Energy XXI Reports Fiscal Year-End Results and Capital Budget Data
- Press Release
- Source: Energy XXI
- On 2:00 am EDT, Friday September 4, 2009
* Fiscal 2009 EBITDA totaled $277 million * Full-year volumes averaged 19,300 BOE per day * Reserve additions replaced 165 percent of production * Fiscal 2010 initial capital budget set at $75 million to $85 million * Insurance settlement expected to provide $53 million cash
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| EXXI | 2.47 | +0.02 |
HOUSTON, Sept. 4, 2009 (GLOBE NEWSWIRE) -- Energy XXI (Bermuda) Limited (Nasdaq:EXXI - News) (LSE:EXXI - News) today announced fiscal fourth-quarter and full-year financial and operating results for the period ended June 30, 2009, and reviewed its fiscal 2010 capital program and expectations.
| ||||
For the full year, net cash provided by operating activities totaled $224.9 million while earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) was $277.0 million, compared with $366.1 million and $451.0 million, respectively, in fiscal 2008. Reflecting non-cash write-downs in the second and third fiscal quarters, the company reported a net loss for fiscal 2009 of $571.6 million, or $3.95 per share, on revenues of $433.8 million and production of 19,300 barrels of oil equivalent per day (BOE/d), compared with net income of $26.9 million, or $0.30 per diluted share, on revenues of $643.2 million and production of 26,200 BOE/d in fiscal 2008.
For the 2009 fiscal fourth quarter, revenues were $101.1 million and EBITDA totaled $66.5 million, compared with 2008 fiscal fourth-quarter revenues of $178.8 million and EBITDA of $119.2 million. Fourth-quarter 2009 net cash provided by operating activities totaled $50.5 million, as volumes averaged 18,700 BOE/d. In the 2008 fiscal fourth quarter, net cash provided by operating activities was $148.7 million and volumes averaged 26,400 BOE/d. The net realized price received for the company's production in the 2009 fiscal fourth quarter averaged $59.36 per BOE, compared with $74.49 per BOE in the 2008 fiscal fourth quarter. The company recorded a fiscal 2009 fourth-quarter net loss of $17.2 million, or $0.12 per share, compared with 2008 fiscal fourth-quarter net income of $8.2 million, or $0.08 per diluted share.
"With production impacted by hurricane outages, and revenues further affected by volatile oil and natural gas prices, Energy XXI still delivered solid volumes and cash flows in fiscal 2009," Energy XXI Chairman and CEO John Schiller said. "We ended the year with a strong foundation, with nearly $90 million of cash on hand and a capital program designed to under-spend cash flow while holding volumes essentially flat for fiscal 2010."
YEAR-END RESERVES
The company's June 30, 2009 fiscal year-end proved reserves were estimated at 53.1 million BOE, compared with 51.5 million BOE at June 30, 2008. The increase was achieved even though 2009 fiscal year-end reserves were reduced 2.9 million BOE by revisions due to the year-over-year decline in prices for crude oil and natural gas. During fiscal year 2009, Energy XXI added 11.6 million BOE of proved reserves through discoveries, extensions of existing fields and performance-related revisions, while producing 7.1 million BOE, equating to a 165 percent proved reserves replacement rate excluding the price-related revisions. Reserve additions were primarily driven by development activities in the shallow-water Gulf of Mexico and the Cote de Mer natural gas discovery onshore Louisiana.
Netherland, Sewell & Associates, Inc. (NSAI), independent oil and gas consultants, engineered 86 percent of the company's proved reserves, on a valuation basis, with the remainder engineered in-house. All of the company's proved reserves are in the United States, 64 percent are proved developed, 58 percent are oil and natural gas liquids, and 42 percent are natural gas. Approximately 21 percent of the company's proved developed non-producing reserves are expected to be moved to the producing category in October as the company's Cote de Mer and Fastball discoveries are placed on-line, and another 11 percent will be returned to the producing category upon completion of hurricane repairs to associated facilities. Attached tables provide additional reserves detail, including cost-incurred data.
"Adjusting for price revisions, Energy XXI grew reserves more than 9 percent organically in fiscal 2009, compared with acquisition-driven growth in previous years," Schiller said. "We added nearly twice as many reserves as we produced during the year and our exploration drilling for deep and ultra-deep targets on the Gulf of Mexico shelf can potentially drive major additional future increases."
NSAI estimated the Blackbeard discovery at South Timbalier Block 168 offshore Louisiana holds as much as 142 million BOE (20 million BOE net to the company) of contingent resources based on data obtained to-date. A flow test of the well to prove commercial producibility may be required before the contingent resources can be moved to the proved, probable or possible reserves categories, and future drilling activity on the flanks of the structure could add significantly to the discovery's size.
