Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K PRESS RELEASE - Energy XXI Ltd | form8_k.htm |
Exhibit 99.1
Energy XXI Reports Record Fiscal Second-Quarter Results and Provides Operations Update
|
·
|
Development drilling program delivers early successes
|
|
·
|
Oil represents 72% of production
|
|
·
|
Beat of estimates driven by increased oil production and prices
|
|
·
|
EBITDA of $226 million sets 4th consecutive quarterly record
|
|
·
|
Free cash flow cuts net debt, builds cash balance
|
HOUSTON – Feb., 1, 2012 – Energy XXI (NASDAQ: EXXI) (AIM: EXXI) today announced results for the fiscal second-quarter ended Dec. 31, 2011, and provided an operational update.
For the 2012 fiscal second quarter, Energy XXI reported earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) of $225.6 million, more than double the prior-year’s fiscal second-quarter EBITDA of $97.8 million. Net income attributable to common shareholders for the 2012 fiscal second quarter was $93.4 million, or $1.11 per diluted share, on revenues of $340.6 million and production of 42,700 barrels of oil equivalent per day (BOE/d).
“Success in developing our asset base delivered record results for the fourth straight quarter and positioned us to continue achieving strong results in today’s environment,” Energy XXI Chairman and CEO John Schiller said. “Production from the properties acquired in December 2010 increased more than 20 percent during the first year, primarily from oil-focused activities. Oil represented 72 percent of our production in the fiscal second quarter, up from 70 percent in the prior-year period, while realized oil prices rose 41 percent to $110 per barrel. As a result, 93 percent of our revenues for the quarter were derived from oil. This combination generated significant free cash flow that helped us reduce our net debt-to-capitalization ratio to 44 percent from 58 percent a year earlier.”
Exploration and Development Activity
At Main Pass 72 (100% WI/83.3% NRI), the Onyx well continues to deliver in excess of 2,200 barrels of oil per day gross as it has since coming online in June 2011. At Grand Isle 16/18 (100% WI/ 87% NRI), multiple recompletions and one development well are delivering gross production rates totaling 5,300 BOE/d. The Sunny development well was drilled to 8,579 feet total vertical depth (TVD) targeting updip C-2 sands. The well encountered 225 feet of net pay in the B and C sands and was dual-completed. Gross production from the B-4 and C-4 sands is currently averaging 1,400 BOE/d, while the primary target, the C-2 sand was gravel packed and is available to produce through a future wireline zone change. The Winters development well was drilled to 16,500 feet TVD, encountering 166 feet gross and 83 feet net of natural gas pay in the K-2 sand. The well is expected to be on production within three weeks at a rate in excess of 20 million cubic feet per day. The company plans to drill two additional development wells, Costello and Pi, later this fiscal year.
1
In the West Delta 73 field (100% WI/ 87% NRI), Magnum, the first of a four-well development drilling program, was drilled to 8,500 feet TVD, encountering 60 feet of net oil pay in three Pliocene F sands and first production is expected in March. Following Magnum is the Miller development well, a proved undeveloped location targeting F sands in a sparsely drilled area on the west side of the field with a planned total depth of 8,500 feet TVD.
At South Timbalier 54 (100% WI/ 87% NRI), drilling has commenced on Camshaft, the first of two planned development wells, targeting four separate G sands with a planned total depth of 12,000 feet TVD. Plans are to dual complete this well to optimize oil production.
Within the shallow-water, ultra-deep Gulf of Mexico shelf program, the McMoRan-operated partnership is approaching several important milestones.
Completion activities at the Davy Jones No. 1 discovery well at South Marsh Island Block 230 are in an advanced stage. The wellbore has been cleaned out to total depth and drilling mud has been displaced with completion fluid. Current expectations are to perforate and flow the well during the March quarter. Installation of the central processing facility, production platform and sales pipelines has been completed. First production from the well could be established shortly after a successful flow test. The company’s investment in the Davy Jones discovery well (15.8% WI/12.3% NRI) as of Dec. 31, 2011, totaled about $45 million. McMoRan holds a 63.4 percent working interest in Davy Jones.
