Rodman & Renshaw initiated exploration company Energy Partners Ltd. (NYSE:EPL) with a Market Outperform rating and a target price of $18, saying its turnaround story is worth another look.

The brokerage said the company with operations almost exclusively on the Gulf of Mexico Shelf is positioned to perform nicely as the execution of its turnaround causes the valuation gap to erode.

EPL has been off the radar for many investors since its bankruptcy filing last year. Meanwhile the fundamental story has changed significantly. The brokerage said the company emerged from its reorganization process in in the third quarter of 2009 with an overhauled operational strategy.

The company's strong liquidity position puts it in an excellent position to capitalize on future deals in its wheelhouse, Rodman & Renshaw said.

Shares of EPL ended Thursday's trading at $13.91.