AIM RESERVES DATA
The U.S. Securities and Exchange Commission (SEC) currently recognizes only proved reserves and has historically discouraged discussion of unproved reserves. Guidelines set out by AIM, a market operated by the London Stock Exchange, require AIM-quoted companies such as Energy XXI to report probable and possible resources in addition to proved reserves. The supplemental data shown below are therefore presented for consideration as recipients deem appropriate. Under recently approved SEC rules, beginning next year, the SEC and AIM disclosure requirements will be more closely aligned with this presentation. The following fiscal-year-ended June 30, 2009 estimates of proved reserves and probable and possible resources attributable to the company's net interests in oil and gas properties were prepared primarily by NSAI, in conjunction with in-house reservoir engineers.
June 30, 2009
Equivalent PV10
Oil (MBBL) Gas (MMCF) (MBOE) ($000)(1)
----------------------------------------------
Proved Developed
Producing 11,161 32,840 16,635 391,565
Proved Developed
Non-Producing 9,022 49,592 17,287 335,321
Proved Undeveloped 10,690 50,983 19,187 332,887
Proved Reserves 30,873 133,415 53,109 1,059,773
Probables 6,014 41,482 12,928 275,601
Proved + Probables 36,887 174,897 66,037 1,335,374
Possibles 6,136 57,036 15,642 307,792
Total Resources 43,023 231,933 81,679 1,643,166
(1) Before tax, at June 30, 2009 prices of $69.89/barrel of oil
and $3.89/Mcf of natural gas, before differentials.
FISCAL 2010 CAPITAL PROGRAM
The company's board of directors has approved an initial fiscal 2010 capital program of between $75 million and $85 million, excluding plug-and-abandonment costs, compared with $268.4 million in fiscal 2009 estimate, which excludes $22.9 million of plug-and-abandonment costs.
"We are executing a scaled-back capital program in fiscal 2010 that is designed to keep volumes essentially flat with the fiscal 2009 average and to generate free cash flow for debt reduction, while we continue to pursue high-impact exploration activities that could grow future reserves meaningfully," Schiller said. "Our volume target incorporates lower production in our current fiscal first quarter, to be followed by increases in the second and third fiscal quarters as we place two discoveries online, restore operations at three hurricane-affected properties and begin enjoying the benefits of the current drilling program. Our future capital programs also are expected to be supported by Tex Moncrief's participation in the ultra-deep shelf play, as recently announced by our operating partner, McMoRan Oil & Gas."
Approximately 16 percent of the 2010 budget is targeting exploration drilling, which includes the ultra-deep Davy Jones prospect. Energy XXI will fund 14.1 percent of the exploratory costs and expects to have a 15.8 percent working interest and 12.6 percent net revenue interest in Davy Jones, which is currently drilling below 20,000 feet at South Marsh Island Block 230 on the Gulf of Mexico shelf. This well has a proposed target depth of 28,000 feet, seeking to test the Eocene (Wilcox), Paleocene and possibly Cretaceous (Tuscaloosa) sections.
About 27 percent of the fiscal 2010 budget is earmarked for facilities, primarily for development projects expected to be placed on production in the next fiscal quarter. About 22 percent targets development drilling, while 8 percent is for seismic and land acquisition and another 7 percent is set aside for well workovers and recompletions. The remainder is for capitalized administrative and other costs.
INSURANCE SETTLEMENT AGREEMENT
Energy XXI has reached agreement with its lead insurance underwriters on a $53 million global settlement of outstanding claims related to last year's hurricane damage. The $53 million cash settlement is expected to be received beginning within a month. The settlement amount is incremental to $28 million of reimbursements received to date related to covered hurricane damage.
"Our risk management program continues to be effective at protecting our asset base and shareholder value, reimbursing us for costs associated with hurricane damage inflicted on our oil and gas facilities," EXXI President and COO Steve Weyel said.
CONFERENCE CALL TODAY AT 8 A.M. CDT, 2 P.M. LONDON TIME
Energy XXI will host its year-end conference call today at 8 a.m. CDT (2 p.m. London time). The dial-in numbers are 1 (913) 981-4915 (U.S.) and (0) 80 8101 1402 (U.K.), and the confirmation code is 4577193. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.energyxxi.com.
Forward-Looking Statements
All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
Competent Person Disclosure
The technical information contained in this announcement relating to operations (including information in the attached Operations Report) adheres to the standard set by the Society of Petroleum Engineers. Tom O'Donnell, Vice President of Corporate Development, a registered Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.
About the Company
Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Collins Stewart Europe Limited and Tristone Capital Limited are Energy XXI listing brokers in the United Kingdom. To learn more, visit the Energy XXI website at www.energyxxi.com.
The Energy XXI logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3587
ENERGY XXI (BERMUDA) LIMITED
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In Thousands, except per share information)
(Unaudited)
As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measures: EBITDA and discretionary cashflow. The company uses these non-GAAP measures as key metrics for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt. The non-GAAP measures are useful in comparisons of oil and gas exploration and production companies as they exclude non-operating fluctuations in assets and liabilities.
