Attached files
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| 8-K - FORM 8-K PRESS RELEASE - Energy XXI Ltd | form8_k.htm |
Energy XXI Reports Audited Fiscal Year-end Results
And Provides Operational Update
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·
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Fiscal 2012 EBITDA rises 69% to a record $851 million
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Production Increases 27% for the year
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·
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Net debt to capitalization reduced to 39%
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Proved reserves climb to 120 MMBOE, 71% liquids
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HOUSTON – Aug. 8, 2012 – Energy XXI (NASDAQ: EXXI) (AIM: EXXI) today announced fiscal fourth-quarter and full-year financial and operating results for the period ended June 30, 2012, and provided an operational update.
For the 2012 fiscal fourth quarter, adjusted earnings before interest, taxes, depreciation, depletion and amortization (adjusted EBITDA) was a $223.1 million on revenues of $341.9 million, as volumes reached a record quarterly average of 47,600 barrels of oil equivalent per day (BOE/d), 68 percent of which was oil. These results compare with 2011 fiscal fourth-quarter adjusted EBITDA of $165.9 million on revenues of $282.8 million and volumes of 42,100 BOE/d, up 34 percent, 21 percent and 13 percent, respectively. Net income available for common shareholders in the 2012 fiscal fourth quarter totaled $78.3 million, or $0.93 per diluted share, compared with fiscal 2011 fourth-quarter net income available for common shareholders, excluding special items, of $26.8 million, or $0.36 per diluted share.
For the full fiscal year ended June 30, 2012, adjusted EBITDA reached a record $850.7 million, up 69 percent from the $504.5 million generated in fiscal 2011. Fiscal 2012 net income available for common shareholders was $316.7 million, or $3.85 per diluted share, on revenues of $1.3 billion and production of 44,100 BOE/d. These results compare with net income available for common shareholders for fiscal 2011 of $27.7 million, or $0.42 per diluted share, on revenues of $859.4 million and production of 34,600 BOE/d.
“Fiscal 2012 was a record year for production, EBITDA, net income and reserves,” Energy XXI Chairman and CEO John Schiller said. “Our successful oil-focused development program drove these results, with the primary goal of generating substantial free cash flow to bolster the balance sheet. Even with this low-risk approach, without the contribution of a single exploration well, we were able to replace nearly 120 percent of production and grow reserves 3 percent. For fiscal 2013, we remain focused on growing oil production through the exploitation and development of our core assets while deploying 15 percent of our capital to exploration in the shallow waters of the Gulf of Mexico.”
Year-end Reserves
The company’s June 30, 2012 fiscal year-end proved reserves were estimated at 119.6 million barrels of oil equivalent (MMBOE), up 3 percent from the June 30, 2011 fiscal year-end reserves. Energy XXI added 19.2 MMBOE of proved reserves primarily through discoveries, extensions of existing fields and revisions, while producing 16.1 MMBOE. The all-sources reserves replacement rate was 119 percent.
NSAI provided the year-end reserves estimates. All of the company’s proved reserves are in the Gulf of Mexico or U.S. Gulf Coast, 68 percent are proved developed, 71 percent are oil and natural gas liquids, and 29 percent are natural gas. The tables set forth below provide additional information relating to the company’s reserves, including cost-incurred data.
The following fiscal year-ended June 30, 2012 estimated proved, probable and possible reserves attributable to the company’s net interests in oil and gas properties were prepared by NSAI, in conjunction with in-house reservoir engineers.
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Oil
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NGL’s
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Gas
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Equivalent
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PV10%
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||||||||||||||||
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(MBBL)
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(MBBL)
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(MMCF)
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(MBOE)
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$ | (000 | )1 | ||||||||||||||
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Proved Developed Producing
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49,444 | 1,654 | 68,275 | 62,477 | 2,526,175 | |||||||||||||||
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Proved Developed Non-Producing
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10,441 | 1,769 | 42,035 | 19,216 | 612,630 | |||||||||||||||
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Proved Undeveloped
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19,755 | 1,730 | 98,680 | 37,931 | 1,158,639 | |||||||||||||||
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Proved Reserves
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79,640 | 5,153 | 208,990 | 119,624 | 4,297,444 | |||||||||||||||
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Probables
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24,119 | 1,928 | 119,641 | 45,988 | 1,474,542 | |||||||||||||||
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Proved + Probables
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103,759 | 7,081 | 328,631 | 165,612 | 5,771,986 | |||||||||||||||
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Possibles
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12,373 | 1,195 | 160,840 | 40,374 | 876,390 | |||||||||||||||
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Total Resources
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116,132 | 8,276 | 489,471 | 205,986 | 6,648,376 | |||||||||||||||
(1) Before tax, as of June 30, 2012, using prices of $95.67 per barrel of oil and $3.15 per MMBTU of gas, before differentials, based on the SEC-prescribed first-of-the-month average prices for the preceding 12 months.
