAX of $472.8 million (64% increase over 2012) and adjusted net
    income of $108.1 million, or $2.76 per diluted share (see EBITDAX
    reconciliation in the tables)
  oEstimated proved reserves of 80.4 Mmboe and PV10 of $2.1 Billion as of
    December 31, 2013, representing organic production replacement of 148%
    (see discussion of PV10 in the appendix)
  oYear-end 2013 proved reserve values exclude the recently closed
    acquisition of Eugene Island 258/259 field which currently are estimated
    at 3.6 Mmboe, 96% oil (up 39% since first announcement)
  oEstimated probable reserves of 29.8 Mmboe (68% oil) as of December 31,
    2013, with PV10 of $1.0 Billion (see discussion of PV10 in the appendix)
  oAdditional internally evaluated drilling inventory grows 54% to 100 Mmboe
    since last updated in 3Q13, representing 109 projects within the shallow
    sections of EPL's core fields
  oDeep oil sand discovery from the 4Q13 exploratory drillwell at SS208 set
    to production test end of 1Q14

Financial Results

For full year 2013, revenues increased 64% to $693 million versus $423.6
million for full year 2012, mainly attributable to a 63% increase in 2013
annual oil production. A large portion of this oil production increase
resulted from the Hilcorp acquisition in November 2012 and organic development
activities. For full year 2013, net income was $85.3 million, or $2.15 per
diluted share, compared to net income of $58.8 million, or $1.50 per diluted
share for full year 2012. The net income for 2013 included $20.9 million of
non-cash losses on derivative instruments, $27.2 million of losses on
abandonment activities related mainly to non-operated deepwater properties and
a $28.7 million gain on the sale of assets. Excluding the impact of these
items, EPL's 2013 adjusted net income, a non-GAAP measure, would have been
$108.1 million, or $2.76 per diluted share.

Revenue for the fourth quarter of 2013 was $142.6 million, compared to $138.9
million for the same period a year ago. For the fourth quarter of 2013, EPL
reported net loss to common stockholders of $12.1 million, or $0.31 per
diluted share, compared to a net income of $24.2 million, or $0.61 per diluted
share, for the same period a year ago. The net loss for the fourth quarter of
2013 included $26.0 million of items, mainly comprised of $21.7 million of
non-cash losses on derivative instruments. Excluding the impact of these
items, EPL's adjusted fourth quarter net income, a non-GAAP measure, would
have been $4.5 million, or $0.12 per diluted share.

For full year 2013, EBITDAX was $472.8 million and discretionary cash flow was
$423.9 million, or $10.80 per share (see reconciliation to GAAP of EBITDAX and
discretionary cash flow in the tables). Cash flow from operating activities in
2013 was $387.6 million, an 81% increase over cash flow from operating
activities for 2012.

For the fourth quarter of 2013, EBITDAX was $88.8 million and discretionary
cash flow was $76.3 million, or $1.97 per share (see reconciliation to GAAP of
EBITDAX and discretionary cash flow in the tables). Cash flow from operating
activities in the fourth quarter of 2013 was $78.4 million, a 53% increase
compared to cash flow from operating activities for the same quarter a year
ago.

Gary C. Hanna, the Company's Chairman, President and CEO, stated, "2013 was a
transformational year that delivered on all of our stated goals as we
continued our focus on implementing our acquire and exploit strategy. With six
acquisitions under our belt since 2011 including the recently closed Eugene
Island 258/259 field, we are focused squarely on the future upside potential
of our current asset base. With our regional expertise, we will continue to
focus on operational and technical excellence as we continue to extract
shallow and deep organic production and reserve growth from our high quality
acreage.

"Our portfolio in the shallow section has grown to 214 Mmboe, consisting of
114 Mmboe of proved and probable reserves fully engineered by NSAI plus our
additional internally evaluated drilling portfolio, which we currently
estimate to be at 100 Mmboe. This is outside of our 3P inventory in the deeper
section, which is conservatively estimated at 150 to 300 Mmboe. All of these
estimates are before the added benefit of new 3D seismic and reprocessed
datasets expected to start coming in house late this year from our $45 million
multi-year seismic commitments."

