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Energy XXI Ltd. Message Board

  • cnski83 cnski83 Aug 2, 2014 9:32 AM Flag

    time for an activist

    Unless Bermuda laws make it difficult, this company looks ripe for an activist investor to extract the value from these assets that Schiller has failed to do.

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    • Well Icahn just sold most of his stake of FDO , maybe he can come tell them its time to sell

    • Time for an activist It's been time for a long time. I just hope that the recent price action isn't due to a leak of what is coming with the earnings report later this month. I suppose if they had any good news on production it would have already have been in the recent news release announcing earnings. So, I'm wondering if any progress at all is made on production growth. In addition to over promising and under performing, their numbers do not seem to add up. They say the production decline from existing wells is not all that steep, yet they can never increase overall production in any meaningful amount. In fact, they keep saying how great their wells and properties are , and yet production keeps sliding. And now we have a new hit with lower oil prices. I really don't see how anyone who has been in the oil business for so long can misfires on so many fronts. I don't see a board of directors, it appears to be a board of rubber stampers. If they had any good news for the future, they would be showing us their plans for the next 3 to 5 years and their plan to grow production, earnings, and cash flow. Someone on here commented about their lack of communications with shareholders. I've had that experience also. Maybe if 10 to 20 stockholders wrote a serious letter to people like Carl Icahn and Leon Cooperman, and TPG-Axon Capital Management/Dinakar Singh, we would see some movement. TPG got the old management of SD kicked out and they are making significant progress on their production. Though the stock price hasn't reflected it yet. Something needs to give and soon!

    • I have to agree with you...An no, it is not ifficult legally.
      Schiller has faile his shareholers miserably. He has, however got rich, very rich, from our money. He, along with his spineless board, must go.

    • The thread should probably be re-named for the benefit of the activist "The Sins of Schiller and this Board of Directors" and a long list compiled. I'll start with:

      1) Over paying in the Exxon deal by failing to adequately analyze and price the needed facilities upgrades and replacements. The down time and the money spent have been substantial negative impacts.

      • 1 Reply to forbesafb
      • I don't think I would list the Exxon deal as the first item. I believe the biggest issue was that the ultra-deep project did not work out. That project is what brought many people into this stock and valued this stock higher than what it should have been for a company that redevelops old fields. When that failed people looked at production and with all the missed numbers the management team has now lost credibility. I do agree that they underestimated the infrastructure costs for the Exxon field along with the production downtime. They have also mismanaged their other properties.

        I bought into this stock due to the ultra-deep and potential sale down the road. I feel that the stock is way undervalued and would be attractive to a competitor over the next year once the merger synergies with EPL are hopefully realized. I don't believe the current management team will be able to last much longer unless they turn it around quickly.

        Best to all,


        Sentiment: Strong Buy

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