Exhibit 99.1

Encore Acquisition Company Announces Third Quarter 2008 Results

FORT WORTH, Texas—(BUSINESS WIRE)—October 28, 2008

Encore Acquisition Company (NYSE: EAC) (“Encore” or the “Company”) today reported unaudited third quarter 2008 results.

The following table highlights certain reported amounts for the third quarter of 2008 as compared to the third quarter of 2007 (in millions, except average price amounts):

	Qtr Ended Sept 30,
	2008		2007
Oil and natural gas revenues	$	335.3	$	191.7
Average realized combined price ($/BOE)	$	92.00	$	56.45
Development and exploration costs incurred	$	186.3	$	78.0
Unproved acreage costs incurred	$	17.3	$	16.8
Acquisition related costs incurred	$	52.7	$	30.1
Adjusted EBITDAX	$	204.7	$	121.4
Net income	$	206.3	$	12.0
Net income excluding certain items	$	64.9	$	24.9
Weighted average diluted shares outstanding		53.5		54.2

Adjusted EBITDAX increased 69 percent to $204.7 million for the third quarter of 2008 as compared to $121.4 million for the third quarter of 2007. Adjusted EBITDAX is defined as adjusted earnings before interest, income taxes, depletion, depreciation, and amortization, impairment of long-lived assets, non-cash equity-based compensation expense, non-cash derivative fair value gains and losses, minority interest, and exploration expense. Adjusted EBITDAX is reconciled to its most directly comparable GAAP measures in the attached financial schedules.

Encore recorded record net income in the third quarter of 2008 of $206.3 million ($3.80 per diluted share) as compared to $12.0 million ($0.22 per diluted share) in the third quarter of 2007. Net income for the third quarter of 2008 included a pre-tax net derivatives gain of $239.4 million comprising settlement payments of $22.7 million, premium amortization of $14.8 million, and a mark-to-market gain of $276.9 million. Net income for the third quarter of 2007 included a pre-tax net derivatives loss of $15.8 million comprising settlement payments of $7.1 million, premium amortization of $11.7 million, and a mark-to-market gain of $3.0 million.

Encore reported net income excluding certain items for the third quarter of 2008 of $64.9 million ($1.15 per diluted share), a 160 percent increase over net income excluding certain items for the third quarter of 2007 of $24.9 million ($0.46 per diluted share). Net income excluding certain items for the third quarter

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Encore Acquisition Company
Third Quarter 2008 Results

of 2008 excludes derivative gains and losses not related to the current period, non-cash compensation expense related to Encore Energy Partners LP (“ENP”), and impairment of long-lived assets. Net income excluding certain items for the third quarter of 2007 excludes derivative gains and losses not related to the current period, non-cash compensation expense related to ENP, and loss on divestiture of oil and natural gas properties. Net income excluding certain items is reconciled to its most directly comparable GAAP measure of net income in the attached financial schedules.

Jon S. Brumley, Encore’s Chief Executive Officer and President, stated, “The third quarter was a terrific quarter for Encore. We were pleased with our production growth, but more importantly we are very excited about our plans for 2009. Since Encore’s inception, we have been espousing the importance of shallow declining properties, a strong hedging position, and high rate of return projects. In no other time in Encore’s history have these three factors been more important. Because of our long-life portfolio, our savvy hedging program, and our high return budget, we will be able to exit 2009 in an even stronger position than today. In 2009, Encore will be able to grow three to five percent, repurchase $40 million of stock, and repay $55 million of debt. Our properties and hedging position place us in a unique position relative to our peers. We are ready for 2009 whether commodity prices are high or low.”

Oil and natural gas revenues increased 75 percent in the third quarter of 2008 to $335.3 million as compared to the $191.7 million in the third quarter of 2007, as the Company continued to reap the benefits of the high commodity price environment, as well as enjoy strong operating results.