Production and Price Realizations

Oil production for 2013 averaged 16,938 barrels (Bbls) per day, up 63% from
2012. Oil production for 2013 was within the Company's guidance range and a
new record annual high for the Company.Natural gas production for 2013
averaged 32.9 million cubic feet (Mmcf) per day, on the highside of the
Company's guidance. Price realizations for full year 2013, all of which are
stated before the impact of derivative instruments, averaged $107.32 per
barrel for crude oil and $3.81 per thousand cubic feet (Mcf) of natural gas,
compared to $108.88 per barrel of crude oil and $2.89 per Mcf of natural gas
in 2012.

Oil production for the fourth quarter of 2013 averaged 15,109 Bbls per day and
natural gas production averaged 29.1 Mmcf per day, both solidly within the
Company's guidance range. Price realizations for the fourth quarter of 2013,
all of which are stated before the impact of derivative instruments, averaged
$97.82 per barrel for crude oil and $3.91 per Mcf of natural gas, compared to
$106.07 per barrel of crude oil and $3.40 per Mcf of natural gas in the same
quarter a year ago.

Operating Expenses

Lease operating expenses (LOE) and general and administrative expenses (G&A)
for full year and fourth quarter 2013 came in on the low end of, or favorably
below, Company guidance ranges previously provided.

LOE for 2013 totaled $165.8 million and G&A expenses were $28.1 million. LOE
for the fourth quarter of 2013 totaled $39.2 million and G&A expenses were
$7.2 million. Expenses included non-cash stock based compensation recorded in
the full year and fourth quarter 2013 of $7.3 million and $2.0 million,
respectively.

Capital Expenditures and P&A Operations

For full year 2013, costs incurred for development and exploration activities
totaled approximately $335.9 million and $12.3 million on seismic purchases.
During the year, the Company completed 44 major operations, including 14
successful sidetracks and drillwells and 22 successful workovers and well
reactivations, with an overall 82% success rate. Additionally, the Company
spent $2.1 million on 5 bid leases comprising 13,892 acres in the shallow Gulf
of Mexico shelf.

In addition, the Company spent approximately $53.3 million in 2013 for
plugging and abandonment and other decommissioning activities performed during
the year, which will serve to reduce future maintenance and insurance
costs.In total, since the Company began focusing its efforts to reduce its
idle iron in late 2009, the Company has plugged and abandoned 509 wells and
decommissioned 153 jackets and platforms.

Year-End 2013 Proved & Probable Reserves + Subsequent Additions from 2014 EI
Asset Acquisition

The Company's estimated proved reserves as of December 31, 2013 were 80.4
Mmboe (64% oil). At year-end 2013, 57.4 Mmboe (or 71%) of these proved
reserves were proved developed reserves, 69% of which were oil. Estimated
proved undeveloped reserves (PUDs) at year-end 2013 were 23.1 Mmboe, 52% of
which were oil. The year-end 2013 proved reserves of 80.4 Mmboe excludes an
additional 3.6 Mmboe of estimated proved reserves from the recently closed
acquisition of the Eugene Island (EI) 258/259 field that closed in January
2014.

The net increase in total estimated proved reserves for year-end 2013 was the
result of 10.7 Mmboe of organic reserve additions from extensions and
discoveries, positive revisions of 2.3 Mmboe, acquisitions of 0.4 Mmboe,
offset by 8.8 Mmboe of net production and 1.6 Mmboe of asset sales. Organic
additions and revisions replaced 148% of 2013 net production. EPL's focus on
oil activities led to an oil reserve replacement of 183% for 2013, which has
been consistently in this same range over the last three years. (See the
Supplemental Oil & Gas Disclosure table for details).

The present value of the future net cash flows before income taxes of the
Company's estimated proved oil and natural gas reserves at the end of 2013
using a discount rate of 10% (PV10) was approximately $2.1 billion as
calculated consistent with SEC guidelines and pricing. All development, P&A
and decommissioning costs are included in the calculation of PV10. (PV10 is a
non-GAAP measure; see table below and discussion of PV10 in the appendix).