The Blackbeard East ultra-deep exploration by-pass well has been drilled to 33,318 feet TVD and the section below 30,800 feet TVD was recently logged, identifying potential hydrocarbons in the Sparta carbonate section. The Sparta interval measures 300 feet thick and appears to be a hydrocarbon-bearing fractured carbonate. A production liner will be set to total depth and the well will be temporarily abandoned while development options are evaluated. Blackbeard East is located in 80 feet of water on South Timbalier Block 144. The company’s investment in Blackbeard East (18% WI/14.35% NRI) as of Dec. 31, 2011 was about $42 million. McMoRan holds a 72.0 percent working interest in the well.
2
The Lafitte exploration well (18% WI/14.6% NRI), located on Eugene Island Block 223 in 140 feet of water, is drilling below 33,000 feet TVD towards a proposed total depth of 34,000 feet TVD, targeting Lower Miocene, Oligocene and potentially Wilcox sections below the salt weld. In January 2012, wireline logs indicated 40 feet of possible hydrocarbon-bearing Frio sands between 31,300 feet and 31,700 feet TVD. In November 2011, wireline logs indicated 56 net feet of hydrocarbon-bearing sand over a 58 foot gross interval in the Cris-R section of the Lower Miocene. Recent pressure data and rotary sidewall cores obtained in the Cris-R sand are being evaluated. The new Frio and Cris-R sand intervals, combined with the 115 feet of potential net Miocene pay previously announced, brings the total possible productive net sands to 211 feet in the Lafitte well. Current plans are to drill ahead to 34,000 feet TVD targeting the Sparta section seen about 80 miles away at Blackbeard East. The company’s investment at Lafitte as of Dec. 31, 2011 was about $31 million. McMoRan holds a 72.0 percent working interest in Lafitte.
The Blackbeard West #2 ultra-deep exploration well (22.9% WI/17.5% NRI) commenced drilling on Nov. 25, 2011 and is currently drilling below 15,450 feet TVD towards a proposed total depth of 26,000 feet TVD. The well, located on Ship Shoal Block 188 within the Blackbeard West unit, is targeting Miocene aged sands seen below the salt weld approximately 13 miles east at Blackbeard East. The company’s investment at Blackbeard West #2 totaled $3.3 million at Dec., 31, 2011. McMoRan holds a 69.4 percent working interest in Ship Shoal Block 188.
In the partnership’s first project to take the ultra-deep concept onshore, operations commenced Dec. 31, 2011 at the Lineham Creek exploration prospect. Lineham Creek is located in Cameron Parish, Louisiana and is targeting Eocene and Paleocene objectives below the salt weld, with a proposed total depth of 29,000 feet TVD. Chevron U.S.A Inc., as operator of the well, holds a 50 percent working interest, Energy XXI has a 9 percent working interest, and McMoRan has a 36.0 percent working interest.
Capital Expenditures
During the 2012 fiscal second quarter, capital expenditures, including plug-and-abandonment costs, totaled $134.5 million, with $46.6 million in exploration and $87.9 million in development and other investments. Total capital expenditures for fiscal 2012 ending June 30, 2012 are expected to be between $450 million and $500 million.