-2-
Exploration and Development Activity
At the West Delta 73 field (100% WI / 83% NRI), the Rosebank well is online and producing 800 BOE/d net. The well was completed in July but due to rig moves was not fully placed on production until the first week of August. This well penetrated the F-40 sand and is producing approximately 85 percent oil.
The Don Tomas well at Main Pass (WI 100% / 78% NRI) has been successfully completed and is currently being tested. As previously announced, initial logs indicated the well encountered 195 feet of net pay within the BA-4AA sand. The company has also logged an additional 89 feet of net pay in the BA-4B and J-6 sands and will evaluate a second well up-dip to develop the additional pay sands.
At Grand Isle 16 (WI 100% / NRI 87%), the Pi development well has been completed and is testing. The well encountered 400 feet of net pay, primarily oil, in multiple sands. The well currently is being brought online with a flowing tubing pressure of 1,850 psi, which the company believes will allow production of approximately 1,200 BOE/d net. At Grand Isle, the company expects to drill as many as six development wells and recomplete another five wells in the current fiscal year.
Capital Program Estimates
The company has received approval from its board of directors to proceed with a capital expenditure budget of $700 million for fiscal year 2013, which began July 1, 2012. Drilling, completion and facilities for the company’s core assets account for $505 million of the total capital budget, with $322 million going toward exploration and development at the acquired ExxonMobil properties and $183 million allocated toward the exploration and development of the legacy assets. Another $94 million is allocated to the ultra-deep exploration and development program. The remainder of the capital budget is allocated to general and administrative, land and abandonment costs.
-3-
ENERGY XXI (BERMUDA) LIMITED
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In Thousands, except per share information)
(Unaudited)
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As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measure: Adjusted EBITDA. The company uses this non-GAAP measure as a key metric for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt.
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Quarter Ended June 30,
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Year Ended June 30,
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2012
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2011
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2012
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2011
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Net Income as Reported
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$ | 81,155 | $ | 35,217 | $ | 335,827 | $ | 64,655 | ||||||||
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Total other expense
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26,494 | 35,307 | 108,811 | 132,006 | ||||||||||||
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Depreciation, depletion and amortization
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106,644 | 85,179 | 367,463 | 293,479 | ||||||||||||
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Duplicate June 2011 Insurance Expense
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— | 2,143 | — | 2,143 | ||||||||||||
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Income tax expense (benefit)
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8,761 | 8,100 | 38,646 | 12,262 | ||||||||||||
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Adjusted EBITDA
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$ | 223,054 | $ | 165,946 | $ | 850,747 | $ | 504,545 | ||||||||
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Adjusted EBITDA Per Share
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Basic
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$ | 2.83 | $ | 2.21 | $ | 11.00 | $ | 7.60 | ||||||||
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Diluted
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$ | 2.82 | $ | 2.21 | $ | 10.96 | $ | 7.59 | ||||||||
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Weighted Average Number of Common Shares Outstanding
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Basic
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78,840 | 74,986 | 77,310 | 66,356 | ||||||||||||
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Diluted
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79,199 | 75,079 | 77,614 | 66,459 | ||||||||||||
-4-
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except share information)
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June 30,
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ASSETS
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2012
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2011
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Current Assets
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Cash and cash equivalents
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$ | 117,087 | $ | 28,407 | ||||
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Accounts receivable
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Oil and natural gas sales
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126,107 | 126,194 | ||||||
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Joint interest billings
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3,840 | 4,526 | ||||||
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Insurance and other
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5,420 | 2,533 | ||||||