The Company's estimated probable reserves as of December 31, 2013 were 29.8
Mmboe, 68% of which were oil. The present value of the future net cash flows
before income taxes of the Company's estimated probable oil and natural gas
reserves at the end of 2013 using a discount rate of 10% (PV10) was
approximately $1.0 billion as calculated consistent with SEC guidelines and
pricing. (PV10 is a non-GAAP measure; see table below and discussion of PV10
in the appendix).

All of the Company's 2013 proved and probable reserve figures are based upon
third party engineering estimates prepared by Netherland, Sewell & Associates,
Inc.

1P & 2P RESERVES AND PV10 VALUES
                                                          
ReserveCategory       Oil (Mmbo)   Gas (Bcf)   Mmboe   % Oil  PV10 YE
                                                               ($Billion)^(1)
Proved Developed       39.4         107.7       57.4    69%    1.4
Proved Undeveloped     12.1         65.9        23.0    53%    0.7
2013 Proved (1P)       51.5         173.6       80.4    64%    2.1
2014 Proved (1P) EI    3.4          1.2         3.6     96%    0.1
asset acq
2013 Probables         20.2         57.8        29.8    68%    1.0
Proved + Probables     75.1         232.6       113.8   66%    3.2
(1) The present value of the future net cash flows before income taxes of the
Company's estimated proved oil and natural gas reserves at the end of 2013
using a discount rate of 10% (PV10) as calculated consistent with SEC
guidelines and 2013 pricing of $105.30 per barrel of oil and $3.73 per Mcf of
natural gas.

Acreage

At year-end 2013, EPL's gross and net leasehold acreage totaled 422,065 and
309,468, respectively. Of the net leasehold acreage 77% was developed.
Ninety-six percent of the total net leasehold acreage is located on the GOM
shelf, and the remaining 4% is primarily undeveloped deepwater GOM acreage.

Liquidity and Capital Resources

As of December 31, 2013, the Company had unrestricted cash on hand of $8.8
million and restricted cash of $6.0 million. During the year ended December
31, 2013, EPL reduced its borrowings under its senior credit facility to $130
million, a reduction of $65 million since December 31, 2012. Of the net
proceeds of $52 million from the sale of certain interests within Bay
Marchand, approximately $17 million was used to fund the West Delta 29
acquisition and approximately $35 million was used in this reduction of
borrowings.

EPL recently completed its acquisition of the EI 258/259 field for $70.4
million in January, 2014, subject to customary adjustments to reflect the
September 1, 2013 economic effective date.The acquisition was financed with
borrowings under EPL's senior credit facility.In January 2014, EPL's lenders
approved a $50 million increase in the Company's borrowing base from $425
million to $475 million.As of February 21, 2014, the Company had $265 million
available under its senior credit facility. EPL currently has $210 million
outstanding under its senior credit facility, and its leverage remains low at
1.6x net debt to projected 2014 EBITDAX using the midpoint of the guidance.
(See the guidance section contained in this press release and the discussion
of EBITDAX in the tables.)

2014 Initial Capital Budget and Current Operations

The Company's previously announced initial capital budget remains at $360
million, dominated by oily, lower-risk development activities in 2014. This
initial budget will primarily fund the exploitation of the shallow section
within EPL's Ship Shoal, West Delta, South Timbalier, and Main Pass core field
areas. Capital spending is still expected to be front loaded, intended to
drive production growth and organic reserve replacement.Roughly 70% of the
capital budget is expected to be spent on drillwells and sidetrack operations,
17% on major rig workovers and waterflood opportunities intended to drive oil
production increases for select reservoirs within core field areas, and the
remaining 13% of the budget consists primarily of facility projects.

This initial budget has been conservatively designed to measure results in the
first half of 2014, commodity prices, and free cash flow generation. Based on
these factors, this initial budget could be modified up or down during 2014.
Increases to the budget could include allocating capital to projects designed
to test the deeper section of the Company's core field areas as high-quality
reprocessed and new seismic data becomes available throughout the coming
year.In addition, the Company plans to spend approximately $50 million in
2014 on plugging and abandonment and other decommissioning activities. This
initial budget does not include any future acquisitions or stock repurchases
under EPL's previously authorized program.

The Company has continued its active drilling program from the fourth quarter
of 2013, with 7 rigs currently working within its core field areas. EPL has
secured the rigs necessary to execute its capital plans, mainly consisting of
jack-up and hydraulic workover rigs necessary to execute its capital program.

