Energy Partners Limited Stock Upgraded (EPL)

NEW YORK ( TheStreet) -- Energy Partners (NYSE: EPL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 11.7%. Since the same quarter one year prior, revenues rose by 46.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENERGY PARTNERS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ENERGY PARTNERS LTD turned its bottom line around by earning $0.65 versus -$0.22 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $0.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 110.3% when compared to the same quarter one year prior, rising from -$14.51 million to $1.50 million.
  • Net operating cash flow has significantly increased by 284.87% to $57.06 million when compared to the same quarter last year. In addition, ENERGY PARTNERS LTD has also vastly surpassed the industry average cash flow growth rate of 10.35%.
  • The gross profit margin for ENERGY PARTNERS LTD is currently very high, coming in at 77.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.50% trails the industry average.
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Energy Partners Ltd. operates as an independent oil and natural gas exploration and production company in the United States. The company has interests in producing oil and natural gas assets in the U.S. Gulf of Mexico shelf focusing on state and federal waters offshore Louisiana. The company has a P/E ratio of 13.9, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Energy has a market cap of $577.1 million and is part of the basic materials sector and energy industry. Shares are up 0.1% year to date as of the close of trading on Monday.

You can view the full Energy Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff
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