Feb 08th 2013 - Edison Investment Research today published a report on Energy XXI (Bermuda) (EXXI.L, LSE:EXXI, LON:EXXI) entitled "Stormy Waters". In summary, the report says:
Energy XXI is the largest of the pure Gulf of Mexico (GoM) shallow water shelf plays. A growth strategy based on “acquire and exploit” has driven >40% pa production growth in recent years, the majority from acquisitions including a $1bn mega-deal with Exxon in 2010. However, the focus is now on stabilising the production base ahead of further organic growth. Well performance, ageing infrastructure and hurricane damage have all affected production in recent months. With margins and cash flow generation highly sensitive to both on-stream utilisation and hydrocarbon mix, Energy XXI needs a strong six months to get growth back on track.
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