New 3D Seismic and Deeper Drilling Update

In addition to its ongoing development activities in the shallow section of
its core areas, the Company concluded an initial deeper test of moderate
potential within its Ship Shoal 208 field area that began late 2013. The
Company has made an apparent oil sand discovery within the exploratory well at
approximately 15,300 feet subsea, which is set to production test at the end
of the first quarter 2014. EPL is the operator and has a 50% working interest
in the well. This initial test discovering apparent deep oil sand potential is
encouraging. EPL is preparing for additional deeper exploratory testing of
larger potential in depths from 12,000 to 20,000 feet throughout Ship Shoal
208 and its other core areas once new 3D seismic and state of the art
reprocessing comes in house beginning late this year.

To aid in unlocking this deeper potential, EPL signed new 3D seismic
commitments totaling approximately $45 million in late 2013. These agreements
include a commitment to purchase new 3D seismic datasets using new 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 sections of the Company's asset base. The
new 3D Full Azimuth Nodal (FAN) seismic data acquisition is being conducted by
Fairfieldnodal. The first survey covering the Company's recently acquired EI
258/259 field is expected to be delivered late 2014.Additional 3D FAN seismic
data acquisitions are still expected to commence within areas inclusive of
EPL's other core fields late in the second quarter of 2014. During 2014, the
Company expects to incur approximately $15 million of exploration expenses
related to seismic agreements.

2014 Hedging

The Company has layered in downside protection to protect its cash flow for
2014, in the form of Louisiana Light Sweet (LLS) swaps. EPL has a total of
12,996 Bbls of oil per day hedged, or 67% hedged using the midpoint of oil
guidance at a fixed price averaging $93.67 per Bbl. 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.

2014 Guidance

EPL's annual 2014 guidance remains unchanged and is inclusive of the effects
of the acquisition of the EI 258/259 field.Due to oil focused drilling
activities plus new oil production from the EI 258/259 field, EPL expects its
March oil exit rate at 18,500 Bbls of oil per dayand continued ramping of oil
production throughout the remainder of the year.

ESTIMATED PRODUCTION & SWAP HEDGE VOLUMES
                                                          
Net Production (per day)     Full Year 2014  1Q 2014         Mar '14 Exit
                                                                 Rate
Oil, including NGLs (Bbls)   18,500 - 20,500 15,500 - 16,500 18,500
Natural gas (Mcf)            27,000 - 33,000 23,000 - 25,000 25,000
Boe                          23,000 - 26,000 19,333 - 20,667 22,667
% Oil, including NGLs (using 80%               80%               82%
midpoint of guidance)


ESTIMATED EXPENSES (in Millions, unless otherwise noted)
                                                                  
Lease Operating (including energy          $180   - $200   $45.0  - $50.0
insurance)
General & Administrative (cash and         $34    - $38    $8.5   - $9.5
non-cash)
Taxes, other than on earnings              $9     - $11    $2.3   -  $2.8
Exploration Expense                        $23    - $25    $5.8   - $6.3
DD&A ($/Boe), excluding accretion          $25.50 - $27.00 $25.50 - $27.00
DD&A ($/Boe), including accretion          $28.50 - $30.00 $28.50 - $30.00
Interest Expense (including amortization   $54    - $56    $13.5  - $14.0
of discount and deferred financing costs)                         


2014 EBITDAX ESTIMATES AT VAROUS PRODUCTION AND REALIZED PRICES
                                                             
                              Est. Production                 
                               Rate
                              18,500 Bopd/27    19,500 Bopd/30 20,500 Bopd/33
                               Mmcf/d            Mmcf/d         Mmcf/d
Realized Prices($Bbl/$Mcf)                                    
$105/$4.25                     $440              $475           $510
$100/$4.25                     $430              $465           $500
$95/$4.25                      $420              $455           $490
                                                             
(1) All EBITDAX figures are approximate using production ranges and midpoint
of expense guidance with estimated realized hedging impacts
                                                             
2014 INITIAL 2P CAPITAL BUDGET: $360 million                   
2014 P&A BUDGET: $50 million                                   

Conference Call Information

EPL has scheduled a conference call for today, February 27, 2014, at 9:30 A.M.
Central Time/10:30 A.M. Eastern Time to review results for the fourth quarter
and full year 2013 and to discuss its outlook for 2014. 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 33396854.