Three Months Ended
June 30, Year Ended June 30,
-------------------------------------------
2009 2008 2009 2008
-------------------------------------------
Net Income (Loss) as
Reported $(17,157) $8,220 $(571,629) $26,869
Total other (income)
expense 19,053 23,418 76,751 101,857
Impairment of oil and
gas properties -- -- 576,996 --
Depreciation, depletion
and amortization 39,744 83,462 217,207 307,389
Income tax expense
(benefit) 24,865 4,127 (22,339) 14,874
-------------------------------------------
EBITDA $66,505 $119,227 $276,986 $450,989
===========================================
EBITDA Per Share
Basic $0.46 $1.31 $1.92 $5.26
Diluted $0.46 $1.16 $1.92 $5.00
Weighted Average Number of
Common Shares Outstanding
Basic 144,792 90,777 144,593 85,809
Diluted 144,792 103,045 144,593 90,271
---------------------------------------------------------------------
Net Income (Loss) as
Reported $(17,157) $8,220 $(571,629) $26,869
Deferred income tax
expense (benefit) 24,866 4,127 (23,055) 14,874
Change in derivative
financial instruments -
net (12,284) 275 46,931 1,086
Accretion of asset
retirement obligations 5,018 2,516 14,635 8,176
Impairment of oil and
gas properties -- -- 576,996 --
Depletion, depreciation,
and amortization 39,744 83,462 217,207 307,389
Amortization of debt
discount and
amortization and write-
off of debt issuance
costs - net 144 585 (375) 4,273
Common stock issued to
Directors for services
and common stock option
expense 1,018 -- 4,760 67
-------------------------------------------
Discretionary Cash Flow $41,349 $99,185 $265,470 $362,734
===========================================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except share information)
June 30,
----------------------
2009 2008
----------------------
ASSETS
Current Assets
Cash and cash equivalents $ 88,925 $ 168,962
Accounts receivable
Oil and natural gas sales 40,087 116,678
Joint interest billings 17,624 21,322
Insurance and other 2,562 4,896
Prepaid expenses and other current assets 16,318 14,662
Royalty deposit 1,746 4,548
Deferred income taxes -- 88,198
Derivative financial instruments 31,404 2,179
----------------------
Total Current Assets 198,666 421,445
----------------------
Property and Equipment, net of accumulated
depreciation, depletion, amortization and
impairment
Oil and natural gas properties - full cost
method of accounting 1,102,596 1,561,276
Other property and equipment 9,149 10,020
----------------------
Total Property and Equipment 1,111,745 1,571,296
----------------------
Other Assets
Derivative financial instruments 3,838 3,747
Deferred income taxes -- 36,055
Debt issuance costs, net of accumulated
amortization 14,413 17,388
----------------------
Total Other Assets 18,251 57,190
----------------------
Total Assets $1,328,662 $2,049,931
======================
LIABILITIES
Current Liabilities
Accounts payable $ 81,025 $ 106,751
Accrued liabilities 36,180 82,152
Asset retirement obligations 66,244 16,717
Deferred income taxes -- --
Derivative financial instruments 15,732 245,626
Current maturities of long-term debt 4,107 7,250
----------------------
Total Current Liabilities 203,288 458,496
Long-term debt, less current maturities 858,720 944,972
Deferred income taxes 26,889 --
Asset retirement obligations 77,955 81,097
Derivative financial instruments 4,818 190,781
Other liabilities 29,492 --
----------------------
Total Liabilities 1,201,162 1,675,346
----------------------
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 2,500,000
shares authorized and no shares issued at
June 30, 2009 and 2008 -- --
Common stock, $0.001 par value, 400,000,000
shares authorized and 146,415,258 and
145,299,675 shares issued and 145,750,584
and 144,937,119 shares outstanding at
June 30, 2009 and 2008, respectively 146 145
Additional paid-in capital 604,724 601,509
Retained earnings (deficit) (515,867) 57,941
Accumulated other comprehensive income
(loss), net of income tax expense (benefit) 38,497 (285,010)
----------------------
Total Stockholders' Equity 127,500 374,585
----------------------
Total Liabilities and Stockholders' Equity $1,328,662 $2,049,931
======================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except per share information)
Three Months Ended
June 30, Year Ended June 30,
-------------------------------------------
2009 2008 2009 2008
-------------------------------------------
(Unaudited)
Revenues
Oil sales $71,530 $111,657 $292,763 $396,179
Natural gas sales 29,568 67,105 141,067 247,053
-------------------------------------------
Total Revenues 101,098 178,762 433,830 643,232
-------------------------------------------
Costs and Expenses
Lease operating expense 24,624 39,781 122,150 142,859
Production taxes (51) 3,699 5,450 8,686
Impairment of oil and
gas properties -- -- 576,996 --
Depreciation, depletion
and amortization 39,744 83,462 217,207 307,389
