Energy XXI to Attend IPAA Oil & Gas Investment Symposium
Hope he has some positive things to say. Stock price is getting close to levels when production was half of what it is now.
HOUSTON, April 10, 2013 (GLOBE NEWSWIRE) -- Energy XXI (Nasdaq:EXXI) (LSE:EXXI) today announced Chairman and CEO John Schiller will present at the Independent Petroleum Association of America's Oil and Gas Investment Symposium held in New York City on Tuesday, April 16, 2013 at 8:35 a.m. EDT.
Impressive call. EXXI trading at 60% of NAV. Odds are they will hit with one or more of their medium risk projects which should propel stock price, along with continued horizontal success. Presently selling their oil at over $20 above WTI. JS says they will continue to show positive cash flow.
I've listened to many of Schiller's calls, having owned the stock for a long time. I'm becoming less impressed with his approach because he won't discuss the problems they encounter and the Street is left to place the "doesn't execute" tag on the company instead of understanding and dealing with the truth of the matter.. He could have just as easily explained why they had to sidetrack Pendragon today, instead of just saying they're now at 14 on the way to 20. The well is months behind its original schedule.
From his ops guy we learned they are having to replace most all the infrastructure they got in the Exxon deal and JS is only willing to say today they will drop a rig this year and move to platform rigs from jackups where possible to reduce costs. A couple of analysts had already looked at their previous $$ run rates and decided they could not have positive cash flow, thus the downgrades. The guy from Global Hunter who slapped the $30 target on this a couple of months back looks pretty smart. I hope JS can squeak out a slight positive c.f. but when he says "this year" I'm never sure whether he's talking the June 30, 2013 fiscal or the 2013 calendar year or the June 30, 2014 fiscal. Maybe it's a tactic. JS can rightly crow about the technical capabilities of his staff, but I think he's got to drop his own "speak no evil" manner with investors.