The Company’s NYMEX oil differential in the third quarter of 2008 was $10.46 per Bbl as compared to $7.37 per Bbl in the third quarter of 2007. The average NYMEX oil price rose to $118.67 per barrel (“Bbl”) in the third quarter of 2008 versus $75.17 per Bbl in the third quarter of 2007. As a percentage of NYMEX, the Company’s NYMEX oil differential decreased slightly from 10 percent in the third quarter of 2007 to nine percent in the third quarter of 2008. The combined effect of rising commodity prices and a lower relative differential was a 60 percent increase in the Company’s average wellhead oil price, which represents the net price the Company receives for its oil production. It rose to $108.21 per Bbl for the third quarter of 2008 from $67.80 per Bbl in the third quarter of 2007. The Company’s average wellhead prices and related differentials exclude the effects of hedging activities, as these are recorded outside of revenue as derivative fair value gains or losses.

Production volumes averaged 39,617 BOE/D in the third quarter of 2008, comprising 26,975 barrels of oil per day and 75,847 Mcf of natural gas per day. This represents an increase of seven percent over third quarter of 2007 production of 36,917 BOE/D, and it exceeded the high end of the Company’s previously announced production guidance.

Lease operations expenses (“LOE”) were $49.0 million for the third quarter of 2008 ($13.43 per BOE) versus $37.1 million for the third quarter of 2007 ($10.93 per BOE). Encore’s reported LOE per BOE in the third quarter of 2008 remained in line with previously released guidance.

Exploration expenses for the third quarter of 2008 increased to $13.4 million ($3.67 per BOE) from $8.9 million ($2.63 per BOE) in the third quarter of 2007. The Company also recorded an impairment charge of $26.3 million on the Richland Plantation A 1 and the Joe Jackson 4-13H, the first two wells the Company has drilled in the Tuscaloosa Marine Shale (“TMS”). These appraisal wells, while experiencing some mechanical problems, demonstrated the ability to drill a horizontal lateral in a stable shale and establish sustained oil production from the TMS. Therefore, the Company will invest more in the first wells because drilling and completion techniques are expected to be optimized for future

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Encore Acquisition Company
Third Quarter 2008 Results

development wells. The Company has drilled its third appraisal well, which is currently waiting on completion, and is currently drilling its fourth well.

General and administrative (“G&A”) expenses for the third quarter of 2008 were $15.3 million ($4.20 per BOE) versus $12.7 million ($3.73 per BOE) in the third quarter of 2007. Encore’s reported G&A per BOE in the third quarter of 2008 remained in line with previously released guidance.

Operations Update

Bakken/Sanish

Encore is continuing its highly successful Sanish program in the Charlson area and expanded the Sanish drilling to the Cherry prospect area by adding a third rig in September of 2008. Encore drilled four 640 acre Bakken and Sanish wells in the third quarter. These four wells averaged approximately 650 BOE/D over the first seven days and approximately 515 BOE/D over the first 30 days.

Encore has re-fracture stimulated three more Murphy Creek Middle Bakken wells with encouraging results. Production was increased by 95 BOE/D per well on average for the first two months after re-stimulation. The re-fracture stimulation program is adding reserves and improving the economics of the Company’s Bakken drilling program.

Ben Nivens, the Company’s Chief Operating Officer, stated, “We plan on releasing the most inefficient of our three contracted rigs drilling in the Bakken during the fourth quarter of 2008 and subsequently picking up a more efficient replacement rig at the beginning of the first quarter of 2009. Similar to the stock buyback, Encore will use the lull in the activity to improve the Company.”

West Texas

It was a record quarter in the West Texas Joint Venture with ExxonMobil as the Company turned seven deep wells over to production. The wells had an average IP of 4.1 MMcfe/D. Four of the wells were in the Midland Basin, two in the Delaware Basin, and one was in the Val Verde Basin. To date a total of 29 deep gas wells have been brought online in the joint venture.  

