UPDATE: Stifel Nicolaus Downgrades EPL Oil & Gas to Hold on Valuation

Stifel Nicolaus reduced its rating on EPL Oil & Gas EPL from Buy to Hold and removed its previous $20 price target. Stifel Nicolaus noted, "We are downgrading EPL from a Buy to a Hold on valuation and reduced 2H outlook. EPL's discount to its peers has narrowed following its $550mm acquisition announced on Sept 17th. Additionally, yesterday through an updated presentation, the company lowered its 2H12 volume outlook and increased its 2H12 operating expense guidance. We view the recent acquisition as neutral to slight negative in the near-term (3-6 months) since it is not accretive on an EV/EBITDA basis, increases the leverage and decreases the oil weighting." EPL Oil & Gas closed at $20.71 on Tuesday.