Accretion of asset
retirement obligations 5,018 2,516 14,635 8,176
General and
administrative expense 6,168 10,123 24,756 26,450
Loss (gain) on
derivative financial
instruments (1,166) 3,416 (10,147) 6,072
-------------------------------------------
Total Costs and
Expenses 74,337 142,997 951,047 499,632
-------------------------------------------
Operating Income (Loss) 26,761 35,765 (517,217) 143,600
-------------------------------------------
Other Income (Expense)
Interest income 2,044 154 7,498 1,403
Interest expense (21,097) (23,572) (84,249) (103,260)
-------------------------------------------
Total Other Income
(Expense) (19,053) (23,418) (76,751) (101,857)
-------------------------------------------
Income (Loss) Before
Income Taxes 7,708 12,347 (593,968) 41,743
Income Tax Expense
(Benefit) 24,865 4,127 (22,339) 14,874
-------------------------------------------
Net Income (Loss) $(17,157) $8,220 $(571,629) $26,869
===========================================
Earnings (Loss) Per Share
Basic $(0.12) $0.09 $(3.95) $0.31
Diluted $(0.12) $0.08 $(3.95) $0.30
Weighted Average Number of
Common Shares Outstanding
Basic 144,792 90,777 144,593 85,809
Diluted 144,792 103,045 144,593 90,271
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(In Thousands)
Accumu-
lated
Other
Compre- Total
Common Stock Additional Retained hensive Stock-
-------------- Paid-in Earnings Income holders'
Shares Value Capital (Deficit) (Loss) Equity
------------------------------------------------------
Balance,
June 30, 2006 80,645 $81 $350,238 $6,942 $(4,552) $352,709
Common stock
issued 3,558 3 14,037 14,040
Warrants
repurchased (1,069) (1,069)
Comprehensive
income:
Net income 24,130 24,130
Unrealized
gain on
derivative
financial
instruments,
net of income
tax expense 7,316 7,316
--------
Total
comprehensive
income 31,446
-----------------------------------------------------
Balance,
June 30, 2007 84,203 84 363,206 31,072 2,764 397,126
Common stock
issued 16 568 568
Restricted
shares issued 293
Warrants
exercised 259 1,292 1,292
Warrant
exchange 60,529 61 236,463 236,524
Warrants
repurchased (20) (20)
Comprehensive
income (loss):
Net income 26,869 26,869
Unrealized loss
on derivative
financial
instruments,
net of income
tax benefit (287,774) (287,774)
--------
Total
comprehensive
loss (260,905)
-----------------------------------------------------
Balance,
June 30, 2008 145,300 145 601,509 57,941 (285,010) 374,585
Common stock
issued 503 1 589 590
Restricted
shares issued 612 2,626 2,626
Dividends (2,179) (2,179)
Comprehensive
income (loss):
Net income
(loss) (571,629) (571,629)
Unrealized gain
on derivative
financial
instruments,
net of income
tax benefit 323,507 323,507
--------
Total
comprehensive
loss (248,122)
-----------------------------------------------------
Balance
June 30, 2009 146,415 $146 $ 604,724 $(515,867) $38,497 $127,500
=====================================================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Three Months Ended
June 30, Year Ended June 30,
-------------------------------------------
2009 2008 2009 2008
-------------------------------------------
(Unaudited)
Cash Flows From Operating
Activities
Net income (loss) $(17,157) $8,220 $(571,629) $26,869
Adjustments to reconcile
net income (loss) to
net cash provided by
(used in) operating
activities:
Depreciation,
depletion, and
amortization 39,744 83,462 217,207 307,389
Impairment of oil and
gas properties -- -- 576,996 --
Deferred income tax
expense (benefit) 24,866 4,127 (23,055) 14,870
Change in derivative
financial instruments
Proceeds from sale
of derivative
instruments -- -- 66,480
Other - net (12,284) 275 (19,549) 1,086
Accretion of asset
retirement
obligations 5,018 2,516 14,635 8,176
Amortization and
write-off of debt
issuance costs-net 144 585 (375) 4,273
Common stock issued
for Directors'
compensation and
stock option expense 1,018 -- 4,760 67
Changes in operating
assets and
liabilities
Accounts receivable 46,764 (18,199) 91,273 (66,341)
Prepaid expenses and
other current
assets 13,603 3,029 1,146 4,835
Settlements of asset
retirement
obligations (4,583) (1,567) (25,421) (21,500)
Accounts payable and
other liabilities (46,605) 66,202 (107,562) 86,328
-------------------------------------------
Net Cash Provided by
Operating
Activities 50,528 148,650 224,906 366,052
-------------------------------------------
Cash Flows from Investing
Activities
Investments in
properties (11,051) (94,509) (245,083) (308,578)
Acquisitions -- (1,081) -- (40,016)
Proceeds from the sale
of properties -- -- 3,233 --
Other 7 (161) (298) (296)
-------------------------------------------
Net Cash Used in
Investing
Activities (11,044) (95,751) (242,148) (348,890)
-------------------------------------------
Cash Flows from Financing
Activities
Proceeds from the
issuance of common
stock -- 469 -- 501
Dividends to
shareholders -- -- (2,179)