Ark-LA-Tex

The Stockman Field in East Texas continues to outperform the Company’s expectations. Four new Travis Peak wells were brought online in the quarter with an average IP of 3.6 MMcfe/D.  The most recent well, the Wheeler 3, completed the second stage fracture stimulation in the Travis Peak at a gross peak rate of 6.2 MMcf/D and 90 Bbls/D.

The Company plans to spud its first Haynesville shale well in November 2008 at the Greenwood Waskom field. This well is expected to be online in the first quarter of 2009.

Tuscaloosa Marine Shale

Encore plans to complete the 4,100 feet of lateral in the Weyerhaeuser #1H in St. Helena Parish, Louisiana in November 2008. This completion has been delayed approximately five weeks due to the short supply of high-strength proppant.

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Encore Acquisition Company
Third Quarter 2008 Results

Hedging Update

The Company has executed a hedge plan that protects over 95 percent of its estimated oil production for 2009. The hedges include floors at $110.00 per barrel (“Bbl”) for 11,630 barrels of oil per day (“BOPD”), swaps at $86.21 per Bbl for 6,000 BOPD, and floors at $80.00 per Bbl for 8,000 BOPD. The counterparties to these hedges are a diverse group comprising eleven institutions, all of which are rated A- or better by Standard & Poor’s and/or Fitch, with the majority rated AA- or better.

Under the various NYMEX pricing assumptions, the Company’s hedging portfolio is expected to generate the following cash flows in 2009 (net of deferred premiums, in thousands):

Natural Gas
($/Mcf)

	Crude Oil ($/Bbl)
	$50.00		$60.00		$70.00		$80.00
$5.00	$	362,668	$	269,118	$	176,299	$	82,749
$6.00	$	359,894	$	266,344	$	173,525	$	79,975
$7.00	$	357,120	$	263,570	$	170,751	$	77,201
$8.00	$	354,970	$	261,420	$	168,601	$	75,051

Liquidity Update

At September 30, 2008, the Company’s long-term debt was $1.2 billion, including $150 million of 6.25% senior subordinated notes due April 15, 2014, $300 million of 6.0% senior subordinated notes due July 15, 2015, $150 million of 7.25% senior subordinated notes due December 1, 2017, and $622.9 million of outstanding borrowings under revolving credit facilities due March 7, 2012.

The amount outstanding on revolving credit facilities increased $75.9 million during the third quarter of 2008, primarily as a result of exercising a preferential right for proved production and Haynesville acreage, tax payments to the Internal Revenue Service, and hedge premiums for 2009. The borrowing base is $1.1 billion for Encore Acquisition Company and $240 million for ENP. At September 30, 2008, Encore Acquisition Company had availability under its revolving credit facility of $617.1 million and ENP had $99.9 million of availability under its revolving credit facility.

The syndicate of lenders underwriting Encore Acquisition Company’s facility comprises 30 banking and other financial institutions, and the syndicate of lenders underwriting ENP’s facility comprises 13 banking and other financial institutions, both after taking into consideration recently announced mergers and acquisitions within the financial services industry. None of the lenders are underwriting more than eight percent of the respective total commitments. The Company feels the large number of lenders, the relatively small percentage participation of each, and the relatively high level of availability under each facility provides adequate diversity and flexibility should further consolidation occur within the financial services industry.

Fourth Quarter 2008 Outlook

The Company expects the following in the fourth quarter of 2008:

Average daily wellhead production volumes	41,000 to 42,000 BOE/D
Average daily net profits production volumes	1,300 to 1,700 BOE/D
Average daily reported production volumes	39,300 to 40,700 BOE/D

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Encore Acquisition Company
Third Quarter 2008 Results

Development and exploration capital	$170 to $190 million
Unproved capital	$10 to $15 million
LOE	$12.35 to $12.80 per BOE
G&A expenses	$3.60 to $4.10 per BOE
Depletion, depreciation, and amortization	$15.75 to $16.75 per BOE
Production, ad valorem, and severance taxes	10.0% of wellhead revenues
Oil differential	-11% of NYMEX oil price
Natural gas differential	1% of NYMEX natural gas price
Income tax expense	37% effective rate
Income tax expense deferred	90% deferred

Conference Call Details

Title: Encore Acquisition Company and Encore Energy Partners LP Conference Call

Date and Time: Wednesday, October 29, 2008 at 9:00 A.M. Central Time

Webcast: Listen to the live broadcast via http://www.encoreacq.com

Telephone: Dial 877-356-9552 ten minutes prior to the scheduled time and request the conference call by supplying the title specified above or ID 69593655.