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Prepaid expenses and other current assets
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63,029 | 47,751 | ||||||
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Derivative financial instruments
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32,497 | 22 | ||||||
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Total Current Assets
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347,980 | 209,433 | ||||||
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Property and Equipment
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Oil and natural gas properties - full cost method of accounting, including $418.8 million and $467.3 million of unevaluated properties not being amortized at June 30, 2012 and 2011, respectively
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2,698,213 | 2,545,336 | ||||||
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Other property and equipment
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9,533 | 8,201 | ||||||
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Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment
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2,707,746 | 2,553,537 | ||||||
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Other Assets
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Derivative financial instruments
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45,496 | — | ||||||
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Deferred income taxes
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— | 2,411 | ||||||
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Debt issuance costs, net of accumulated amortization and other assets
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29,725 | 33,479 | ||||||
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Total Other Assets
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75,221 | 35,890 | ||||||
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Total Assets
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$ | 3,130,947 | $ | 2,798,860 | ||||
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LIABILITIES
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Current Liabilities
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Accounts payable
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156,959 | $ | 163,741 | |||||
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Accrued liabilities
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118,818 | 111,157 | ||||||
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Notes payable
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22,211 | 19,853 | ||||||
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Asset retirement obligations
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34,457 | 19,624 | ||||||
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Derivative financial instruments
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— | 50,259 | ||||||
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Current maturities of long-term debt
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4,284 | 4,054 | ||||||
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Total Current Liabilities
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336,729 | 368,688 | ||||||
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Long-term debt, less current maturities
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1,014,060 | 1,109,333 | ||||||
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Deferred income taxes
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104,280 | — | ||||||
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Asset retirement obligations
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266,958 | 303,618 | ||||||
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Derivative financial instruments
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— | 70,524 | ||||||
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Other liabilities
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3,080 | — | ||||||
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Total Liabilities
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1,725,107 | 1,852,163 | ||||||
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Stockholders’ Equity
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||||||||
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Preferred stock, $0.001 par value, 7,500,000 and 2,500,000 shares authorized at June 30, 2012 and 2011, respectively
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||||||||
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7.25% Convertible perpetual preferred stock, 8,000 shares issued and outstanding at June 30, 2012 and 2011, respectively
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— | — | ||||||
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5.625% Convertible perpetual preferred stock, 814,117 and 1,050,000 shares issued and outstanding at June 30, 2012 and 2011, respectively
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1 | 1 | ||||||
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Common stock, $0.005 par value, 200,000,000 shares authorized and 79,147,340 and 76,203,574 shares issued and 78,837,697 and 76,202,921 shares outstanding at June 30, 2012 and 2011, respectively
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396 | 381 | ||||||
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Additional paid-in capital
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1,501,785 | 1,479,959 | ||||||
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Accumulated deficit
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(153,945 | ) | (465,160 | ) | ||||