The call will be available for replay beginning two hours after the call is
completed through midnight of March 13, 2014. 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 33396854.

The conference call will be webcast live as well as for on-demand listening at
the Company's web site, 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/)

Appendix

PV10 Definition and Discussion

PV10 may be considered a non-GAAP financial measure as defined by the SEC. We
believe that the presentation of PV10 is relevant and useful to our investors
as supplemental disclosure to the standardized measure, or after-tax amount,
because it presents the discounted future net cash flows attributable to our
proved reserves before taking into account future corporate income taxes and
our current tax structure. Because the standardized measure is dependent on
the unique tax situation of each company, our calculation may not be
comparable to those of our competitors. Because of this, PV10 can be used
within the industry and by creditors and securities analysts to evaluate
estimated net cash flows from proved reserves on a more comparable basis.

                                                        
                                                        
EPL OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
                                                        
                    Three Months Ended        Twelve Months Ended
                    December 31,              December 31,
                    2013          2012        2013         2012
Revenue:                                                 
Oil and natural gas  $141,644    137,863    $688,743   422,529
Other                966          1,036      4,295       1,104
                    142,610      138,899    693,038     423,633
                                                        
Costs and expenses:                                      
Lease operating      39,178       32,783     165,841     94,850
Transportation      1,251        205        3,568       615
Exploration
expenditures and dry 12,946       937        26,555      18,799
hole costs
Impairments          754          2,677      2,937       8,883
Depreciation,
depletion and        46,512       34,649     200,359     113,581
amortization
Accretion of
liability for asset  9,835        5,534      28,299      15,565
retirement
obligations
General and          7,210        6,215      28,137      23,208
administrative
Taxes, other than on 2,606        3,173      11,490      13,007
earnings
Gain on sale of      (80)         --         (28,681)    --
assets
Other                1,865        62         34,942      4,678
Total costs and      122,077      86,235     473,447     293,186
expenses
                                                        
Income from          20,533       52,664     219,591     130,447
operations
                                                        
Other income                                             
(expense):
Interest income      8            8          99          136
Interest expense     (12,998)     (13,487)   (52,368)    (28,568)
Loss on derivative   (25,328)     (1,440)    (32,361)    (13,305)
instruments
                    (38,318)     (14,919)   (84,630)    (41,737)
                                                        
Income (loss) before (17,785)     37,745     134,961     88,710
income taxes
Provision for Income                                     
taxes:
Current              175          174        --          --
Deferred             5,552        (13,766)   (49,687)    (29,900)
Total provision for  5,727        (13,592)   (49,687)    (29,900)
income taxes
                                                        
Net income (loss)    $(12,058)   24,153     $85,274    58,810
                                                        
                                                        
Net income (loss),   $(12,058)   24,153     $85,274    58,810
as reported
Add back:                                                
Change in fair value
of derivative        21,706       1,439      20,884      9,491
instruments
Gain on sale of      (80)         --         (28,681)    --
assets
Dry hole costs       1,756        130        5,520       4,227
Impairments          754          2,677      2,937       8,883
Loss (gain) on
abandonment          (747)        (957)      27,235      2,448
activities
Amortization of
weather derivative   2,667        1,029      8,000       2,400
premium
Deduct:                                                  
Income tax
adjustment for above (9,484)      (1,572)    (13,066)    (9,991)
items
                                                        
Adjusted Non-GAAP    $4,514      26,899     $108,103   76,268
net income
                                                        
EBITDAX                                                  
Reconciliation:
                                                        
Net income (loss),   $(12,058)   24,153     $85,274    58,810
as reported
Add back:                                                
Income taxes         (5,727)      13,592     49,687      29,900
Net interest expense 12,990       13,479     52,269      28,432
Depreciation,
depletion,           56,347       40,183     228,658     129,146
amortization and
accretion
Impairments          754          2,677      2,937       8,883
Exploration
expenditures and dry 12,946       937        26,555      18,799
hole costs
Loss (gain) on
abandonment          (747)        (957)      27,235      2,448
activities
Amortization of
weather derivative   2,667        1,029      8,000       2,400
premium
Gain on sale of      (80)         --         (28,681)    --
assets
Less impact of:                                          
Change in fair value
of derivative        21,706       1,439      20,884      9,491
instruments
                                                        
