Energy Prospectus

after the bell-----

revs $340m vs $293m est

..Energy XXI Reports Record Fiscal Second-Quarter Results and Provides Operations Update

Press Release: Energy XXI – 11 minutes ago
....
Share0EmailPrint.....Companies:...Energy XXI (Bermuda) Ltd.Energy XXI (Bermuda) Limited . ..RELATED QUOTES.
.Symbol Price Change
EXXI.L 27.00 -3.50

......•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

rest of report

http://finance.yahoo.com/news/Energy-XX ... 9.html?x=0

stellar results to me, yet trading down 53c after mkt.

4:04PM Energy XXI beats by $0.42, beats on revs (EXXI) 33.91 +1.08 : Reports Q2 (Dec) earnings of $ 1.11 per share, $0.42 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 95.7% year/year to $340.6 mln vs the $289.15 mln consensus. "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."

mkt apparently needed time to read the news---now up 89c after mkt.

believe the share price of Energy XXI (EXXI) is about to take off. The analysts on the Street are putting way too much weight on their Deep Shelf program with McMoRan Exploration (MMR). Our updated profile on the company will go out tomorrow as an EPG Flash Report. You should do some homework on this one tonight. Read the article below, which I agree with. - Dan


From article below: "EXXI is a cash flow machine and the estimates are too low. The Exxon acquisition was a steal and is now proving catalytic and though we would have seen these kind of results sooner had the good folks at BOEMER let EXXI actually access what they bought and get to work improving it, it is welcome to see the plan unfolding now. While we expect the ultra deep to work it is barely included in this year's projection and would as such be icing on EXXI's cake."

http://seekingalpha.com/article/333942- ... urce=yahoo