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Energy XXI announces fiscal year-end results

Houston-based Energy XXI (ticker: EXXI) announced its 2015 year-end fiscal results today. According to a press release from the company, production remained stable into fiscal first quarter at approximately 58 MBOEPD (71% oil weighted), while the company lowered per barrel costs through a 30% reduction in LOE and a 36% reduction in G&A.

For the Energy XXI’s 2015 fiscal fourth quarter, the company announced adjusted EBITDA of $121.8 million on revenues of $219.5 million, as production volumes for the quarter averaged 59 MBOPD (71% oil). These results compare with 2014 fiscal fourth-quarter adjusted EBITDA of $184.1 million on revenues of $301.3 million and volumes of 46,100 BOEPD (69% oil). The company reported a loss of $1.7 billion, or $17.92 per diluted share.

For the full fiscal year ended June 30, 2015, adjusted EBITDA was $760.5 million, compared with $729.7 million generated in fiscal 2014. Fiscal 2015 net loss attributable to common shareholders was $2.4 billion, or $25.97 per diluted share, on revenues of $1.4 billion and production of approximately 59 MBOEPD.

“As an organization, we responded aggressively to the challenging commodity price environment in fiscal 2015. We focused on our low risk assets, including horizontal drilling and recompletions, which allowed us to maintain production and arrest base declines,” Energy XXI Chairman, President and Chief Executive Officer John Schiller said. “Our operations team is doing an excellent job of reducing costs in the field and delivering development opportunities that offer attractive yields in today’s commodity price environment and we continue to practice capital discipline across our operations. We are actively managing our balance sheet and our liquidity. We continue to focus on reducing our debt and to date we have retired over $425 million in face value of debt lowering our projected annual interest expense by over $32 million.”

Energy XXI’s results for the fiscal fourth-quarter and fiscal year-end 2015 were significantly impacted by non-cash ceiling test write-downs of oil and gas properties, the company said.

In its press release, Energy XXI said it has $679 million of liquidity, with $124 million available on its $500 million revolver. Proved reserves are estimated at 183.5 MMBOE.

The company’s proved reserves are all in the Gulf of Mexico or U.S. Gulf Coast, 68% are proved developed, 75% are liquids (of which 95% is crude oil and condensate), and 25% are natural gas. Year-over-year proved developed reserves, as a percentage of total proved reserves, increased by 7%.

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