S&P: Plains Exploration & Production remains on watch

Standard & Poor's said its BB corporate credit rating on Plains Exploration & Production Co. remains on CreditWatch with negative implications following Energy Partners Ltd.'s announcement that it has made an offer to Stone Energy Corp.'s board of directors to purchase all of its outstanding stock at $52.00 per share.

S&P noted that the rating on Plains was placed on CreditWatch April 25, following its announcement that it had entered into a definitive agreement to acquire Stone Energy for $1.88 billion and would be restructuring its hedge positions in 2007 and 2008.

The agency added that Stone Energy has had a tumultuous past year with respect to negative reserve revisions, shareholder lawsuits, an ongoing SEC inquiry and a recent borrowing base reduction in November 2005.

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