Current EXXI Stock Info

Q3 highlights

  • Produced an average of approximately 32,600 BOEPD, of which 77% was oil; weather reduced production an average of approximately 1,200 BOEPD
  • EXXI reported a net loss of $31.6 million or ($0.95) loss per diluted share
  • Potential 2018 drilling program
  • Total revenues for Q3 was $117 million
  • EXXI reported eight recompletions, finished in the first nine months of 2017. Three to four recompletions are planned for Q4 2017

Energy XXI Gulf Coast’s CEO and President Douglas E. Brooks said, “We brought online our first new well in nearly two years.  The West Delta 30 High Tide well, which we operate with a 100% working interest, came in about $1 million under the authorized expenditure for the well and is currently producing 650 BOEPD. We remain confident in our inventory of approximately 50 potential well locations that are available to us in the future.”

No difficulties were encountered drilling the well and the total vertical depth reaches 8,500 feet. EXXI is in discussions to secure a rig and begin an early 2018 drilling campaign. EXXI anticipates at least five to eight wells, focusing on core areas.

Q4, full year guidance

Q4 Guidance

EXXI said, “We will look at potentially divesting non-core assets and the associated abandonment on liability, which would allow us to focus our capital, our people and our efforts on the core properties in our Central Gulf of Mexico.”

Pipeline repairs and maintenance caused by Hurricane Nate will reduce Q4 volumes by 4,000 to 5,000 BOEPD. One pipeline issue still needs to be fixed and repair efforts are currently underway.

Drilling and completion capital

EXXI has two different plans for drilling and completion. The “Base Plan” is conservative numbers-wise, with lower well counts and controlled costs, whereas the “Accelerated Plan” calls for more wells and more spending.

The Preliminary Base Development Plan includes 5-8 wells in 2018, costing $60 – $90 million, then 6-12 wells in 2019, costing $60 – $130 million. The Preliminary Accelerated Development Plan increases the well count to 8-12 in 2018 and is projected to cost $80 – $130 million. In 2019, the Accelerated Plan calls for 15-20 wells that will cost anywhere from $150 – $200 million.

Under the Base Plan, one rig is scheduled to be deployed in Q2 2018 and another rig will continue to drill through 2019. EXXI does not plan to spud any additional wells before year end.

Grand Isle consolidation

EXXI’s large shore base facility at Grand Isle cost the company $700,000 to $1 million per month for fuel, boats, helicopter, and housing. EXXI decided to consolidate Grand Isle with Port Fourchon, improving coordination, minimizing costs, and reducing necessary manpower. EXXI expects to save an estimated $250,000 to $500,000 per month from consolidating.

Operations Map

Conference call Q&A

Q: You said that the timing and financial market conditions are currently not optimal for a consolidation in the Gulf of Mexico. Can you go on a little bit more detail, is it because everyone has their own balance sheet issues that just sort of get in the way, is it more of a bid-ask disconnect, or something else?

EXXI: Because of confidentiality here, or non-disclosure agreements, I can’t give you give you a lot of details about the counterparties, but suffice to say that the obvious counterparties we talked with given the environment when we started this in March was in the low 50s and actually dropped into the upper 40s, balance sheets were seriously constrained and there were challenges throughout the summer.

Now as we’ve moved back up into the mid to upper 50s, we, like others, are highly levered to oil prices. And as this gets closer to not only ours, but others’ breakeven. I would say that it was as much about their financial condition and drivers and less so about ours. We offer a very clean balance sheet. We offer $175 million in liquidity plus or minus and a good board plan. And so, it was critical that we not signal to the street or to counterparties that in favor of standalone that we’ve shut down all dialogue, we’re welcome to the dialogue. But any specifics beyond that, really is too much into our discussions with counterparties.

Legal Notice