3
ENERGY XXI (BERMUDA) LIMITED
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In Thousands, except per share information)
(Unaudited)
As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measure: EBITDA. The company uses this non-GAAP measure as a key metric for the management of the company and to demonstrate the company’s ability to internally fund capital expenditures and service debt.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
Net Income as Reported
|
$ | 97,089 | $ | 10,934 | $ | 163,420 | $ | 11,067 | ||||||||
|
Interest expense-net
|
28,348 | 21,943 | 55,527 | 43,413 | ||||||||||||
|
Depreciation, depletion and amortization
|
87,568 | 62,922 | 172,371 | 116,999 | ||||||||||||
|
Income tax expense
|
12,549 | 2,011 | 21,122 | 2,030 | ||||||||||||
|
EBITDA
|
$ | 225,554 | $ | 97,810 | $ | 412,440 | $ | 173,509 | ||||||||
|
EBITDA Per Share
|
||||||||||||||||
|
Basic
|
$ | 2.95 | $ | 1.49 | $ | 5.39 | $ | 2.98 | ||||||||
|
Diluted
|
$ | 2.59 | $ | 1.49 | $ | 4.73 | $ | 2.97 | ||||||||
|
Weighted Average Number of Common Shares Outstanding
|
||||||||||||||||
|
Basic
|
76,498 | 65,479 | 76,481 | 58,241 | ||||||||||||
|
Diluted
|
87,227 | 65,670 | 87,138 | 58,500 | ||||||||||||
4
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except share information)
|
December 31,
|
June 30,
|
|||||||
|
2011
|
2011
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$ | 79,396 | $ | 28,407 | ||||
|
Restricted cash
|
1,028 | — | ||||||
|
Accounts receivable
|
||||||||
|
Oil and natural gas sales
|
141,314 | 126,194 | ||||||
|
Joint interest billings
|
2,814 | 4,526 | ||||||
|
Insurance and other
|
3,661 | 2,533 | ||||||
|
Prepaid expenses and other current assets
|
52,817 | 47,751 | ||||||
|
Derivative financial instruments
|
5,592 | 22 | ||||||
|
Total Current Assets
|
286,622 | 209,433 | ||||||
|
Property and Equipment
|
||||||||
|
Oil and natural gas properties - full cost method of accounting, including $516.6 million and $467.3 million of unevaluated properties at December 31, 2011 and June 30, 2011, respectively
|
2,608,737 | 2,545,336 | ||||||
|
Other property and equipment
|
9,025 | 8,201 | ||||||
|
Total Property and Equipment
|
2,617,762 | 2,553,537 | ||||||
|
Other Assets
|
||||||||
|
Derivative financial instruments
|
9,963 | — | ||||||
|
Deferred income taxes
|
— | 2,411 | ||||||
|
Debt issuance costs, net of accumulated amortization
|
30,635 | 33,479 | ||||||
|
Total Other Assets
|
40,598 | 35,890 | ||||||
|
Total Assets
|
$ | 2,944,982 | $ | 2,798,860 | ||||
|
LIABILITIES
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$ | 150,596 | $ | 163,741 | ||||
|
Accrued liabilities
|
95,419 | 111,157 | ||||||
|
Notes payable
|
9,196 | 19,853 | ||||||
|
Asset retirement obligations
|
25,379 | 19,624 | ||||||
|
Derivative financial instruments
|
25,352 | 50,259 | ||||||
|
Current maturities of long-term debt
|
2,555 | 4,054 | ||||||
|
Total Current Liabilities
|
308,497 | 368,688 | ||||||
|
Long-term debt, less current maturities
|
1,029,009 | 1,109,333 | ||||||
|
Deferred income taxes
|
68,722 | — | ||||||
|
Asset retirement obligations
|
316,698 | 303,618 | ||||||
|
Derivative financial instruments
|
951 | 70,524 | ||||||
|
Other liabilities
|
6,234 | — | ||||||
|
Total Liabilities
|
