Energy XXI

[dan_s]

This is a good overview on Energy XXI

http://www.forbes.com/sites/joanlappin/ ... r=yahootix

Compared to the rest of the Sweet 16, EXXI has been a real dog. However, I do think there fiscal Q4 report and fiscal year-end reserve report could give it a boost. Let's keep our fingers crossed that they can avoid hurricane damage this summer.

If you own it today, I would hang tough until the Q4 (June 30) report comes out. Read our profile, which you can find under the Sweet 16 Tab.

[ghrcap]

Good comments on Energy XXI, Denbury and Bonanza Creek from Andrew Coleman of Raymond James.
http://www.theenergyreport.com/pub/na/1 ... %3A11%3A03

[dan_s]

Raymond James has been forecasting a drop in oil prices for a long time. Eventually, they may be right. I agree with all of his comments on DNR, EXXI and BCEI. DNR is the safest bet and the stock looks very cheap to me.

BTW at InvestFest the DNR speaker said they are considering forming an MLP and moving the mature CO2 floods into an MLP.

[ghrcap]

"Dangerous Times As Energy Sources Get Costlier To Extract"
Stephen Leeb, Contributor, contains touts for EXXI and DNR at the end.
http://www.forbes.com/sites/greatspecul ... r=yahootix

[dan_s]

If Energy XXI hits my production target this quarter AND has a decent fiscal year-end reserve report, it should be a winner for us after hurricane season. I say that because I know a lot of fund managers will avoid it until hurricane risks starts going down in October.

Read this: http://seekingalpha.com/article/1491882 ... urce=yahoo

[bearcatbob]

Any ideas gang on why EXXI is so weak with a strong oil price?

[dan_s]

It has been a weird week for all of the Sweet 16. With crude oil so strong, the whole group should be up.

EXXI does have significant hurricane risk. That may be frightening some investors away.

[cviller]

FCX had a call the other day and disclosed that it is pushing back its GOM shelf ultradeep program a year or two. So EXXI's interest in the old McMoran ultradeep stuff is hostage to FCX's capital allocation decisions. There's a string or two on it at Investor Village under MMR.

[bearcatbob]

Thanks - that appears to be a good reason. It is not all bad though - there will be no need for money for that science project near term. Hopefully EXXI will simply drill the development wells that have been so promised.

[dan_s]

Actually, I'm glad the Ultradeep program is being pushed back. Remember that the primary product is gas, so why drill until the price of gas goes up. Plus this frees up more capital for the highly profitable horizontal development wells.

[ghrcap]

update on share purchase posted at InvestorVillage:

Energy XXI (Bermuda) Limited ("the Company") announces that pursuant to the previously announced Rule 10(b)5-1 Trading Plan ("the Plan"), from 19 June 2013 to 2 July 2013 it had made purchases of 1,291,900 US $0.005 Common Stock ("Shares") at an average price of US $23.27 per Share. The highest and lowest price paid for these Shares was US $24.00 and US $22.36, respectively. The purchased shares will all be held as treasury shares.

Only to the extent additional repurchases are made, the Company will report transactions in its own shares bi-weekly.

The combined open market and Plan purchases from 8 May 2013 to 2 July 2013 totalled 3,338,900 Shares at an average price of US $24.47 per Share.

Following the above purchases, the Company has a total of 76,085,910 Shares in issue, excluding 3,339,563 treasury shares.

The Company's Chairman and Chief Executive Officer, John D. Schiller, Jr., percent of Issued Share Capital, after the Shares acquired previously announced on 1 July 2013, is 1.643% as a result of the Share repurchases announced above.

[bearcatbob]

Looks like a big Yahoo Buckaroo for EXXI tonight. I will be interested to see what Dan has to say.