Energy XXI Breakout Notes
Scott Heck, COO of Energy XXI., (ticker: EXXI) presented today at EnerCom’s The Oil & Gas Conference® 22.
Energy XXI is a Gulf of Mexico focused oil producer with 439,294 net acres and an additional 143,208 undeveloped net acres. The company is undertaking completions activities on existing wells, with over 100 identified completions projects.
During its second quarter, EXXI produced approximately 36,000 BOEPD—75% of which was oil. The company successfully drilled its first well in its 2017 development program—the West Delta 30 L-14 ST2 High Tide well. The company reduced its capital spending budget to $125 million from $155 million.
During the company’s breakout session, management was asked the following questions:
- How do you see consolidation with other operators over time?
- Is anyone chasing the deep shelf anymore?
- Can you talk about the uplift you get from a workover?
- With the “relaxing” of restrictions offshore, talk about your P&A liabilities?
- How long do you expect current cash balance will fund your CAPEX?
- How would you characterize your focus on reduction of 18% of staff?
- Operators services such as helicopters and boats, are they willing to work with you to reduce cost? Are fast boats an option versus helicopters?
- Have you considered Lean Six Sigma type operations?
- You said in your presentation that the decline on gas cumulative production was due to natural decline. Does it have an effect on reserve?
- Was the oil decline also natural?
- Any other projected issues for next year?
- Would that accelerate any P&A on the wells?
- How many wells had to be shut in?
- Tie back capabilities have an effect on P&A liabilities?
- With the P&A liabilities, have you seen any change on the services cost?
- Any opportunities to accelerate P&A that are not producing to avoid future cost or any liability issues on those?
Energy XXI presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