1,730,111 | 1,852,163 | ||||||
|
Commitments and Contingencies
|
||||||||
|
Stockholders’ Equity
|
||||||||
|
Preferred stock, $0.001 par value, 7,500,000 shares authorized:
|
||||||||
|
7.25 % Convertible perpetual preferred stock, 8,000 shares issued and outstanding at December 31, 2011 and June 30, 2011, respectively
|
— | — | ||||||
|
5.625% Convertible perpetual preferred stock, 1,050,000 shares issued and outstanding at December 31, 2011 and June 30, 2011, respectively
|
1 | 1 | ||||||
|
Common stock, $0.005 par value, 200,000,000 shares authorized and 76,790,281 and 76,203,574 shares issued and 75,533,928 and 76,202,921 shares outstanding at December 31, 2011 and June 30, 2011, respectively
|
384 | 381 | ||||||
|
Additional paid-in capital
|
1,499,528 | 1,479,959 | ||||||
|
Accumulated deficit
|
(309,152 | ) | (465,160 | ) | ||||
|
Accumulated other comprehensive income (loss), net of income taxes
|
24,110 | (68,484 | ) | |||||
|
Total Stockholders’ Equity
|
1,214,871 | 946,697 | ||||||
|
Total Liabilities and Stockholders’ Equity
|
$ | 2,944,982 | $ | 2,798,860 | ||||
5
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except per share information)
(Unaudited)
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
Revenues
|
||||||||||||||||
|
Oil sales
|
$ | 309,347 | $ | 146,539 | $ | 556,264 | $ | 262,369 | ||||||||
|
Natural gas sales
|
31,231 | 27,414 | 69,197 | 55,584 | ||||||||||||
|
Total Revenues
|
340,578 | 173,953 | 625,461 | 317,953 | ||||||||||||
|
Costs and Expenses
|
||||||||||||||||
|
Lease operating
|
74,134 | 44,446 | 145,167 | 88,599 | ||||||||||||
|
Production taxes
|
1,174 | 716 | 3,348 | 1,410 | ||||||||||||
|
Gathering and transportation
|
3,395 | 801 | 9,548 | 822 | ||||||||||||
|
Depreciation, depletion and amortization
|
87,568 | 62,922 | 172,371 | 116,999 | ||||||||||||
|
Accretion of asset retirement obligations
|
9,803 | 6,348 | 19,491 | 12,322 | ||||||||||||
|
General and administrative
|
22,147 | 15,786 | 41,468 | 34,383 | ||||||||||||
|
Loss (gain) on derivative financial instruments
|
4,371 | (1,638 | ) | (6,001 | ) | (2,776 | ) | |||||||||
|
Total Costs and Expenses
|
202,592 | 129,381 | 385,392 | 251,759 | ||||||||||||
|
Operating Income
|
137,986 | 44,572 | 240,069 | 66,194 | ||||||||||||
|
Other Income (Expense)
|
||||||||||||||||
|
Bridge loan commitment fees
|
— | (4,500 | ) | — | (4,500 | ) | ||||||||||
|
Loss on retirement of debt
|
— | (5,184 | ) | — | (5,184 | ) | ||||||||||
|
Other income
|
15 | 151 | 24 | 161 | ||||||||||||
|
Interest expense
|
(28,363 | ) | (22,094 | ) | (55,551 | ) | (43,574 | ) | ||||||||
|
Total Other Income (Expense)
|
(28,348 | ) | (31,627 | ) | (55,527 | ) | (53,097 | ) | ||||||||
|
Income Before Income Taxes
|
109,638 | 12,945 | 184,542 | 13,097 | ||||||||||||
|
Income Tax Expense
|
12,549 | 2,011 | 21,122 | 2,030 | ||||||||||||
|
Net Income
|
97,089 | 10,934 | 163,420 | 11,067 | ||||||||||||
|
Induced Conversion of Preferred Stock
|
— | 19,796 | — | 19,796 | ||||||||||||
|
Preferred Stock Dividends
|
3,706 | 2,426 | 7,412 | 4,420 | ||||||||||||
|
Net Income (Loss) Attributable to Common Stockholders
|
$ | 93,383 | $ | (11,288 | ) | $ | 156,008 | $ | (13,149 | ) | ||||||
|
Net Income (Loss) Per Share Attributable to Common Stockholders
|
||||||||||||||||