Proceeds from long-term
debt -- 106,000 270,794 310,135
Proceeds from exchange
of warrants -- 237,796 -- 237,796
Payments on long-term
debt (23,275) (231,280) (236,707) (415,733)
Purchase of bonds (1) -- (90,888)
Debt issuance costs -- -- (2,270) (675)
Other (2,652) 12 (1,545) (8)
-------------------------------------------
Net Cash Provided by
(Used in) Financing
Activities (25,928) 112,997 (62,795) 132,016
-------------------------------------------
Net Increase (Decrease) in
Cash and Cash Equivalents 13,556 165,896 (80,037) 149,178
Cash and Cash Equivalents,
beginning of period 75,369 3,066 168,962 19,784
-------------------------------------------
Cash and Cash Equivalents,
end of period $88,925 $168,962 $88,925 $168,962
===========================================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED OPERATIONAL INFORMATION
Period
from
Inception
July 25,
2005
Year Ended June 30, Through
-------------------------------- June 30,
2009 2008 2007 2006
-------------------------------------------
(In Thousands, except per unit amounts)
Operating revenues
Crude oil sales $ 278,014 $ 484,552 $ 177,783 $ 29,751
Natural gas sales 113,156 237,628 131,065 15,934
Hedge gain (loss) 42,660 (78,948) 32,436 1,427
-------------------------------------------
Total revenues 433,830 643,232 341,284 47,112
-------------------------------------------
Percent of operating
revenues from crude oil
Prior to hedge gain
(loss) 71.1% 67.1% 57.6% 67.3%
Including hedge gain
(loss) 67.5% 61.6% 56.8% 62.0%
Operating expenses
Lease operating expense
Insurance expense 19,188 18,218 12,670 144
Workover and
maintenance 15,930 22,397 8,269 166
Direct lease operating
expense 87,032 102,244 48,046 9,592
-------------------------------------------
Total lease operating
expense 122,150 142,859 68,985 9,902
Production taxes 5,450 8,686 3,595 84
Depreciation, depletion
and amortization 217,207 307,389 145,928 20,357
Impairment of oil and
gas properties 576,996 -- -- --
General and
administrative 24,756 26,450 26,507 4,361
Other - net 4,488 14,248 1,054 806
-------------------------------------------
Total operating expenses 951,047 499,632 246,069 35,510
-------------------------------------------
Operating income (loss) $(517,217) $143,600 $95,215 $11,602
===========================================
Sales volumes per day
Natural gas (MMcf) 47.9 75.7 50.3 27.9
Crude oil (MBbls) 11.4 13.5 7.8 5.1
Total (MBOE) 19.3 26.2 16.2 9.7
Percent of sales volumes
from crude oil 58.7% 51.8% 48.2% 52.1%
Average sales price
Natural gas per Mcf $6.48 $8.57 $7.13 $6.48
Hedge gain (loss) per
Mcf 1.60 0.34 0.90 0.86
-------------------------------------------
Total natural gas per
Mcf $8.08 $8.91 $8.03 $7.34
===========================================
Crude oil per Bbl $67.06 $97.72 $62.33 $66.64
Hedge gain (loss) per
Bbl 3.56 (17.82) 5.60 (1.56)
-------------------------------------------
Total crude oil per
Bbl $70.62 $79.90 $67.93 $65.08
===========================================
Total hedge gain
(loss) per BOE $6.04 $(8.24) $5.48 $1.67
===========================================
Operating revenues per BOE $61.47 $67.16 $57.71 $55.02
-------------------------------------------
Operating expenses per BOE
Lease operating expense
Insurance expense 2.72 1.90 2.14 0.17
Workover and
maintenance 2.26 2.34 1.40 0.19
Direct lease operating
expense 12.33 10.68 8.12 11.20
-------------------------------------------
Total lease operating
expense 17.31 14.92 11.66 11.56
Production taxes 0.77 0.91 0.61 0.10
Impairment of oil and
gas properties 81.75 -- -- --
Depreciation, depletion
and amortization 30.78 32.09 24.68 23.78
General and
administrative 3.51 2.76 4.48 5.09
Other - net 0.64 1.49 0.18 0.94
-------------------------------------------
Total operating expenses 134.76 52.17 41.61 41.47
-------------------------------------------
Operating income (loss)
per BOE $(73.29) $14.99 $16.10 $13.55
===========================================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED OPERATIONAL INFORMATION
(Unaudited)
Quarter Ended
-----------------------------------------------------
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
-----------------------------------------------------
(In thousands except for unit amounts)
Operating
revenues
Crude oil sales $ 58,920 $ 46,492 $ 53,388 $ 119,214 $ 160,118
Natural gas
sales 15,168 20,435 33,111 44,442 77,356
Hedge gain
(loss) 27,010 39,209 20,353 (43,912) (58,712)
----------------------------------------------------
Total revenues 101,098 106,136 106,852 119,744 178,762
----------------------------------------------------
Percent of
operating
revenues from
crude oil
Prior to hedge
gain (loss) 79.5% 69.5% 61.7% 72.8% 67.4%
Including hedge
gain (loss) 70.8% 68.3% 62.4% 68.5% 62.5%
Operating
expenses
Lease operating
expense
Insurance
expense 4,356 4,980 4,934 4,918 3,932
Workover and