A replay of the conference call will be archived and available via Encore’s website at the above web address or by dialing 800-642-1687 and entering conference ID 69593655. The replay will be available through November 12, 2008. International callers can dial 706-679-0419 for the live broadcast or 706-645-9291 for the replay.

About the Company

Encore Acquisition Company is engaged in the acquisition and development of oil and natural gas reserves from onshore fields in the United States. Since 1998, Encore has acquired producing properties with proven reserves and leasehold acreage and grown the production and proven reserves by drilling, exploring, reengineering or expanding existing waterflood projects, and applying tertiary recovery techniques.

Cautionary Statement

This press release includes forward-looking statements, which give Encore’s current expectations or forecasts of future events based on currently available information. Forward-looking statements in this press release relate to, among other things, the likelihood and benefits of acquisitions and dispositions, drilling plans and expectations, expected production volumes, the expected benefits of existing hedging programs, expected revenues, expected expenses, expected taxes (including the amount of any gain or deferral), expected capital expenditures (including, without limitation, as to amount and property), expected differentials, potential hedging programs, opportunities for acreage expansion, future purchases under the stock repurchase program, and any other statements that are not historical facts. The assumptions of management and the future performance of Encore are subject to a wide range of business risks and uncertainties and there is no assurance that these

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Encore Acquisition Company
Third Quarter 2008 Results

statements and projections will be met. Factors that could affect Encore’s business include, but are not limited to: the risks associated with drilling of oil and natural gas wells; Encore’s ability to find, acquire, market, develop, and produce new properties; the risk of drilling dry holes; oil and natural gas price volatility; derivative transactions (including the costs associated therewith); uncertainties in the estimation of proved, probable, and potential reserves and in the projection of future rates of production and reserve growth; inaccuracies in Encore’s assumptions regarding items of income and expense and the level of capital expenditures; uncertainties in the timing of exploitation expenditures; operating hazards attendant to the oil and natural gas business; risks related to Encore’s high-pressure air injection program; drilling and completion losses that are generally not recoverable from third parties or insurance; potential mechanical failure or underperformance of significant wells; climatic conditions; availability and cost of material and equipment; the risks associated with operating in a limited number of geographic areas; actions or inactions of third-party operators of Encore’s properties; Encore’s ability to find and retain skilled personnel; diversion of management’s attention from existing operations while pursuing acquisitions or joint ventures; availability of capital; the strength and financial resources of Encore’s competitors; regulatory developments; environmental risks; uncertainties in the capital markets; uncertainties with respect to asset sales; general economic and business conditions; the ability of derivative counterparties and lenders to fulfill their obligations to the Company; industry trends; and other factors detailed in Encore’s 2007 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Encore undertakes no obligation to publicly update or revise any forward-looking statements.

Contacts

Encore Acquisition Company, Fort Worth, TX

Bob Reeves, Chief Financial Officer	Kim Weimer, Investor Relations
817-339-0918	817-339-0886
rcreeves@encoreacq.com	kweimer@encoreacq.com