|
Basic
|
$ | 1.22 | $ | (0.17 | ) | $ | 2.04 | $ | (0.23 | ) | ||||||
|
Diluted
|
$ | 1.11 | $ | (0.17 | ) | $ | 1.88 | $ | (0.23 | ) | ||||||
|
Weighted Average Number of Common Shares Outstanding
|
||||||||||||||||
|
Basic
|
76,498 | 65,479 | 76,481 | 58,241 | ||||||||||||
|
Diluted
|
87,227 | 65,479 | 87,138 | 58,241 | ||||||||||||
6
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
Cash Flows From Operating Activities
|
||||||||||||||||
|
Net income
|
$ | 97,089 | $ | 10,934 | $ | 163,420 | $ | 11,067 | ||||||||
|
Adjustments to reconcile net income to net cash provided by
|
||||||||||||||||
|
(used in) operating activities:
|
||||||||||||||||
|
Depreciation, depletion and amortization
|
87,568 | 62,922 | 172,371 | 116,999 | ||||||||||||
|
Deferred income tax expense
|
12,547 | 2,011 | 21,272 | 2,030 | ||||||||||||
|
Change in derivative financial instruments
|
||||||||||||||||
|
Proceeds from sale of derivative instruments
|
15,931 | 8,522 | 65,529 | 42,577 | ||||||||||||
|
Other – net
|
(6,445 | ) | (7,515 | ) | (25,691 | ) | (16,214 | ) | ||||||||
|
Accretion of asset retirement obligations
|
9,803 | 6,348 | 19,491 | 12,322 | ||||||||||||
|
Amortization of deferred gain on debt and debt discount and premium
|
— | (40,383 | ) | — | (43,132 | ) | ||||||||||
|
Amortization and write-off of debt issuance costs
|
1,882 | 2,492 | 3,705 | 4,254 | ||||||||||||
|
Stock-based compensation
|
1,189 | 391 | 10,114 | 2,180 | ||||||||||||
|
Payment of interest in-kind
|
— | 2,225 | — | 2,225 | ||||||||||||
|
Changes in operating assets and liabilities
|
||||||||||||||||
|
Accounts receivable
|
(30,275 | ) | (48,371 | ) | (17,581 | ) | (39,971 | ) | ||||||||
|
Prepaid expenses and other current assets
|
4,067 | 9,883 | (5,066 | ) | (2,278 | ) | ||||||||||
|
Settlement of asset retirement obligations
|
(1,407 | ) | (29,311 | ) | (1,994 | ) | (34,618 | ) | ||||||||
|
Accounts payable and accrued liabilities
|
(96 | ) | 19,354 | (37,586 | ) | 20,012 | ||||||||||
|
Net Cash Provided by (Used in) Operating Activities
|
191,853 | (498 | ) | 367,984 | 77,453 | |||||||||||
|
Cash Flows from Investing Activities
|
||||||||||||||||
|
Acquisitions
|
(6,242 | ) | (1,013,003 | ) | (6,177 | ) | (1,013,011 | ) | ||||||||
|
Capital expenditures
|
(125,695 | ) | (65,090 | ) | (238,444 | ) | (128,625 | ) | ||||||||
|
Insurance payments received
|
5,692 | — | 6,472 | — | ||||||||||||
|
Proceeds from the sale of properties
|
2,767 | — | 2,767 | 400 | ||||||||||||
|
Other
|
(1,062 | ) | 115 | (808 | ) | 83 | ||||||||||
|
Net Cash Used in Investing Activities
|
(124,540 | ) | (1,077,978 | ) | (236,190 | ) | (1,141,153 | ) | ||||||||
|
Cash Flows from Financing Activities
|
||||||||||||||||
|
Proceeds from the issuance of common and preferred stock, net of offering costs
|
310 | 555,773 | 9,456 | 560,903 | ||||||||||||
|
Conversion of preferred stock to common
|
— | (11,912 | ) | — | (11,912 | ) | ||||||||||
|
Dividends to shareholders
|
(3,706 | ) | (179 | ) | (7,412 | ) | (2,173 | ) | ||||||||
|
Proceeds from long-term debt
|
285,854 | 1,113,000 | 522,324 | 1,160,000 | ||||||||||||
|
Payments on long-term debt
|
(288,084 | ) | (520,838 | ) | (604,318 | ) | (586,767 | ) | ||||||||
|
Payments for debt issuance costs and other
|
