Energy XXI Valuationa by O&G 360

[dan_s]

Comments by analyst for Oil & Gas 360:
The shift towards horizontal drilling has opened some new doors for Energy XXI and the valuation of the company will reflect that change. OAG360 examined the company's valuation based on a multiple of proved reserves and a PV-10 valuation methodology.

When the market closed on August 22, 2013, shares of EXXI were trading at $26.03. Based on the two methodologies, we estimate that Energy XXI's share value to be between $32.91 and $37.74 per share.

For calculating the per-share valuation, we used basic shares outstanding as of July 31, 2013. The company is buying back shares. As of August 21, 2013, the company bought in 3.9 million shares at an average repurchase price of $24.37 per share.

Full Report:
http://seekingalpha.com/article/1660252 ... urce=yahoo

My take is that EXXI is definitely trading at a discount to break-up value. It could draw a lot of attention after hurricane season and if they generate strong Q3 results. Higher oil prices should give Q3 revenues a big boost. - Dan