                                                        
EBITDAX              $88,798     96,532     $472,818   288,309
                                                        
Weighted average
dilutive common      38,641       38,998     39,236      39,034
shares 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            Twelve Months Ended
                        December 31,                  December 31,
                        2013             2012         2013        2012
Cash flows from                                                 
operating activities:
Net income (loss)        $(12,058)      24,153      85,274     58,810
Adjustments to reconcile net income
(loss) to net cash provided by operating                         
activities:
Depreciation, depletion  46,512          34,649      200,359    113,581
and amortization
Accretion of liability
for asset retirement     9,835           5,534       28,299     15,565
obligations
Change in fair value of  21,706          1,439       20,884     9,491
derivative contracts
Non-cash compensation    1,986           1,224       7,344      4,717
Deferred income taxes    (5,552)         13,766      49,687     29,900
Exploration expenditures 1,756           130         5,520      4,227
Impairments              754             2,677       2,937      8,883
Amortization of deferred
financing costs and      1,380           1,040       5,396      2,556
discount on debt
Gain on sale of assets   (80)            --         (28,681)   --
Other                    (747)           (957)       27,235     2,448
Changes in operating                                            
assets and liabilities:
Trade accounts           (198)           (38,718)    (1,916)    (33,547)
receivable
Prepaid expenses         7,389           (3,015)     2,081      1,047
Other assets             1,867           (217)       790        145
Accounts payable and     20,313          17,328      35,658     31,477
accrued expenses
Asset retirement         (16,465)        (7,782)     (53,308)   (35,429)
obligation settlements
                                                               
Net cash provided by     $78,398        51,251      387,559    213,871
operating activities
                                                               
Reconciliation of                                               
discretionary cash flow:
Net cash provided by     78,398          51,251      387,559    213,871
operating activities
Changes in working       (12,906)        32,404      16,695     36,307
capital
Non-cash exploration
expenditures and         (2,510)         (2,807)     (8,457)    (13,110)
impairments
Total exploration
expenditures, dry hole   13,303          3,614       28,137     27,682
costs and impairments
Discretionary cash flow  $76,285        84,462      423,934    264,750
                                                               
                                                               
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        Twelve Months Ended
                           December 31,              December 31,
                           2013          2012        2013          2012
                                                                
PRODUCTION AND PRICING                                           
Net Production (per day):                                        
                                                                
Crude Oil (Bbls)            14,185       13,057     16,130       9,963
Natural Gas Liquids (Bbls)  924          459        808          435
Oil (Bbls)                  15,109       13,516     16,938       10,398
Natural gas (Mcf)           29,101       28,198     32,863       17,852
Total (Boe)                 19,959       18,216     22,415       13,373
Average Sales Prices:                                            
Crude Oil (per Bbl)         $97.82      106.07     $107.32     108.88
Natural Gas Liquids (per    41.46        38.21      38.04        41.93
Bbl)
Oil (per Bbl)               94.37        103.77     104.01       106.08
Natural gas (per Mcf)       3.91         3.40       3.81         2.89
Average (per Boe)           77.14        82.27      84.18        86.33
Oil and Natural Gas                                              
Revenues (in thousands):
Crude Oil                   $127,657    127,422    $631,817    396,989
Natural Gas Liquids         3,526        1,613      11,216       6,674
Oil                        131,183      129,035    643,033      403,663
Natural gas                 10,462       8,828      45,710       18,866
Total                      141,645      137,863    688,743      422,529
                                                                
Impact of derivative
instruments settled during                                       
the period^(1):
Oil (per Bbl)               $(2.65)     0.37       $(1.78)     (0.88)
Natural gas (per Mcf)       0.02         (0.18)     (0.04)       (0.07)
                                                                