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Accumulated other comprehensive income (loss), net of income taxes
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57,603 | (68,484 | ) | |||||
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Total Stockholders’ Equity
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1,405,840 | 946,697 | ||||||
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Total Liabilities and Stockholders’ Equity
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$ | 3,130,947 | $ | 2,798,860 | ||||
-5-
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except per share information)
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Quarter Ended June 30,
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Year Ended June 30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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Revenues
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Crude oil sales
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$ | 317,653 | $ | 240,603 | $ | 1,186,631 | $ | 719,683 | ||||||||
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Natural gas sales
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24,293 | 42,178 | 116,772 | 139,687 | ||||||||||||
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Total Revenues
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341,946 | 282,781 | 1,303,403 | 859,370 | ||||||||||||
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Costs and Expenses
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Lease operating expense
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87,201 | 85,622 | 310,815 | 239,478 | ||||||||||||
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Production taxes
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2,414 | 1,205 | 7,261 | 3,336 | ||||||||||||
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Gathering and transportation
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4,358 | 6,868 | 16,371 | 12,499 | ||||||||||||
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Depreciation, depletion and amortization
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106,644 | 85,179 | 367,463 | 293,479 | ||||||||||||
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Accretion of asset retirement obligations
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9,908 | 9,898 | 39,161 | 32,127 | ||||||||||||
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General and administrative expense
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19,733 | 17,553 | 86,276 | 75,091 | ||||||||||||
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(Gain) Loss on derivative financial instruments
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(4,722 | ) | (2,168 | ) | (7,228 | ) | (5,563 | ) | ||||||||
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Total Costs and Expenses
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225,536 | 204,157 | 820,119 | 650,447 | ||||||||||||
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Operating Income
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116,410 | 78,624 | 483,284 | 208,923 | ||||||||||||
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Other Income (Expense)
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Bridge loan commitment fees
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— | — | — | (4,500 | ) | |||||||||||
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Loss on retirement of debt
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— | (4,472 | ) | — | (21,855 | ) | ||||||||||
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Interest income and other
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(50 | ) | 22 | 71 | 198 | |||||||||||
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Interest expense
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(26,444 | ) | (30,857 | ) | (108,882 | ) | (105,849 | ) | ||||||||
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Total Other Expense
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(26,494 | ) | (35,307 | ) | (108,811 | ) | (132,006 | ) | ||||||||
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Income Before Income Taxes
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89,916 | 43,317 | 374,473 | 76,917 | ||||||||||||
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Income Tax Expense
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8,761 | 8,100 | 38,646 | 12,262 | ||||||||||||
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Net Income
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81,155 | 35,217 | 335,827 | 64,655 | ||||||||||||
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Induced Conversion of Preferred Stock
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10 | 4,508 | 6,068 | 24,348 | ||||||||||||
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Preferred Stock Dividends
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2,877 | 3,902 | 13,028 | 12,600 | ||||||||||||
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Net Income Available for Common Stockholders
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$ | 78,268 | $ | 26,807 | $ | 316,731 | $ | 27,707 | ||||||||
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Earnings per Share
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Basic
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$ | 0.99 | $ | 0.36 | $ | 4.10 | $ | 0.42 | ||||||||
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Diluted
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$ | 0.93 | $ | 0.36 | $ | 3.85 | $ | 0.42 | ||||||||
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Weighted Average Number of Common Shares Outstanding