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Encore Acquisition Company
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2008			2007			2008			2007
Revenues:
Oil	$	268,543		$	159,295		$	776,001		$	377,514
Natural gas		66,772			32,439			182,973			110,548
Marketing		2,163			3,282			8,740			27,139
Total revenues		337,478			195,016			967,714			515,201
Expenses:
Production:
Lease operations		48,966			37,114			130,013			105,186
Production, ad valorem, and severance taxes		33,350			20,003			95,845			51,750
Depletion, depreciation, and amortization		58,545			49,026			159,114			136,372
Impairment of long-lived assets		26,292			—			26,292			—
Exploration		13,381			8,920			30,462			23,856
General and administrative		15,303			12,668			36,549			26,216
Marketing		1,855			4,089			9,362			27,607
Derivative fair value loss (gain)		(239,435	)		15,786			82,093			68,166
Other operating		4,073			6,351			9,805			13,667
Total operating expenses		(37,670	)		153,957			579,535			452,820
Operating income		375,148			41,059			388,179			62,381
Other income (expense):
Interest		(18,124	)		(23,933	)		(54,669	)		(68,040	)
Other		1,553			857			3,090			1,889
Total other expense		(16,571	)		(23,076	)		(51,579	)		(66,151	)
Income (loss) before income taxes and minority interest		358,577			17,983			336,600			(3,770	)
Income tax provision		(121,184	)		(8,986	)		(118,595	)		(1,490	)
Minority interest in loss (income) of consolidated partnership		(31,086	)		2,988			(16,198	)		2,988
Net income (loss)	$	206,307		$	11,985		$	201,807		$	(2,272	)
Net income (loss) per common share:
Basic	$	3.95		$	0.23		$	3.85		$	(0.04	)
Diluted	$	3.80		$	0.22		$	3.70		$	(0.04	)
Weighted average common shares outstanding:
Basic		52,258			53,198			52,466			53,140
Diluted		53,521			54,179			53,670			53,140

Encore Acquisition Company
Condensed Statements of Operations
(in thousands)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30, 2008						September 30, 2008
	EAC Standalone			ENP			EAC Standalone		ENP
Revenues:
Oil	$	224,101		$	44,442		$	647,223	$	128,778
Natural gas		56,956			9,816			154,347		28,626
Marketing		718			1,445			3,533		5,207
Total revenues		281,775			55,703			805,103		162,611
Expenses:
Production:
Lease operations		40,124			8,842			108,191		21,822
Production, ad valorem, and severance taxes		27,609			5,741			79,524		16,321
Depletion, depreciation, and amortization		49,481			9,064			131,715		27,399
Impairment of long-lived assets		26,292			—			26,292		—
Exploration		13,335			46			30,349		113
General and administrative		12,706			2,597			28,097		8,452
Marketing		539			1,316			4,044		5,318
Derivative fair value loss (gain)		(168,992	)		(70,443	)		60,521		21,572
Other operating		3,729			344			8,779		1,026
Total operating expenses		4,823			(42,493	)		477,512		102,023
Operating income	$	276,952		$	98,196		$	327,591	$	60,588

Encore Acquisition Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Nine Months Ended
	September 30,
	2008			2007
Net income (loss)	$	201,807		$	(2,272	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Non-cash and other items		393,780			269,140
Changes in operating assets and liabilities		(66,600	)		(53,224	)
Net cash provided by operating activities		528,987			213,644
Net cash used in investing activities		(536,094	)		(833,150	)
Financing activities:
Net proceeds from long-term debt, net of issuance costs		95,738			463,863
Net proceeds from issuance of equity securities		—			171,220
Repurchase of common stock		(50,000	)		—
Other		(36,508	)		(7,873	)
Net cash provided by financing activities		9,230			627,210
Increase in cash and cash equivalents		2,123			7,704
Cash and cash equivalents, beginning of period		1,704			763
Cash and cash equivalents, end of period	$	3,827		$	8,467

Encore Acquisition Company
Condensed Consolidated Balance Sheets
(in thousands)

	September 30,			December 31,
	2008			2007
	(unaudited)
Total assets	$	3,286,141		$	2,784,561
Liabilities (excluding long-term debt)	$	829,145		$	593,636
Long-term debt		1,217,604			1,120,236
Minority interest in consolidated partnership		125,181			122,534
Stockholders’ equity		1,114,211			948,155
Total liabilities and stockholders’ equity	$	3,286,141		$	2,784,561
Working capital (a)	$	(15,144	)	$	(16,220	)

(a) Working capital is defined as current assets minus current liabilities.