OPERATIONAL STATISTICS                                           
Average Costs (per Boe):                                         
Lease operating expense     $21.34      19.56      $20.27      19.38
Depreciation, depletion and 25.33        20.68      24.49        23.21
amortization
Accretion expense           5.36         3.30       3.46         3.18
Taxes, other than on        1.42         1.89       1.40         2.66
earnings
General and administrative  3.93         3.71       3.44         4.74
                                                                
^(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)
                                                                
                                                    December 31, December 31,
                                                    2013         2012
                                                                
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                            $8,812     $1,521
Trade accounts receivable - net                      70,707      67,991
Fair value of commodity derivative instruments       501         3,302
Deferred tax asset                                   8,949       3,322
Prepaid expenses                                     6,868       9,873
Total current assets                                 95,837      86,009
                                                                
Property and equipment                               2,355,219   2,025,647
Less accumulated depreciation, depletion,            (618,788)   (427,580)
amortization and impairments
Net property and equipment                           1,736,431   1,598,067
                                                                
Deposit for Nexen Acquisition                        7,040       -
Restricted cash                                      6,023       6,023
Fair value of commodity derivative instruments       238         211
Deferred financing costs --- net of accumulated      10,106      12,386
amortization
Other assets                                         2,156       2,931
                                                    $1,857,831 $1,705,627
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable                                     $59,431    $34,772
Accrued expenses                                     131,125     117,372
Asset retirement obligations                         51,601      30,179
Fair value of commodity derivative instruments       29,636      10,026
Total current liabilities                            271,793     192,349
                                                                
Long-term debt                                       627,355     689,911
Asset retirement obligations                         203,849     204,931
Deferred tax liabilities                             122,812     67,694
Fair value of commodity derivative instruments       2,136       3,637
Other                                                673         1,132
                                                    1,228,618   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 December 31, 2013 and 2012
Common stock, $0.001 par value per share. Authorized
75,000,000 shares; shares issued 40,970,137 and
40,601,887 at December 31, 2013 and 2012,            41          40
respectively; shares outstanding 39,097,394 and
39,103,203 at December 31, 2013 and 2012,
respectively
Additional paid-in capital                           519,114     510,469
Treasury stock, at cost, 1,872,743 and 1,498,684     (31,157)    (20,477)
shares at December 31, 2013 and 2012, respectively
Retained earnings                                    141,215     55,941
Total stockholders' equity                           629,213     545,973
                                                    $1,857,831 $1,705,627

                                                            
                                                            
EPL OIL & GAS, INC.
SUPPLEMENTAL OIL & GAS DISCLOSURE
(Unaudited)
                                                            
                                                            
                              Oil             Natural Gas     Equivalents
                              (Mbbl)          (Mmcf)          (Mboe)
Proved developed and                                         
undeveloped reserves:
                                                            
December 31, 2011              27,301         58,785         37,099
                                                            
Acquisitions                   16,430         115,876        35,742
Extensions and discoveries     6,388          10,241         8,095
Revisions                      1,128          4,033          1,800
Production                     (3,805)        (8,996)        (5,304)
December 31, 2012              47,442         179,939        77,432
                                                            
Acquisitions                   366            209            401
Sales                          (1,415)        (916)          (1,568)
Extensions and discoveries     7,354          20,247         10,729
Revisions                      3,952          (10,128)       2,264
Production                     (6,182)        (15,767)       (8,810)
December 31, 2013              51,517         173,584        80,448
                                                            
                                                            
Proved developed reserves:                                   
                                                            
December 31, 2011              24,791         52,739         33,581
December 31, 2012              37,908         120,687        58,022
December 31, 2013              39,439         107,687        57,387
                                                            
Costs incurred for oil and natural gas property acquisition, exploration and
development activities for the two-years ended December 31 are as follows (in
thousands):
                                                            
                              2013            2012            
                                                            
Acquisitions:                                                
Proved                         23,895         706,322        
Unproved                       2,200          7,496          
Exploration                    46,100         43,338         
Development                    302,058        179,728        
Total finding and development  348,158        223,066        
costs
Total finding, development and 374,253        936,884        
acquisition costs
Asset retirement liabilities   23,339         1,210          
incurred and acquired
Total cost incurred            $397,592      $938,094      

CONTACT: Investors/Media
        
         T.J. Thom
         Executive Vice President and Chief Financial Officer
         713-228-0711
         tthom@eplweb.com

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