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High oil prices have been good for business for the energy explorers. Energy XXI (Bermuda) Limited (EXXI) reported a record fiscal first quarter in October. This Zacks #1 Rank (strong buy) is still a value, with a price-to-book of just 1.9.

Energy XXI is an oil and natural gas exploration company with its core properties in coastal and offshore Louisiana.

The company has grown through acquisitions and now has more than 116 million barrels of oil equivalent (BOE) of proved reserves and about 42,000 BOE per day of production. 67% of that production is oil.

Energy XXI Beat By 28% in the Fiscal First Quarter

On Oct 26, Energy XXI reported its fiscal first quarter results and blew by the Zacks Consensus by 14 cents. Earnings per share were 64 cents compared to the consensus of 50 cents.

Oil was 69% of the quarter's production and 90% of the pre-hedge revenue in the quarter. The company also collected nearly $50 million during the quarter by monetizing crude oil swaps.

Energy XXI also completed the multi-well recompletion program at South Pass 89. Gross production in the field rose to more than 6,000 BOE/D from 700 BOE/d by working over 7 wells.

Zacks Consensus Estimates Rise

In the last 30 days, the analysts seem a little conflicted about the direction of earnings for fiscal 2012. 1 estimate has moved higher and 1 lower in that time period.

However, the fiscal 2012 Zacks Consensus has actually moved higher by 16 cents to $2.99 per share. That is earnings growth of 174.6%.

Double digit earnings growth is also expected for fiscal 2013 as 2 estimates have moved higher and 1 lower in the last month.

The 2013 Zacks Consensus Estimate rose to $3.48 from $3.38 in that time period. That is further earnings growth of 16.3%.

Single Digit P/E

Shares had been on a 2-year tear but sold off during the summer. The solid Q1 earnings report in October again lit a fire under the stock.

But there's still a lot of value. Energy XXI has a forward P/E of just 9.3. That is well under its peers of 12.5.

The company also has a solid 1-year return on equity (ROE) of 16.5%.

With the explorers, it's all about production and the price of crude. Energy XXI is cashing in on both of those components right now.

Read the full analyst report on EXXI.

Source: Energy XXI (Bermuda) Limited: Still A Value