Encore Acquisition Company
Selected Operating Results
(unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2008			2007		2008		2007
Production volumes:
Oil (MBbls)		2,482			2,509		7,446		7,027
Natural gas (MMcf)		6,978			5,323		18,915		18,359
Combined (MBOE)		3,645			3,396		10,598		10,086
Daily production:
Oil (Bbls/D)		26,975			27,275		27,174		25,738
Natural gas (Mcf/D)		75,847			57,857		69,031		67,249
Combined (BOE/D)		39,617			36,917		38,679		36,946
Average realized prices:
Oil (per Bbl)	$	108.21		$	63.48	$	104.22	$	53.73
Natural gas (per Mcf)		9.57			6.09		9.67		6.02
Combined (per BOE)		92.00			56.45		90.49		48.39
Average costs per BOE:
Lease operations expense	$	13.43		$	10.93	$	12.27	$	10.43
Production, ad valorem, and severance taxes		9.15			5.89		9.04		5.13
Depletion, depreciation, and amortization		16.06			14.43		15.01		13.52
Impairment of long-lived assets		7.21			—		2.48		—
Exploration		3.67			2.63		2.87		2.37
General and administrative		4.20			3.73		3.45		2.60
Derivative fair value loss (gain)		(65.69	)		4.65		7.75		6.76
Other operating		1.12			1.87		0.93		1.35
Marketing loss (gain)		(0.08	)		0.24		0.06		0.05

	Three Months Ended						Nine Months Ended
	September 30, 2008						September 30, 2008
	EAC Standalone			ENP			EAC Standalone		ENP
Production volumes:
Oil (MBbls)		2,078			404			6,193		1,253
Natural gas (MMcf)		5,984			994			15,966		2,949
Combined (MBOE)		3,076			569			8,854		1,744
Daily production:
Oil (Bbls/D)		22,586			4,389			22,603		4,571
Natural gas (Mcf/D)		65,048			10,799			58,268		10,763
Combined (BOE/D)		33,428			6,189			32,314		6,365
Average realized prices:
Oil (per Bbl)	$	107.85		$	110.06		$	104.51	$	102.81
Natural gas (per Mcf)		9.52			9.88			9.67		9.71
Combined (per BOE)		91.36			95.29			90.53		90.25
Average costs per BOE:
Lease operations expense	$	13.04		$	15.53		$	12.22	$	12.51
Production, ad valorem, and severance taxes		8.97			10.08			8.98		9.36
Depletion, depreciation, and amortization		16.09			15.92			14.88		15.71
Impairment of long-lived assets		8.55			—			2.97		—
Exploration		4.33			0.08			3.43		0.06
General and administrative		4.13			4.56			3.17		4.85
Derivative fair value loss (gain)		(54.94	)		(123.72	)		6.84		12.37
Other operating		1.21			0.61			0.99		0.59
Marketing loss (gain)		(0.06	)		(0.23	)		0.06		0.06

Encore Acquisition Company
Derivative Summary as of October 28, 2008
(unaudited)

Oil Derivative Contracts (b) (c)

	Average		Weighted		Average			Weighted		Average		Weighted		Average		Weighted
	Daily		Average		Daily			Average		Daily		Average		Daily		Average
	Floor		Floor		Short Floor			Short Floor		Cap		Cap		Swap		Swap
Period	Volume		Price		Volume			Price		Volume		Price		Volume		Price
	(Bbls)		(per Bbl)		(Bbls)			(per Bbl)		(Bbls)		(per Bbl)		(Bbls)		(per Bbl)
Nov. — Dec. 2008
		14,880	$	83.36		—		$	—		2,440	$	101.99		5,000	$	91.56
		6,000		71.67		—			—		2,000		96.65		—		—
		5,500		62.27		—			—		—		—		—		—
		3,000		56.67		(4,000	)		50.00		—		—		—		—
2009
		11,630		110.00		—			—		440		97.75		2,000		90.46
		8,000		80.00		(5,000	)		50.00		—		—		3,000		89.22
		—		—		—			—		—		—		1,000		68.70
2010
		880		80.00		—			—		440		93.80		—		—
		2,000		75.00		—			—		1,000		77.23		—		—
2011
		1,880		80.00		—			—		1,440		95.41		—		—
		1,000		70.00		—			—		—		—		—		—