maintenance 4,622 341 7,094 3,873 6,741
Direct lease
operating
expense 15,646 19,643 25,536 26,207 29,108
----------------------------------------------------
Total lease
operating
expense 24,624 24,964 37,564 34,998 39,781
Production taxes (51) 1,587 1,878 2,036 3,699
Impairment of
oil and gas
properties -- 117,887 459,109 -- --
Depreciation,
depletion and
amortization 39,744 50,052 65,002 62,409 83,462
General and
administrative 6,168 6,117 6,236 6,235 10,123
Other - net 3,852 7,643 (7,604) 597 5,932
----------------------------------------------------
Total operating
expenses 74,337 208,250 562,185 106,275 142,997
----------------------------------------------------
Operating income
(loss) $ 26,761 $(102,114) $(455,333) 13,469 35,765
====================================================
Sales volumes
per day
Natural gas
(MMcf) 41.1 49.2 54.4 46.8 67.9
Crude oil
(MBbls) 11.9 12.5 10.1 11.0 15.1
Total (MBOE) 18.7 20.7 19.2 18.8 26.4
Percent of sales
volumes from
crude oil 63.6% 60.4% 52.6% 58.5% 57.2%
Average sales
price
Natural gas
per Mcf $ 4.06 $ 4.62 $ 6.62 $ 10.33 $ 12.52
Hedge gain
(loss) per Mcf 3.85 2.98 1.41 (1.57) (1.66)
----------------------------------------------------
Total natural
gas per Mcf $ 7.91 $ 7.60 $ 8.03 $ 8.76 $ 10.86
====================================================
Crude oil
per Bbl $ 54.56 $ 41.40 $ 57.38 $ 117.75 $ 116.90
Hedge gain
(loss) per Bbl 11.68 23.16 14.27 (36.70) (35.38)
----------------------------------------------------
Total crude oil
per Bbl $ 66.24 $ 64.56 $ 71.65 $ 81.05 $ 81.52
====================================================
Total hedge
gain (loss)
per BOE $ 15.86 $ 21.07 $ 11.54 $ (25.39) $ (24.46)
====================================================
Operating
revenues
per BOE $ 59.36 $ 57.04 $ 60.57 $ 69.23 $ 74.49
----------------------------------------------------
Operating
expenses per BOE
Lease operating
expense
Insurance
expense 2.56 2.68 2.79 2.84 1.64
Workover and
maintenance 2.71 0.18 4.02 2.24 2.81
Direct lease
operating
expense 9.19 10.56 14.48 15.15 12.13
----------------------------------------------------
Total lease
operating
expense 14.46 13.42 21.29 20.23 16.58
Production taxes (0.03) 0.85 1.06 1.18 1.54
Impairment of
oil and gas
properties -- 63.35 260.26 -- --
Depreciation,
depletion and
amortization 23.34 26.90 36.85 36.08 34.78
General and
administrative 3.62 3.29 3.54 3.60 4.22
Other - net 2.27 4.11 (4.31) 0.35 2.47
----------------------------------------------------
Total operating
expenses 43.66 111.92 318.69 61.44 59.59
----------------------------------------------------
Operating income
(loss) per BOE $ 15.70 $ (54.88) $ (258.12) $ 7.79 $ 14.90
====================================================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED COSTS INCURRED, CAPITAL EXPENDITURES AND PROVED RESERVES
(Unaudited)
Year Ended June 30,
--------------------------------
2009 2008 2007
--------------------------------
(In Thousands)
Oil and Gas Activities
Exploration costs $121,554 $114,639 $67,140
Development costs 168,134 205,681 362,219
--------------------------------
Total 289,688 320,320 429,359
Administrative and Other 1,610 9,758 2,468
--------------------------------
Total capital expenditures 291,298 330,078 431,827
--------------------------------
Property acquisitions
Proved -- 38,124 632,707
Unproved -- 1,892 84,911
--------------------------------
Total acquisitions -- 40,016 717,618
--------------------------------
Asset retirement obligations and
other - net 46,502 13,774 49,429
--------------------------------
Total costs incurred $337,800 $383,868 $1,198,874
================================
Crude Oil Natural Gas Total
(MBbls) (MMcf) (MBOE)
Proved reserves at June 30, 2006 13,820 64,651 24,595
Production (2,852) (18,369) (5,914)
Extensions and discoveries 4,726 37,235 10,932
Revisions of previous estimates (523) (16,233) (3,229)
Sales of reserves (224) (991) (389)
Purchases of minerals in place 15,393 85,539 29,650
--------------------------------
Proved reserves at June 30, 2007 30,340 151,832 55,645
Production (4,959) (27,716) (9,578)
Extensions and discoveries 2,520 7,410 3,755
Revisions of previous estimates 1,909 (11,033) 70
Sales of reserves (21) (141) (45)
Purchases of minerals in place 176 8,846 1,651
--------------------------------
Proved reserves at June 30, 2008 29,965 129,198 51,498
Production (4,146) (17,472) (7,058)
Extensions and discoveries 971 32,383 6,368
Revisions of previous estimates (1) 4,147 (10,447) 2,406
Sales of reserves (64) (247) (105)
--------------------------------
Proved reserves at June 30, 2009 30,873 133,415 53,109
================================
Proved developed reserves
June 30, 2006 8,922 42,246 15,963
June 30, 2007 20,978 96,751 37,103
June 30, 2008 19,793 77,991 32,792
June 30, 2009 20,183 82,432 33,922
(1) Includes (2,865) MBOE of price revisions.
