Wexford Goes Activist on Energy Partners Ltd

Wexford Capital, a $6 billion hedge fund run by distressed investor Charles Davidson, went activist on Energy Partners Ltd, sending out one of the only activist letters we have seen in months. Wexford, which states it has a large position in EPL's common stock (although not as large as it did last time around, its holdings have dropped from 9.5% to 8.4%) as well as the 9.75% Senior Notes due 2014 and FRNs due 2013, has presented a list of demands. While not as eloquent as Dan Loeb or Bob Chapman at their peaks, the letter wants the company to:

• Cut the size of its board
• Restructure the company debt
• Cut its S,G&A
• Fire senior management
• Cancel its change of control severance agreements

And goes on to conclude that EPL's exploration activities have been a failure.

We are confident EPL management will be thrilled to discuss these demands at its earliest convenience.