EXXI

[dan_s]

Global Hunter' comments on Energy XXI

Energy XXI (EXXI; $31.18; Buy; $47.00 PT) EXXI year-end reserves for FY2012 and operations update
EXXI reserves are at 120 MMboe as of FY-end 2012 up 3% from FY-end 2011.
Our new Q4 estimates for EPS, CFPS, and EBITDA are $0.73, $2.24 and $198.8MM.
EXXI reiterated its FY2013 production of 58-62 Mboepd, so we're keeping our 2013 estimates intact and PT at $47 (4.2x 2013 EBITDA).

I was actually hoping for higher proven reserves but the shares are still trading at a deep discount to break-up value (IMHO).

[danross70]

Quite a divergence between their forecast of Q4 CFPS of $2.24 and yours in the May forecast. Is your thinking changing in light of the latest production info?

[dan_s]

I need to take a hard look at EXXI but they are still looking at over $10 CFPS for FYE 6-30-2013 even if their realized oil price drops to $90/bbl. Keep in mind that they get a siginificant premium to WTI.

I plan to take a hard look at all of the Sweet 16 that have reported Q2 results over the next three days. I have be extremely busy on another "gig" and some presentations this week. Only so much time in the day.