Takeover activity throws Energy Partners into loss

THE ASSOCIATED PRESS

Independent petroleum operator Energy Partners Ltd. was hit by a third-quarter loss as it canceled the proposed acquisition of Stone Energy Corp. and fended off a hostile takeover attempt by another company.

For the three months ending Sept. 30, Energy Partners lost $25.2 million, or 66 cents per share, on revenue of $107.5 million, the company reported Monday. In the year-ago third quarter, the company earned $6.5 million, or 16 cents per share, on revenue of $92 million.

Energy Partners said it took a $46.5 million charge to call off the acquisition of Lafayette, La.-based Stone Energy and another $8.2 million charge for legal costs to fight an unsolicited takeover bid by Woodside Petroleum Ltd., Australia’s largest publicly traded energy firm.

The combination of those items knocked down profit by 91 cents per share, Energy Partners said. Without the charges, the company would have earned 25 cents per share. Analysts surveyed by Thomson Financial, who did not include the charges, had forecast per-share earnings of 17 cents and revenue of $109 million for the third quarter.

Energy Partners said it benefited from higher production volumes, high oil prices, a drop in production costs due to a reduced number of dry holes and $8.3 million in claims from business interruption insurance stemming from last year’s hurricanes.