Natural Gas Derivative Contracts (b)

	Average		Weighted		Average				Weighted		Average		Weighted		Average		Weighted
	Daily		Average			Daily			Average		Daily		Average		Daily		Average
	Floor		Floor		Short Floor				Short Floor		Cap		Cap		Swap		Swap
Period	Volume		Price		Volume				Price		Volume		Price		Volume		Price
	(Mcf)		(per Mcf)				(Mcf)		(per Mcf)		(Mcf)		(per Mcf)		(Mcf)		(per Mcf)
Nov. — Dec. 2008
		6,300	$	8.18				—	$	—		6,300	$	9.52		5,000	$	8.14
		11,300		7.38				—		—		7,500		8.35		5,000		7.47
		20,000		6.35				—		—		—		—		—		—
2009
		3,800		8.20				—		—		3,800		9.83		—		—
		3,800		7.20				—		—		—		—		—		—
2010
		3,800		8.20				—		—		3,800		9.58		—		—
		3,800		7.20				—		—		—		—		—		—

(b)

Oil prices represent NYMEX WTI monthly average prices, while natural gas prices represent various price points in 2008, and IF Houston Ship Channel prices for 2009 and 2010. The differential between IF HSC and NYMEX Henry Hub is approximately $0.30 per Mcf.

(c)

From time to time, Encore sells floors with a strike price below the strike price of the purchased floors in order to partially finance the premiums paid on the purchased floors, thereby entering into a floor spread. In the above table, the purchased floor component of these floor spreads are shown net and included with Encore’s other floor contracts. In addition to the floor contracts shown above for 2009, Encore has a floor contract for 1,000 Bbls/D at $63.00 per Bbl and a short floor contract for 1,000 Bbls/D at $65.00 per Bbl.

Encore Acquisition Company
Non-GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)

     This press release includes a discussion of “Adjusted EBITDAX”, which is a non-GAAP financial measure. The following table provides reconciliations of “Adjusted EBITDAX” to net income (loss) and net cash provided by operating activities, Encore’s most directly comparable financial performance and liquidity measures calculated and presented in accordance with GAAP.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
Net income (loss)	$	206,307		$	11,985		$	201,807		$	(2,272	)
Depletion, depreciation, and amortization		58,545			49,026			159,114			136,372
Impairment of long-lived assets		26,292			—			26,292			—
Non-cash equity-based compensation		3,758			7,310			9,963			12,790
Exploration		13,381			8,920			30,462			23,856
Interest expense and other		16,571			23,076			51,579			66,151
Income taxes		121,184			8,986			118,595			1,490
Minority interest in income (loss) of consolidated partnership		31,086			(2,988	)		16,198			(2,988	)
Payments of deferred commodity premiums		(10,239	)		(7,034	)		(30,822	)		(19,219	)
Non-cash derivative fair value loss (gain)		(262,167	)		22,070			38,203			87,108
Adjusted EBITDAX		204,718			121,351			621,391			303,288
Change in other operating assets and liabilities		(18,472	)		22,527			(47,376	)		(15,620	)
Other non-cash expenses		118			7,102			6,658			11,973
Interest expense and other		(16,571	)		(23,076	)		(51,579	)		(66,151	)
Current income taxes		15,225			133			(8,942	)		(116	)
Cash exploration expense		(1,227	)		(279	)		(2,763	)		(1,345	)
Payments of deferred commodity premiums		10,239			7,034			30,822			19,219
Purchased options		(17,358	)		(2,473	)		(19,224	)		(37,604	)
Net cash provided by operating activities	$	176,672		$	132,319		$	528,987		$	213,644

