John D. Schiller, Jr., Chairman, President and Chief Executive Officer of Energy XXI (ticker: EXXI), presented today at EnerCom’s The Oil & Gas Conference® 20.
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 offshore Gulf of Mexico and the Gulf Coast onshore.
In an operations update on August 13, EXXI placed fiscal 2015 guidance at 54 to 59 MBOEPD on capital expenditures of $130 to $150 million. Liquidity as of July 31 was $875 million, including $750 million in cash, and the company has identified more than 25 projects for uplift in fiscal 2016.
During the company’s breakout session, management was asked the following questions:
- The 2016 capital budget plan will be announced Friday. How much cash burn would you like and what is your priority? Do you plan to buy back bonds in open market?
- Can you give us some color on reserves?
- Can you give a comment on CAPEX strategy, especially for P&A which is only 35%? Why did you give it such a low number?
- In your press release from November, you mentioned bonding. Can you talk more about bonding and P&A costs?
- What do the reserve adds look like?
- Based on your estimate, what is your forecast of activity level?
- Where does your bank coverage and liability stand on your balance sheet?
- Can you walk us through the P&A process?
- Are there any M&A opportunities in the Gulf of Mexico?
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