Operations Report
--------------------------------------------------------
EXXI Fiscal 4th Quarter 2009 Drilling Results
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Gross Net Gross Net Gross Net
--------------------------------------------------------
Operated
--------------------------------------------------------
Oil 0 0 1 1 1 1
--------------------------------------------------------
Gas 0 0 0 0 0 0
--------------------------------------------------------
Injector 0 0 0 0 0 0
--------------------------------------------------------
Dry 0 0 0 0 0 0
--------------------------------------------------------
Non-Operated
--------------------------------------------------------
Oil 0 0 0 0 0 0
--------------------------------------------------------
Gas 0 0 0 0 0 0
--------------------------------------------------------
Dry 1 0.23 0 0 1 0.23
= ==== = = = ====
--------------------------------------------------------
Total 1 0.23 1 1 2 1.23
--------------------------------------------------------
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Success
Rate (Net) 0% 100% 81%
--------------------------------------------------------
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Onshore 0 0 0
--------------------------------------------------------
Offshore 1 1 2
= = =
--------------------------------------------------------
Total 1 1 2
--------------------------------------------------------
--------------------------------------------------------
EXXI Fiscal Year 2009 Drilling Results
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Gross Net Gross Net Gross Net
--------------------------------------------------------
Operated
--------------------------------------------------------
Oil 0 0 3 2.5 3 2.5
--------------------------------------------------------
Gas 1 0.35 0 0 1 0.35
--------------------------------------------------------
Injector 0 0 1 0.50 1 0.50
--------------------------------------------------------
Dry 3 2.45 0 0 3 2.45
--------------------------------------------------------
Non-Operated
--------------------------------------------------------
Oil 1 0.25 0 0 1 0.25
--------------------------------------------------------
Gas 0 0 3 0.71 3 0.71
--------------------------------------------------------
Dry 3 1.03 0 0 3 1.03
= ==== = = = ====
--------------------------------------------------------
Total 8 4.08 7 3.71 15 7.79
--------------------------------------------------------
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Success
Rate (Net) 15% 100% 55%
--------------------------------------------------------
--------------------------------------------------------
Exploration Development Total
--------------------------------------------------------
Onshore 6 4 10
--------------------------------------------------------
Offshore 1 4 5
= = =
--------------------------------------------------------
Total 7 8 15
--------------------------------------------------------
CENTRAL GULF HIGHLIGHTS
South Timbalier 21
During the 2009 fiscal fourth quarter, South Timbalier 21 (100 percent WI) net production averaged 5,977 BOE/d, down from the fiscal third quarter's 7,516 BOE/d net rate due to natural declines following completion of the field's fiscal 2009 drilling program. For the full 2009 fiscal year, South Timbalier net production averaged 5,770 BOE/d, compared with the 2008 fiscal year average of 7,900 BOE/d. The fiscal 2009 capital program included approximately $53 million for two development wells and 10 recompletions, down from about $80 million invested the previous year. The company expects to spend approximately $3 million in fiscal 2010 for eight rig recompletions that are expected to deliver strong volume uplift during the year.
EASTERN GULF HIGHLIGHTS
Fiscal fourth-quarter net production from the company's Eastern Gulf region averaged 7,619 BOE/d, an approximate 24 percent increase over the fiscal third quarter's average of 6,148 BOE/d. In fiscal year 2009, the company spent approximately $18.8 million on two development wells in the Main Pass 61 field (50 percent WI). Looking ahead at fiscal year 2010, the company has budgeted roughly $14 million in the field for three development wells, five recompletions, and three facilities.
SOUTH LOUISIANA ONSHORE / GULF COAST HIGHLIGHTS
During the fiscal fourth quarter, Onshore/Gulf Coast net production averaged 2,542 BOE/d, down from fiscal third-quarter volume of 4,202 BOE/d. In fiscal year 2009, the company spent approximately $4.5 million across its onshore assets. Due to the company's reduced capital budget in fiscal year 2010, additional funding in this region is being deferred.