     “Adjusted EBITDAX” is used as a supplemental financial measure by Encore’s management and by external users of Encore’s financial statements, such as investors, commercial banks, research analysts, and others, to assess: (1) the financial performance of Encore’s assets without regard to financing methods, capital structure, or historical cost basis, (2) the ability of Encore’s assets to generate cash sufficient to pay interest costs and support its indebtedness, (3) Encore’s operating performance and return on capital as compared to those of other entities in our industry, without regard to financing or capital structure, and (4) the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.

     “Adjusted EBITDAX” should not be considered an alternative to net income (loss), operating income, net cash provided by operating activities, or any other measure of financial performance presented in accordance with GAAP. Encore’s definition of “Adjusted EBITDAX” may not be comparable to similarly titled measures of another entity because all entities may not calculate “Adjusted EBITDAX” in the same manner.

     This press release also includes a discussion of “net income excluding certain items”, which is a non-GAAP financial measure. The following tables provide a reconciliation of net income excluding certain items to net income (loss), Encore’s most directly comparable financial measure calculated and presented in accordance with GAAP.

	Three Months Ended September 30,
	2008						2007
				Per Diluted						Per Diluted
	Total			Share			Total			Share
Net income	$	206,307		$	3.80		$	11,985		$	0.22
Add: OCI amortization and change in fair value in excess of premiums		(252,863	)		(4.73	)		11,755			0.21
Less: tax benefit on OCI amortization and change in fair value in excess of premiums		94,242			1.76			(4,380	)		(0.08	)
Add: non-cash unit-based compensation related to ENP’s management incentive units		1,058			0.02			5,746			0.11
Less: change in minority interest related to ENP’s management incentive units		(346	)		(0.01	)		(2,196	)		(0.04	)
Add: impairment of long-lived assets		26,292			0.49			—			—
Less: tax benefit on impairment of long-lived assets		(9,799	)		(0.18	)		—			—
Add: loss on divestiture of oil and natural gas properties		—			—			3,247			0.06
Less: tax benefit on divestiture of oil and natural gas properties		—			—			(1,211	)		(0.02	)
Net income excluding certain items	$	64,891		$	1.15		$	24,946		$	0.46

	Nine Months Ended September 30,
	2008						2007
				Per Diluted						Per Diluted
	Total			Share			Total			Share
Net income (loss)	$	201,807		$	3.70		$	(2,272	)	$	(0.04	)
Add: OCI amortization and change in fair value in excess of premiums		(13,762	)		(0.27	)		56,877			1.05
Less: tax benefit on OCI amortization and change in fair value in excess of premiums		5,131			0.10			(21,198	)		(0.39	)
Add: non-cash unit-based compensation related to ENP’s management incentive units		3,174			0.06			5,746			0.11
Less: change in minority interest related to ENP’s management incentive units		(1,062	)		(0.02	)		(2,196	)		(0.04	)
Add: impairment of long-lived assets		26,292			0.49			—			—
Less: tax benefit on impairment of long-lived assets		(9,799	)		(0.18	)		—			—
Add: loss on divestiture of oil and natural gas properties		—			—			5,457			0.10
Less: tax benefit on divestiture of oil and natural gas properties		—			—			(2,034	)		(0.04	)
Net income excluding certain items	$	211,781		$	3.88		$	40,380		$	0.75

     Encore believes that the exclusion of these items enables it to evaluate operations more effectively period-over-period and to identify operating trends that could otherwise be masked by the excluded items.

     “Net income excluding certain items” should not be considered an alternative to net income (loss), operating income, net cash provided by operating activities, or any other measure of financial performance presented in accordance with GAAP. Encore’s definition of “net income excluding certain items” may not be comparable to similarly titled measures of another entity because all entities may not calculate “net income excluding certain items” in the same manner.