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||||||||||||||||
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Basic
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78,840 | 74,986 | 77,310 | 66,356 | ||||||||||||
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Diluted
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87,278 | 75,079 | 87,208 | 66,459 | ||||||||||||
-6-
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
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Quarter Ended June 30,
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Year Ended June 30,
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2012
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2011
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2012
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2011
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Cash Flows From Operating Activities
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(unaudited)
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(unaudited)
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Net income
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$ | 81,155 | $ | 35,217 | $ | 335,827 | $ | 64,655 | ||||||||
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Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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||||||||||||||||
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Depreciation, depletion and amortization
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106,644 | 85,179 | 367,463 | 293,479 | ||||||||||||
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Deferred income tax expense
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8,760 | 8,007 | 38,796 | 12,169 | ||||||||||||
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Change in derivative financial instruments
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||||||||||||||||
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Proceeds from sale of derivative instruments
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— | — | 66,522 | 42,577 | ||||||||||||
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Other – net
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(15,598 | ) | (11,060 | ) | (52,155 | ) | (37,047 | ) | ||||||||
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Accretion of asset retirement obligations
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9,908 | 9,898 | 39,161 | 32,127 | ||||||||||||
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Amortization of debt discount and premium
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— | — | (43,521 | ) | ||||||||||||
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Amortization and write-off of debt issuance costs and other
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1,968 | 4,950 | 7,559 | 15,772 | ||||||||||||
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Stock-based compensation
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1,168 | 1,317 | 11,760 | 4,443 | ||||||||||||
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Payment of interest in-kind
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— | — | 2,225 | |||||||||||||
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Changes in operating assets and liabilities
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||||||||||||||||
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Accounts receivable
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22,151 | 4,958 | (4,995 | ) | (49,745 | ) | ||||||||||
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Prepaid expenses and other current assets
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(20,769 | ) | (21,711 | ) | (15,890 | ) | (13,272 | ) | ||||||||
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Settlement of asset retirement obligations
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(8,427 | ) | (19,819 | ) | (14,990 | ) | (73,974 | ) | ||||||||
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Accounts payable and accrued liabilities
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32,372 | 67,081 | 6,456 | 137,837 | ||||||||||||
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Net Cash Provided by Operating Activities
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219,332 | 164,017 | 785,514 | 387,725 | ||||||||||||
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Cash Flows from Investing Activities
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||||||||||||||||
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Acquisitions
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(189 | ) | 9,862 | (6,401 | ) | (1,012,262 | ) | |||||||||
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Capital expenditures
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(176,482 | ) | (91,037 | ) | (570,670 | ) | (281,233 | ) | ||||||||
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Insurance payments received
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— | 6,472 | — | |||||||||||||
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Proceeds from the sale of properties
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(220 | ) | 37,956 | 2,750 | 38,431 | |||||||||||
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Other
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(2,188 | ) | (39 | ) | (1,744 | ) | (8 | ) | ||||||||
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Net Cash Used in Investing Activities
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(179,079 | ) | (43,258 | ) | (569,593 | ) | (1,255,072 | ) | ||||||||
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Cash Flows from Financing Activities