(759 | ) | (30,260 | ) | (855 | ) | (30,584 | ) | ||||||||
|
Net Cash Provided by (Used in) Financing Activities
|
(6,385 | ) | 1,105,584 | (80,805 | ) | 1,089,467 | ||||||||||
|
Net Increase in Cash and Cash Equivalents
|
60,928 | 27,108 | 50,989 | 25,767 | ||||||||||||
|
Cash and Cash Equivalents, beginning of period
|
18,468 | 12,883 | 28,407 | 14,224 | ||||||||||||
|
Cash and Cash Equivalents, end of period
|
$ | 79,396 | $ | 39,991 | $ | 79,396 | $ | 39,991 | ||||||||
7
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED OPERATIONAL INFORMATION (In thousands) (Unaudited)
|
Quarter Ended
|
||||||||||||||||||||
|
Dec. 31,
2011
|
Sept. 30,
2011
|
June 30,
2011
|
Mar. 31,
2011
|
Dec. 31,
2010
|
||||||||||||||||
|
Operating Highlights
|
||||||||||||||||||||
|
Operating revenues
|
||||||||||||||||||||
|
Crude oil sales
|
$ | 306,064 | $ | 249,767 | $ | 270,252 | $ | 233,081 | $ | 156,273 | ||||||||||
|
Natural gas sales
|
21,659 | 28,138 | 31,875 | 32,193 | 18,301 | |||||||||||||||
|
Hedge gain (loss)
|
12,855 | 6,978 | (19,346 | ) | (6,638 | ) | (621 | ) | ||||||||||||
|
Total revenues
|
340,578 | 284,883 | 282,781 | 258,636 | 173,953 | |||||||||||||||
|
Percent of operating revenues from crude oil
|
||||||||||||||||||||
|
Prior to hedge gain (loss)
|
93 | % | 90 | % | 89 | % | 88 | % | 90 | % | ||||||||||
|
Including hedge gain (loss)
|
91 | % | 87 | % | 85 | % | 84 | % | 84 | % | ||||||||||
|
Operating expenses
|
||||||||||||||||||||
|
Lease operating expense
|
||||||||||||||||||||
|
Insurance expense
|
7,096 | 7,462 | 8,814 | 6,543 | 6,376 | |||||||||||||||
|
Workover and maintenance
|
12,805 | 6,653 | 17,251 | 4,121 | 4,105 | |||||||||||||||
|
Direct lease operating expense
|
54,233 | 56,918 | 59,557 | 54,593 | 33,965 | |||||||||||||||
|
Total lease operating expense
|
74,134 | 71,033 | 85,622 | 65,257 | 44,446 | |||||||||||||||
|
Production taxes
|
1,174 | 2,174 | 1,205 | 721 | 716 | |||||||||||||||
|
Gathering and transportation
|
3,395 | 6,153 | 6,868 | 4,809 | 801 | |||||||||||||||
|
DD&A
|
87,568 | 84,803 | 85,179 | 91,301 | 62,922 | |||||||||||||||
|
General and administrative
|
22,147 | 19,321 | 17,553 | 23,155 | 15,786 | |||||||||||||||
|
Other – net
|
14,174 | (684 | ) | 7,730 | 9,288 | 4,710 | ||||||||||||||
|
Total operating expenses
|
202,592 | 182,800 | 204,157 | 194,531 | 129,381 | |||||||||||||||
|
Operating income
|
$ | 137,986 | $ | 102,083 | $ | 78,624 | $ | 64,105 | $ | 44,572 | ||||||||||
|
Sales volumes per day
|
||||||||||||||||||||
|
Natural gas (MMcf)
|
72.8 | 77.0 | 83.0 | 84.6 | 53.7 | |||||||||||||||
|
Crude oil (MBbls)
|
30.6 | 28.0 | 28.3 | 27.3 | 20.4 | |||||||||||||||
|
Total (MBOE)
|
42.7 | 40.8 | 42.1 | 41.4 | 29.4 | |||||||||||||||
|
Percent of sales volumes from crude oil
|
72 | % | 69 | % | 67 | % | 66 | % | 70 | % | ||||||||||
|
Average sales price
|
||||||||||||||||||||
|
Natural gas per Mcf
|
$ | 3.23 | $ | 3.97 | $ | 4.22 | $ | 4.23 | $ | 3.70 | ||||||||||
|
Hedge gain per Mcf
|
1.43 | 1.39 | 1.37 | 1.28 | 1.85 | |||||||||||||||
|
Total natural gas per Mcf
|
$ | 4.66 | $ | 5.36 | $ | 5.59 | $ | 5.51 | $ | 5.55 | ||||||||||
|
Crude oil per Bbl
|
$ | 108.80 | $ | 97.11 | $ | 105.12 | $ | 94.94 | $ | 83.14 | ||||||||||
|
Hedge gain (loss) per Bbl
|
1.17 | (1.11 | ) | (11.53 | ) | (6.67 | ) | (5.18 | ) | |||||||||||
