EPL, Stone agree to $2.2 billion merger

Offshore staff

A merger agreement has been reached by Energy Partners Ltd. and Stone Energy Corp. valued at $2.2 billion whereby EPL would acquire all the outstanding shares of Stone.

Expected to close in 4Q06, the combination would have been the third most active GoM driller and operator on a pro forma basis for 2005.

"Our highly complementary Gulf assets, coupled with the significant operating and administrative synergies and associated cost savings we have identified, uniquely position the combined company to generate considerable upside value for shareholders of both EPL and Stone," said Richard A Bachmann, chairman and CEO of EPL.

6/26/06