GLOSSARY
Reserves and Resources:
Proved Oil and Gas Reserves - Proved oil and gas reserves are the estimated quantities of crude oil, natural gas, and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. Reservoirs are considered proved if economic producibility is supported by either actual production or conclusive formation testing. The area of a reservoir considered proved includes (A) that portion delineated by drilling and defined gas-oil and/or oil-water contacts, if any; and (B) the immediately adjoining portions not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of the reservoir.
Proved Developed Reserves - Reserves are categorized as proved developed if they are expected to be recovered from existing wells.
Probables - Probables are those unproved resources that analysis of geological and engineering data suggest are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved reserves plus probables. In general, probables may include (1) resources anticipated to be proved by normal step-out drilling where sub-surface control is inadequate to classify these reserves as proved, (2) resources in formations that appear to be productive based on well log characteristics but lack core data or definitive tests and that are not analogous to producing or proved reservoirs in the area, (3) incremental resources attributable to infill drilling that could have been classified as proved if closer statutory spacing had been approved at the time of the estimate, (4) resources attributable to improved recovery methods that have been established by repeated commercially successful applications when (a) a project or pilot is planned but not in operation and (b) rock, fluid and reservoir characteristics appear favorable for commercial application, (5) resources in an area of the formation that appears to be separated from the proved area by faulting and the geological interpretation indicates the subject area is structurally higher than the proved area, (6) resources attributable to a future workover, treatment, retreatment, change of equipment, or other mechanical procedures, where such procedure has not been proved successful in wells that exhibit similar behavior in analogous reservoirs, and (7) incremental resources in proved reservoirs where an alternative interpretation of performance or volumetric data indicates more resources than can be classified as proved.
Possibles - Possibles are those unproved resources that analysis of geological and engineering data suggest are less likely be recoverable than probables. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated proved reserves plus probables and possibles. In general, possibles may include (1) resources that, based on geological interpretations, could possibly exist beyond areas classified as probable, (2) resources in formations that appear to be petroleum-bearing based on log and core analysis but may not be productive at commercial rates, (3) incremental resources attributed to infill drilling that are subject to technical uncertainty, (4) resources attributed to improved recovery methods when reasonable doubt exists that the project will be commercial, and (5) resources in an area of the formation that appears to be separated from the proved area by faulting and the geological interpretation indicates the subject area is structurally lower than the proved area.
Other terms:
Barrel - unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.
BOE - barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.
BOE/d - barrels of oil equivalent per day.
Field - an area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.
MBBL - thousand barrels of oil.
MBOE - thousand barrels of oil equivalent.
MCF - thousand cubic feet of gas.
MMBOE - million barrels of oil equivalent.
MMCF - million cubic feet of gas.
PV10 - the estimated present value of the resource, discounted at a 10 percent annual rate.
Contact:
Energy XXI (Bermuda) Limited
Stewart Lawrence, Vice President, Investor Relations
and Communications
713-351-3006
slawrence@energyxxi.com
Collins Stewart Europe Limited
Nominated Adviser and Joint UK Broker
Piers Coombs
pcoombs@collinsstewart.com
Stewart Wallace
44 (0) 20 7523 8350
Pelham PR
James Henderson
44 (0) 20 7337 1500
james.henderson@pelhampr.com
Mark Antelme
44 (0) 20 7337 1500
mark.antelme@pelhampr.com
Related Headlines
- Beacon Equity Issues Technical Trading Overview for Energy XXI Ltd. - GlobeNewswire
- Energy XXI upgraded by Jefferies & Co - Briefing.com
- ENERGY XXI (BERMUDA) LTD Files SEC form 8-K, Entry into a Material Definitive Agreement, Financial Statements and Exh - EDGAR Online
- ENERGY XXI (BERMUDA) LTD Files SEC form 8-K, Other Events, Financial Statements and Exhibits - EDGAR Online
- Energy XXI Sets Conference Call to Discuss Gulf of Mexico Acquisition - GlobeNewswire
Related Blog Headlines
- Duane Grubert: Gas Wants a Wicked Cold Winter - at Seeking Alpha
Sponsored Links
-
Trade Stocks? Try Currency Trading
Trade in a highly trending market 24-hrs a day, 5.5 days a week. GFT. -
Earn From 1.90% to 2.20% Apply Online
With GE Capital Corporation. Not An Offer Of Securities For Sale.
-
Buy Stocks for $4
No account or investment minimums. No inactivity fees. Start Today. -
Super Cheap Car Insurance
Get Discount Car Insurance Quotes Online – Rates from $15 / Month.
Tech Ticker Recent Posts
Add Alert Copyright © 2009 GlobeNewswire. All rights reserved. Redistribution of this content is expressly prohibited without prior written consent. GlobeNewswire makes no claims concerning the accuracy or validity of the information, and shall not be held liable for any errors, delays, omissions or use thereof.