|
Total crude oil per Bbl
|
$ | 109.97 | $ | 96.00 | $ | 93.59 | $ | 88.27 | $ | 77.96 | ||||||||||
|
Total hedge gain (loss) per BOE
|
$ | 3.27 | $ | 1.86 | $ | (5.05 | ) | $ | (1.78 | ) | $ | (0.23 | ) | |||||||
|
Operating revenues per BOE
|
$ | 86.67 | $ | 75.91 | $ | 73.85 | $ | 69.46 | $ | 64.34 | ||||||||||
|
Operating expenses per BOE
|
||||||||||||||||||||
|
Lease operating expense
|
||||||||||||||||||||
|
Insurance expense
|
1.81 | 1.99 | 2.30 | 1.76 | 2.36 | |||||||||||||||
|
Workover and maintenance
|
3.26 | 1.77 | 4.51 | 1.11 | 1.52 | |||||||||||||||
|
Direct lease operating expense
|
13.80 | 15.17 | 15.55 | 14.66 | 12.56 | |||||||||||||||
|
Total lease operating expense
|
18.87 | 18.93 | 22.36 | 17.53 | 16.44 | |||||||||||||||
|
Production taxes
|
0.30 | 0.58 | 0.31 | 0.19 | 0.26 | |||||||||||||||
|
Gathering and transportation
|
0.86 | 1.64 | 1.79 | 1.28 | 0.29 | |||||||||||||||
|
DD&A
|
22.28 | 22.60 | 22.24 | 24.52 | 23.27 | |||||||||||||||
|
General and administrative
|
5.64 | 5.15 | 4.58 | 6.22 | 5.84 | |||||||||||||||
|
Other – net
|
3.60 | (0.18 | ) | 2.01 | 2.49 | 1.74 | ||||||||||||||
|
Total operating expenses
|
51.55 | 48.72 | 53.29 | 52.23 | 47.84 | |||||||||||||||
|
Operating income per BOE
|
$ | 35.12 | $ | 27.19 | $ | 20.56 | $ | 17.23 | $ | 16.50 | ||||||||||
8
Conference Call Tomorrow, Feb. 2, at 9 a.m. CDT, 3 p.m. London Time
Energy XXI will host its fiscal second-quarter conference call tomorrow, Feb. 2, at 9 a.m. CST (3 p.m. London time). The dial-in numbers are 1 (631) 813-4724 (U.S.) and (0) 80 0032 3836 (U.K.), and the confirmation code is 43357511. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.EnergyXXI.com.
Forward-Looking Statements
All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
Competent Person Disclosure
The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Bobby Poirrier Jr., Vice President of Corporate Development, a Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.
About the Company
Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company’s properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Seymour Pierce is Energy XXI’s listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com.
9
GLOSSARY
Barrel – unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.
BOE – barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.
BOE/d – barrels of oil equivalent per day.
MMcf/d – million cubic feet of gas per day.
Net Pay – cumulative hydrocarbon-bearing formations.
NRI, Net Revenue Interest – the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.
TD – target total depth of a well.
WI, Working Interest – the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.
Workover / Recompletion – operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.
Enquiries of the Company
Energy XXI
Stewart Lawrence
Vice President, Investor Relations and Communications
713-351-3006
slawrence@energyxxi.com
Greg Smith
Director, Investor Relations
713-351-3149
gsmith@energyxxi.com
Seymour Pierce
Jonathan Wright – Corporate Finance
Richard Redmayne – Corporate Broking
Tel: +44 (0) 20 7107 8000
Pelham Bell Pottinger
James Henderson
jhenderson@pelhambellpottinger.co.uk
Mark Antelme
mantelme@pelhambellpottinger.co.uk
+44 (0) 20 7861 3232
10