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||||||||||||||||
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Proceeds from the issuance of common and preferred stock, net of offering costs
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192 | 22 | 9,839 | 562,112 | ||||||||||||
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Conversion of preferred stock to common
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(11 | ) | (1 | ) | (6,040 | ) | (11,957 | ) | ||||||||
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Dividends to shareholders
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(8,393 | ) | (3,987 | ) | (18,682 | ) | (12,313 | ) | ||||||||
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Proceeds from long-term debt
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188,956 | 291,302 | 896,717 | 1,829,828 | ||||||||||||
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Payments on long-term debt
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(189,513 | ) | (411,339 | ) | (1,008,300 | ) | (1,456,190 | ) | ||||||||
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Debt issuance costs
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(1,470 | ) | — | (29,614 | ) | |||||||||||
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Other
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79 | 15 | (775 | ) | (336 | ) | ||||||||||
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Net Cash Provided by (Used in) Financing Activities
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(8,690 | ) | (125,458 | ) | (127,241 | ) | 881,530 | |||||||||
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Net Increase (Decrease) in Cash and Cash Equivalents
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31,563 | (4,699 | ) | 88,680 | 14,183 | |||||||||||
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Cash and Cash Equivalents, beginning of period
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85,524 | 33,106 | 28,407 | 14,224 | ||||||||||||
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Cash and Cash Equivalents, end of period
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$ | 117,087 | $ | 28,407 | $ | 117,087 | $ | 28,407 | ||||||||
-7-
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Year Ended June 30,
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Operating Highlights
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2012
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2011
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2010
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2009
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2008
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(In Thousands, Except per Unit Amounts)
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Operating revenues
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||||||||||||||||||||
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Crude oil sales
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$ | 1,186,193 | $ | 777,869 | $ | 383,928 | $ | 278,014 | $ | 484,552 | ||||||||||
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Natural gas sales
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88,608 | 101,815 | 69,399 | 113,156 | 237,628 | |||||||||||||||
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Hedge gain (loss)
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28,602 | (20,314 | ) | 45,604 | 42,660 | (78,948 | ) | |||||||||||||
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Total revenues
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1,303,403 | 859,370 | 498,931 | 433,830 | 643,232 | |||||||||||||||
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Percent of operating revenues from crude oil
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||||||||||||||||||||
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Prior to hedge gain (loss)
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93 | % | 88 | % | 85 | % | 71 | % | 67 | % | ||||||||||
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Including hedge gain (loss)
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91 | % | 84 | % | 78 | % | 68 | % | 62 | % | ||||||||||
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Operating expenses
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Lease operating expense
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||||||||||||||||||||
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Insurance expense
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28,521 | 27,876 | 27,603 | 19,188 | 18,218 | |||||||||||||||
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Workover and maintenance
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56,413 | 33,095 | 19,630 | 15,930 | 22,397 | |||||||||||||||
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Direct lease operating expense
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225,881 | 178,507 | 95,379 | 87,032 | 102,244 | |||||||||||||||
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Total lease operating expense
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310,815 | 239,478 | 142,612 | 122,150 | 142,859 | |||||||||||||||
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Production taxes
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7,261 | 3,336 | 4,217 | 5,450 | 8,686 | |||||||||||||||
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Gathering and transportation
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16,371 | 12,499 | — | — | — | |||||||||||||||
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Depreciation, depletion and amortization
|
367,463 | 293,479 | 181,640 | 217,207 | 307,389 | |||||||||||||||
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Impairment of oil and gas properties
|
— | — | — | 576,996 | — | |||||||||||||||
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General and administrative
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86,276 | 75,091 | 49,667 | 24,756 | 26,450 | |||||||||||||||
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Other – net
|
31,933 | 26,564 | 18,748 | 4,488 | 14,248 | |||||||||||||||
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Total operating expenses
|
820,119 | 650,447 | 396,884 | 951,047 | 499,632 | |||||||||||||||
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Operating income (loss)
|
$ | 483,284 | $ | 208,923 | $ | 102,047 | $ | (517,217 | ) | $ | 143,600 | |||||||||
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Sales volumes per day
|
||||||||||||||||||||
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Natural gas (MMcf)
|
81.5 | 67.2 | 42.6 | 47.9 | 75.7 | |||||||||||||||
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Crude oil (MBbls)
|
30.5 | 23.4 | 14.7 | 11.4 | 13.5 | |||||||||||||||
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Total (MBOE)
|
44.1 | 34.6 | 21.8 | 19.3 | 26.2 | |||||||||||||||
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Percent of sales volumes from crude oil
|
69 | % | 68 | % | 67 | % | 59 | % | 52 | % | ||||||||||
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Average sales price
|
||||||||||||||||||||
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Natural gas per Mcf
|
$ | 2.97 | $ | 4.15 | $ | 4.47 | $ | 6.48 | $ | 8.57 | ||||||||||
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Hedge gain per Mcf
|
0.94 | 1.54 | 2.68 | 1.60 | 0.34 | |||||||||||||||
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Total natural gas per Mcf
|
$ | 3.91 | $ | 5.69 | $ | 7.15 | $ | 8.08 | $ | 8.91 | ||||||||||
|
Crude oil per Bbl
|
$ | 106.17 | $ | 90.95 | $ | 71.73 | $ | 67.06 | $ | 97.72 | ||||||||||
|
Hedge gain (loss) per Bbl
|
0.04 | (6.80 | ) | 0.75 | 3.56 | (17.82 | ) | |||||||||||||
|
Total crude oil per Bbl
|
$ | 106.21 | $ | 84.15 | $ | 72.48 | $ | 70.62 | $ | 79.90 | ||||||||||
|
Total hedge gain (loss) per BOE
|
$ | 1.77 | $ | (1.61 | ) | $ | 5.74 | $ | 6.04 | $ | (8.24 | ) | ||||||||
|
Operating revenues per BOE
|
$ | 80.74 | $ | 67.98 | $ | 62.83 | $ | 61.47 | $ | 67.16 | ||||||||||
|
Operating expenses per BOE
|
||||||||||||||||||||
|
Lease operating expense
|
||||||||||||||||||||
|
Insurance expense
|
1.77 | 2.21 | 3.48 | 2.72 | 1.90 | |||||||||||||||
|
Workover and maintenance
|
3.49 | 2.62 | 2.47 | 2.26 | 2.34 | |||||||||||||||
|
Direct lease operating expense
|
13.99 | 14.12 | 12.01 | 12.33 | 10.68 | |||||||||||||||
|
Total lease operating expense per BOE
|
19.25 | 18.95 | 17.96 | 17.31 | 14.92 | |||||||||||||||
|
Production taxes
|
0.45 | 0.26 | 0.53 | 0.77 | 0.91 | |||||||||||||||
|
Impairment of oil and gas properties
|
— | — | — | 81.75 | — | |||||||||||||||
|
Gathering and transportation
|
1.01 | 0.98 | — | — | — | |||||||||||||||
|
Depreciation, depletion and amortization
|
22.76 | 23.22 | 22.87 | 30.78 | 32.09 | |||||||||||||||
|
General and administrative
|
5.34 | 5.94 | 6.25 | 3.51 | 2.76 | |||||||||||||||
|
Other – net
|
1.98 | 2.10 | 2.36 | 0.64 | 1.49 | |||||||||||||||
|
Total operating expenses per BOE
|
50.79 | 51.45 | 49.97 | 134.76 | 52.17 | |||||||||||||||
|
Operating income (loss) per BOE
|
$ | 29.95 | $ | 16.53 | $ | 12.86 | $ | (73.29 | ) | $ | 14.99 | |||||||||
-8-
|
Quarter Ended
|
||||||||||||||||||||
|
June 30,
2012
|
Mar. 31,
2012
|
Dec. 31,
2011
|
Sept. 30,
2011
|
June 30,
2011
|
||||||||||||||||
|
Operating Highlights
|
||||||||||||||||||||
|
(In Thousands, Except per Unit Amounts)
|
||||||||||||||||||||
|
Operating revenues
|
||||||||||||||||||||
|
Crude oil sales
|
$ | 314,639 | $ | 315,723 | $ | 306,064 | $ | 249,767 | $ | 270,252 | ||||||||||
|
Natural gas sales
|
19,657 | 19,154 | 21,659 | 28,138 | 31,875 | |||||||||||||||
|
Hedge gain (loss)
|
7,650 | 1,119 | 12,855 | 6,978 | (19,346 | ) | ||||||||||||||
|
Total revenues
|
341,946 | 335,996 | 340,578 | 284,883 | 282,781 | |||||||||||||||
|
Percent of operating revenues from crude oil
|
||||||||||||||||||||
|
Prior to hedge gain (loss)
|
94 | % | 94 | % | 93 | % | 90 | % | 89 | % | ||||||||||
|
Including hedge gain (loss)
|
92 | % | 93 | % | 91 | % | 87 | % | 85 | % | ||||||||||
|
Operating expenses
|
||||||||||||||||||||
|
Lease operating expense
|
||||||||||||||||||||
|
Insurance expense
|
6,825 | 7,138 | 7,096 | 7,462 | 8,814 | |||||||||||||||
|
Workover and maintenance
|
21,070 | 15,885 | 12,805 | 6,653 | 17,251 | |||||||||||||||
|
Direct lease operating expense
|
59,306 | 55,424 | 54,233 | 56,918 | 59,557 | |||||||||||||||
|
Total lease operating expense
|
87,201 | 78,447 | 74,134 | 71,033 | 85,622 | |||||||||||||||
|
Production taxes
|
2,414 | 1,499 | 1,174 | 2,174 | 1,205 | |||||||||||||||
|
Gathering and transportation
|
4,358 | 2,465 | 3,395 | 6,153 | 6,868 | |||||||||||||||
|
DD&A
|
106,644 | 88,448 | 87,568 | 84,803 | 85,179 | |||||||||||||||
|
General and administrative
|
19,733 | 25,075 | 22,147 | 19,321 | 17,553 | |||||||||||||||
|
Other – net
|
5,186 | 13,257 | 14,174 | (684 | ) | 7,730 | ||||||||||||||
|
Total operating expenses
|
225,536 | 209,191 | 202,592 | 182,800 | 204,157 | |||||||||||||||
|
Operating income
|
$ | 116,410 | $ | 126,805 | $ | 137,986 | $ | 102,083 | $ | 78,624 | ||||||||||
|
Sales volumes per day
|
||||||||||||||||||||
|
Natural gas (MMcf)
|
92.5 | 83.7 | 72.8 | 77.0 | 83.0 | |||||||||||||||
|
Crude oil (MBbls)
|
32.2 | 31.4 | 30.6 | 28.0 | 28.3 | |||||||||||||||
|
Total (MBOE)
|
47.6 | 45.3 | 42.7 | 40.8 | 42.1 | |||||||||||||||
|
Percent of sales volumes from crude oil
|
68 | % | 69 | % | 72 | % | 69 | % | 67 | % | ||||||||||
|
Average sales price
|
||||||||||||||||||||
|
Natural gas per Mcf
|
$ | 2.34 | $ | 2.52 | $ | 3.23 | $ | 3.97 | $ | 4.22 | ||||||||||
|
Hedge gain per Mcf
|
0.55 | 0.54 | 1.43 | 1.39 | 1.37 | |||||||||||||||
|
Total natural gas per Mcf
|
$ | 2.89 | $ | 3.06 | $ | 4.66 | $ | 5.36 | $ | 5.59 | ||||||||||
|
Crude oil per Bbl
|
$ | 107.34 | $ | 110.54 | $ | 108.80 | $ | 97.11 | $ | 105.12 | ||||||||||
|
Hedge gain (loss) per Bbl
|
1.03 | (1.05 | ) | 1.17 | (1.11 | ) | (11.53 | ) | ||||||||||||
|
Total crude oil per Bbl
|
$ | 108.37 | $ | 109.49 | $ | 109.97 | $ | 96.00 | $ | 93.59 | ||||||||||
|
Total hedge gain (loss) per BOE
|
$ | 1.77 | $ | 0.27 | $ | 3.27 | $ | 1.86 | $ | (5.05 | ) | |||||||||
|
Operating revenues per BOE
|
$ | 78.90 | $ | 81.43 | $ | 86.67 | $ | 75.91 | $ | 73.85 | ||||||||||
|
Operating expenses per BOE
|
||||||||||||||||||||
|
Lease operating expense
|
||||||||||||||||||||
|
Insurance expense
|
1.57 | 1.73 | 1.81 | 1.99 | 2.30 | |||||||||||||||
|
Workover and maintenance
|
4.86 | 3.85 | 3.26 | 1.77 | 4.51 | |||||||||||||||
|
Direct lease operating expense
|
13.68 | 13.43 | 13.80 | 15.17 | 15.55 | |||||||||||||||
|
Total lease operating expense per BOE
|
20.11 | 19.01 | 18.87 | 18.93 | 22.36 | |||||||||||||||
|
Production taxes
|
0.56 | 0.36 | 0.30 | 0.58 | 0.31 | |||||||||||||||
|
Gathering and transportation
|
1.01 | 0.60 | 0.86 | 1.64 | 1.79 | |||||||||||||||
|
DD&A
|
24.61 | 21.44 | 22.28 | 22.60 | 22.24 | |||||||||||||||
|
General and administrative
|
4.55 | 6.08 | 5.64 | 5.15 | 4.58 | |||||||||||||||
|
Other – net
|
1.20 | 3.22 | 3.60 | (0.18 | ) | 2.01 | ||||||||||||||
|
Total operating expenses per BOE
|
52.04 | 50.71 | 51.55 | 48.72 | 53.29 | |||||||||||||||
|
Operating income per BOE
|
$ | 26.86 | $ | 30.72 | $ | 35.12 | $ | 27.19 | $ | 20.56 | ||||||||||
-9-
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED COSTS INCURRED, CAPITAL EXPENDITURES AND PROVED RESERVES
(Unaudited)
|
Year Ended June 30,
|
||||||||||||
|
2012
|
2011
|
2010
|
||||||||||
|
(In Thousands)
|
||||||||||||
|
Oil and Gas Activities
|
||||||||||||
|
Exploration costs
|
$ | 183,397 | $ | 98,133 | $ | 51,030 | ||||||
|
Development costs
|
383,495 | 180,191 | 92,949 | |||||||||
|
Total
|
566,892 | 278,324 | 143,979 | |||||||||
|
Administrative and Other
|
3,778 | 2,909 | 1,133 | |||||||||
|
Total capital expenditures
|
570,670 | 281,233 | 145,112 | |||||||||
|
Property acquisitions
|
||||||||||||
|
Proved
|
6,401 | 722,551 | 250,795 | |||||||||
|
Unproved
|
— | 289,711 | 42,242 | |||||||||
|
Total acquisitions
|
6,401 | 1,012,262 | 293,037 | |||||||||
|
Asset retirement obligations, insurance proceeds and other – net
|
(55,399 | ) | 205,702 | 17,996 | ||||||||
|
Total costs incurred
|
$ | 521,672 | $ | 1,499,197 | $ | 456,145 | ||||||
|
Crude Oil
|
Natural Gas
|
Total
|
|
|
(MBbls)
|
(MMcf)
|
(MBOE)
|
|
|
Proved reserves at June 30, 2009
|
30,873
|
133,415
|
53,109
|
|
Production
|
(5,352)
|
(15,534)
|
(7,941)
|
|
Extensions and discoveries
|
698
|
5,637
|
1,638
|
|
Revisions of previous estimates
|
3,643
|
7,403
|
4,877
|
|
Purchases of minerals in place
|
17,621
|
37,862
|
23,931
|
|
Proved reserves at June 30, 2010
|
47,483
|
168,783
|
75,614
|
|
Production
|
(8,553)
|
(24,533)
|
(12,642)
|
|
Extensions and discoveries
|
3,056
|
39,555
|
9,649
|
|
Revisions of previous estimates
|
2,155
|
(43)
|
2,148
|
|
Reclassification of proved undeveloped
|
(2,917)
|
(4,579)
|
(3,681)
|
|
Purchases of minerals in place
|
37,115
|
97,591
|
53,380
|
|
Sales of reserves
|
(1,133)
|
(40,458)
|
(7,876)
|
|
Proved reserves at June 30, 2011
|
77,206
|
236,316
|
116,592
|
|
Production
|
(11,172)
|
(29,824)
|
(16,143)
|
|
Extensions and discoveries
|
11,444
|
27,821
|
16,081
|
|
Revisions of previous estimates
|
9,098
|
(23,281)
|
5,217
|
|
Reclassification of proved undeveloped
|
(1,783)
|
(2,042)
|
(2,123)
|
|
Proved reserves at June 30, 2012
|
84,793
|
208,990
|
119,624
|
|
Proved developed reserves
|
|||
|
June 30, 2009
|
20,183
|
82,432
|
33,922
|
|
June 30, 2010
|
36,970
|
93,610
|
52,572
|
|
June 30, 2011
|
59,234
|
134,024
|
81,572
|
|
June 30, 2012
|
63,308
|
110,810
|
81,693
|
|
Proved undeveloped reserves
|
|||
|
June 30, 2009
|
10,690
|
50,983
|
19,187
|
|
June 30, 2010
|
10,513
|
75,173
|
23,042
|
|
June 30, 2011
|
17,972
|
102,292
|
35,020
|
|
June 30, 2012
|
21,485
|
98,680
|
37,931
|
-10-
Conference Call Tomorrow, Aug. 9, at 9 a.m. CDT, 3 p.m. London Time
Energy XXI will host its year-end conference call tomorrow, Aug. 9, at 9 a.m. CDT (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 98235588. 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.
Copies of Annual Report
A copy of the company's annual report will be posted to shareholders in due course and a copy will be available on the company's website at 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 registered 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.
-11-
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.
Field – an area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.
MBBL – thousand barrels of oil.
MBOE – thousand barrels of oil equivalent.
CF – thousand cubic feet of gas.
MMBOE – million barrels of oil equivalent.
MMBTU – million British thermal units.
MMCF – million cubic feet of gas.
PV10 – the estimated present value of the resource, discounted at a 10 percent annual rate.
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
Nominated Adviser: Jonathan Wright
Corporate Broking: Richard Redmayne
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
Pelham Bell Pottinger
James Henderson
jhenderson@pelhambellpottinger.co.uk
Mark Antelme
mantelme@pelhambellpottinger.co.uk
+44 (0) 20 7861 3232
-12-